Analysis

Despite authorities taking their foot off the environmental, social and governance pedal and recent volatility in equities and bonds, the benefits of Artificial Intelligence and improved investor transparency are just beginning.

While the repercussions from ‘Liberation Day’ are still playing out, there can be little doubt it’s a more complex investment environment in which macro conditions, policy actions and asset-level fundamentals will interact in increasingly idiosyncratic ways.

Listed property, which found investor favour in 2024, is better positioned to weather market volatility with institutions eyeing improving valuations and development opportunities. For overseas players, a weaker Australian dollar is a bonus.

Central banks have performed admirably to get economies back on track, but a public that is far less-trusting of big institutions and traditional asset classes remains unconvinced. US President Donald Trump’s trade policies are simply fuelling their fears.

A high US January CPI number rattled the markets before the Producer Price Index (PPI) calmed investor waters. A closer look at the data, however, shows a far from rosy picture, especially with President Donald Trump’s policies likely to push prices higher.

A world where animal spirits are running wild is also one that has temporarily divorced from fundamentals. Experience tells us this often doesn’t end well. 

The chief executive of the $40 billion fund says that bringing back defined benefit funds could make the public service an attractive career path again and strengthen the social compact with nurses, teachers and police.

Longview Partners was on the bleeding edge of machine learning adaption in funds management. But it’s mostly steered clear of the AI boom that’s taken markets by storm.

The Future Fund had a relatively rosy 2024 but is sticking with its prediction that the global economy will become more fragmented and difficult to navigate for even the largest and most sophisticated institutional investors.

The global hedge fund sector saw net outflows across most strategies over 2024 despite racking-up its best calendar year performance in more than a decade.

Super’s biggest problem likely lies within funds themselves, with many using legacy operational infrastructure ill-suited to the needs of the major financial organisations they’ve become.

The world’s largest sovereign wealth fund just made its largest return ever. But the probability of extreme market events has “arguably risen”, and it’s carrying out stress tests for a more uncertain future.