2019 Global West Government Funds Roundtable

Private Peer-to-Peer Networking and Discussion (for asset owners only)

During this private asset owner only session, government funds will have the opportunity to interact informally with peers, followed by a brief presentation on the latest trends in the government fund community and a Q&A discussion. The presentation is compiled from aggregated data collected during polling at previous Roundtables.

Welcome Reception (for all delegates)

Welcoming Remarks

Registration and Light Breakfast

Introduction and Opening Remarks

Scott E. Kalb, Chairman, Sovereign Investor Institute
Russell Clarke, Chief Investment Officer, Victorian Funds Management Corporation, Melbourne

The Biggest Risks to the Global Economy Are...

Setting the stage for the Roundtable, in this opening address, our keynote speaker will review the global macro-economic and geopolitical environment and discuss the outlook for global growth.

Dhaval Joshi, Senior Vice President, Chief European strategist, BCA Research, London

Case Study: Worried about Volatility? What One Australian Fund Did to Protect Itself

Considering the uncertain macro-environment and the need to prepare for increased volatility, the Victorian Funds Management Corporation has undertaken a number of projects to make sure the strategic asset allocation process is flexible, robust and sustainable enough to cope with short-term stress while maintaining the long-term goals of the organization. In this case study, hear about some of the improvements VFMC has made to enhance portfolio resilience.

Presented by:
Russell Clarke, Chief Investment Officer, Victorian Funds Management Corporation, Melbourne

Cracks showing in the Global Economy, Portfolios under Pressure, Is this a Turning Point for Global Asset Allocators?

For the last seventy years, countries around the world have prospered under a system of global rules, norms, and institutions, that have come to be known as the Liberal International Economic Order (LIEO). Based on the three pillars of security, free trade and open borders (shared values), the LIEO has been remarkably successful in promoting global growth, maintaining peace and helping to lift tens of millions out of poverty. Now, with rising populism, growing trade frictions, widening income disparity, and the rise of China as a global power, the terms of the global economic order are under threat. In this spotlight session our speakers will explore the underlying factors driving us toward a new world order and discuss what it all means in terms of investment opportunity and risks.

Instigator: Scott E. Kalb, Chairman, Sovereign Investor Institute
Olivier Rousseau, Executive Director, Co-Chief Executive Officer, Fonds de Reserve pour les Retraites (FRR), Paris
Russell Clarke, Chief Investment Officer, Victorian Funds Management Corporation, Melbourne
Hua Fan, Senior Managing Director, Head of Asset Allocation, China Investment Corporation, Beijing
Eloy Lindeijer, Chief Risk Officer, PGGM, Zeist

Coffee Break

Table Discussions and Feedback

Working together in small groups of six or seven, delegates will discuss the implications of the previous panel. Panellists will join the table discussions then return to the stage for comments as table captains report on the conclusions from their discussions. Be prepared to share your views!

Workshops

Stream A: Rising Rates, Trade Tensions, and the Impact on Fixed Income
Following a decade of low interest rates government funds are now operating in an era of policy normalization and rate hikes. At the same time, political tensions are threatening the stability of global bond markets, and many expect the escalating trade tensions between the US and China to be the biggest threat to financial markets in 2019. How should sovereign and government funds manage fixed income portfolios given these evolving risks?
Instigator: Scott E. Kalb, Chairman, Sovereign Investor Institute, Greenwich
Colin Purdie, Chief Investment Officer, Credit, Aviva Investors, London
Michael Hume, Partner, Head of Strategy & Research, MKP Capital Management, London
Norman Thato, Investments Manager, Debswana Pension Fund, Gaborone

