Most asset owners have to manage several time frames to be long-term investors but most risk-management tools address only one investment period. A new paper by Focusing Capital on the Long Term attempts to solve this problem by providing a new set of tools.
Amanda WhiteFebruary 15, 2019
Leigh Gavin, CIO at Australian industry-fund pioneer LUCRF Super, takes care to match portfolios and costs with the needs of the fund’s low-balance membership. In recent years, this has meant taking on additional risk and questioning fee models in private equity.
More than 70 pension funds from The Netherlands have joined forces with the Dutch Government and trade unions for the Responsible Business Conduct Agreement – a pledge to work together to prevent their investment practices from harming society or the environment.
ESG relevance scores and ESG-dedicated sections in ratings commentaries are examples of how ratings agencies are addressing demand for analysis of such risk factors in fixed income, the PRI’s Carmen Nuzzo says. Managing data for good comparisons will be a challenge going forward.
Academics Gordon Clark and Ashby Monk have created 11 metrics that focus on meaningful and useful predictors of long-term performance. It’s a boon for investors struggling with the problem of appropriate measures for investing for the long term, a horizon where traditional benchmarks don’t always fit.
New research explores the possibility that a focus on social and environmental impact can boost financial returns, rather than hurt performance. ‘Societally driven alpha’ is being left on the table when investors myopically focus only on the business drivers of value.
Ben ThornleyFebruary 7, 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 £11 billion TfL Pension Fund has released its first-ever annual sustainability report. The fund for public-sector transport workers hopes the report will help bring more members on board with its well-established ESG strategy and also make clear to its asset managers what it expects of them.
Sarah RundellFebruary 1, 2019
It began with simple restrictions on investments in tobacco and firearms. Years later, the United Nations Joint Staff Pension Fund has added new metrics, technology, data sets and engagement, in support of the philosophy that ESG factors and the sustainable development goals breed superior long-term returns.
Herman BrilJanuary 29, 2019
There are many narratives from asset owners about generating value through strategies based on environmental, social and governance factors. Looking at these value-creation stories through the lens of an integrated reporting framework can separate the genuine successes from the hype.
Keith AmbachtsheerJanuary 29, 2019
It’s a VUCA world (volatile, uncertain, complex and ambiguous). In such times, it’s especially important for investors to have guiding principles. The Thinking Ahead Group provides a handful of key themes to manage in the year ahead.
Marisa HallJanuary 22, 2019
There is still alpha in public equities markets, says Ron Mock, chief executive of the Ontario Teachers’ Pension Plan, who supports the fund’s allocation to hedge funds. Mock’s “faith” in active management extends to quantitative strategies – with the right managers.
Amanda WhiteFebruary 5, 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 £21 billion Coal Pension Trustees is targeting income and shoring up cash flows. CIO Mark Walker has a new bond portfolio in the works and is examining private debt and property closely. He’s also targeting onshore equities in China.
Sarah RundellJanuary 21, 2019
RisCura has partnered with Africa investor (Ai) Capital to launch the continent’s first infrastructure performance index. The new benchmark will cover the whole of Africa and will provide a critical tool for evaluating the risk/return profile of investments in this asset class. It should help fill a damaging shortfall in infrastructure development.
Hubert Danso and Heleen GoussardJanuary 7, 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
Private equity has been a stand out for the $130 billion Washington State Investment Board and CIO Gary Bruebaker says the real trick is attracting the top general partners. That means making sharp investments, being true to your word and nurturing the relationship.
Sarah RundellDecember 19, 2018
The CIO of Australia’s A$175 billion sovereign wealth fund, Raphael Arndt, sees a time on the not-too-distant horizon when the assumptions that have shaped investment strategy will no longer hold true. He’s working on a more comprehensive process for this challenging new world.
Alice UribeDecember 18, 2018
Core multi-asset strategies provide access to a collection of market betas without a heavy governance burden. Idiosyncratic multi-asset strategies introduce a variety of return drivers into a portfolio. Mercer takes a look at the costs of each of these subcategories and when they’re justified.
Kishen Ganatra and Shailan MistryDecember 13, 2018
Most of Australia’s retirement system is still just heading towards investing with scale for both accumulation and pension phase. The A$70 billion First State Super and CIO Damian Graham are already there. So what do its investments look like?
Alice UribeOctober 25, 2018