As Associate Portfolio Manager – Investments at Aware Super, David Goodman is responsible for our economic and market research and how this influences the portfolio.
What is your role?
I’m responsible for managing Aware Super’s economic and market research. The Economics team analyses central banks and their policy outlook, and we research macroeconomic issues like currency, inflation, and wages. We use this information in building our portfolio and making it resilient under various economic scenarios. We also regularly discuss economic trends and views with the broader investment team to help inform them about investment decisions and market opportunities.
How does your role help Aware Super members?
Our focus is on helping our members achieve their long-term retirement goals. Through our economic research and analysis, we aim to improve the portfolio’s return, manage volatility and risk, and consider economic scenarios and how they may affect the portfolio. The Economics team works with our policy teams in considering member impacts of any legislative changes. We also play a role in member communications, informing members about the economy and financial markets.
What is your current economic outlook?
Recent years have been challenging for economic forecasters, with the COVID pandemic contributing to lower economic growth then a fast ‘reopening’ recovery. Even with current geopolitical tensions, we still see a backdrop of above-average global growth in 2022. The most challenging aspect of the current economic landscape is the rise in inflation to multi-decade highs in many countries. This will require a monetary response from central banks. Bond yields have risen in response, perhaps changing the long-term downward path of interest rates.
Policymakers face a difficult task in controlling the monetary levers because current inflation is being driven from both the supply and demand side. The story for Australia is even more nuanced as our growth outlook looks reasonable, commodity prices are supportive, and unemployment hit record lows under 4%. With years of below-target inflation, the Reserve Bank of Australia will probably act slower than its peers in raising interest rates.
“Knowing my economic research directly contributes to members’ outcomes and can improve the portfolio decisions we make, is the biggest motivation in doing my job”
What motivates you?
I have always enjoyed thinking about how markets and economies behave and being challenged by how best to analyse them. Working with smart, passionate people at Aware Super is motivating and exciting, and helps me contribute to the economic debate and shape economic outcomes through our investment decisions. The bottom line is that knowing my economic research directly contributes to members’ outcomes and can improve the portfolio decisions we make, is the biggest motivation in doing my job.
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Unique Superannuation Identifier (USI): 53 226 460 365 001 Superannuation Fund Number (SFN): 272 632 944 Superannuation Product Identification Number (SPIN): FSS0100AU
