The New York State Common Decarbonization Advisory Panel, set up to advise the Comptroller, as trustee of the $209.1 billion New York State Common Retirement Fund, on how best to mitigate investment risks stemming from climate change and maximise opportunities from the new, low-carbon economy, has handed down its report this week. It has clear lessons for all asset owners.
Cary KrosinskyApril 19, 2019
Strategic tilting has added 1.1 per cent, or NZ$3 billion, to the New Zealand Super Fund’s reference portfolio over the past 10 years, David Iverson, head of asset allocation at the NZ$41 billion fund says. This is way above the expected return from the program which was set at around 40 basis points.
The Fiduciary Investors Symposium at Cambridge University brought together more than 70 asset owners from 15 countries to discuss asset owners responsibility to engage with policymakers, barriers to long term investing and risks including ESG, climate and cyber security. Brett Himbury, chief executive of IFM Investors revealed how an asset manager defines its behaviours and […]
An overwhelming number of delegates at the Fiduciary Investors Symposium said the funds management industry was not doing well in innovationMartin Gilbert, who started Aberdeen Standard Investments in 1983 and is now chair, said industry participants needed to innovate and disrupt themselves.
Amanda WhiteApril 10, 2019
Institutional investors are navigating the different risks that can impact their portfolios in different ways, explained chief risk offers speaking at the Fiduciary Investors Symposium in Cambridge. Arjen Pasma, chief risk officer at Dutch asset manager PGGM noted how risks span investment risk, counterparty risk, liquidity risk and ESG risk. Measuring ESG risk in the manager’s large allocation to private markets where each deal is scored on ESG and climate risk is particularly important, he said.
Sarah RundellApril 10, 2019
Innovation is more important than ever given the uncertain and ambiguous times that lie ahead for institutional investors like climate change, political dysfunction and poor returns. “Returns can only come from an ecosystem that works and we need innovation to do this,” said Roger Urwin, global head of investment content, Willis Towers Watson speaking at the Fiduciary Investors Symposium at Cambridge University.
Sarah RundellApril 10, 2019
The Future Fund has appointed Sue Brake to the role of deputy CIO, portfolio strategy as part of the revamp of the $145 billion sovereign wealth fund’s investment team. She joins Wendy Norris deputy CIO for private markets and David George who is deputy CIO for public markets.
Elizabeth FryApril 4, 2019
Mercer has quantified a ‘low-carbon transition’ premium in the sequel to its seminal climate change report, showing that a 2⁰C scenario equates to 11 basis points per annum to 2030 in a typical growth portfolio. Further, investors with the same asset allocation but greater exposure to sustainability and the companies delivering the transition solutions, could […]
Elizabeth FryApril 9, 2019
The first day of the Fiduciary Investors Symposium at Cambridge University, which brought together more than 70 asset owners from 15 countries, centred around asset owners responsibility to engage with policymakers, the integration of ESG and the sustainable development goals as well as barriers to long term investing.
Amanda WhiteApril 8, 2019
Thinking and acting long-term and holding their service providers to account on long-term risk behaviours and measures, is one of asset owners’ most enduring challenges. Speaking at the Fiduciary Investors Symposium at Cambridge University a panel of experts highlighted important tools asset owners can deploy to ensure they stay focused on the long-term.
Sarah RundellApril 8, 2019
The €9 billion ($10 billion) Dutch fund for disabled workers, PWRI, has introduced a proprietary index that tilts towards companies that prioritise workers’ rights and health and safety issues. It’s a revolutionary approach to reflect the fund’s distinctive ESG priorities and a guide for other investors wanting to prioritise the “s” in ESG.
Sarah RundellMarch 26, 2019
OTPP increased its bond allocation from 22 to 31 per cent last year. The defensive strategy was aimed at taking advantage of rising yields in fixed income markets and protecting the portfolio from a potential economic slowdown given the late cycle and decade-long economic expansion.
Sarah RundellApril 6, 2019
Oregon State Treasury has de-risked its $12 billion real estate allocation, moving away from closed end, private equity-style investment and its associated inherent cyclical risk and total return focus. Building in more liquidity and transparency, reduced volatility and lowered fees via evergreen manager partnerships in separate account and open-end fund structures.
Sarah RundellApril 2, 2019
In an investment milestone, each private equity allocation for the five pension funds that comprise New York City Retirement Funds experienced net internal rates of return (IRR) of over 10 per cent since inception in the third quarter of last year.
Amanda WhiteMarch 25, 2019
For most investors recognising whether geopolitical tensions are a short term blip, or a long-term systemic shift is key to understanding how those risks inform investment decisions. Amanda White spoke to investors about the impact of geopolitical risk on their portfolios.
Amanda WhiteMarch 21, 2019
The UK’s £2 billion Church of England Pension Board, the pension fund for church clergy has changed strategy, slashing its equity portfolio in favour of private markets in a bid to seek stronger returns, income and a shelter from equity volatility.
Sarah RundellMarch 19, 2019
Product providers cite all manner of factors behind the performance of their products but unless those factors adhere to what academics have replicated and standardised, it’s folly for investors to expect persistent returns from them.
Felix Goltz and Ben LuytenFebruary 27, 2019
Organisations across the globe are collecting data, analysing and re-analysing it more and more every day. As this trend continues, data infrastructure – tangible or intangible – becomes increasingly attractive. Canada’s OPTrust cites this reality as the rationale behind the EdgeCore partnership. It thinks data is its own asset class.
James DavisFebruary 25, 2019
A new guide, Climate Change for Asset Owners, provides case studies and other practical advice for how to get investor organisations focused on climate change, how to craft a related investment strategy and how to implement it. The publication includes content from 10 asset owners.
Amanda WhiteFebruary 6, 2019
The Netherlands’ Achmea Investment Management, Blue Sky Group and SPF Beheer have teamed up on a joint investment platform designed to lower fees and expand opportunities in private equity. Jos van Gisbergen, senior portfolio manager for private equity at Achmea, explains how it works.
Sarah RundellJanuary 31, 2019
The annual Chief Investment Officer Sentiment Survey, conducted by www.top1000funds.com and Casey Quirk, a practice of Deloitte Consulting, has revealed a global asset owner community that is less tolerant of risk and more interested in negotiating fees.
Amanda WhiteJanuary 31, 2019