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Finance needs to lift its climate game
A recent survey of CFA Institute members showed finance firms are lagging in how they incorporate climate change into the investment process. Matt Orsagh, senior director, capital markets policy at CFA Institute, details steps that can be taken to improve this.
The power of collective stewardship
Collective campaigns can vastly increase the effectiveness of stewardship, particularly on contentious issues. Asset owners are well-placed to bring results with their financial clout and focus on the long-term best interests of the companies they invest in.
Aaron Minney: Building a retirement mindset, industry innovation and longevity hedging
In this episode, Alex Proimos, head of institutional content at Investment Magazine, chats with Aaron Minney, head of retirement income research at Challenger, about a range of topics including deaccumulation, sequencing risk and income generation in reti
Derivatives in emerging markets
This article by Dubravko Mihaljek and Frank Packer from the Bank for International Settlements, reviews the derivatives market in emerging market economies, attempting to answer some basic questions such as how big the market is, who trades, which derivatives are most traded and how it differs from mature markets.
If you want to improve the environment, invest in companies that are improving
Charles E.F. Millard, the former Director of the U.S. Pension Benefit Guaranty Corp, says the real difference to the environment will come with companies that improve how well they perform. Investors should be looking at those.
Focus on medium-term, too, can add 1-1.5% to returns
As institutional investors have been hit hard by events of the past 18 months, there has been a surge of interest in the adoption of an additional, mid-term, time frame in which to provide investment targets. Watson Wyatt believes pension funds should allocate between 5 and 15 per cent of their risk budget to dynamic
GPIF pins active equity overhaul on ‘scientific’ manager selection
A quest for manager and fund strategy diversification has led the world’s largest pension fund, Japan’s Government Pension Investment Fund, to reach a decade-high allocation to active global stocks. Its active equity portfolio now consists of 103 funds, increasing fivefold compared to 2020 when it only invested in 20.
Appeal of cash will suck money from other asset classes in coming years
Cash is now a viable investment option for the first time in many years, and its appeal will draw money from other asset classes leading to poor performance both in financial assets and the real economy, according to Greg Jensen, co-chief investment officer at global investment management firm Bridgewater Associates.
Asset owners take charge on fees
New models that better align interests and a commitment to ‘fee principles’ are among the ways investors are getting more value for the expense. Even smaller funds are getting into the act.
Sustainability Digital – March 2021