This conversation covers some examples of the techniques deployed for thinking about decumulation using data from Hong Kong, Singapore and France.
Speaker: Raphael Sobotka, global head of flexible, risk premia and retirement solutions, Amundi
Moderator: Alex Proimos, head of institutional content, Investment Magazine
Length: 11 mins
A concentrated bet on fewer, better GP relationships is paying off for one of Australia's largest superannuation funds. Built on selective manager and deal selection rather than a broad roster, the A$112 billion ($78 billion) Rest Super delivered private equity returns more than double the peer average last financial year, as the fund proactively courts top-tier PE firms instead of waiting to be approached.
Packing more energy into smaller batteries is one crucial technological development to help achieving the energy transition within the necessary timeframes, the Fiduciary Investors Symposium has heard, and there are enormous economic opportunities ahead as industry races to unlock solutions.
The influx of capital and interest into the private credit market has spawned new managers and offerings, but asset owners are increasingly alert to the fact that not every one of them is built equal, and even tiny losses during the credit cycle can eat significantly into long-term returns.
The changing nature of geopolitical risks has made them harder to manage, even though the adversaries to an American-led world order have remained nearly the same over the decades. The Fiduciary Investors Symposium heard a key difference is that everything that happens everywhere is now interconnected.
Investment heads at large global funds are cutting down on risk, making higher allocations to equities and shifting focus to absolute returns as they reorganise portfolios to future-proof against global macro risks on the horizon, and to take advantage of potential opportunities, the Fiduciary Investors Symposium has heard.
Nobel Prize-winning economist Myron Scholes advises investors to think differently about risk to improve the way it is managed, to help boost returns. He told the Fiduciary Investors Symposium the focus of asset owners should shift from thinking of risk as a constant to considering how risks are changing.
An increasing willingness of regulators to bail out investors at times of crises is reducing the competitive environment in which banks and financial institutions operate, the Fiduciary investors Symposium at Stanford University has heard. It is also encouraging more risky behaviour, and creating a fragile system in the longer run.
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