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Given the disruption and chaos currently facing the world, society and economies, this session looks at what an imagined future would look like and what the role of finance could be in a more informed and sustainable world.[vc_quotes layout=”accordion” 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title=”Moderator” el_class=””][vc_empty_space height=”10px”]
Key takeaways
Stewart
The future is about risk allocation, not asset allocation. COVID-19 makes the distinction clearer between mature and less mature economies.
In the future we should approach benchmarks with caution as they will look very different.
Supply chains will be more spread across countries to reduce geographic concentration risk.
The future will see an acceleration of sustainability investing and a rising heat around the demand for social justice. Questions around mission and governance will arise with a greater resolve to implement greater horizon strategies.
A true long horizon portfolio may move away from 60/40 or 70/30 and move much closer to 100/0.
Angela
The future looks brighter if we invest in technological infrastructure such as broadband.
The future will see greater investment in the smaller cities.
Perhaps moving forward we will think very differently about investing in commodities or cryptocurrencies, or risk being left behind.
Geoff
Reassuringly, in the long-term the future growth trajectory will look a lot like the past; the combination of labour, capital and technology has been an incredibly resilient and consistent engine of growth and has survived World Wars and pandemics.
The Florida State Board of Administration has made some strategic moves to take advantage of opportunities in the dislocation, including in private equity, distressed debt and active listed equities.. But CIO, Ash Williams, is concerned about the underlying real economy.
In the first of four articles looking ahead to FIS 2020, we highlight how the event will focus on de-globalisation and geopolitical stress, particularly the deteriorating relationship between China and the US. Elsewhere, FIS delegates will hear how asset owners are positioning their portfolios in today's challenging environment.
The Future of the Corporation programme is the British Academy's review of the role of business in society. It combines research from a range of academic disciplines with insight from senior business and policy leaders.
A new report by Mercer, COVID-19 – Investment Governance and Strategy to Navigate a Pandemic-Driven Market Crisis, examines how large asset owners are finding ways to pursue attractive risk-adjusted investment returns while also taking investment actions to help mitigate and address the impact of the COVID-19 pandemic through investment governance.
Unemployment is a policy choice, according to Professor Bill Mitchell, the father of Modern Monetary Theory (MMT). He says there is no reason that unemployment should be at the current levels.
APG and CalSTRS are leading a collaboration with PRI that provides investors with ESG-related questions to ask investee companies about their responses to COVID-19.
During the current COVID 19 environment, investment in infrastructure should be leveraged as an opportunity to keep people employed, keep businesses afloat and to maintain the productive capacity of the economy.
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