…and creates powerful new ESG role

The $60 billion Future Fund will appoint a manager of responsible investment, as it seeks to more actively manage its voting rights.

The Fund began advertising yesterday for the role, which will report to chief executive of the Future Fund Management Agency, Paul Costello, with a dotted line through to chief investment officer David Neal.

The Fund has to date delegated voting responsibilities to its external funds managers (with the exception of its Telstra shares), because the process of appointing the managers includes a check that their principals are broadly consistent with the Fund’s own.

The manager of responsible investment will more actively co-ordinate the Fund’s position, with responsibility for developing an overarching responsible investment framework, managing voting rights and guiding the Fund’s approach to environmental, social and governance matters relating to investee companies.

A spokesperson said the Fund was unlikely to build a large internal team advising on ESG matters, consistent with Paul Costello’s policy not to replicate a service already available in the open marketplace.

The Fund also continues to seek a head of information technology.

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Geopolitical risks rewire asset allocation ‘operating system’: GIC

Some investors are “missing the point” of geopolitical risks by equating them to the disruptions from conflicts and wars, according to GIC chief economist Prakash Kannan, but in reality, geopolitical risk is no longer episodic or peripheral. This means investors need to think harder about inflation and country composition in their portfolio.

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