Asset Allocation
Washington works to be the best LP
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.
Investor Profile
Australia’s rethink for the Future Fund
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.
Sustainability
Income inequality a global threat
From human rights to executive pay, the list of factors adding to global income inequality is growing as is investor concern over the rising potential for financial and economic destabilisation.
Asset Allocation
When multi-asset makes sense
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.
Organisational Design
New CIOs at NZ Super, NYC and CalPERS
NZ Super, New York City’s Bureau of Asset Management and CalPERS have all named new CIOs. Here's what you need to know about them.
Governance
REST case to set climate risk precedent
An Australian case brought by a millennial against his pension fund is a world first and will make law on whether trustees breach their fiduciary duties when they ignore climate change.
Featured Story
ESG investing a recipe for disaster
Hardly a day goes by without some communication on ESG investing. It seems everyone is getting on the bandwagon. But peers that Paul Bevin speaks to have concerns that virtue may come at a price.
Sustainability
Climate group calls for investor power
Climate Change 100+, a five-year initiative to help carbon emitters navigate the move to clean energy, has built momentum and needs fund managers and investors to propel it even further.
Investor Profile
CalPERS’ PE reform uses familiar model
The California Public Employees’ Retirement System decides to stick with a traditional approach to direct investment within its private equity portfolio, planning to use a model that features ‘captive’ general partners that will operate independently but with a clear mandate from the fund for long-term value and benefit to society.
Sustainability
PRI pushes for just transition
The move to a low-carbon world may leave entire communities stranded if investors don’t incorporate its impact on workers into their climate-change models, the PRI says.
Sustainability
CalSTRS CIO backs long-haul investment
The investment community’s obsession with short-term earnings is detrimental but convincing investors to back the slow, patient money is a tough sell, according to the CIO of one of the largest US pension funds, Chris Ailman, speaking at the annual SASB conference.
Sustainability
Nuance the name of the low carbon game
The £30 billion ($38 billion) Brunel Pension Partnership, the asset pool comprising 10 of the United Kingdom’s local authority pension schemes, is finding significant investment opportunities in private-sector renewables infrastructure.
Sustainability
Climate disclosure a bumpy road
Implementing the recommendations of the Task Force on Climate-related Financial Disclosures is challenging, fortunately some investors are paving the way, a PRI climate conference heard.
Asset Classes
G20 investor group wants reform
Convincing policymakers to reform laws around infrastructure, carbon emissions and other aspects of long-term, sustainable economic growth may not be easy but a G20 group has started the dialogue.
Asset Classes
Fixed income, ESG start to bond
ESG integration in fixed income is finally starting to happen but the challenges it presents aren’t the same as in equities; for example, bondholder rights and shareholder rights aren’t the same. Have a look at what’s necessary to further blend ESG and fixed income.
Asset Classes
Don’t let fear keep Africa off limits
Investment in African infrastructure has the potential to provide favourable returns, along with opportunities to make a big social impact. Study up and look past the headlines, Mercer writes.
Asset Classes
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.
FIS Stanford
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.
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.
FIS Stanford
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 Allocation
New economy needs big public sector
Widgets are on the wane and disruption is the new normal, creating a need for a larger public sector with more market power, according to the former US Treasury Secretary, Larry Summers.
Asset Allocation
UMR will add to private assets, more
France’s Union Mutualiste Retraite is planning slight increases to its allocation to cash, private equity, private debt and infrastructure, in the face of high valuations and the late cycle. The fund has already added to its direct real-estate investments this year and is bracing for incoming regulations.
Asset Allocation
UK’s BTPS forges independent identity
Since splitting from its former inhouse manager, Hermes, the £50 billion British Telecom Pension Scheme has set about redefining itself. With a self-reliance borne of technology, the fund has brought portfolios and functions inhouse and started a bigger push into mature infrastructure.
Asset Allocation
FRR won’t add risk, ending trend
The $41 billion French pension reserve fund had upped the return-seeking proportion of its portfolio every year since 2010 but inflation fears and expensive equities have halted the streak.
Strategy
First State: superannuation’s evolution
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?
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.
Strategy
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.
Strategy
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.
