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.
The dominance of the share market’s heavyweights over the past three years is making valuations further down the line look attractive again.
A key architect of the compulsory retirement savings system lauds its many achievements, stretching from the national economy to the individual. Where it’s double faulting is in serving members – and it needs to be addressed promptly.
With performance and diversification driving demand, these funds are expected to experience four-fold global growth over the next decade to nearly $AU65 trillion.
With the introduction of MySuper, it seemed investment options based on a person’s age would be the wave of the future. While there were some early adopters, the balanced approach has remained the preferred option.
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.
Varun Laijawalla from Ninety One shares insights with James Dunn from The Inside Network on what investors are suited to emerging markets.
Alex Lennard from Ruffer shares insights with Laurence Parker-Brown from The Inside Network on whether the previous strategies will continue well in a new regime.
Wenchang Ma from Ninety One shares insights with James Dunn from The Inside Network on any substitute for going out and meeting companies on the road.
Alison Shimada from Allspring Global Investments speaks to Giselle Roux from The Inside Network on responsible investing in EM.
Hostplus’ young demographics and the mandatory nature of superannuation means it gets “a free kick before every game”. But CIO Sam Sicilia says funds must keep questioning the assumptions that underpin the superannuation system and their relationship to it.
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.
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.
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