As super funds evolve, their needs as limited partners also change, according to Aware Super deputy CIO Damian Webb. And how Aware accesses its investments will differ significantly across asset classes.
Climate investing is here to stay, Robeco says – but while the direction remains the same, “the pace is changing”. Asset owners want decarbonisation, but they want alpha too.
When the government’s intervention in the local energy market leads to reduced supply, that’s the time to invest rather than to draw back, the Fiduciary Investors Symposium has heard. Asset owners at the symposium were also told that they might need to ‘have a little bit of a look’ at how they execute in the renewables market to make sure they’ve got it the right way around.
If the investment team operates in isolation of all the other teams that play a part in meeting a fund’s Retirement Income Covenant obligations, it’s a recipe for failure, according to a panel at the Fiduciary Investors Symposium.
Barrow Hanley is cutting exposure to US markets where valuations have become increasingly stretched despite strong company fundamentals and switching into Europe, Japan and emerging markets. The manager warned that AI’s ability to be monetised is still “an unproven bet”.
The Actuaries Institute has urged the government to get on with the job of finishing its Delivering Better Financial Outcomes reforms and move on to the introduction of “guidance” as a bridge for super funds to use between fact- or information-based help and full-blown financial advice.
Designing the retirement experience to meet the real needs of members requires collaboration across the ecosystem, and focusing on meaningful simplicity will provide many Australians with clear pathways to the dignified retirement they deserve. That means making every choice as straightforward as possible and supporting members at each step.
Super fund investments in private markets have helped members and the Australian economy, but they must keep working to balance their need for diversification and performance with any “heightened risk”, according to a long-awaited ASIC report into the sector.
As the AI boom finds its way out of asset owners’ equity exposures and into their real asset portfolios, they need to keep a close eye on the rate of technological change to make sure they don’t get left behind.
As volatility tests traditional portfolios, asset owners are rediscovering hedge funds despite some roadblocks. But they need to be aware of both what they own and why they own it.
Rather than the typical short, sharp surge in bond prices resulting from recession, this time will be different: a prolonged moderate return bull market against a backdrop of mild growth and slowly decelerating inflation, PGIM’s Robert Tipp told the Fiduciary Investors Symposium.
The $85 billion Mercer Super is looking to grow through acquisitions, and CIO Graeme Miller says the fund has both the “balance sheet and track record” to follow through on that aspiration.
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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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