Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
Fok on top at Cbus
Kristian Fok has been appointed CEO of Cbus after serving as the CIO of the fund for more than a decade and having a “close association” with it during his time as deputy director of consulting at Frontier Advisors. Marianne Walker, currently chief member officer, has been appointed to the deputy CEO position.
“Kristian has put Cbus’ investment team at the leading edge of pension funds around the world and we are excited that he will now devote his considerable abilities to the wider leadership of the fund,” said Cbus chair Wayne Swan. “He innately understands the fund, its heritage, and our connection to the built environment sector.”
During his time as CIO Fok spearheaded the development of Cbus’ hybrid internalisation strategy, which has resulted in 38 per cent of the fund’s assets now being managed in-house and estimated cumulative cost savings of $500 million. Under a new five-year investment strategy announced in May, Cbus hopes to manage 50 per cent of assets in house and partner on “more big deals” with global investors in lieu of establishing its own overseas offices.
“Our objective is to be an innovative global, long-term investor, with total portfolio expertise and a focus on investing in the real economy,” Fok said at the time. “Next year is the 40th anniversary of construction workers winning the right to super and sparking the $3.4 trillion universal system that we have today. We are proud of our heritage and connection with our members, and this shows through in our ongoing commitment to investing back into real assets, property, and construction jobs.
Fok’s appointment follows the departure of previous CEO Justin Arter in May, which came after the completion of mergers with Media Super and EISS. Those mergers significantly increased the scale of the fund and allowed it to shift its focus to organic growth and member retention. Fok was appointed interim CEO at the time.
“Kristian is devoted to the profit-to-member model that underpins industry super funds and the Board looks forward to working with him to continue delivering for members,” Swan said. “Likewise, Marianne brings a genuine and no-nonsense member first attitude to her work.”
“Administering superannuation funds has increased in complexity as funds have expanded, and Marianne carries a fierce determination to cut through barriers and deliver the best possible services for our 900,000 members, now and into the future.”
