Analysis

by David Chaplin The New Zealand Superannuation Fund has dialed-down active risk-taking to one of its lowest points in almost a decade, according to chief investment officer, Matt Whineray. Whineray, told the Sovereign Wealth Fund Institute (SWFI) publication last week that the almost NZ$40 billion (A$37 billion) fund had scaled back its “active risk” positions…

The global shift to index investing is unlikely to rewind despite unfavourable conditions for passive allocations across asset classes, according to Kylie Willment, Mercer Australia’s chief investment officer. Willment, who made several investor presentations last week in New Zealand, said the secular move to passive exposure had been driven by a number of forces, including: equity…

Super fund members are missing out if their fund fails to adopt an integrated tax efficient approach to equity investing, according to global implementation manager Parametric, with a net benefits of up to 7.2 per cent a year over 40 years and multiple scenarios. Parametric’s latest study tracks the experiences of three hypothetical super fund members…

While most areas of private equity have performed well for both managers (general partners) and their investors (limited partners), there has been a standout sector in the past 12 months according to a study by McKinsey & Company. This was “the surge of megafunds”. The report, ‘The Rise and Rise of Private Equity’, says the market…

The Grattan Institute, the think tank which has become a consistent critic of the superannuation industry, lobbed another grenade over the fence last week, in a paper on how to close the gender gap in retirement incomes. This is a complex issue which has been widely discussed within the industry for years. The latest report…

by Greg Bright Australia is the number one “standout” pensions market in the world over the past 20 years, according to no less a body than the Thinking Ahead Institute and Willis Towers Watson’s Roger Urwin. “Australian super funds deserve particular plaudits,” a new report says. Roger Urwin, the global head of investment content at…

Some of the world’s largest institutional investors, with assets totalling about US$30 trillion, moved last week under the auspices of the United Nations to flex their muscle – up against various intransigent governments – to address climate change. A total of 450 pension funds, sovereign funds and other ‘asset owners’ attended the 8th biennial ‘Investor…

by Greg Bright There is a big difference between the way the three investment management distribution segments address ESG issues. For retail investors, it is about the ‘product’. The rise of new-style listed invested vehicles, including sophisticated ETFs, has given retail investors many more options to exercise ESG preferences. Years ago, since the early 2000s,…

by David Chaplin Sovereign wealth funds (SWFs) have significantly upped allocations to alternative assets since 2010 during a period when funds under management leapt about US$3 trillion, new research from global consultancy firm PwC reveals. The PwC study shows the SWF sector lifted exposure to alternative assets from 19 per cent in 2010 to almost…

by Greg Bright The Australian Government has given a fillip to the long-discussed Asia Regional Funds Passport scheme with the release of draft legislation and a request for proposals to participate in a pilot program. And it’s not just fund managers who stand to benefit. Other service providers could do very well out of this….

Private credit is arguably the hottest asset class of the moment. Australian institutional investors have several global and local providers from which to choose. Now, there’s a not-for-profit organisation looking to promote the asset class in the region. The Alternative Credit Council (ACC), the private credit affiliate of the Alternative Investment Management Association (AIMA), has…

Among financial planners, at least, on average there appears little value in trying to enhance their clients’ portfolio returns through manager selection, new research by Research Affiliates shows. While the big asset consulting firms will dispute this from their own experience – and with some evidence to back it up – the ‘retail’ market results…