In new statements on the extent of greenwashing in the fund management industry, Desiree Fixler highlights some uncomfortable truths about sustainable investing.
Officials at the NPC in Seoul say the W190 trillion ($200 billion) institution has appointed the two firms to not only manage money but provide a deeper level of training and technology transfer than is normally the case.
"We want a deeper relationship with global fund managers," says an NPC official. "We want more practical help." This extends from asset-allocation decisions to middle- and back-office support, allowing the NPC to second staff to the managers's operations for longer periods of time. "We want our staff to get hands-on experience.
The agreements may also include providing the NPC with superior information technology. In return, Credit Suisse and Morgan Stanley are first in line for additional mandates for managing NPC assets, although they do not enjoy any exlusive relationships.
The next objective for the NPC is emerging markets. The organisation has been at the forefront of overseas investing among Korean institutions. It organised a process of awarding investment mandates to external managers for core asset classes including global equities and global fixed-income, and last year spent a lot of energy on gaining access to global private-equity and real-estate funds. But NPC officials would not say whether Credit Suisse and Morgan Stanley have a leg up on winning some of these mandates.
Now, having learned the ropes for investing in developed markets, the NPC wants to tap opportunities in emerging markets. It is now in the process of hiring three managers for $200 million worth of mandates in global emerging markets, using the MSCI Emerging Markets Index ex-Korea as a benchmark.
The NPC continues to use both Watson Wyatt and Mercer Investment Consulting to help draw up shortlists. In previous outsourcings it relied on both firms for assistance; now it rotates business among them, and also uses its own list of managers which it has developed through its recent experiences.
CDPQ's Ivanhoe Cambridge hires ex-GIC real estate expert; NZ Super adds board member; Future Fund appoints chief people officer; BlackRock real estate CIO joins Singapore's Capitaland; AMP Capital hires MD for energy; Northern Trust AM names new CIO; T Rowe Price hires AU and NZ institutional head; Nuveen hires Southeast Asia institutional head; Citi names sustainability head in Singapore; and more
Investors are increasingly turning to private companies and private debt in their hunt for ESG alpha, but the age-old problem of transparency and due diligence remains
Already on the rise pre-Covid, investments into data centre assets in Asia have accelerated in the past year, fuelled by interest from investors across the spectrum.
Actively managed funds were also not found to have better odds of higher returns than more passive funds.