Shift to positive stock-bond correlation could increase risk, reduce return

A shift towards positive correlation between stock
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Texas ERS reallocates to managers to help navigate concentrated equity market

Texas ERS reallocates to managers to help navigate concentrated equity market

Texas ERS' CIO David Veal says the fund is re-allocating around a quarter of its public equity portfolio to external managers, away from the internal team. ERS plans to upsize with existing fundamental mandates but also allocate to new incremental relationships with diversifying strategies.

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Sweden’s AP2 takes bigger bites of China

The European pension fund has been increasing allocations to China A-shares and to Chinese bonds. The fund is managed primarily in-house and has crafted bespoke indices for ESG integration.

MSCI will be patient with A-Shares

Reports are that the inclusion of 226 Chinese large caps in the Emerging Markets Index has gone well. Small-cap and mid-cap shares could follow if concerns about suspensions prove unfounded.

Thirst for data serves Mass PRIM

The $71.9 billion Mass PRIM pores over the numbers to be sure it pays active managers only for skill. That's just one way it uses intense analysis to deliver.

GPIF insists on paying only for alpha

Hiro Mizuno, CIO of the world's largest investor, told the CFA conference that in exchange for multi-year commitments its mandates would now claw back fees when firms don't reach alpha targets.

Fund managers lack business skills

PGGM's Jaap van Dam and Kempen's Lars Dijkstra say that asset owners with long-term horizons should look for managers who can analyse industries and companies to find intrinsic value.

GPIF seeks better beta through ESG

You can't beat the market if you are the market. That's reality for Japan's behemoth pension fund; therefore, it looks to improve overall returns by engaging and investing with an ESG focus.

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