The next 15 years will be “difficult and more challenging” for fund managers than the last 15 years,” says Craig Dunn, chief executive of AMP Ltd.

“Are we in the best position?” asked Dunn.  “Chant West says that over the last 15 years the median return of a balanced fund has been more than 4 per cent above the rate of inflation. The biggest challenge is to do the same again. I truly believe we’re at a watershed in the industry.”

Dunn says recent global stock market falls have depressed him.

“I’ve stopped looking at the screens,” he says. “It’s too depressing.”

But Dunn urges fund managers to keep a cool head.

“We must do everything we can to keep people calm,” he says. “We should not overreact to the short-term.”

Dunn says he’s not surprised by Australians putting their money into bank deposits.

“We are more exposed to equity than any other pension market in the world,” he says. “It’s quite hard to get excited about growth in the short to medium term.”