A significant chunk of asset owners are certain that climate investing means lower returns. After a year like 2022, it might be tough to convince them otherwise.
This won’t be an environment where a rising tide will lift all boats, according to Magellan’s new CEO. But lifting this one will be a gargantuan task.
A Texas snowstorm holds hard lessons for Australian super funds. And as their nation-building rhetoric intensifies, they’ll have to remember that offshore funds will want a piece of the pie too.
The Your Future Your Super (YFYS) performance test introduces systemic risk into superannuation and discourages the involvement of funds in nation-building projects. But tweaking the test itself might be a tall order.
The previously (relatively) low hurdle of a CPI+ return objective is going to be harder to leap in the future. It might be time to return to the old stalwart of cash.
The “embers of optimism” are fading every day, and the $30 billion Equip Super is preparing for the big one. Still, there’s hope – however small – that the worst may be avoided.
It’s not quite over, but the dislocation in equity markets and forced selling is leaving plenty of bargains on the floor. Super fund CIOs will be particularly glad for “the strongest tool in their kitbag”.
As super funds swell to gargantuan size and downward fee pressure intensifies the heat will be on all funds to rein in significantly outsourced investment models.
One number will never tell the whole story, and a new and improved performance test could comprise as many as nine metrics, according to Chant West. This time around, Treasury is actually listening.
For all the risks that lie up ahead, the market is pricing very few of them in. But the situation in the United Kingdom should be a warning to investors of the “accidents” that may come.
