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Future Fund sees EM shifts widening alpha opportunities; CEO to depart

Future Fund sees EM shifts widening alpha opportunities; CEO to depart

Australia’s Future Fund has highlighted strong performance in global equities, particularly in Japan and emerging markets, as a key return driver for its last reporting period. Despite increased concentration in EM indexes, new CIO Richard Brandweiner said it could lead to more alpha opportunities. Meanwhile, CEO Raphael Arndt said the time has come for a “fresh leader” to steer the fund as he prepares to close out a close to two-decade tenure with the $255 billion investor.

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Fundamentally resetting reporting

WTW’s Thinking Ahead Institute has developed an alternative attribution tool giving investors a view on the long-term drivers of performance. Tim Hodgson explains the benefits of the open source tool including improved conversations between managers and asset owners about return drivers and providing clarity on how ESG objectives are managed.

Fama, the father of modern finance, talks stock picking, ESG and democracy

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.

Oil prices set to decline; distortions driving volatility

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.

The ingredients for success in private credit

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.

$1 trillion funds need new incentives and investment styles: CPP

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.

Investors prioritise governance, tilts and liquidity

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.

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