UNJSPF vows to explore impact and streamline governance

The United Nations Joint Staff Pension Fund plans
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CalPERS, La Caisse raise the bar for active managers

CalPERS, La Caisse raise the bar for active managers

CalPERS may have doubled the fees it pays for active management in public equities, but the alpha it generates has quadrupled, says global equity head Simiso Nzima, who has spent three years pruning a roster of nearly 100 managers down to a tightly scored handful. La Caisse's Mario Therrien describes a parallel discipline, using external managers not just for returns but as a "window to the world" on emerging strategies, from quant investing to AI.

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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.

A practical guide to the long-term

Thinking and acting long-term and holding their service providers to account on long-term risk behaviours and measures, is one of asset owners’ most enduring challenges. Speaking at the Fiduciary Investors Symposium at Cambridge University a panel of experts highlighted important tools asset owners can deploy to ensure they stay focused on the long-term.

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