Frontier Investment Consulting managing director Fiona Trafford-Walker says there should be more focus on portfolio stress testing in light of continued negative returns.
"Change always affects how people feel about their super and creates uncertainty. Better stress testing can help and not relying on cash flow to move the portfolio," she said.
Even extreme scenarios should be tested, Trafford-Walker said.
First State Superannuation Scheme (FSS) chief investment officer Mark Sainsbury agrees.
"There will be more scrutiny of performance and behaviour of a product under stress. We need to be more aware of how assets will behave," Sainsbury said.
Sainsbury predicted a higher demand for discreet mandates as a result of the downturn.
"Fund managers will move to more of an advisory function rather than having control over the money," he said.
According to Trafford-Walker, the next year may possibly see lower returns than last year. As a result, there was also a move towards passive management.
"We have been put on notice by the funds," she said.
Sainsbury said funds should expect to see increased engagement from members who may be concerned about the descriptions of their portfolios.
"If long-term investing is desired then that will have to be done in an environment of certainty. The current environment has led to concerns about arbitrariness," Sainsbury said.
