CPP, NBIM CEOs swap notes on leading through teams, not bureaucracy

John Graham (L) and Nicolai Tangen

In a high-level exchange between two of the world
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Why traditional investment committees can amplify group biases

Why traditional investment committees can amplify group biases

Investment committee meetings, a governance cornerstone at every asset owner organisation, run the risk of amplifying group biases and social dynamics, and can push the IC towards recommending more extreme investment positions collectively than the average of their individual views. Bernhard Scherer, head of portfolio implementation at ADIA, unpacks the thesis in a new paper.

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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.

Wisconsin leans into opportunities

In the space of three months the State of Wisconsin Investment Board has moved its portfolio from “defensive” to “offensive” as it “leans into the opportunities” presented by the coronavirus crisis. CIO and executive director David Villa, and deputy, Rochelle Klaskin spoke to Amanda White about the portfolio and how the large internal team is managing remotely.

Leading from the future

Empathy and compassion will be essential qualities for leaders in a post-COVID-19 world. These ways of being can not be learned, but founder of Authentic Investor, Rob Lake, discusses three ways to cultivate them.

Rising to the challenge

Boards and investment committees must rise to the current challenge, with governance models needing a pivot to respond to the new social distancing norm. Roger Urwin outlines a virtual investment committee model.

The power of collective investor action

It’s time for the responsible investment community to step up and play its role as long-term holders of capital and call corporations to account. It’s time for asset owners sitting at the apex of the investment chain to lead the financial sector through this crisis. We need to maintain a focus on long-term horizons and support collective action while trying to understand the real issues companies are facing from COVID-19 as well as the flow on effects to our individual portfolios.

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