Pension Titans Buy Bonds on Recession Bets as Markets Whipsaw

AustralianSuper Pty and Australian Retirement Trust favor buying bonds as a ballast against the impending economic downturn as the Federal Reserve and the European Central Bank signal higher policy rates to tame inflation.

March 13, 2023 . 12:37 AM

1 min read

AustralianSuper Pty and Australian Retirement Trust, the two biggest pension funds by assets, favor buying bonds as a ballast against the impending economic downturn.
The sovereign wealth fund, the Future Fund, has also beefed up its holdings of government debt.
The positive view towards fixed-income assets stand out amid a wave of investors ditching bonds as the Federal Reserve and the European Central Bank signal ever higher policy rates to tame inflation.
Bond investors have to find a balance between capturing some of the highest yields seen in decades and buying too much too early.
Aware Super has pared back its underweight bond position as the "entry point into fixed income assets looks more attractive.".