Stream B:The Problem with Public Markets. What Should Government Funds do About it?
Are public equity markets still fit for purpose? Half as many companies are listed today as twenty years ago, leading to lower diversitfication and concentration risk. Shorttermism is rampant, as corporates feel pressure to meet quarterly earnings expectations. Share buy backs and financial engineering are diverting precious capital away from investment. Finally, more firms are staying private for longer, leading to fewer growth opportunities and tech firms to invest in. Having rebounded strongly over the last decade, are public equity markets fine the way they are, thank you very much, or are they in need of an overhaul? What role can government funds play to make them more healthy?
Instigator: Kip McDaniel, Chief Content Officer & Group Editorial Director, Institutional Investor
Matt Whineray, Chief Executive Officer, New Zealand Superannuation Fund

Stream C: Is the Private Debt and Credit Markets Swoon Over?
Over the last decade an unprecedented level of capital has flooded into private debt and credit strategies, making it a significant asset class for sovereign and government funds. At the same time, concerns about default risks have started to rise, amid a sharp increase in global indebtedness, as expressed by both the US Treasury and the IMF. This development is leading investors to re-examine exposure and investigate innovative ways to access private debt and credit strategies while controlling risk. Join this discussion to learn more!
Instigator: Harvey Shapiro, Senior Advisor, Institutional Investor
Robin Jarratt, Head of Private Credit Group, GIC, London
Cyrille Urfer, Director, Unigestion & Former Head of Global Public Markets, Public Investment Fund & Former CIO, Equities and Fixed Income, Abu Dhabi Investment Council, Geneva, London
Frederic Nadal, Chief Executive Officer, MV Credit, London (pending final confirmation)

Lunch

Featured Speaker: Almost the End of the Brexit Saga: What Next?

An award-winning political commentator, our speaker will share his unique take on the extraordinary series of political events that have unfolded over the last couple of years across Europe. In particular, he will address Brexit and what the future might look like for Britain and Europe. As the Independent’s chief political commentator for over ten years, Steve is also a regular panellist with Andrew Neil on BBC One’s Sunday Politics.

Steve Richards, Presenter, BBC, London

All the Capital Says 'Private Markets'. All the Flow Data Says 'Private Markets'. So Why Are Investors so Worried about Private Markets?

Government funds have been increasing allocations to private markets over the last decade to generate alpha, diversify portfolios and find attractive uncorrelated return streams. As discussed at the Global East Roundtable in Singapore, shortcomings in public equity markets, such as short-termism, volatility and financial engineering, have been supporting this trend. However, today we see new challenges on the horizon for private market strategies, including the rise of anti-globalization sentiment, potential trade wars and growing political risks. Will we see asset allocators continue to increase allocations to private equity, debt, infrastructure and real estate? How will they navigate these choppy waters?

Instigator:Scott E. Kalb, Chairman, Sovereign Investor Institute, Greenwich
Andre Bourbonnais, Managing Director, Global Head of Long-term Private Capital, BlackRock and Former President and Chief Executive Officer, PSP Investments, London
Torbjorn Hamnmark, Head of Strategic Asset Allocation, AP3, Stockholm
Sujoy Bose, Managing Director and Chief Executive Officer, National Investment and Infrastructure Fund

Table Discussions and Feedback

Working together in small groups of six or seven, delegates will discuss the implications of the previous panel. Panellists will join the table discussions then return to the stage for comments as table captains report on the conclusions from their discussions. Be prepared to share your views!

Coffee Break

Workshops

Stream A: How Long-term Investors Collaborate to Invest in Private Equity
Private equity has been drawing huge inflows from government funds over recent years, to the extent that the amount of “dry powder” in the industry, estimated at $1trillion+, has hit record levels. Now investors are concerned about how this capital will be deployed, especially in a tough global environment that seems to be changing on a daily basis. In this workshop, two leading sovereign wealth funds will outline how they partnered to co-invest in private equity. Following the case study, our experts will share their views on trends in private equity today and how capital is being deployed, including through direct- and co-investment channels.
Instigator: Cian Cotter, Managing Director, Insight Venture Partners, New York
Vicki Kerrigan, UK Leader of Industry for Private Equity and Sovereign Investment Funds, PricewaterhouseCoopers, London
Isabelle Bebear, Head of International Affairs, BPI France, Paris
Tom Rotherham-Winqvist, Managing Director, WAFRA, London

