The $273 billion New York State Common has upped the pressure on portfolio companies to report on how artificial intelligence usage is contributing to layoffs, as AI governance becomes a growing focus in the proxy voting and engagement activities of asset owners.
Last month the book Achieving Investment Excellence, was launched in the auditorium of Dutch pension investor APG. The book is a guide to empowering pension fund trustees to get a good grip on the difficulty of successful long-term investing for pension funds. Top1000funds.com spoke to one of the authors, principal director investment strategy of PGGM, Jaap van Dam.
The output of a decision-making process is more than just a decision, which is even more good reason to work hard at getting that process right.
Innovation is usually viewed by economists as a productivity-enhancing force, powering economic growth in modern capitalist societies. But damage can also be done by innovations, especially in the financial sector where agency issues create the potential for negligence and rent extraction. A more cautious perspective might help investors and policymakers better manage the risks that inevitably accompany financial innovations and contribute to more stable and efficient markets.
In line with its strategy to reduce costs, while maintaining returns, one of the UK’s new mega funds, the £45 billion LGPS Central will reduce the number of managers it uses from 250 to 50.
The value creation boundary, a margin between innocent bystanders and the parties involved in an economic activity, is a powerful thinking device for asset owners and managers to use in considering their investment responsibilities. So should long-term investors expand the boundary and include more of humanity in the consequences of investment decisions?
The CalPERS’ board has approved the first step in the creation of a new private equity model, and now the fund’s CEO, Marcie Frost, is looking for advice on how to structure such an entity.
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Governance