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articlePurposeful companies

Asset management’s new purpose

CEO of Franklin Templeton, Jenny Johnson, said asset managers need to do more, particularly in boosting diversity and inclusion in the underlying companies they own. She said the industry needed to do more to ensure capital is available to black-run and female-run businesses.
Investor Profile

NZ Super: on a higher plain

Self-reliance on asset allocation and employing a partnership style with its managers – based on the mutual exchange of ideas – are the cornerstone of New Zealand Super’s evolved investment approach founded on the confidence of its investment ideas. David Rowley visited the NZ$29.6 billion fund to find out how it does this.  On the climb towards the […]
Research

Re-intermediating investment management

In this paper, Ashby Monk and Rajiv Sharma from the Global Projects Center at Stanford University, examine the balance of power among the various parties in the private assets investment food chain. They argue that fund managers have too much power, as do the consultants that act as gatekeepers to those managers. While the authors […]
Analysis

Costs cast increasing doubt over hedge fund relevance

The inability to scale hedge fund exposures and risks, has led many large investors, like CalPERS this week and ATP last year, to exit their hedge fund programs. Complexity continues to be a drain on the relevancy of hedge funds, but importantly cost is driving the agendas of these investors. As AQR’s Cliff Asness admits, […]
In Depth

Where does the next generation of fund managers come from?

According to Malcolm Gladwell’s Outliers, at least 10,000 hours of practice is needed to be a success at your chosen profession. This means that a fund manager will hit their strides around age 40. But the London Business School is giving its students a leg up in that quest to find success. They have real-life […]
In Conversation

Investors call for conflict of interest code

As an outsourced provider, fund managers make a series of promises to investors. Anything that tempts the promise to be broken is a conflict of interest, according to chief executive of Carne Group, John Donohoe, whose organisation has conducted a survey of institutional investors’ attitudes to conflicts of interest. In a survey of global allocators […]
Analysis

Aligning asset owners and managers

Delegation is a fundamental obstacle to the alignment of asset-owner and asset-manager goals. However, Sebastien Pouget, professor of finance at the University of Toulouse, believes a combination of customised performance benchmarks and a dual short and long-term fee incentive can help overcome the problems of the principal/agent relationship. Pouget, who spoke at the recent United […]