Australia's Biggest Pension Fund To Cut Global Stocks Allocation on AI Concerns

AustralianSuper, the country's largest pension fund, is considering decreasing its global equities investments. This decision is primarily driven by concerns about the high valuations and increasing leverage associated with the US tech sector's AI boom. The fund believes the AI cycle is maturing and anticipates a Federal Reserve shift towards tightening monetary policy by 2027. Consequently, AustralianSuper is positioning itself for a less significant allocation to public equities in the near future.