The UK Financial Conduct Authority’s upcoming report is expected to call for consolidation in pension funds, tighter controls on active management fees and greater transparency.
Tight controls dictate strategy at the French public service pension scheme – including a commitment to socially responsible investing – but diversification options have increased.
In a move that differentiates it from the herd, the fund for employees of Ericsson, has added active long-only managers for a concentrated equities portfolio of 30-50 shares, shunning passive.
Dutch fiduciary manager Blue Sky Group must navigate a regulatory environment that demands clarity for trustees as it seeks to add defensive equity in emerging markets and considers private debt.
Canada’s fully funded Colleges of Applied Arts and Technology Pension Fund will move 15 per cent of its assets from public equities to real assets and private equity, following a review.
Compenswiss moves assets between two portfolios and has an increasing focus on real estate. It’s all an effort to seek returns while keeping risks down and meeting mandates for liquidity
The $12.5 billion School Employees Retirement System of Ohio plans to cut its hedge fund allocation, which struggled last year. However, CIO Farouki Majeed says the asset class is bouncing back.
‘Selective optimism’ in UK real estate, infrastructure and other assets characterises investors across Europe as they scramble to tell the genuine opportunities from fool’s gold following Brexit.
Coal Pension Trustees Services includes a sizeable allocation to equities and is making a move into illiquid sectors such as shipping assets – ‘floating property’ – to generate cash flow.
Ilmarinen CIO Mikko Mursula looks to shrink its holdings in bonds while adding real estate and equity away from Europe, as the fund seeks protection from potential interest rate moves.
In 2017, Denmark LD chief financial officer Lars Wallberg plots a push into unlisted credit, complementing a key exposure to environmental services, to manage his fund’s maturing profile.
Potential deregulation will tempt investors away from ESG strategies in 2017. But MSCI advises that physical risks and Asian transitions show the wisdom of staying focused on the long term.