Investor Profile
South Dakota takes risk to bottom rung
The $14.2 billion South Dakota retirement system is sitting on cash and T-bills to hedge against equity-type risk seeping into its portfolio. The fund remains opportunistic and won’t rule out fossil fuels.
Private Credit
Rise of the unicorns: venture capital
The increase in privately held start-ups has piqued interest in venture-capital markets. The opportunities are there but investors must realise that technological innovation has changed the game.
Asset Classes
Going direct puts wind in PFA’s sails
The $77 billion Denmark pension fund PFA has turned to direct investment for its alternatives, taking stakes with varying levels of risk in areas such as telecommunications and wind farms.
Strategy
Pensions must brace for Brexit impact
The chances of Britain leaving the EU without a withdrawal deal seem greater than ever. Retirement systems need to prepare for changing valuations and disruptions to how they do business.
FIS Stanford
China’s enticing, challenging market
Inefficient markets and an explosion of technological innovation fuelled by Millennial consumers make China a tantalising prospect but accessing strong returns there isn’t as simple as it looks.
FIS Stanford
Protecting human capital helps everyone
Investors have plenty to gain from helping to protect human rights in supply chains and managing the human costs during technological disruption and the transition to a low-carbon economy.
FIS Stanford
How to follow megatrends to success
The big themes that will fuel growth in coming decades are interconnected and subject to change. An expert panel gave advice on riding societal change to outperformance.
FIS Stanford
How the active complements the passive
Investors discuss the various ways that two styles often presented as if they are enemies in fact work hand in hand across portfolios to produce returns.
OPINION
Sometimes, you can trust a hunch
Whether you call it a ‘gut feeling’ or ‘expert intuition’, under the right circumstances and in the right investment environment, it can take you in the right direction.
Sustainability
IFSWF marks rise of protectionism
As the International Forum of Sovereign Wealth Funds’ Santiago Principles turn 10, the executive director of the State Oil Fund of Azerbaijan says threats to the free flow of capital loom.
Sustainability
PRI focused on commitment to task
As the 2018 PRI in Person conference begins, the prospect of recovering fossil fuel prices adds urgency to the organisation’s efforts to expand – and to keep current members on task.
Sustainability
PRI rallies boards on data security
A group of more than 50 investors has formed to help raise awareness and standards for data protection. As related risks become a primary concern for directors, PRI is co-ordinating efforts.
Sustainability
Adventist Health’s risk appetite grows
The $6 billion Adventist Health System is considering more risk as it grows and is seeking to gain from efficient processes. The goal remains maximum effectiveness in provision of healthcare.
Asset Classes
CalPERS shake-up may delay PE plans
The surprise ousting of CalPERS board president Priya Mathur heralds a leadership shake-up that could place final approval of an expanded private equity program on hold.
Asset Classes
Utah to look for PE managers
The $37 billion Utah Retirement Systems (URS) will allocate to private equity managers directly, rather than through funds-of-funds, for the first time since it began investing in the asset class 35 years ago.
Asset Classes
Private capital opportunities grow
It’s been said the “public market is quickly becoming a holding pen for massive sleepy corporations”. This has investors taking more late-stage stakes in private companies as perceived risks ebb.
Asset Classes
Future Fund tops up PE, risk
Australia's $107 billion sovereign wealth fund added risk based on near-term outlooks and boosted its holdings in private equity, during a year in which it handily beat one-year and 10-year aims.
Investor Profile
Kellogg Foundation hunts AI investments
The CIO of the $3.5 billion foundation is looking to augment a legacy built on the famous cereal company’s stock by beating most of the US to the punch on adopting AI and machine learning.
PRI In Person '18
Reaching SDGs’ ‘low-hanging fruit’
Infrastructure, capital markets and China A-shares all present accessible opportunities for responsible investment, if asset owners can navigate a catch or two along the way.
PRI In Person '18
Good ESG data requires a framework
Initiatives such as the Sustainability Accounting Standards Board are vital for providing the consistent, regular, high-quality disclosure on the SDGs that investors need, a panel told delegates.
PRI In Person '18
Unilever chief calls for new capitalism
Long-time Unilever chief executive Paul Polman told delegates the world’s companies and executives needed to adopt a long-term focus and many other changes to create an inclusive economic system.
PRI In Person '18
An end to deforestation is critical
An expert panel argues that the objectives of the Paris Agreement can’t be achieved without stopping deforestation and looks to technology for some ways to make it happen.
PRI In Person '18
How to convince the ESG sceptics
Trying to find ways to get colleagues to embrace responsible investment strategies can be frustrating but it becomes easier when the business case includes the bottom line.
Asset Allocation
Utah Retirement to pick PE managers
Utah Retirement Systems considers its strong balance sheet, history of long-term relationships with managers and nimble governance advantages as its search for GPs in private equity begins.
Asset Allocation
CalPERS manages outsized equity risk
The $335 billion California Public Employees' Retirement System warned this week that it is greatly exposed to a downturn in global equity markets, as it prepares to monitor active risk closely.
Asset Allocation
HOOPP ponders re-allocating risk
Canada's Healthcare of Ontario Pension Plan is considering adding to its celebrated strategy with moves into reinsurance and infrastructure, based on forecasts of rapid growth in its assets.
Asset Allocation
TelstraSuper: allocation authority
Graeme Miller, CIO at the A$21 billion TelstraSuper fund, has beefed up the staff and processes committed to asset allocation and adopted an empowering vision of world-class funds management.
Strategy
Australia’s pension funds cricitised
As the fifth round of Australia’s financial services royal commission came to a close, counsel assisting criticised many retirement savings funds for their retention strategies, conflicts of interest and other practices deemed not in members’ best interests.
Strategy
Fight ‘halo effect’ and other biases
The halo effect - a belief that people who are good at one thing excel at everything - is just one example of the behavioural biases humans must manage and overcome to be good investors.
Strategy
Railpen: good partners add skills
When the $37 billion pension fund embarked on a joint venture with the Alaska Permanent Fund and Kuwait's Public Institution for Social Security, it learned the value of complementary partnership
Strategy
A more realistic look at risk
The University of California’s Rick Bookstaber argues that risk management should move from static equations to more realistic models in which outcomes depend on multiple agents.