European property is out of vogue with Asian investors like Australian super funds, while US and Asia remain attractive, say experts.
Asset mix remains steady as real assets, factor investing and credit allocations outperform.
New regulations mean a single large allocation to an impact fund could risk creating underperformance across the fund as a whole making them too risky for smaller funds, say analysts.
This reluctance contrasts sharply with large allocations by New Zealand super funds and increasing interest from Asian investors.
Up to 70% of newly deployed assets will be managed offshore, as the superannuation fund continues to grow its offices overseas.
Munich Re appoints Tobias Frenz as Singapore CEO; CareSuper appoints chief risk officer and chief experience officer; Sun Life names general manager for life and health in Hong Kong; Eastspring makes senior appointments; Kit Georgeos leaves AMP Capital; BNP Paribas appoints head of client development for Southeast Asia securities services; and more.
Even funds that aced the regulator’s performance test are under pressure to merge with similar funds to tap economies of scale.
Changing market dynamics are highlighting for investors the potential cost of their disproportionate focus on equity risk, according to market experts.
Experts say the drive for consolidation of smaller super funds into a few mega funds misses a key consideration of the role of superannuation: investor engagement.
Major asset owners, such as APG, NZ Super and AustralianSuper, are looking to invest in data centres in Asia even as the demand for these assets outstrips the current supply.
In the war of words in the lead up to an Australian federal election, super funds are often political collateral damage. Keeping out of the fray is smart, they say, but making a stand is just as important.
Australia's super fund industry looks set to consolidate further as small funds are under continued pressure to perform or amalgamate.