Listed assets aren’t the only investments under more scrutiny. As funds strive for sustainability, they are now applying that rigour even to notoriously opaque classes such as private equity.
Craig Dandurand, director of debt and alternatives for the Future Fund, offers a glimpse into how it has recalibrated its approach to investing in hedge funds and other risk premia.
Australia’s sovereign wealth fund has revamped its equities portfolio to take on deliberate factor risk and target idiosyncratic risk. The fund’s head of equities, Björn Kvarnskog, explains.
Prominent CIOs say active management’s place is secure, even as passive strategies surge in popularity. But the two types of strategies aren’t as distinct as in years past.
Managing money for default super is a possibility for Australia’s sovereign wealth fund. Its leadership also said becoming more ‘nimble’ and adding activity in venture and growth were priorities.
The lessons learned from embedding ESG risk management processes into the Future Fund’s portfolio can be readily applied to helping the fund improve its risk management for technological change.
A study of organisational behaviour at 15 of the world’s leading funds found best-practice ideas in risk management and sustainability, along with common challenges in areas such as diversity.
A body of research demonstrates that a shift in mindset towards asset owners working together, while still maintaining genuinely productive competition, pays off for all stakeholders.
As sovereign wealth funds continue to grow, some are running into tussles with citizens over particular investments or the purpose of the fund. Transparency and greater engagement can help.
The challenging market environment is putting pressure on pension funds. In response, many are lowering return targets, rather than taking on more risk or requesting larger contributions.
The link between better governance and stronger returns lies somewhere between faith and fact; however, in a historically tough climate, the argument for best practice seems overwhelming.
The better aligned a society’s financial institutions are with its goals and ideals, the stronger and more successful the society will be.