Research
Homogenous behaviour imperils markets
Global markets are more interconnected than ever. That provides many benefits but it also has its drawbacks. Chief among those is the potential for investors to move in lockstep when driven by fear or euphoria, creating feedback loops that can result in crashes.
Bob CollieFebruary 20, 2019
Sustainability
TPI’s ambitious path to low carbon
The Transition Pathway Initiative has grown quickly as a tool for asset owners and fund managers looking to plot their way toward a low-carbon economy – but there is more on its agenda. Scrutiny of more investors, expanded research and transparency in emerging markets are all on its to-do list.
Investor Profile
Northern LGPS forges own pooling path
The UK’s £45 billion Northern LGPS pool has eschewed creating a separate FCA-regulated entity, seeing it as an unnecessary expense. Moves in infrastructure and private equity have also reflected the asset pool’s laser-like focus on keeping costs down.
Risk
Managing risk across multiple horizons
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.
Investor Profile
LUCRF’s member profile drives strategy
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.
Sustainability
Dutch funds team up for OECD Guidelines
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.
Melanie MeniarFebruary 12, 2019
Sustainability
Why credit ratings need to reflect ESG
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.
Sarah RundellFebruary 11, 2019
Governance
Metrics for long term performance
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.
Amanda WhiteFebruary 7, 2019
Investor Profile
London’s TfL takes ESG message to masses
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
Sustainability
Good for the world, and the bottom line
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
Sustainability
Asset owners’ climate-change advice
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
Sustainability
UN pension’s journey in sustainability
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
Sustainability
How to spot real ESG integration
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
Asset Classes
There’s still alpha in public markets
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
Asset Classes
Dutch trio launches PE co-investment
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
Asset Classes
Coal bucks trend with focus on income
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
Asset Classes
African infrastructure gets needed index
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
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.
Sarah RundellOctober 18, 2018
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.
Sarah RundellOctober 12, 2018
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.
Sarah RundellOctober 12, 2018
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.
Sarah RundellOctober 11, 2018
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.
Sarah RundellOctober 9, 2018
Asset Allocation
2018 CIO sentiment survey
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
Asset Allocation
Top five topics for investors in 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
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.
Sarah RundellDecember 19, 2018
Asset Allocation
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.
Alice UribeDecember 18, 2018
Strategy
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.
Amanda WhiteDecember 10, 2018
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?
Alice UribeOctober 25, 2018
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.
Matti LeppäläOctober 16, 2018
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.
Sarah RundellOctober 12, 2018