Stream B: Emerging Markets Fared Poorly in 2018: Can they Turn the Corner in 2019?
While western economies face a wave of opposition against globalization, emerging markets are bulwark of internationalism and outward looking development models, relying on trade as an engine for growth. Today, EM economies make up a much larger share of global trade and investment than in the past, but can they continue to provide a steady source of dynamism and global growth, as well as attractive opportunities for investors, in the face of rising tariffs and protectionism? How will EM adapt to this new world order? How should asset allocators approach EM investing given this backdrop? Which countries and investment strategies are most attractive in the current environment?
Instigator: Harvey Shapiro, Senior Advisor, Institutional Investor, New York
Michael Rosborough, Investment Director, CalPERS, Sacramento
Luiz Claudio Levy Cardoso, Chief Investment Officer, Nucleos Instituto de Seguridade Social, Rio de Janeiro
Andrew Ness, Portfolio Manager, Franklin Templeton Emerging Markets Equity, Franklin Templeton Investments
Hua Fan, Former Senior Managing Director, Head of Asset Allocation, China Investment Corporation

Stream C: Smart Beta and Factor-Based Investing: Alpha Generator or Systematic Risk? Smart beta and factor-based investing strategies continue to grow in popularity among state-owned allocators. Attractive risk management features and low-cost structures are just a few reasons for the increased level of interest, but what about the challenges? Are there potential pitfalls that investors should be aware of? Which factors are likely to be most attractive for sovereign fund investors going forward, especially in a global environment where the rules of the game are changing?
Instigator: Scott E. Kalb, Chairman, Sovereign Investor Institute, Greenwich
Vis Nayar, Deputy Chief Investment Officer, Equities, HSBC Global Asset Management, London
Shakir Asri, Principal Officer, Prima Ekuiti, London
Olivier Blin, Head of Cross Asset Systematic Strategies, Unigestion, London

C-suite Perspective: Globalization under Siege, Implications for Investors

Institutional investors have been facing challenges of lower returns, fee compression, geopolitical risks, and tech disruption for some time, but the rise of anti-global sentiment both at home and abroad and increasing nationalistic pressures to close borders and shutter trade agreements, presents new and complex challenges. In this session, our esteemed panelists from leading global asset managers will discuss the current outlook and future prospects for global markets and the institutional investment industry in an increasingly complex environment.

Instigator: Kip McDaniel, Editor-In-Chief of Institutional Investor
Domenico Aiello, Chief Finance Officer, Amundi Asset Management, Paris
Jean Raby, Chief Executive Officer, Natixis Investment Managers, Paris (Pending final confirmation)
Dr. Jean Bolvin, Managing Director, Global Head of Research, BlackRock and Former Deputy Governor, Bank of Canada, London

Reception and Rothschild Wine Tasting

After an informative and productive day, continue your conversations over a refreshing drink during a wine tasting hosted by the Rothschild Vineyard. Sample a selection of white and red wines and enjoy learning about the history and production of these special wines from an extraordinary vineyard.

Dinner

Join your peers for dinner and continue your conversations in a relazed and informal setting.

Breakfast

The Next Wave of Reserve Management

Foreign reserve assets grew at a rapid pace during the period of the “great moderation” and in the aftermath of the global financial crisis, leading to changes. Over the last decade, central bank thinking has evolved regarding the accumulation of reserves and how they should be managed, but changes in the structure of the global economy are again causing central banks to rethink their models. In this session, a group of reserve managers will discuss some of the trends we have seen in recent years at Central Banks and initiatives underway to tackle new challenges.

Instigator: Harvey D. Shapiro, Senior Advisor, Institutional Investor, New York
Ricardo Martinelli, Head of Investment Division, Central Bank of Brazil, Brasilia
Raivo Vanags, Head of Market Operations Department and Board Member, Bank of Latvia, Riga
Muhammad Ali Malik, Executive Director, Financial Markets and Reserve Management, State Bank of Pakistan, Karachi

NZSF calls on Global Investors to take Collective Action, Urging Tech-Clients to take more Responsibility for the Material Published on their Platforms

The largest investors in New Zealand are urging tech giants - Facebook, Google and Twitter - to better monitor and censor the content that is shared across their platofrms. This follows the Christchurch terror attacks which was live-streamed and shared on social media. Hear directly from Matt Whineray about this initiative.

