The latest
Research

Persistently high equity risk premium unprecedented

This paper by the Federal Reserve Bank of New York looks at the equity risk premium information from 20 models and estimates the ERP for various time periods. Extraordinarily it finds that the (preferred) estimator places the one-year equity premium in July 2013 at 14.5 percent, the highest level in 50 years and well above the […]
Research

Investor pitfalls in setting up a satellite office

As part of the broader trend to become professional organisations, pension funds and soverieng wealth funds are expanding geographically with the establishment of satellite offices. This expansion raises concerns of governance, culture, politics and talent. This paper looks at the case studies from 12 funds that have launched or considering launching satellite offices and offers […]
Investor Profile

Ohio SERS reduces hedge funds

This year the $12 billion Ohio School Employees Retirement System is prioritising projects that fulfil the board’s desire to find income from alternative sources and manage risk, including allocating more to real assets, and initiating an RFP on a risk management system. Farouki Majeed speaks to Amanda White about the fund’s investment program.   With […]
Uncategorised posts

Innovation to align investors with the social good

The CFA Institute’s president John Rogers, believes there is evidence of innovation in investment products that meet the needs of asset owners in a more sustainable, longer-term way, and points to the work of professors and advisors to the CFA , Andrew Lo of MIT and Robert Shiller of Yale.   One of the main […]
Uncategorised posts

Adding value through risk allocations

2013 was a great year to add value by using risk to assign asset allocation, according to chief investment officer of Windham Capital, Lucas Turton, whose fund added 300 basis points above benchmark last year by dynamically allocating according to risk.   Windham Capital Management’s style is to focus on measuring and understanding risk to […]
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