The University of Toronto Asset Management Corporation adopts passive moves into US equities, active allocations to international shares and select opportunities in private credit markets.
‘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.
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.
A struggling pension fund for Kentucky employees has cut back on hedge funds while remaining averse to long-term risk and hopeful of a better climate for US equities to help it recover.
Asset owners should insist “long-horizon” managers have a portfolio monitoring process at the outset of the mandate leading to better relationships and ultimately portfolio performance.
To better manage downside risk, the second-largest UK local government pension scheme has a plan to gradually alter its equity allocation.
Institutional investors now dominate the free float holdings of listed companies and exchanges need to adapt to this enduring change in market structure and investor needs, according to Norges Bank Investment Management, manager of the $818 billion Norwegian sovereign wealth fund. Norges Bank, which itself owns around 1 per cent of the world’s listed stock,... Read more »
The impact of size is a delicate point for asset managers. For specialist asset classes, and boutique managers, being small and nimble can be a source of alpha. On the other hand, being large can reduce fees and increase innovation and product offering. But now there is evidence to show that the emergence of the... Read more »
The giant Japanese pension fund, the Government Pension Investment Fund, continues its quest to move from bonds into equities and shift around 30 per cent of assets, or around $327 billion, out of domestic bonds and short term assets, appointing four new equities managers. The new asset allocation, approved in October last year, sees the... Read more »
A number of large institutional investors, including AP1, the Environment Agency and AustralianSuper, made changes to their strategic asset allocation as a result of Mercer’s 2011 study on climate risks, and now the consultant is working with a new raft of investors to assess forward-looking climate change scenarios against their current allocations. Meanwhile one of... Read more »
The impact of higher rates on equity returns is a concern for investors and to some extent an unknown. But by applying the concept a threshold correlation, as done with bond portfolios with a duration targeting framework, it is possible to better understand the complex interactions between equity returns and interest rate movements. The latest... Read more »
From allocating assets in order to achieve a healthy funding status, to keeping up with technology that analyses portfolio risk, the challenges of asset owners are relentlessly evolving. For asset managers, like AQR, the key to their own evolution and success is how to be more relevant to clients. AQR keeps clients’ needs firmly within... Read more »