A key architect of the compulsory retirement savings system lauds its many achievements, stretching from the national economy to the individual. Where it’s double faulting is in serving members – and it needs to be addressed promptly.
With performance and diversification driving demand, these funds are expected to experience four-fold global growth over the next decade to nearly $AU65 trillion.
2024 Capital Market assumptions: scenarios and asset return forecasts for the next decade by Amundi
Delays in climate policy, rising geopolitical tension and the adoption of Artificial Intelligence (AI) are reshaping the long-term economic pathway. The evolution of these trends and the impact of high valuations in some areas will determine future expected returns. Bonds as a portfolio engine are back, while equity will see a reversal with the renewed appeal of global and Emerging Market equities. Emerging Market bonds, Hedge Funds and Private Debt will also become more attractive thanks to their diversification benefits.
