Editor of the Financial Analysts Journal and chair of Ennis Knupp & Associates, Richard Ennis, believes contemporary asset allocation schemes are becoming unwieldy for many decision makers because of the proliferation and splintering of investment categories, and advocates an approach that relies more on empirical evidence than on assumptions or intuition.
As concerns in private credit mount, Colorado PERA CIO and COO Amy McGarrity says the pension fund isn’t seeing any strains in its growing allocation to the asset class, arguing that long-term investors are shielded from the risks because they can lock up their capital to weather market cycles.
Graeme Miller, CIO at the A$21 billion TelstraSuper fund, has beefed up the staff and processes committed to asset allocation and adopted an empowering vision of world-class funds management.
"There are no prizes for taking on more risk than you need," said CIO Mark Thompson, after the fully funded UK scheme sold 60 per cent of its equities and targeted long-dated assets.
The $30.3 billion Pensioenfonds PGB has a strategy focused on regular adjustments to risk in equity, interest rates and credit. The scheme has led to an impressive funded status of 108 per cent.
Just seven years after restructuring around a passive core in response to the GFC, Australia's $8.2 billion Local Government Super has found confidence and success in active management.
The board of CalPERS is still wrestling with issues such as pay and level of control over its new private-equity entity. Meanwhile, opportunities could slip away if the launch is delayed.
The $11.2 billion UK-based pension fund has made bold moves into frontier markets and active strategies but is more interested these days in defensive strategies, as it prepares for a downturn.
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