Capital Allocators – Inside the Institutional Investment Industry Sonya Sawtell-Rickson – Total Portfolio Approach at Australian Superannuation HESTA (EP.342)
Oct 9, 2023
Sonya Sawtell-Rickson, Chief Investment Officer of HESTA, leads an AUD 75 billion superannuation fund focused on health and community service workers. She discusses the Total Portfolio Approach, a strategy that emphasizes granular risk management and diverse asset classes. Their initiatives intertwine real return goals with climate solutions and diversity objectives. Sonya also shares insights on building a member-centric investment team, addressing complex risks, and navigating economic cycles and environmental challenges through responsible investing.
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Career Path
- Sonya Sawtell-Rickson initially planned to study medicine but switched to economics and political science.
- She transitioned into finance after working for the Treasury Department and a pension fund's corporate finance side.
Early Australian Pension System
- The Australian pension industry was nascent in the 1990s, primarily offering simple balanced portfolios (e.g., 70/30) and limited alternative assets.
- Defined benefit plans existed but lacked sophistication in investment strategies and risk oversight.
Investment Approach
- HESTA's investment approach prioritizes real return generation and responsible investment to meet members' needs.
- Sawtell-Rickson views markets as complex adaptive systems requiring a total portfolio approach.