Capital Allocators – Inside the Institutional Investment Industry

Raphael Arndt – The Death of Traditional Portfolio Construction? (EP.365)

Jan 29, 2024

48:57

Snipd AI

Raphael Arndt, CEO of Australia's Future Fund, discusses the significant changes in the fund over the years, including analyzing the global economy and preparing for the future. They also explore the challenges of managing growth, aligning culture, and receiving honest feedback from peers. The speaker reflects on the impact of sponsors and shares the best career advice they ever received.

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Episode notes

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Quick takeaways

Adapting portfolio construction to the changing global economy requires embracing a more dynamic and flexible approach.

Building a culture that supports innovation, risk-taking, and adaptability is crucial for successful decision-making and performance.

Diversifying beyond traditional assets and exploring alternative investments is essential in creating a resilient and well-rounded portfolio.

Deep dives

Raph Arnt becomes the CEO of Future Fund

Raph Arnt assumed the CEO seat of the Future Fund, Australia's $200 billion sovereign wealth fund, in 2020. He discusses the significant changes in the Future Fund over the last few years, driven by the need for substantial portfolio turnover to prepare for the changing global economy. The organization analyzed trends in the external environment, such as the return of inflation, the end of monetary policy, and changing societal expectations. Arnt emphasizes the importance of building a culture that supports innovation, risk-taking, and adaptability, and the need for a flexible and nimble approach in an ever-changing world.

Introduction

2min

Changes in the Future Fund

4min

Developing Conviction for Portfolio Changes

22min

NetSuite by Oracle and the Importance of Culture

2min

Managing Growth and Aligning Culture

9min

Challenges Faced by the CEO

2min

The Value of Learning from Peers

10min

Impacts of Sponsors and Best Career Advice

2min

Raphael Arndt is the CEO of the Future Fund, Australia’s 200 billion AUZ ($135B) sovereign wealth fund that his team manages alongside 55 billion AUZ of other sovereign pools of capital. Raphael assumed the CEO seat in 2020 after serving as Chief Investment Officer for six years. Our conversation from five years ago about the Fund’s total portfolio approach is replayed in the feed. Our conversation focuses on the significant changes in the Future Fund over the last few years. Raphael and his team spent a year analyzing changes in the global economy, demographics, and markets and concluded the Future Fund needed substantial turnover to prepare for the coming period. We discuss these changes in the external environment and the governance and culture internally required to do something about it. Learn More Follow Ted on Twitter at @tseides or LinkedIn Subscribe to the mailing list Access Transcript with Premium Membership

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Capital Allocators – Inside the Institutional Investment Industry

Raphael Arndt – The Death of Traditional Portfolio Construction? (EP.365)