Main Program – Day 2

Wednesday, November 15

8:50 am – 8:55 am

Opening remarks

Tsuneo Taguchi, Senior Executive Advisor, Fiduciary Management Department, Nomura Fiduciary Research & Consulting Co., Ltd.

SESSION 1 – The challenges and future of pension, endowment and foundation assets

 

8:55 am – 9:25 am

OPENING KEYNOTE  |  PFA’s investment strategies for the future

Akihiro Nakamura, Managing Director, Pension Fund Association

9:25 am – 9:55 am

KEYNOTE 1  |  The world is at a crossroads

The world is at a crossroads, and we are experiencing structural changes in all areas. The geopolitical landscape is migrating towards a new center of gravity characterized by a multipolar world. The economic system is adapting to the recent inflationary environment and seeking a new equilibrium, while the longest bull market in history is under pressure. Is this the end of the TINA strategy? What are the alternatives? Portfolio construction is becoming much more complex as climate regulations tighten and financial markets become more uncertain. The equation that asset owners have to solve is becoming more complex, but also much more interesting.

Grégoire Haenni, Chief Investment Officer, Caisse de prévoyance de l'Etat de Genève

9:55 am – 10:55 am

PANEL 1  |  Leveraging external capabilities: how institutions could enhance organizational alpha 

In recent years, Japan’s public authorities have been requiring asset owners to become more sophisticated in their asset management, and have suggested ways to use outside experts for the purpose. However, the actual meaning of “Sophistication” much differs depending on the situation of each asset owner, and therefore the process required for sophistication is also diverse. In this panel, various panelists will discuss how asset management should be improved and how their organization’s capabilities should be enhanced via leveraging outsize experts.

Kunihiko Ogura, Senior Fellow, AL-IN, Soken, Inc.

Yoshichika Imaizumi, Policy and Markets Bureau Financial Markets Division, Director for Financial Markets Planning, Financial Services Agency

Ryoichi Arai, Trustee Responsible for Endowment and Special Aide to the Chair of the Board of Trustees, International Christian University

Moderator: Daisuke Kobayashi, Executive Consultant, Nomura Fiduciary Research & Consulting Co., Ltd.

10:55 am – 11:15 am

Networking Break & Refreshments 

 

SESSION 2  |  Trends in low-liquidity investment strategies (Real Estate and Private Credit)

 

11:15 am – 11:45 am

KEYNOTE 2  |  Trends in the US core real estate market

This presentation will highlight the latest trends as well as the resilience of the U.S. Core Real Estate market under the recent environment of inflation and rising interest rates, and provide insights on the effects of U.S. Core Real Estate investment on long-term portfolio management by pension funds.

Sean P. Ruhmann, Partner, TA Realty

11:55 am – 12:55 pm

PANEL 2  |  Effect and selection of real estate investment

After a long period of monetary easing followed by disruption by COVID-19, inflation and rapid hikes in interest rates have had a global impact on real estate investment. In this session, we will discuss the effects of real estate investment on pension fund management and what strategies, sectors, or regions should be focused on in the future while organizing the current situation of diversified real estate investment targets.

*Lunch will be served during this panel presentation.

Takeshi Ito, Senior Investment Officer, AISIN Employees’ Pension Fund

Kosuke Okimori, Managing Director, Kewpie Pension Fund

Toru Takahashi, Executive Consultant, Nomura Fiduciary Research & Consulting

Moderator: Eriko Kato, General Manager, Fund Planning Department, IR Office Mitsubishi Jisho Investment Advisors, Inc.

1:05 pm – 1:35 pm

KEYNOTE 3  |  Investment opportunities in European private debt

In recent years, pension sponsors have been increasingly adopting private assets. In particular, awareness of debt strategies, in which income is the primary source of income, has increased dramatically, and investors now have more options. In this report, we will introduce the latest trends in the European market and discuss how private debt managers have been identifying investment opportunities and managing their portfolios in the midst of major changes in the environment.

Frederic Nadal, CEO and Co-Founder, MV Credit

1:35 pm – 2:05 pm

KEYNOTE 4  |  Forecast of the US direct lending market in the near term; the importance of alpha generation and diversification when weighing risk and return

Ted will explain the history of US direct lending and its future outlook. Many pension funds in Japan have already invested in US direct lending, and most of the case, in its core strategy; however, there is an accelerating global trend toward positioning direct lending as a core asset and diversifying in direct lending, especially among advanced institutional investors. We will discuss direct lending as a core asset and the need for generating alpha and diversification within direct lending strategy.

