Under-priced climate risk plagues pension portfolios

Climate risk remains systematically under-priced,
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Future Fund sees EM shifts widening alpha opportunities; CEO to depart

Future Fund sees EM shifts widening alpha opportunities; CEO to depart

Australia’s Future Fund has highlighted strong performance in global equities, particularly in Japan and emerging markets, as a key return driver for its last reporting period. Despite increased concentration in EM indexes, new CIO Richard Brandweiner said it could lead to more alpha opportunities. Meanwhile, CEO Raphael Arndt said the time has come for a “fresh leader” to steer the fund as he prepares to close out a close to two-decade tenure with the $255 billion investor.

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NZ Super debates currency risk

NZ Super's recent five-year reference portfolio review saw much debate over currency risk, with the discussion elevating to the board - an unusual situation for the fund whose internal IC usually makes recommendations to the board.

Democracy intact: Kotkin

The victory of Joe Biden over Donald Trump in the US general election is a “double repudiation” not just of Trump but of the “democracy in crisis crowd” who thought American democracy was under threat, argues historian and author Stephen Kotkin, Professor in History and International Affairs at Princeton University.

Investors need to get behind materiality

Oxford University professors Richard Barker and Bob Eccles explain why they are calling for investor support for an IFRS Foundation Sustainability Standards Board, which would focus its efforts on the sustainability information most relevant to investors.

Pension transparency needs a benchmark

A new Global Pension Transparency Benchmark – the first formal collaboration between Top1000funds.com and CEM Benchmarking - will launch in February 2021 ranking countries, via their underlying pension funds, on four factors: governance and organization; performance; costs; and responsible investing.

Investors wary of a fragmented world

As geopolitical risks increasingly stalk developed markets, asset owners sifting through the noise for long-term trends believe a fragmented world is here to stay. We spoke to CalSTRS, OPTrust, PFA and USS about the impact on their portfolios.

Is LDI fit for purpose?

An LDI approach, which included a large allocation to bonds and a lot of internal investment management, helped HOOPP survive the GFC and has served it well for the past 13 years. But now – with the COVID crisis and a very low interest rate environment – that approach is being revisited and the fund is looking to invest more in alpha generating assets, and external management.

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