Jo Taylor believes the current environment is likely to remain challenging
In his keynote address at the Financial Times Future of Asset Management North America Summit in New York, Ontario Teachers' Pension Plan’s CEO Jo Taylor discussed the intricacies of the current global investment landscape. Taylor, in conversation with Harriet Agnew, asset management editor of the Financial Times, addressed the challenges and opportunities faced by international investors amid economic headwinds.
“As an international investor it is a very complicated landscape at the moment and the populism and politicization of the world is as strong as I have ever seen it,” says Taylor. He underscored the importance of an agile investment approach in such a dynamic environment.
Taylor highlighted higher inflation rates as a persistent challenge. He noted that if this trend continues, it could lead to further interest rate hikes, making it challenging for firms to generate returns.
“Combined with the prevailing geopolitical backdrop, the current environment is likely to remain challenging in the short and medium term. However, as a long-term focused global investor, we are well equipped to navigate these complexities,” Taylor adds.
“Many say we behave more like a hedge fund than a traditional pension plan because we move capital between our different asset classes very deliberately and quite significantly,” he continues. Take for example in 2020, when Ontario Teachers' reallocated nearly $120 billion from fixed income to other asset classes.
Taylor also highlighted their acceleration of credit activities, including private equity-style deals. “We're also in strategic discussions with banks interested in outsourcing their credit to a third party to increase their capacity for new lending,” he says.
When asked about how Ontario Teachers' nurtures and grows talent in today's competitive environment, the chief pointed to “a strong culture of continuous learning.” “We also promote a culture of experimentation and empowerment,” says Taylor.
“Ontario Teachers' is a fun workplace where we work on a lot of exciting initiatives and give people responsibility relatively early on to gain the hands-on experience they need to grow their careers.”
