Capital Allocators – Inside the Institutional Investment Industry Sustainable Investing 10: Hiro Mizuno – Changing the Game (Capital Allocators, EP.148)
Jul 9, 2020
Hiro Mizuno, the former Executive Managing Director and Chief Investment Officer of Japan's $1.5 trillion GPIF, discusses his groundbreaking approach to sustainable investing. He shares insights on integrating ESG principles within fixed income and the challenges associated with it. The conversation navigates the concept of universal ownership and the critical need for asset managers to align incentives with long-term sustainability goals. Additionally, he highlights the emerging green bond market and the essential role of transparency in climate-related investments.
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Career Path
- Hiro Mizuno began his career in retail banking during Japan's bubble economy.
- He transitioned to private equity after 9/11 and later led GPIF.
Need for Change
- The Japanese government sought someone to bring change to GPIF.
- They believed recruiting from traditional Japanese finance wouldn't achieve this.
Rethinking Portfolio Management
- Conventional portfolio management wisdom didn't suit GPIF's massive scale.
- Long-term performance is primarily driven by the global economy.