Opinion

UniSuper’s John Pearce has a warning for this financial year

Super funds and portfolio managers have ruled off on a year that was powered by super stocks. As another begins, they’re looking for the obvious trades.

Jonathan ShapiroSenior reporter

Jul 1, 2024 – 5.00am

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John Pearce, the chief investment officer of UniSuper, was not alone in thinking that, at $100, Commonwealth Bank shares were too expensive. But to everyone’s surprise, the market’s biggest stock has kept running and running, last trading above $127.

And just as well. As super funds and asset managers ruled off on another financial year, they have CBA to thank for powering about a third of the S&P/ASX 200’s returns. In the United States, a small handful of tech stocks have similarly propelled the market.

Jonathan Shapiro writes about banking and finance, specialising in hedge funds, corporate debt, private equity and investment banking. He is based in Sydney.