Geopolitics results from the nexus of geographic factors, policy decisions and cultural norms – the rules, risks and opportunities by which economies operate – and its impact on economies and financial markets has been a reality for investors for generations
– The Future Fund (Australia’s sovereign wealth fund)
Considering recent conflicts between Russia-Ukraine and hostilities in the Middle East, as well as ongoing tensions between China and the United States, geopolitics is a topic front-of-mind with today’s investors world-wide. It is likely to remain so for generations to come, with the last three decades being an anomaly.
For investors, geopolitics is therefore a crucial input into core assumptions, investment strategy, and ultimately portfolio construction.
However, the inherent complexity in the way geopolitics weaves its way through to the macroeconomy, policy choices, and ultimately financial markets makes it difficult to model and measure, let alone manage.
Therein lies the challenge, where such longer-tern geopolitical process and shorter-term events are often not adequately priced by the market. This disconnect may result in investors not fully understanding, or even ignoring, potential consequences.
In partnership with the Future Fund, [i3] is pleased to convene a luncheon discussion with the institutional investment community, to further expound on these issues.
To kick off the discussion, the Future Fund will share research perspectives from its recently published position paper: Geopolitics – the Bedrock of the New Investment Order (June 2024).
The paper sets out how the Future Fund defines and conceptualises geopolitics, why it thinks it matters so much, and how it is proactively managing this very complex risk.
Investors of all types would be wise to become well-versed on the dimensions and likely implications of the challenges that arise from geopolitics. The era of being able to ignore this inimitable force is over.
Presenter
Craig Thorburn, Director, Research and Insights, Future Fund
Craig joined the Future Fund after 13 years working for both the Commonwealth Treasury and Australia’s sovereign debt manager, the Australian Office of Financial Management.
Craig has been with the Future Fund since inception in 2006 and has held a variety of Director roles across different investment functions ranging from Portfolio Strategy, Emerging Markets, Private Equity, the CIO Office and his current role, Director – Research and Insights.
This new role has a focus on curating and coordinating our investment research agenda, as well as better harnessing investment insights into our investment process and across the Future Fund portfolio.
Craig regularly represents the Future Fund at high level governmental, sovereign wealth fund and investment forums worldwide.
Craig graduated from the Australian National University with both a Bachelor of Commerce degree and post graduate qualifications in Economics.
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