Comment

The dominance of the share market’s heavyweights over the past three years is making valuations further down the line look attractive again.

A Coalition Government will want to curb the union role in superannuation, especially in the industry funds – the largest superannuation sector at nearly $1.5 trillion. Setting up a royal commission to achieve this end will be overkill.

The power of in-depth, fundamental research into companies and broader sectors and trends to generate alpha remains a compelling argument for active investment strategies.

While private credit funds have attracted much-merited attention, conducting a thorough due diligence is challenged by how portfolios are managed and constructed, let alone the risk of potential defaults. The deflective reply to investor queries about this is often akin to, “look at our past returns, we clearly know what we’re doing”.

The employer-employee split worked well when not-for-profit funds were in their infancy. Today, in an era of member choice and the growing demands of retiree members, it’s a model that fails to cut the mustard.

It’s been an astonishing two years for US equities, but the same can’t be said for global asset markets. 2025 could be a year to explore out of favour markets, according to Ruffer’s Jasmine Yeo.

All strategies work – until they don’t. While the hottest ticket in town is still private credit, is it everything it’s cracked up to be?

This year’s top 10 stories included a peek into AustralianSuper’s international equities build out in London, AMP’s move to slash employee benefits, and plenty of hard-hitting analysis of the issues that matter in institutional investment. But the real story is how readers helped shape all of that coverage.

If 2024 showed us anything, it’s that super funds have to become more than accumulation machines if they want to maintain their status as the trusted guarantors of most Australians’ financial future.

The vigilantes aren’t back – yet. But the United States’ fiscal position is worse and the spectre of inflation has returned, and this time they would have a much stronger case, according to Ruffer’s Steve Russell.

Capturing structural growth potential is not easy, but in uncertain markets, it’s essential, according to Ninety One. Investors are eager to explore the opportunities in artificial intelligence, and exposure to higher quality companies can successfully position them for an AI-driven future.

The Albanese Government’s tweaks to the Future Fund’s mandate might be measured and well-intentioned, but will inevitably reduce confidence in its ability to fulfill it by introducing uncertainty around where its priorities lie.