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Capital Allocators – Inside the Institutional Investment Industry

Sustainable Investing 10: Hiro Mizuno – Changing the Game (Capital Allocators, EP.148)

Capital Allocators – Inside the Institutional Investment Industry

Ted Seides – Allocator and Asset Management Expert

Business, Investing

4.7841 Ratings

🗓️ 9 July 2020

⏱️ 62 minutes

🧾️ Download transcript

Summary

Hiro Mizuno is the recently departed Executive Managing Director and Chief Investment Officer of GPIF, Japan's $1.5 trillion Government Pension Investment Fund, which is the largest pool of institutional capital in the world. In taking the seat five years ago, Hiro sought to change how large asset owners go about investing capital.

Our conversation covers his differentiated thought process across drivers of return, the home country bias, implementation of investing, and structural alignment with active managers. We then talk about the Universal Ownership concept, stewardship of passively managed assets, evaluation of manager effectiveness, ESG integration in fixed income, and the current carbon footprint for GPIF and therefore for the global economy.

Hiro has made a serious dent in how asset owners, index fund managers, and companies consider sustainable investing principles and was the perfect guest to complete this mini series, Sustainable Investing: The Next Frontier.

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Transcript

Click on a timestamp to play from that location

0:00.0

Capital Allocators is brought to you by Ten East, an investment platform for sophisticated investors to access private markets.

0:10.5

Ten East brings benefits of having your own family office without the cost and headaches of doing so.

0:16.8

It's founded and led by Michael LaFelle, former deputy executive managing member of Davidson Kempner.

0:24.2

Michael and his investment team offer members the opportunity to co-invest by offering at their

0:29.1

discretion. Michael and his team source, diligence, and commit material personal capital to each

0:35.3

investment. The opportunities shared on the Ten East platform

0:38.9

offer exposure to private credit, real estate, niche venture and private equity, and other

0:44.5

idiosyncratic investments that typically aren't available through traditional channels.

0:49.2

The principles have over a decade track record of investing in these types of exposures

0:53.5

across more than 350

0:55.7

transactions. Post-investment, the Tennis team conducts ongoing monitoring and reporting,

1:01.8

just as you'd expect from an institutional investment organization. I've known Michael for about a

1:07.0

decade, and after becoming impressed by the quality of 10 East offerings, its research

1:11.6

process, and high-quality investment team, I became an advisor to the organization, an investor

1:17.1

in multiple offerings. You can learn more and join me as a member at 10east.com. That's the number 10,

1:25.4

east.co.

1:30.9

My That's the number 10, east. C.O. My special thanks go out to Wellington Management for sponsoring this mini-series, Sustainable

1:36.8

Investing, The Next Frontier.

1:39.5

Wellington Management serves as an asset manager and trusted advisor to clients

1:44.0

representing more than

1:45.1

$1 trillion in assets worldwide. Wellington has explored long-term sustainability issues

1:51.7

since the 1970s and continues this practice today through internal research, engagement, and

...

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