With a shrinking member base, Local Government Super was facing small fund purgatory. A facelift changed its fortunes.
Australia’s largest homegrown asset consultant is plotting an expansion further beyond its traditional superannuation clients, while consolidation in the industry is changing the way they work.
The free money era in which the transition to renewable energy could have been dirt cheap is over. But after Russia’s invasion of Ukraine, the world has a golden opportunity to get the job done.
While the debate around the use of super for nation-building projects like affordable housing rages, HOPE Housing is working on a new way for funds to get involved.
Big super funds are getting even bigger. But as consolidation continues – and stapling kicks in – they’ve got a new problem that can’t easily be overcome: they’re more alike than different.
How institutional investors generate returns now needs to change, according to a position paper from the Future Fund, with the very foundations of Modern Portfolio Theory shaken by the events of 2020-22.
Institutional investors the world over are increasing their allocations to private equity, even though they don’t know how much risk they’re taking on. And in 2023 they expect ESG stocks will underperform.
Howard Marks doesn’t place much weight in macro forecasts, but has helpfully provided one of his own for the years to come. In his view, nearly everything that used to work won’t work now.
Institutional investors are mostly unaware of what’s dragging on their performance, according to analysis by Northern Trust Asset Management. Having too many managers with the same style is part of the problem.
A small handful of new benchmarks would make alternative strategies viable under the YFYS performance test and once again allow funds to take advantage of their diversifying characteristics.
