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Mega fund cautions against ‘false positives’ in analysis of geopolitics

Mega fund cautions against ‘false positives’ in analysis of geopolitics
Finance and investment news for Australian investors, their advisers and the financial services industry.

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Australian Retirement Trust (ART) is considering the impact of geopolitics on its investment strategy. The fund, which manages $300 billion in retirement savings, is more inclined to prepare for geopolitical risks than to predict them. ART's head of investment strategy, Andrew Fisher, expressed concern about reacting to "false positives" and emphasized the importance of preparing for and responding to geopolitical events. The Future Fund also warned of the profound impact of geopolitics on financial markets and policy decisions, leading to a renewed commitment to diversification across geographies and asset classes. Both funds are focused on stress testing scenarios and seizing opportunities arising from market uncertainty. The Future Fund has shifted away from the traditional 60:40 investment portfolio and is now committed to diversification across geographies and asset classes, including gold and commodities. The fund believes that geopolitics will continue to impact economies and financial markets for generations to come.

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