Bridgewater: $41 trillion hole in income

Bridgewater Associates, the world’s largest hedg
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Long Covid for the global economy

Long Covid for the global economy

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.

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The importance of governance in a crisis

From December to mid-March of this year New Zealand Super lost 20 per cent of its assets. It’s the second time in less than 18 months the fund has experienced a significant drop in assets but in an example of how good governance and process can allow for counter cyclical behaviour the fund is now buying equities.

Investors focus on human capital

Investors are putting pressure on companies to accelerate the shift to purpose-driven leadership and focus on human capital policies during the crisis. But while there are some examples of corporations making policy changes that positively impact their workers, supply chain issues pose a significant problem.

Crisis highlights agency issues in Oz

The current coronavirus crisis has created investment governance challenges for Australia’s superannuation funds – with regard to liquidity requirements – that are relevant to any DC scheme which invests in illiquid assets. It highlights the potential impact of agency issues on decision-making during a crisis environment.

ESG tool tracks supply chain COVID risk

ESG data provider, Fair Supply Analytics, has produced technology that maps the impact of COVID-19 on global supply chains, and can be used by investors to measure their investment portfolios exposure to the sectors and countries most effected.

London’s CIV talks pooling progress

The coronavirus is an unprecedented test for the UK’s eight Local Government Pension Scheme asset pools. The London Collective Investment Vehicle, the pooling manager for the pension assets of London’s 32 boroughs has lost 15 per cent of the value of its portfolio for the month, and CEO Mike O’Donnell says ensuring liquidity and diversification are priorities in the months ahead.

Long-term disclosure post COVID-19

In times of uncertainty and disruption the “long-term” is a place that’s often easy to talk about but harder to operationalise but forward-looking information is highly valued, particularly during this crisis. To understand a company’s value proposition requires a real sense of its ability to innovate and be a source of disruption (not its victim). That requires a rounded view of the forward story and an assessment of key ESG issues and mega-trends.

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