APAC’s mega trends: The investors positioning for the future

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APAC strategies: Why active management pays

In a region as diverse as Asia investors can lean in and take advantage of inefficiencies and inconsistencies around growth, central bank policy and diverse regulatory regimes; and asset owners in the region are increasingly finding active management, across all asset classes, optimises returns and reduces risk. Top1000funds.com investigates.

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Opportunities in APAC: Diverse and dynamic

The list of reasons to invest in APAC is compelling and institutional investors in the region are increasingly tapping the opportunities. Top1000funds.com looks at the different levels of income, volatility, efficiency and ultimately returns across the region.

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The twin forces rewriting the rules of investing

The twin forces rewriting the rules of investing

Portfolios built for the old world will be severely tested as emerging forces rewrite the rules of investing. The Fiduciary Investors Symposium heard that geopolitical and macroeconomic upheaval, together with the disruption wrought by AI, should force asset owners to rethink the structure and composition of portfolios.

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Strategic tilting adds value at NZ Super

Strategic tilting has added 1.1 per cent, or NZ$3 billion, to the New Zealand Super Fund’s reference portfolio over the past 10 years, David Iverson, head of asset allocation at the NZ$41 billion fund says. This is way above the expected return from the program which was set at around 40 basis points.

At a glance: FIS Cambridge day three

An overwhelming number of delegates at the Fiduciary Investors Symposium said the funds management industry was not doing well in innovationMartin Gilbert, who started Aberdeen Standard Investments in 1983 and is now chair, said industry participants needed to innovate and disrupt themselves.

Different ways to navigate risk

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.

How to build innovation

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.

Climate change risk to spur stress test

Mercer has quantified a ‘low-carbon transition’ premium in the sequel to its seminal climate change report, showing that a 2⁰C scenario equates to 11 basis points per annum to 2030 in a typical growth portfolio.

Long-term investors must engage

Long-term infrastructure investors need to engage with the public and do much more to build trust in the value of their capital, said Brett Himbury, chief executive, IFM Investors (Australia), the global infrastructure manager, owned by 27 leading pension funds with $120 billion AUM.

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