The CEO of a $485 million Canadian pension giant says investors aren’t paying enough attention to stagflation and geopolitics. But in a complicated world “Australia stands out” for investors.
If investors needed another reminder of the toxic cocktail confronting markets, it came in the space of a few hours on Thursday night.
Oil jumped again on the US intervention and fiery speech from US President Joe Biden. Brent crude is now sitting about $US92 a barrel, which will only increase the fretting inside central banks.narrative and geopolitical risk is hard enough for investors to manage. But Charles Emond, the chief executive of the $C425 billion Canadian pension giant Caisse de Depot et Placement du Quebec , says these risks are compounded by the fact few investors have ever had to manage them.
To assess these risks, Emond has created a geopolitical unit inside the fund called CDPQ Global. Not only does the group work alongside the fund’s investment team, but it has also opened channels with governments and regulators around the world.Emond says this is important for understanding political and regulatory risks inside different countries, but it also allows CDPQ to promote and protect its own interests.
Real assets have become an important hedge for the fund against inflation, with infrastructure and real estate rising from 6 per cent of the portfolio five years ago to 13 per cent today. Emond says about 85 per cent of the infrastructure portfolio is inflation-linked, in that the fees and charges those assets earn are linked to CPI.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Israel Hamas: US response to Israel-Hamas war draws fury in Middle EastMany Arabs view the US government as being not only indifferent to the agony of Palestinians living under Israeli occupation but also complicit in it.
Read more »
Israel Hamas: US targets Hamas’ financial network with sanctions after Israel attackThe US Treasury has placed sanctions on six members of the terrorist group managing assets in a secret investment portfolio, and acted against two senior officials.
Read more »
Israel-Hamas conflict updates LIVE: Joe Biden privately gives Israel green light for Gaza invasionUS President Joe Biden is reportedly supportive of Israel’s expected ground invasion; Hamas open to releasing hostages if ceasefire granted; Israel will let Egypt deliver some aid to Gaza. Follow updates here.
Read more »
Israel-Hamas conflict updates LIVE: Joe Biden privately gives Israel green light for Gaza invasionUS President Joe Biden is reportedly supportive of Israel’s expected ground invasion; Hamas open to releasing hostages if ceasefire granted; Israel will let Egypt deliver some aid to Gaza. Follow updates here.
Read more »
Israel Hamas: What should Israel learn from America’s response to September 11?It’s easy to say don’t repeat the blunders of US policymaking after 9/11, but it’s harder to nail the specific lessons that the Israelis should take to heart.
Read more »
Hamas Israel: US President Joe Biden extracts humanitarian pledge from IsraelThe US president urged Israel not to be “consumed by rage”, but also vowed support and backed its claims on the hospital blast, as regional tensions simmered.
Read more »