Stock picking is not a solution to today’s challenging investment environment, warned Eugene F. Fama, The Robert R. McCormick Distinguished Service Professor of Finance and 2013 Nobel laureate in economic sciences. Active management run counter to diversification, key in the current climate, he says.
Europe is in the grip of historically high energy prices today, but markets are pricing in a lower risk premium ahead and the oil price is set to come off, predicted Edward Morse, global head of commodities research at Citigroup.
Investing in private credit brings income and supports capital preservation, but as more investors enter the asset class, competition for assets is set to heat up. Investors from South Carolina Retirement Systems Investment Commission, Investment Management Corporation of Ontario and Ohio School Employees Retirement System explain their approaches.
Funds of enormous scale will require a new cross-disciplinary approach, and innovative incentive and rewards schemes to foster the organisational culture needed, according to chief investment strategist at CPP Investments’ Geoff Rubin, as it looks to move beyond a total portfolio approach to a “one fund” approach.
In a wide-ranging session at the Fiduciary Investors Symposium at Chicago Booth School of Business investment executives from HOOPP, CalSTRS, USS and Cbus reflect on the need for strong governance in the current climate, diversification and liquidity.
Former Federal Reserve governor Randall Kroszner argues crypto assets are mislabelled as “currencies”, and said digital currencies like China’s digital Renminbi could one day challenge the primacy of the US dollar, in a wide-ranging conversation.
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