Throughout 2024, bfinance observed a marked uptick in investment search activity, as reported by Fithjof van Zyp, Australia’s senior director. This robust trend persisted into the year's third quarter, spanning diverse asset classes in both public and private sectors.
The reassessment includes consideration of absolute return strategies in fixed income, targeting global equities with minimized tracking errors aimed to fit into YFYS test requisites. Additionally, super funds are keenly exploring semi-liquid infrastructure options attractive to high-net-worth clients, alongside deploying liquid alternatives to manage downside risks strategically.
"An ongoing focus on management fees remains paramount for our clients in the superannuation sector," van Zyp stated. "Evaluating transaction costs comprehensively to capture an all-inclusive view of expenses is critical."
Parallelly, there has been a growing integration of Environmental, Social, and Governance (ESG) factors into investment decisions. "The enhancement of socially responsible investing (SRI) policies demonstrates significant progress compared to previous years," van Zyp noted.
The analysis from bfinance also indicates investors' intensified interest in expanding regional and stylistic diversification within their portfolios. By balancing their market placements, funds aim to mitigate the risks associated with market centricity.
During the third quarter, activity was strong in sectors like fixed income, private debt, and infrastructure, essential components being strategically realigned to bolster portfolio resilience. This approach underscores the importance of strategic asset allocation among investors keen on sustaining robust performance metrics.
The insight provided by bfinance echoes findings from the latest market trends report, reiterating the importance of diversification and costs as pivotal factors within current super fund investment strategies.
