With volatility a strong theme of markets and economies over 2022, some investors have de-risked their portfolios and lost their stomach for riskier emerging markets investments but Alex Khosla, emerging markets and Asia equities portfolio manager at sustainable investment manager Newton Investment Management, argues emerging markets still offer value if you know how to find it.
Real assets embedded in listed companies are providing opportunities for alternative asset managers seeking to capitalise on the dislocation and volatility in listed markets.
The $75 billion construction industry super fund Cbus is looking to step up its investments in green energy both in Australia and offshore, according to chief investment officer Kristian Fok as the fund expands its direct investment capabilities to manage more of its investments inhouse.
The global financial services industry has a key role in helping to mitigate biodiversity loss amid growing investor awareness of the major risks such loss imposes on businesses.
Hedging and diversification are critical for portfolios now, but investors must not confuse diversification as a hedging tool, say super fund and asset management strategists.
Fund managers need to construct robust multi-asset portfolios with both defensive hedges and alpha-generating assets as well as stabilising investments that can produce non-correlated returns in the current inflationary environment.
Responsible investments in Australia hit a record $1.54 trillion of assets under management in 2021 according to the latest report from the Responsible Investment Association of Australia. The growth of the market has continued apace as climate change and sustainability tailwinds affecting all parts of the economy continues to build momentum.
Australian superannuation funds could look at stepping up investments in emerging markets such as Indonesia, if they can get Federal government backed insurance for higher risk investments which may be seen as furthering Australia’s “strategic objectives”.
A bid led by the RoZetta Institute is seeking funds from the Commonwealth government for a 10-year research project into the super industry and retirement income involving both academic and private sector partners.
The transition to renewable energy will be “volatile and complicated” like other major transitions in history, and spikes in demand and pricing for coal, oil and gas are likely over the near term, according to an expert in global resources strategy.
The proposed changes in the Quality of Advice Review led by Michelle Levy are likely to encourage super funds to expand their financial advice services to members.
Companies and funds must grapple with growing regulatory and disclosure requirements that add to complexity, time and costs. Michael van Niekerk of Peakview Strategy summarises the relevant regulatory frameworks.
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Investment Magazine provides in-depth, monthly analysis of trends and developments for all the businesses in which superannuation funds engage‚ including asset allocation, investment manager selection, custody and fund accounting, member administration, group insurance and compliance.
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