Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Raphael Arndt – Australia’s Sovereign Wealth Fund CIO (EP.70)
Jan 29, 2024
Raphael Arndt, the Chief Investment Officer of Australia's Future Fund, shares his journey from engineering to leading a AU$145 billion sovereign wealth fund. He discusses the nuances of modern portfolio management, emphasizing a one team, one portfolio approach. The conversation delves into investment strategies, particularly the differentiation between skill and market factors. Arndt highlights the importance of flexibility in decision-making, as well as the impact of global trends, such as China's growth, on investment opportunities. His insights on team dynamics and risk management reveal a sophisticated approach to institutional investing.
AI Snips
Chapters
Transcript
Episode notes
Career Path
- Raphael Arndt's career began in engineering but shifted to infrastructure policy during Australia's privatization wave.
- This led him to infrastructure investment and ultimately the Future Fund CIO role.
Initial Strategy
- The Future Fund's initial strategy prioritized building a strong back office and custody system before investing.
- This ensured a solid foundation for a "one team, one portfolio" approach.
One Team, One Portfolio
- Adopt a "one team, one portfolio" philosophy, ensuring all investment decisions benefit the entire portfolio.
- This prevents conflicts between individual asset class goals and overall fund goals.