- Retooling investors for an age of uncertainty
- Overcoming failures in long-term savings and investment: the lessons of the UK
- The Investor’s View: Adrian Orr, Chairman, International Forum of Sovereign Wealth Funds; Chief Executive Officer, New Zealand Superannuation Fund
- Profiting from long-term value creation in the equity markets
- Navigating negative rates for resilient returns
Chapter 1 revisited
Chapter 1 revisited
Will humanity end poverty and our destructive impact on the natural environmental in the twenty-first century, while maintaining peace? These are the big challenges of our generation. We have the potential to harness the power of our multipolar, multicultural and interconnected world to establish a platform for the sustainable development for the planet and its people. Why then refer to an “age of uncertainty”? This piece focuses on how we, as owners and stewards of capital, can help mitigate this cycle of volatility and stagnation.
Ashok Gupta, Chair of the PLSA Defined Benefits Taskforce
Has the flood of financial regulation made investors’ money safer? Enhanced oversight sought to make financial markets more stable and provide frameworks for long-term investors – like insurance companies and pension funds – to generate returns consistent with their liabilities. But when we contributed to a 2014 discussion paper by the Bank of England, we found that the recent regulatory drive, combined with and industry practices, helped destabilise UK markets and undermined these investors’ ability to meet their mandates.
The Investor’s View: Adrian Orr, Chairman, International Forum of Sovereign Wealth Funds; Chief Executive Officer, New Zealand Superannuation Fund
In April 2016, The Investment Institute spoke to Adrian Orr, Chairman of the International Forum of Sovereign Wealth Funds and the chief executive officer, New Zealand Superannuation Fund, about the challenges of allocating capital for the long term. They discussed stakeholder engagement, counter-cyclical investment strategies and how the relationships between investors and their managers are changing. They also discussed the opportunities presented to long-term investors by the current global imperative for sustainable development and the difficulties sovereign wealth funds face in an era of low oil prices, and how these might affect how they allocate capital.
In 2015 many of the world’s stock markets became volatile, causing many institutional investors to either allocate away from equities into bonds to assuage losses or to adopt risk-reducing passive strategies. However, these may not necessarily be the best options for long-term investors? By identifying companies with strong business models, brands and astute management that make good investment decisions, Clyde and Simon discuss how stock pickers can develop strategies that harness the compounding effects of long-term value creation, while dampening the portfolio’s volatility.