Superannuation funds will continue to insource investment management, particularly if they have sufficient scale but they need to be aware of the risks.
Insight Investment Multi-Asset Strategy Geouo portfolio manager, Steve Waddington told the Conference of Major Super Funds (CMSF) that scale was a key determinant for organisations looking to insource asset management but they needed to measure their capability.
He said organisations had to consider how much they could bring in house and how long they could hope to be successful in challenging markets.
Answering a question from the floor during a session on investment strategy through a period of lower returns for longer, Waddington said the key was likely to be having the necessary expertise to manage investments through challenging periods.
However he said he believed the insourcing trend would continue with the risk for funds being the ability to retain the right people to continue to succeed.
The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update.
Australia is becoming increasingly recognised as an attractive investment opportunity against global counterparts, recent analysis has found.
Pension funds in Australia and the UK are embracing recent developments that will facilitate the deployment of superannuation capital toward the energy transition in both countries.
With the Goldman Sachs’ S&P 500 long-term outlook occupying headlines over recent days, an Aussie economist has weighed in, noting that, while difficult to time, the US market is poised for a downturn.