Raphael Arndt, CEO of the Future Fund, said high asset prices are forcing his organisation to build liquidity and consider lower returns. He also worries about rising income inequality.
Industry observers believe asset owners could increasingly turn to low fee passive funds and potentially back off from risky vehicles if new fund rules are introduced next year.
Following the launch of a new initiative, funds like Cbus and Australian Ethical explain how they are working to reduce their portfolio emissions and engage with investee companies.
With no end in sight to the fund merger trend in Australia, funds of under $1 billion in size are under greater pressure to show their worth. There are ways they can do so, say experts.
Amid Australia's first recession in 30 years, the sovereign wealth fund said it rebalanced private assets and used FX, interest rate and duration exposures, but still recorded a loss.
Equity market optimism is undimmed among some CIOs at Australia's superannuation funds. But with markets priced to perfection, questions are raised about future returns.