Australia’s superannuation fund sector has undergone significant changes in recent years, driven largely by growing regulatory and stakeholder demands. As a result, members expect greater transparency of their investments and want to ensure they align with their personal value systems.

The challenge for funds is to provide outcome-based solutions that address individual preferences. Traditional portfolio management approaches that allocate to specific asset classes were not designed to deliver these types of outcomes.

In this article, we discuss how forward-looking funds are taking a total portfolio approach by shifting from asset class to risk factor exposures and promoting a collaborative culture across their investment teams, focused on delivering targeted outcomes.