2022 PROGRAMS RETROSPECTIVE

February 8: PPI Board Chair Angela Rodell interviewed Dr. Fatih Birol. Recognized by Time Magazine as one of the 100 most influential people of 2021, Dr. Birol has served as Executive Director of the International Energy Agency since 2015. Under his leadership, the IEA has moved to the forefront of global efforts to reach international climate goals while ensuring that the social and economic impacts of clean energy transitions are at the heart of policy-making and energy security is safeguarded.

Absent a well-coordinated grand strategy for the world to transition from carbon-based energies to renewables under a ticking clock, how should governments, institutions, and companies navigate through this phase of great challenge and uncertainty?

In the process of energy transition, what guardrails exist to ensure that the transition is fair and inclusive, or at least will not exacerbate existing inequalities?

Where in the energy transition roadmap might the private sector, especially institutional investors, deploy their capital for productive use?

March 16: PPI was pleased to welcome Dr. Cheng-Chih Sung as an inaugural Hull Fellow and former managing director and chief risk officer at the Government of Singapore Investment Corporation (GIC). Dr. Sung’s long and varied career offered a unique perspective for PPI members to absorb during his fellowship, and this session served as an introduction to the Community.

Dr. Sung engaged in conversation with Kevin Bong, Director, Economics, and Investment Strategy, GIC, and PPI Board Member, on the evolution of long-term investing. Dr. Sung spotlighted his experience and his perspective on key trends, opportunities, and challenges, in Asia and globally. As PPI was looking forward to convening in Singapore in October 2022, his insights with respect to the country’s evolving role amid these global shifts were particularly relevant.

April 13: In this second salon featuring PPI’s inaugural Hull Fellows, Ash Williams, retired executive director and chief investment officer of the Florida State Board of Administration, shared his views on the impact of geopolitics and politics on pension funds and other institutional investors. Geopolitical risk, in particular, is looming large as Russia’s invasion of Ukraine has affected portfolios in tangible ways ranging from the divestment of Russian assets to broader inflationary effects. What are the tactical and strategic investment implications as events continue to unfold? Separately, how are pension funds navigating issues such as investment risk in China and other political pressures?

As one of the most well-regarded leaders of the pension and investment community, Williams’ insights were informed by his extensive experience in working with governments and his astute assessment of geopolitical trends.

June 22: Vladimir Putin’s invasion of Ukraine has galvanized the United States and its Western allies and partners into coordinating economic sanctions on Russia. The rejuvenated North Atlantic Treaty Organization (NATO) was also poised to expand membership to include Sweden and Finland, further pressuring Russia’s northwestern border. Against this backdrop, several countries, especially those often categorized as emerging market (EM) economies, have elected to remain neutral. Most notably, the once-touted “BRICS” countries, Brazil, India, China, and South Africa, have taken such a position, as have other EM countries like Mexico and Indonesia. What can be made of this curious divergence of foreign policy stances, even among democracies? What might one glean from the vantage points of these emerging market economies? What are the implications for international economic and trade relations, and the prospects for cooperation on critical issues such as the impending humanitarian and food crises arising from the conflict in Ukraine, climate, and the global post-COVID recovery?

September 8: As diversity, equity, and inclusion (DEI) garners increasing attention within the asset management industry, it is often viewed through an environmental, social, and governance (ESG) lens, especially with respect to social commitments. How do the two relate and diverge, and what are the benefits and pitfalls of using an ESG framework to address DEI challenges? What other considerations and constraints do asset owners and managers face when seeking to advance DEI within their investment philosophies? For example, how do they identify and implement the appropriate levers of diversity in alternative investments, and what does recent data show on the investment performance by diverse managers?

September 22: A new deal aims to resolve one of the biggest disputes in global business, and may signal that Xi Jinping is taking a more pragmatic approach to China’s economy and U.S.-China relations. After a decadelong standoff that threatened to delist more than 200 Chinese companies from American stock exchanges, Washington and Beijing finally reached an audit agreement in late August.

This Asia Society Northern California (ASNC) and Pacific Pension & Investment Institute (PPI) collaboration was held on September 22, 2022 via Zoom for a virtual Executive Roundtable discussion on "A Rare Agreement Between the U.S. and China."

December 14: Institutional investors have endured a multitude of challenges in 2022. These include the almost complete breakdown of the stock-bond correlation, the value destruction in technology and other momentum sectors, the high and still rising cost of refinancing, and lackluster results in broad emerging markets coupled with the uber-strength of the U.S. Dollar, to name a few. Refuge, such as in the form of some private assets, has been scarce. But will these investments be secure (heading into a recession), and sufficient to help meet return targets? What investment programs and/or organizational initiatives are PPI members focusing on at the moment? And what are some reasons for optimism about 2023 and beyond?