Investors are watching conflict in the Middle East closely as inflationary pressures begin to build beneath the surface. One of the challenges for many investors is reduced exposure to the hedging benefits of fossil fuels in listed, and private markets.
Executive director of the Asset Owners Disclosure Project and business director of the Climate Institute, Julian Poulter, aruges the progress of carbon legislation in Australia is a wake-up call to asset owners around the globe.
Australia’s lower house of Parliament passed a carbon tax yesterday. It prices carbon at $23 a ton. India’s carbon tax is 80 rupees (about $1) a ton. So what is the appropriate price of carbon? According to Robert Litterman in his Financial Analysts Journal editorial, it is a complex equation that should reflect fundamental uncertainty
CalPERS’ absolute return strategies program is over-reliant on quantitative tools, inadequately staffed and may be overweight in certain strategies and risks, according to Wilshire’s annual review of the portfolio.
Institutional investors are using just a fraction of the “weapons” they have at their disposal when they engage with companies, and need to use the entire proxy proposal process better, Rob Bauer told attendees at a recent PRI conference.
New York State Comptroller, Thomas DiNapoli, has defended public defined benefit schemes, saying that they are not a drag on state government finances, are sustainable and form a vital part of the US economy.
The investment firepower and cost savings promised by economies of scale have enraptured the Australian superannuation industry. This has instilled in some funds an urge to merge in order to enjoy the benefits of being large. However some investment chiefs believe that bigger size brings a new set of problems that can undermine performance.
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