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A $46 Billion Australia Pension Fund Braces for a ‘Messy’ 2022

  • Cbus fund sees volatility rising on central bank, virus risks
  • Fund is overweight in equities amid negative real yields
Bloomberg business news
WATCH: Construction & Building Unions Superannuation Fund CIO Kristian Fok discusses his investment strategy.Source: Bloomberg

Markets will see volatility ramp up next year as central banks intensify the fight against inflation, according to an Australian pension fund with A$65 billion ($46 billion) under management that’s still sticking with a wager on stocks.

The Construction & Building Unions Superannuation Fund is overweight in equities but cautious about sovereign bonds since yields will likely rise to reflect tightening monetary policy, Chief Investment Officer Kristian Fok said. The omicron virus variant is another potential source of market swings, according to Fok.