A new fund in Germany combining liquidity, dynamic equity exposure and strong ESG focus is against the mould of the country’s more conservative, insurance-led investment style, and Heribert Karch, managing director of MetallRente which offers the fund, is determined to bring a return-seeking investment culture to Germany.
The €21 billion Dutch pension fund, Detailhandel, is the first pension fund to incorporate SDGs into a simple developed market index.
The $77. 3 billion Oregon Public Employee Retirement Fund has continued to achieve top decile returns at the same time as de-risking and reconstituting half its giant portfolio.
Institutional investors are navigating the different risks that can impact their portfolios in different ways, explained chief risk offers speaking at the Fiduciary Investors Symposium in Cambridge. Arjen Pasma, chief risk officer at Dutch asset manager PGGM noted how risks span investment risk, counterparty risk, liquidity risk and ESG risk. Measuring ESG risk in the manager’s large allocation to private markets where each deal is scored on ESG and climate risk is particularly important, he said.
Innovation is more important than ever given the uncertain and ambiguous times that lie ahead for institutional investors like climate change, political dysfunction and poor returns. “Returns can only come from an ecosystem that works and we need innovation to do this,” said Roger Urwin, global head of investment content, Willis Towers Watson speaking at the Fiduciary Investors Symposium at Cambridge University.
Brexit holds profound implications for European pension funds, said Matti Leppälä, secretary-general and chief executive, PensionsEurope speaking at the Fiduciary Investors Symposium in Cambridge.
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