Macro Manager: Smarter Investment Strategies for Australians in 2025

Australians are looking beyond traditional stock picking. In 2025, macro managers are gaining traction, using a big-picture approach to navigate markets shaken by inflation, shifting central bank policies, and global uncertainty. But what exactly is a macro manager, and why are their strategies attracting attention from everyday investors to large institutions?

What is a Macro Manager?

Macro managers, often found at hedge funds and investment firms, build their portfolios around predictions of broad economic trends rather than focusing on individual companies. They analyse macroeconomic indicators—like interest rates, inflation, GDP growth, and geopolitical events—to position investments across asset classes such as shares, bonds, currencies, and commodities.

• Global perspective: Macro managers look at the interconnectedness of world economies.

• Flexible strategies: They can go long (betting prices will rise) or short (betting prices will fall) on different markets.

• Risk management: By diversifying across sectors and regions, macro managers aim to reduce overall portfolio risk.

Unlike traditional fund managers who might concentrate on Australian equities or property, macro managers adjust their allocations dynamically based on where they see opportunity—or danger—emerging globally.

Why Macro Management is Gaining Popularity in 2025

Australia’s investment landscape has shifted in the wake of COVID-19, war in Europe, and ongoing supply chain challenges. Rising inflation and a more hawkish Reserve Bank of Australia (RBA) have made passive, set-and-forget strategies less appealing. Here’s why more Australians are considering macro managers:

• Interest rate volatility: With the RBA continuing rate hikes in early 2025 to keep inflation in check, macro managers are actively rotating out of interest rate-sensitive assets and into areas with stronger growth prospects.

• Currency opportunities: The Australian dollar has experienced significant swings due to China’s uneven economic recovery and commodity price fluctuations. Macro funds have capitalised on these moves by trading forex and related derivatives.

• Global diversification: As ASX valuations remain stretched, macro managers are allocating more to international markets, particularly emerging Asia and US technology, to capture growth and hedge against local downturns.

Notably, several large super funds have increased their allocations to macro strategies, seeking returns uncorrelated with traditional equities and fixed income. For retail investors, new ETFs and managed funds now offer access to these approaches, once the domain of sophisticated institutions.

How Macro Managers Make Investment Decisions

Macro managers rely on a blend of quantitative data, qualitative judgement, and scenario planning. The process typically involves:

• Economic analysis: Interpreting central bank policy signals (like the RBA’s recent forward guidance), inflation prints, and global trade data.

• Thematic investing: Identifying long-term trends—such as the energy transition, deglobalisation, or demographic shifts—and building positions in sectors likely to benefit or suffer.

• Active risk management: Using derivatives and hedging strategies to limit downside in volatile markets.

For example, in early 2025, many macro managers anticipated persistent inflation despite falling global oil prices. They increased exposure to commodities like lithium (crucial for EV batteries) and took defensive positions in inflation-linked bonds. Others reduced exposure to residential property as higher mortgage rates cooled demand in Sydney and Melbourne.

What to Watch When Considering Macro Management

While macro strategies can enhance portfolio diversification and offer protection in turbulent times, they are not without risks. Performance can be volatile, and success often hinges on the manager’s skill in reading complex, fast-moving global signals.

• Transparency: Macro funds may use sophisticated instruments, so it’s important to understand their approach and risk controls.

• Fees: Active management and global trading often mean higher costs than traditional index funds.

• Track record: Look for managers with a history of performing well in both bull and bear markets.

With more products available to Australian investors in 2025, it’s easier than ever to access macro management—but doing your research remains crucial.

The Bottom Line

Macro managers are reshaping how Australians think about investing, offering dynamic strategies tuned to global economic shifts. As the world becomes more uncertain and interconnected, this approach is likely to play a bigger role in portfolios—from super funds to individual investors. Understanding how macro managers operate, and what drives their returns, is key to making smarter decisions in the modern market.