With active funds failing to impress in the current bear markets, regional institutional investors look set to keep relying on passive funds – with the odd exception.
While the fund announced a healthy return for 2019, its investment team is considering how to recalibrate its passive benchmark for trickier conditions ahead.
The sovereign wealth fund has become more cautious about private asset investing, worried that they may struggle to outperform its reference benchmark, net of an illiquidity premium.
To remain in the forefront of institutional investment, the sovereign wealth fund of New Zealand is reappraising its entire structure and drafting a new set of investment values.
While reporting continued positive returns, the sovereign wealth fund is being encouraged to reassess its reference portfolio and broader culture.
The New Zealand-based sovereign investor has been able to produce a healthy return for the year, but only after reporting some unusually volatile monthly performance numbers.