Institutional investors continue to diversify beyond equities and fixed income to include infrastructure, private equity and real estate in their portfolios. But investment and operational complexity is rising as this shift occurs, new research has found.
Pension funds are hunting for more income as they approach a retirement tipping point. But do cash flow-generating assets and portfolio insurance buy stability, or are they a “behavioural sleight of hand”?
UniSuper was a pioneer of investment internalisation Down Under and has brought 75 per cent of its $150 billion FUM in house. But sixteen years after it began the process, it’s still the subject of scepticism.
Prime Minister Anthony Albanese has said the government will establish a critical minerals strategic reserve that could be made available to favoured countries. But critical minerals projects in Australia are owned by private sector companies – whether they be Australian or overseas-owned corporations – and the government should not be promising the commodities that may be extracted from them to overseas governments or any other parties.
Cyberattacks and geopolitics are both outside super’s traditional bailiwick, but funds will have to come to grips with them to do their best for members in a world marked by more volatility and uncertainty.
CFA Institute president and CEO Marg Franklin and institute chair Marshall Bailey shared their views on geopolitics, AI and private markets at last month’s CFA Society Australia Investment Leader Forum in Sydney. They also reflected on the association’s COVID-19 experience, which revealed major risks and shortfalls in its value and service proposition, leading to radical changes.
Australian Retirement Trust, Rest, Hostplus, AustralianSuper and Insignia were hit by a large and co-ordinated cyberattack last Friday that compromised thousands of accounts and led to some members losing retirement savings. The criminal activity follows multiple warnings to the $4 trillion sector from regulators and experts.
The impact investing sector needs institutional capital if it is to tackle society’s environmental and social challenges. But super funds are looking for more.
The $16 billion Future Group punches above its weight when it comes to forming public opinion and shaping policy on sustainability and ESG issues. Chief investment officer Ed Tomlinson says a trust-based team approach and an ongoing commitment to allowing employees to work from home help it to foster the values it needs to be effective.
ASIC chair Joe Longo says that super trustees ignored “years of warnings” on service standards and failed to invest in systems for supervision of outsourced administrators. But elsewhere, his preference is for less regulation, not more.
In the aftermath of its bombshell report into death benefit claims handling, the corporate regulator says that it will “hold feet to the fire” to ensure members get a better outcome. But with service standards already lifting, it may not have to.
A growing number of asset managers have fled collective action on tackling climate change, but many asset owners remain committed to climate-related targets and as they grow in size and influence they will inevitably become more selective in the managers they deal with. It could also mean that as super funds shovel more of their members’ money into the US they will need to dial down their own sustainability rhetoric if their asset managers cannot deliver on it.
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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.
We acknowledge the Traditional Custodians of this land upon which Conexus Financial sits, the Cadigal of the Eora Nation. We recognise their continuing connection and unique cultural and spiritual relationships to the land, waters and community. We pay our deepest respects to them and their culture, and to Elders both past and present.
