Capital Allocators – Inside the Institutional Investment Industry Raphael Arndt – The Death of Traditional Portfolio Construction? (EP.365)
Jan 29, 2024
Raphael Arndt, the CEO of Australia's Future Fund and former CIO, discusses the transformation of investment strategies post-COVID. He shares insights on redefining portfolio construction through innovative approaches, emphasizing adaptability amid changing market conditions. The conversation delves into the significance of a collaborative organizational culture and the vital role of transparency and diversity in achieving investment goals. Arndt reflects on lessons in personal growth, highlighting the importance of flexibility and open-mindedness in navigating today's financial landscape.
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Death of Traditional Portfolio Construction
- Traditional portfolio construction relies on historical relationships between assets.
- Future Fund research suggests these relationships may not hold, necessitating a more dynamic approach.
Focus on Attractive Assets
- Start with what's attractive and consider portfolio-level sizing.
- Don't limit yourself by assuming constraints.
Inflation Protection and Portfolio Changes
- Inflation protection is crucial in the current market.
- Real assets, commodities, and skill-based strategies are favored.