Matt Whineray, Chief Executive Officer, New Zealand Superannuation Fund, Auckland

RAAI Leaders 2019: The Top 25 Most Responsible SWF/GPF's

Workshops

Stream A: Innovation and Disruption Applied to Institutional Investing
Technology has transformed what we invest in and how portfolios look. For example, twenty years ago companies such as Ford, GE, Marlboro and AT&T were among the top 15 brands globally. Today they don't even make the list and have been replaced by firms such as Apple, Amazon, Google and Samsung. Technology is also transforming how we invest. Our ability to collect, store and process data has expanded exponentially. AI is empowering new quantitative investment strategies, and instant, efficient informaiton sharing is breaking down investment barriers. As technology continues to advance at lightening speed, government funds much be adaptive and flexible in assessing what to invest in as well as how to implement technology in their process.
Instigator: Harvey Shapiro, Senior Advisor, Institutional Investor, New York
Ed Lecky-Thomson, Global Head of Digital Strategy and Innovation, Schroders, London
Walter Braegger, Partner, Sanostro Institutional AG, Zurich

Stream B: ESG: Is it Essential for Long-term Investors or Just a Bull Market Phenomenon?
With tensions growing between world leaders and challenges facing the global economy that threaten to destabilize financial markets, asset allocators are wondering how best to continue to incorporate ESG risks into investment portfolios. What are the priorities? How can institutional best reflect the ethical preferences of stakeholders in investment policies? Will responsible investing practices begin to slip, given challenges investors face in the global portfolios" Will climate change remain a key focus? These are just some of the topics to be discussed in this session as we examine how government funds seek to add social and environmental value while generating financial returns.
Instigator: Scott E. Kalb, Chairman, Sovereign Investor Institute, Greenwich
Alice de BazinHead of Business Solutions and Innovation, Amundi Asset Management, Paris
Anne-Charlette HormgardSenior Manager Sustainability, AP3, Stockholm
Kelly ChristodoulouESG Manager, Investments, AutralianSuper, Melbourne

Coffee Break

Featured Address: What Investment Organization Success Looks Like in 2025

With global markets facing headwinds in terms of volatility, rising rates, political uncertainty, and technology disruption, building a robust organisation with a strong governance structure and culture is more important than ever to weather potential storms and thrive over the long-term. In this session, hear how one leading pension fund is making changes to its organisation for investment success over the long-term.

Jaap van Dam, Principal Director Investment Strategy, PGGM, Zeist

The Blue Sky Project: What Ideal Investing Culture, Organization and Governance Looks Like

Mission focused, strong leadership and purpose, are just a few of the factors that create a robust and vibrant investing culture, organization and governance structure. What are the practical steps and initiatives that sovereign and government funds need to take in order to improve their organizations for long-term investment success? Following the panel discussion, and working together in small groups of six or seven, delegates will discuss questions and about optimizing governance, culture and organization. Panelists will join the table discussions then return to the stage for comments as table captains report on the conclusions from their discussions.

Instigator: Kip McDaniel, Chief Content Officer & Group Editorial Director, Institutional Investor, New York
Jaap van Dam, Principal Director, Investment Strategy, PGGM, Zeist
Catherine Savage, Board Chair, New Zealand Superannuation Fund, Auckland
Stella Ojekwe-Onyejeli, Executive Director and Chief Operating Officer, Nigeria Sovereign Investment Authority

Closing Remarks

Stella Ojekwe-Onyejeli, Executive Director and Chief Operating Officer, Nigeria Sovereign Investment Authority
Scott E. Kalb, Chairman, Sovereign Investor Institute, Greenwich

Buffet Lunch