Prevention is the balm for global economic shock, says respected central bank adviser Professor Warwick McKibbin who says the world’s economic future is uncertain and inflation is likely to remain under a persistent pandemic.
Already OPTrust’s portfolio can best be described as resilient. But CIO James Davis, who started his career in October 1987, expects global macro economic changes from this crisis that we have never seen before and he wants to position the portfolio for whatever is around the corner.
Angela Rodell, CEO of the Alaska SWF, looks into a post-COVID future and what investors, such as APFC, with an investment horizon of five years or longer, should be considering.
Looking back at the portfolios of large institutional investors during and after the dot.com crash and the GFC, CEM Benchmarking, reveals commonality in the portfolios that thrived. For both events the top quartile returns were more than 2 per cent higher than the bottom quartile. Analysing the asset allocation and behaviour of investors showed two clear themes: top quartile performers had more defensive allocations pre-crash; and rebalancing is a tailwind for performance.
The financial system will play a critical role in enabling economic recovery, development and contributing to wider societal well-being, including a focus on human rights. The PRI is working with investors to ensure that the financial sector contributes to, not detracts from, more inclusive societies. A world post COVID-19 needs to ensure the recovery respects both the boundaries of the planet and the rights of its people.
A risk management strategy that measures resilience and fragility of markets, protected portfolios from the wild February downswing in equity markets, and predicts more fragility to come.
COVID-19 lockdowns have highlighted the risks in infrastructure, that have been there all along. The realisation that infrastructure assets represent significant risk exposures, that should be understood and managed, will determine the coming of age of the infrastructure asset class.
Top1000funds.com is the market leading news and analysis site for the world’s largest institutional investors. It focuses on leading the global investment industry to continuous improvement through case studies of best practice in governance and decision making, portfolio construction and efficient portfolio management, fees and costs, and sustainable investing.
The publication pushes the industry to question whether status quo processes and behaviours to tackle risks and opportunities will be sufficient in the future, and actively campaigns for diversity, sustainability, transparency, innovation and better alignment of fees in the investment industry.
Top1000funds.com is read by investment professionals in more than 40 countries.
COVID-19