Australia's retirement funds are increasingly merging to gain scale and investing heft. But these consolidations offer investing challenges that need to be overcome.
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.
As central banks provide further artificial support for listed assets, some asset owners have indicated that they may increase their exposure to unlisted assets.
The impacts of the pandemic have been more significant for some pension funds than others, prompting renewed talk of mergers between smaller funds.
Superannuation funds tell AsianInvestor how they are dealing with the uncertainty in investment markets as pension scheme members seek to withdraw funds.
The Australian sovereign fund remains cautious but is positioned for buying opportunities as its diversified strategy shows its worth.