Ted Koenig, Chairman and CEO, Monroe Capital LLC

FIRESIDE CHAT  |  Is this time different? How can we make Japan’s investment chain work?

 

2:05 pm – 2:35 pm

FIRESIDE CHAT  |  Is this time different? How can we make Japan’s investment chain work?

Considerable social attention is now drawn to the public and corporate pensions as asset owners in Japan. The effective functioning of the investment chain has been shifted from society’s expectations for asset owners to responsibilities of them. In this fireside chat, we discuss why an effective investment chain is necessary for pension funds, what are the conditions for it to work, and what pensions and asset managers should do for it.

Akiyoshi Oba, Chairman and Managing Director, Japan Investment Advisers Association

Sadayuki Horie, CEO, Horie Research and Advisory Co., Ltd.

SESSION 3  |   Revival of Japanese equity and a new frontier of quantitative investing

 

2:35 pm – 3:05 pm

KEYNOTE 5  |  Understanding and utilizing ROE

ROE is an indicator that draws attention from an investment perspective, but there are multiple views on how it contributes to investment performance. ROE has been a corporate management indicator since the publication of the Ito Report; additionally, the Tokyo Stock Exchange recently made requests of companies with PBRs below 1x. Based on this we believe that more companies will try to improve their ROE. Here, I would like to summarize the financial impact of ROE as well as its impact on stock prices. I will also speak about the implications for improvement in the performance of asset owners.

Shintaro Harada, Senior Investment Officer, Nomura Asset Management

3:05 pm – 4:05 pm

PANEL 3  |  Human capital management:  Which is gaining importance and the impact on the Japanese equity market

 In recent years, there have been plenty of topics related to ESG (E: environment, S: social, G: governance). Especially in Japan, where the birthrate is declining and the population is aging, it is crucial to focus on “Human Capital”, one of the S themes. In addition, the Corporate Governance Code was revised in 2021, including a new “Human Capital” section. Furthermore, in the annual securities reports starting from the fiscal year ending March 31, 2023, a new field for “Sustainability-Related Principles and Initiatives” has been added, and there is a need to enhance the quality and quantity of information disclosure on “Human Capital” in Japan. In this panel, panelists from various perspectives will discuss the impact of investment in human capital on management, corporate values, and equity investment.

Masanori Hosokawa, General Manager, Responsible Investment Office, Meiji Yasuda Life Insurance Company Investment Planning & Research Department

Kuniko Takahashi, Co-incorporator, BoardHR Initiative

Masayuki Teraguchi, Head of Investment Technology Fund Management Department, Nikko Asset Management

Moderator: Tomoya Goto, Head of Wealth Consulting, Japan | Partner, Mercer Japan

4:05 pm – 4:25 pm

Networking Break and Refreshments

4:25 pm – 4:55 pm

KEYNOTE 6  |  Has the bubble burst? The evolving landscape of ESG investing in equities

Today ESG, has gone from being a niche concern to a mainstream consideration. Political opposition in the US and the recent underperformance of ESG stocks lead us to a different question: Has the ESG Bubble burst? Against this backdrop, we will discuss how assessing and systematically quantifying ESG can help identify sustainable investment opportunities, an area of the market that looks more attractive than it has for a long time.

Geir Lode, Head of Global Equities, Federated Hermes Limited

4:55 pm – 5:25 pm

KEYNOTE 7  |  New trends in the Japanese equity market – How does Warren Buffett see the future of the Japanese market?

The Japanese stock market has long been a closed market, which was a factor in the slump in stock price but has reached a major turning point since Abenomics. The dramatic uptrend in stock prices is emerging due to factors such as the return of corporate earnings growth, the change in corporate management’s awareness of shareholders first, and the PBR reform of the Tokyo Stock Exchange. In line with Warren Buffett’s investment philosophy, we will approach the historical structural changes in Japanese stocks and the market’s future in the next ten years and predict the reasons for the recent rise in Japanese stocks and future trends.

Jiro Nakano, Global Sales Planning Department Senior Manager of Department, Nikko Asset Management Co., Ltd

SESSION 4  |  The Future of Public Pension and Corporate Pension Management

5:25 pm – 5:55 pm

KEYNOTE 8  | Sophistication of GPIF’s Investment Management

Eiji Ueda, Executive Managing Director/CIO, Government Pension Investment Fund

5:55 pm – 6:05 pm

Closing Remarks

Chris J. Battaglia, President, Global Fiduciary Symposium