“These financial cleansings are really important to how you set up asset markets; they’re really important for how the Fed regains credibility; and they’re very important for curbing excessive risk-taking.”
Performance concerns for sustainable investing have risen to the fore as the Your Future Your Super (YFYS) test shortens investment horizons. The wider return outlook is more challenged too.
“In general, it is a healthy environment for hedge funds, with allocation from institutional investors expected to rise. As markets brace for uncertainty, investors expect hedge funds to offer positive returns while reducing portfolio risk.”
The hunger for sustainable investing continues apace with Perennial winning a $100 million mandate from Mercer Investments for its Better Future small- and mid-cap strategy.
Super fund members have been “spared the worst”, while the outperformance of the top ten funds was generated by active management and chunky allocations to private markets.
Australian investors are finally warming to Japanese equities after years of avoiding them for “good macro reasons.”
Recent market moves won’t be the end of ESG, but it’s as good a time as any to remind investors that there’s more to it than exclusion.
With investments in everything from music royalties to litigation financing, international private markets manager Northleaf is exploring a “robust pipeline” of deals Down Under.
“When it comes to super, all the evidence points to the more you pay, the less you get. There’s lots of reasons for that, the most fundamental of which is that active management really struggles to outperform the market.”
The end of supportive monetary policy is bringing wild market volatility with it, and the old impulse to “buy the dip” will no longer be rewarded.
