A focus on any one infrastructure benchmark will not provide sufficient diversification within GLI, with investors limiting exposure and potential investment returns, Mr Bellingham said.

“The GLI space in particular has undergone significant change in recent years, particularly with utilities, however the relevant global benchmarks representing the infrastructure universe don’t adequately reflect this.

“As part of the transition pathway towards achieving net zero emissions over the next five, 10 and 20 years, investment portfolios need to be positioned to better reflect some of these changes,” he said.

He said an investment approach exists which provides institutional investors, including superannuation funds, with diversified exposure to global renewables, delivering improved returns, reduced portfolio risk, and which satisfies requirements of the YFYS reforms.

“There is limited exposure to renewables in any benchmark, but particularly within the benchmark chosen under the YFYS reforms – the FTSE Developed Core Infrastructure Index. This index which contains just one stock – US-based energy company, NextEra Energy.

“If super funds assume a zero active-risk position relative to the benchmark, they will end up with a concentrated single stock that fails to capture a far broader opportunity set. It also means they are limited at a country level, which carries risk,” he said.

Mr Bellingham said one investment approach to GLI is to capture the defensive growth characteristics of the infrastructure universe by creating a diversified portfolio that can be used as a core and liquid allocation to the sector.

“This way, investors can gain more diversified exposure to the potential benefits of the global transition to net zero. The approach is flexible and scalable in meeting a range of risk budgets, and substantially reduces stock and country-specific risk.

“Opportunities do exist to stay active and outperform, while also providing exposure to one of the biggest transition and investment developments in the coming years and decades. Investors are encouraged to re-evaluate their exposure to renewable investments before they miss out altogether,” he said.

Mr Bellingham’s comments precede the UN Climate Change Conference in Glasgow later this week, where global efforts towards reducing the impacts of climate change will be discussed by world leaders.

The post GLI diversification achieves climate, financial objectives for super funds appeared first on AdviserVoice.

High conviction Australian equities manager, Altair Asset Management, today announced a series of appointments to its team of Australian equities experts.

Altair’s philosophy is to only invest in a focused portfolio of Australian equities. “Historically, Australian equities have proven to be the most reliable asset class over the long term,” said Managing Director Philip Parker.

“Altair is focused on active management of investment strategies and client portfolios. The ability to be nimble, confident and responsive is the key to active management.

Launched last month, Altair is headed by Mr Parker, whose career in investment markets spans funds management, dealing and advising.

The latest appointments join a team of experienced investment professionals. Head of Research and Process, David Langford, was formerly Head of Research at ING Investment Management and has also held senior roles at a number of top tier global investment banks; while Chief Economic Advisor, Stephen Roberts, who was most recently Nomura’s Chief Economist in Australia, has a career spanning almost 40 years with extensive experience in banking, broking and funds management.

The team also includes Portfolio Manager and Analyst Tim Riordan; and Mathew Longworth, a geologist and Senior Consultant Analyst for resources companies.

The new appointments announced today are:

Alvin Chan – Portfolio Manager/Analyst

Mr Chan is responsible for research across various industrial-related sectors, and will also be assisting in managing Altair’s equity income and concentrated equity strategies.   Mr Chan brings broad-based industry and analytical experience, most recently from AMP Capital, where he was a Portfolio Manager and Analyst in the Capital team.

Cindy Liu – Senior Quantitative Analyst

Ms Liu is responsible for quantitative analysis and developing the team’s quant techniques.  She specialises in Australian equity systems for asset management.  She was previously a Quantitative Analyst at ING Investment Management.

Daniel Stein – Associate Analyst

Mr Stein is responsible for financial modelling, analysis and equity research. He was most recently an Analyst in the Corporate Finance team at Wilson HTM.

Toby Bellingham – Equities Trader

Mr Bellingham is responsible for Altair’s trading and related execution functions.  He is an experienced equities trader, and most recently worked at Invesco and Schroders Investment Management in Sydney.

“Actively managing an equities portfolio demands rapid, informed decisions,” Mr Parker said. “To do this you need a team that is experienced in a wide range of aspects of the Australian equities market, to provide the perspective and insight to make those decisions confidently.”

“We’re extremely pleased that we’ve been able to form such a talented, highly-skilled group of investment professionals.

“David comes with extensive experience and deep networks in the equity market and corporate Australia, which is complemented by the analytical insights and abilities of Alvin, Cindy and Daniel. This greatly enhances our research process, because access to market participants is crucial to understanding a company’s true value.

“We’re also delighted to have on board one of the most experienced and respected members of the Australian investment community in Stephen. “The team will certainly benefit greatly from his expertise, and we’re confident each of these appointments gives Altair an experienced team that will help us deliver institutional rigour with a personal approach,” Mr Parker concluded.

The post Altair unveils series of senior appointments appeared first on AdviserVoice.