TPA Adoption from Ex-Post Analytics Perspective

Our Melbourne-based team were delighted to participate last week’s iPARM conference in Sydney where Richard Griffiths, CFA, CAIA, our Head of Client Servicing for the APAC region presented on how to combine both public and private assets in a whole-of-fund attribution framework, focusing on the key challenges with private assets, shortcomings in traditional attribution models, and proposed solutions for a consistent and coherent reporting story. It was also fantastic to engage further with the Australian investment community across a range of impromptu discussions on benchmarking challenges and liquidity management for this asset class, and to join the growing debate around effective approaches to performance and attribution analysis that align with the Total Portfolio Approach. We also explored evolving perspectives on risk, the importance of linking ex-ante risk budgeting with ex-post outcomes, and the impact of the recent YFYS regulatory updates on Australian superannuation funds, including how PEARL can adapt its setup to address these changes.

TPL is reshaping how institutional investors think about portfolio construction and accountability — and it's a topic I'm seeing come up increasingly in conversations with insurers across Asia. This series breaks it down step by step.

🌏 In the context of complex geopolitical dynamics and growing uncertainty among Australian institutional investors about low-carbon investments📈, how will climate change affect the outlook for the superannuation industry? Read our latest analysis: https://lnkd.in/g8jUs3jW

📢 𝗪𝗲 𝗮𝗿𝗲 𝗱𝗲𝗹𝗶𝗴𝗵𝘁𝗲𝗱 𝘁𝗼 𝗯𝗲 𝘀𝗽𝗼𝗻𝘀𝗼𝗿𝗶𝗻𝗴 𝘁𝗵𝗲 𝟭𝟰𝘁𝗵 𝗔𝗻𝗻𝘂𝗮𝗹 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲, 𝗔𝘁𝘁𝗿𝗶𝗯𝘂𝘁𝗶𝗼𝗻 & 𝗥𝗶𝘀𝗸 𝗠𝗮𝗻𝗮𝗴𝗲𝗺𝗲𝗻𝘁 𝗖𝗼𝗻𝗳𝗲𝗿𝗲𝗻𝗰𝗲, 𝘁𝗮𝗸𝗶𝗻𝗴 𝗽𝗹𝗮𝗰𝗲 𝗶𝗻 𝗦𝘆𝗱𝗻𝗲𝘆 𝗹𝗮𝘁𝗲𝗿 𝘁𝗵𝗶𝘀 𝗺𝗼𝗻𝘁𝗵. Richard Griffiths, CFA, CAIA Griffiths will discuss how to combine public and private assets for total fund measurement and attribution, how to choose the appropriate benchmark and attribution model in this context, and how to integrate analytics at the total fund level. 

Private market allocations have grown from a niche strategy into a core driver of portfolio returns for institutional investors, yet many performance frameworks still treat them as an exception. The challenge is no longer simply measuring performance but understanding whether private market investment decisions are creating value at a total fund level.     In our latest blog, Anh Tran and Richard Griffiths, CFA, CAIA explore the challenges associated with measuring and attributing performance across private assets-related decisions and how these can be overcome.    Read here: https://lnkd.in/eBMs2dUj

Last week, Jason Tan, Head of Asia Pacific, joined investors and industry peers at the Standards Board for Alternative Investments (SBAI) Oceania Institutional Investor Roundtable in Sydney to discuss how private credit is evolving across Australia and globally.   The conversation focused on how allocators, including superfunds, insurers and sovereign investors, are approaching credit, with an emphasis on due diligence, governance and where risks may emerge.   Panelists discussed key trends across domestic and international markets, alongside increasing scrutiny on valuations and defaults. The conversation also highlighted ongoing structuring innovation, including evergreen vehicles and tokenization, as investors seek more flexible and efficient access to credit markets.

Following the release of our 2026 Ortec Finance Climate Scenarios, we invite the investment community to join us next month to learn more about this year’s update, focusing on how:   • The low-carbon transition is developing and its influence on the relative likelihood of each scenario   • Rising physical risks are affecting a country’s ability to issue sovereign debt differently, and how this may impact an interest rate hedging portfolio  • To explore tail-risk type of events, such as a widespread financial market reaction arising from insurability issues Two sessions available, register here: https://lnkd.in/e_VN4iKS

𝐏𝐫𝐢𝐯𝐚𝐭𝐞 𝐂𝐫𝐞𝐝𝐢𝐭 𝐇𝐚𝐬 𝐌𝐨𝐫𝐞 𝐓𝐡𝐚𝐧 𝐎𝐧𝐞 𝐃𝐞𝐟𝐚𝐮𝐥𝐭 𝐑𝐚𝐭𝐞. 𝐈𝐧𝐯𝐞𝐬𝐭𝐨𝐫𝐬 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐊𝐧𝐨𝐰 𝐖𝐡𝐢𝐜𝐡 𝐎𝐧𝐞 𝐓𝐡𝐞𝐲 𝐀𝐫𝐞 𝐁𝐞𝐢𝐧𝐠 𝐒𝐡𝐨𝐰𝐧. Private credit default statistics are often debated as though there should be one definitive number. I think that misses the more useful question. A formal default rate tells us something important, but it does not necessarily indicate how many borrowers are still performing on the economics originally underwritten. The flexibility to amend and restructure is one of private credit's genuine strengths. But it also makes understanding the space between “performing” and “default” increasingly important. The attached carousel highlights this issue. #PrivateCredit #CreditRisk #PortfolioManagement #RiskManagement #ARITA

We invite you to read our latest client story, which details how we supported PKZH, a longstanding client of our Investment Performance Service, in translating its ESG exclusion policy into its performance reporting framework through PEARL, our establishment performance measurement and attribution solution. This enabled PKZH to understand the policy’s effect on total fund performance, as well as compare performance before and after the policy’s implementation.    Read more: https://lnkd.in/edZGZCsq

MTR Corporation Opens Books for Its Inaugural AUD Senior Green Bond   MTR has launched its first senior green AUD bond offering, with 5‑year and 12‑year tenors now open to investors.   📌 Initial Pricing: • 5‑year: SQ ASW + ~70 bps (approx. 5.02%) • 12‑year: SQ ASW + ~100 bps (approx. 5.76%) Books are expected to close Thursday, 22 January around lunchtime.   Backed by strong government support, MTR carries an AA+ equivalent profile, with uplift of three notches from S&P and two from Moody’s. As the sole operator of Hong Kong’s transit network and a partner in major Australian projects such as Sydney Metro and Melbourne Metro, MTR brings a highly credible low‑carbon transport platform to market.   Investors seeking attractive senior debt with strong ESG credentials are welcome to connect with us to discuss the transaction further.