WATCH: Pension-fund and asset-allocation trends in a time of uncertainty

Pension-fund trustees, asset managers and financial consultants have plenty to consider when it comes to asset allocation in the prevailing climate of rising inflation, geopolitical risk, and climate and energy concerns.

Mercer’s recently released Asset Allocation Insights 2022 report found that South African pension funds invest 61% of their portfolios in equities, one of biggest equity allocations in the investment world. Still, allocations to growth assets increased year on year when compared with the previous survey (+6%) as managers adopted a more pro-risk stance and investors looked to a rebound in business activity despite the emergence of new Covid-19 variants.

To discuss the pension- and asset-allocation trends, Michael Avery is joined by Mandisa Zavala, head of asset allocation at Alexforbes; Janina Slawski, head of investments consulting at Alexforbes; and Mark Smathers, principal at Mercer