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.
AustralianSuper infrastructure boss heads to Dexus
Nik Kemp, AustralianSuper’s global head of real assets has jumped to Dexus to take up the newly-created role of general manager for growth markets as it looks to transform itself into an infrastructure heavyweight.
At AustralianSuper, Kemp presided over the combined unlisted property and infrastructure teams, which were merged in 2023 in recognition of the “increasingly close” relationship between the two asset classes and to drive global economies of scale as it looked to double the size of its mid risk portfolio to more than $150 billion by the end of the decade.
Having last year finalised the acquisition of those real estate and infrastructure funds of Collimate Capital (née AMP Capital) that had not already extricate themselves from its management, Dexus itself has its eyes on growth in sectors like infrastructure, healthcare and alternative investments and thinks that “experienced infrastructure and real assets professional” Kemp is the man for the job. Dexus used the same release to announce the appointment of Marjan van der Burg as chief people officer.
“Nik and Marjan will join the Dexus executive committee, supporting our focus on leadership in real assets and driving investment performance,” said Dexus CEO Ross Du Vernet.
Kemp joined AustralianSuper from Capella Capital in 2013 as senior investment manager for infrastructure. His defection will register as a blow to the idea that Australian super funds, the largest of which are now competing for assets and personnel on the world stage, can attract and retain those personnel in the face of potentially more competitive offers from asset management businesses.
It’s also the latest in a series of personnel ructions at AustralianSuper, which earlier this year cleared out its local global equities team – including Michael Stavropoulos, head of portfolio construction and strategy, and Joseph Wahbah, head of manager research for global equities – in favour of ramping up the headcount in its London office. At the time, a spokesperson told ISN that the fund needed to “look at more global opportunities to generate the best possible returns for members over the long term”.
