Challenges for Germany’s pension funds

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Ohio STRS warns of higher US recession risk; prioritises liquidity

Ohio STRS warns of higher US recession risk; prioritises liquidity

The State Teachers Retirement System of Ohio has warned of a “material” increase in US recession risk compared to last year as the fund braces for a wider, “negatively skewed” distribution of outcomes in the next 12 months. It came as the mature plan, which is 81 per cent funded, is tilting to fixed income and new asset classes like liquid alternatives over equities.

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Factor rebalancing superior for managing liquidity

Factor rebalancing a portfolio is a better way to manage liquidity and leverage implications of illiquid assets compared to traditional rebalancing to a static asset allocation, according to new research.

Korea Investment Corporation focuses on alternatives push

KIC is looking to boost its alternatives allocation - particularly private credit - both directly and through managers. Influenced by what it sees as an unfolding AI-led industrial revolution it is looking for opportunities in fast-developing sectors including AI, semiconductors and healthcare, and has opened an office in Mumbai.

How Ireland’s ISIF is helping crowd-in transition finance

The €15 billion ($16.1 billion) Ireland Strategic Investment Fund (ISIF) is finding compelling investment opportunities in the energy transition and is successfully drawing in additional investment to finance Ireland’s net zero commitments.

Texas ERS boosts cash allocation as higher rates end era of dead money

Texas ERS has bumped up its allocation to cash to 10 per cent, and revamped its global equities around a core fund with an overweight to AI and other Magic Seven themes, drug manufacturers and aerospace. Another key development in equities includes reducing the number of stocks by half.

Penn PSERS trims leverage, adds fixed income and hones in on fees

The $71.9 billion Pennsylvania Public School Employees' Retirement System has reduced net leverage, added fixed income and continues to shave costs off its external investment management fees, mostly by reducing private allocations. The trimming and shifting of the portfolio is part of an adjusted SAA responding to ongoing market changes.

CalSTRS looks at big picture with total portfolio function

The $315 billion CalSTRS is looking to build a top-down portfolio function to better incorporate liquidity management alongside portfolio construction and to consider how it can better deal with often lumpy cashflows to maximise returns, while continuing to keep a tight rein on risk.

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