Business

Institutional Investors: Thriving Amid Change

In a world in profound flux, where do we look for the great investment ideas and strategies of today—and the next 50 years? Some of the Pacific Region’s largest institutional investors will discuss the importance of agility as we prepare for the next wave in asset management. What will be the impact of the region’s massive demographic shift and rising populist policies on future growth? How will organizations and their cultures adapt to changes in technology, including digital and big data? What will the end of the leverage tailwind mean for price growth? And which investments will thrive from the rapid change in consumer preferences?

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Q2 hedge fund letters, conference, scoops etc

Institutional Investors Thriving
Image source: YouTube Video Screenshot

Moderator

Lisa Gray CEO, Victorian Funds Management Corporation

Speakers

Raphael Arndt - Chief Investment Officer, Future Fund

Russell Read - Chief Investment Officer, Alaska Permanent Fund Corporation

Dilhan Pillay Sandrasegara - Deputy CEO, Temasek International Pte. Ltd.

Tokihiko Shimizu - CEO, Japan Post Investment Corporation

Institutional Investors Thriving Amid Change

Transcript

Please welcome your panelists for institutional investors thriving amid change moderated by CEO of Victorian Funds Management Corporation Lisa Gray. Good afternoon everyone. Really appreciate you coming along because we understand we're campaigning with a footballer and a world class model. So we're very grateful for your time this afternoon. And we promise you an exciting panel. It's a really important topic. We have. Whoa classic institutional investors sovereign wealth funds here with us this afternoon. And speaking about some really interesting things and how we thrive and survive means change. That is amongst us and it seems to me an incredibly timely topic because wherever you look there is constant change. Things are moving in different directions. I arrived from Australia on Saturday night and there were two things dominating the Tavey here. One was Trump for a Nobel Peace Prize and those of you heard Tony Blair earlier on around lunchtime today he had his statement on that around Trump for Peace Prize. Was that just an unpredictable personality type can sometimes turn into his strategy. So we'll see how that one goes. The other thing that was dominating the news Saturday evening was the cool show Wolf at the White House correspondents dinner as well and the extreme views about what she spoke about as well. But when we're heading into any of those directions we have four leading sovereign wealth funds institutional investors here with us to dine. They're very different organizations but there are several things that really common to all of them. One is that they are very much long term we have very much long term investors patient capital as such.

All of these organizations have an enduring purpose and their purposes are around sustainability around improving things for future generations. They are about improving prosperity and well-being as well for the countries and the funds that they are in Volvo with. And sustainability and longevity came to that. So let me introduce the panel members that we have this afternoon tomorrow Racz Russell Reid who is the CIO of the Alaska Permanent Fund Corporation. Welcome Russell to Russell's wrought is Rafael AANT also known as Reath so I call him reff from time to time that so I'm talking about and refuse to see eye of the Future Fund which is Australia's sovereign wealth fund. Welcome to my left EE's deal hand Pelée. Dylan is the deputy CEO of Tomasic International. So welcome to you too. And then Tokie Tokie Shimizu who is the CEO of the Japan Post Investment Corporation. Welcome Ticky. So we're going to go into a variety of different places without conversation the staff dinner but I'm going to start very much with the present. And so you can't talk to any investor at the moment or an asset manager and not talk about where are we in the cycle. And we all talk about sort of some way later in the cycle asset values a high liquidities being withdrawn. And we've been benefiting from the leverage and the type of wins that giving us the deal and I'm going to start with you and ask you what do you see impact as that leverage is withdrawn and what might be the impact on assets and asset quality. So I think first of all let me explain to you the bit about Tomasic.

We're not really a fund we are on permanent capital vehicle and we actually own a bunch of assets 45 percent of our portfolio is in companies that we control and the rest are in investments in companies either concentrated or are not for last 15 years. We've been moving away from being Singapore centric to being globally oriented and today by 75 percent are performers outside of Singapore as we look at investment patterns over the last few years. Obviously in the last I would say five or six years the amount of liquidity that's coming into the private markets private equity as well as the public markets has really resulted in this huge asset inflation that we have never seen before. And you've seen earnings multiples at levels which one to two standard deviation points above the norm and you think about that and you think about leverage.