MLC slips global shares into neutral, hits gas on alternatives

Detailed summary

MLC has pulled its global and emerging-market equity positions back to neutral, while continuing to deploy capital into alternatives.

MLC has pulled its global and emerging-market equity positions back to neutral, while continuing to deploy capital into alternatives.

MLC Asset Management head of diversified portfolio management Steve Gamerov said while global shares have returned close to 20% a year for four years running, these returns are probably not sustainable.

MLC's largest default option, the MySuper Growth portfolio, has 78% in growth assets and about 30% is in alternative and unlisted assets. The option returned members 7.3% in the year to September.

"There's 30% exposure to unlisted and alternative assets, and that 30% number is very important," Gamerov said.

"It's higher than many other funds in the market, and the reason this is important is because it means that our portfolios are not solely dependent on the fortunes of global share markets. It means that our portfolios are more diversified."

MLC was overweight global and emerging market shares in FY26 and ratcheted back that view to neutral at the start of the new financial year.

"At the time, we felt that markets were a bit stretched, a little expensive, that sentiment was a bit too positive, and positioning was a bit too long," Gamerov said.

"That's been a good call so far. Three months in, the market's been very choppy. It's probably slightly down...so we've been very comfortable with that call."

The fund has been buying global property from owners under pressure to refinance, partnering with global managers to acquire assets at a discount and add value through operational improvements.

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