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.
The Employees Retirement System of Rhode Island is looking to cut management fees and slash hedge fund allocations over the next two years, on the heels of lagging returns.
CalSTRS focuses on fee reduction, using hedge funds for risk mitigation and ponders divestment from coal in emerging markets. Sarah Rundell interviews chief investment officer, Chris Ailman.
France’s €36.3 billion Fonds de Réserve pour les Retraites has a positive outlook for Europe and is prioritising “de-carbonisation” and active strategies to position the portfolio for new trends.
The combination of 89 local government pension schemes, (LGPS), into a pool of funds means significant and large direct investment in the UK is possible when pension funds work collectively.
Diversification can be a powerful tool in managing downside risk, but it has been argued that “too much” diversification can destroy a business if it diverts too widely from its original purpose.
Maryland is focused on improving its under-performing absolute return portfolio, reducing the number of managers and looking to new asset classes, including emerging markets and technology.
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