Alpha

The supposed benchmark-beating powers of ESG have more to do with investors’ exposure to well-known factors rather than any sustainable secret sauce, according to quant house Scientific Beta.

Just two years after selecting State Street as its custodian, Perpetual is deciding whether to take its business elsewhere in the wake of its acquisition of global fund manager Pendal.

With prospective portfolio returns likely to be lower than they have been in the past, the incentive to reduce risk and enhance returns is greater than it has ever been. The investment maths is compelling, but regulatory risk might overpower it writes Michael Block.

Strategic alignment on growth and data capabilities made State Street a good fit for Australian Retirement Trust’s custody needs. Hard-earned experience with mergers helped too.