Good pension fund managers can go bounty hunting in volatile financial markets while struggling funds should recoup on the sidelines, according to consultancy Watson Wyatt.
"A lot of people are still trying to make sense of what is happening and opinions as to what could happen next are wide-ranging," Watson Wyatt Sydney-based senior investment consultant Tim Unger said.
"While they are aware there may be opportunities, they are hesitant to act.
"This environment should continue to create opportunities for skilled fund managers."
Struggling funds should take a step back and work towards making responsible decisions that will help them achieve their mandates, he said.
"The potential for regret [and] doing something that does not turn out to be correct, is quite high right now," Unger said.
"Only funds that have strong governance and the ability to think through potential outcomes should react at this time."
Australia's superannuation funds have lost an average of five per cent off their investment returns following January's market correction according to research firm SuperRatings.
