YFYS Challenges: Sustainability, Capacity & Volatility 2022 | [i3] Investment Innovation Institute | 8 June 2022 | Online

The confluence of issues currently facing superannuation funds is driving them to consider new approaches to portfolio management, especially within equities. A conversation that was historically solely focused on alpha generation has expanded to cover additional objectives.

Whilst some of these additional objectives have originated from underlying investors, and others have been introduced by regulators, all of which bring accelerated demand and pressure to create solutions that can effectively manage active risk, provide scalable excess returns and integrate sustainability.

The introduction of Your Future, Your Super (YFYS) Reforms in 2021 has significantly affected key aspects of how superannuation funds manage and design their investment portfolios.

This is all happening against an economic backdrop of rising inflation and interest rates – a financial market scenario that we haven’t seen for decades.

We will provide an overview of the different objectives that Australian investors are currently facing and how they can achieve these multiple objectives, all while navigating a volatile and unprecedented macro environment.

The multi-objective challenges include:
• Cyclicality: The YFYS performance test
• Capacity: Balancing scalability with capacity
• Sustainability: Integration of sustainability
• Volatility: Managing opportunities with uncertainty

2022 Speaker

Scott Bennett
Head of Quantitative Investment Solutions APAC, Northern Trust Asset Management