IN CONVERSATION

Quant models limber up for change

Active quant strategies came in for criticism after the global financial crisis, with a number of models seen as lacking both the appropriate diversification and the dynamism necessary to react to major market events. While acknowledging the need to rethink quant models, global head of active equities for developed markets at State Street Global Advisor... Read more »
NEWS

Collaboration keep deals on tap

As British Columbia Investment Management Corporation (BCIMC) moves towards its target of having 30 per cent of its portfolio exposed to real assets, it is seeking collaborative opportunities with similar large institutional investors. The investment manager is on the lookout for other like-minded investors and has already made significant co-investments in recent years. This year... Read more »
NEWS

Defensive setting, anaemic growth

Global pension funds continue to have a defensive asset allocation, reflected in the anaemic growth in the total assets of the world’s largest 300 pension funds by less than 2 per cent in 2011, new Towers Watson research reveals. The P&I/ Towers Watson Global 300 research reveals that concerns about ongoing uncertainty in global markets... Read more »
INVESTOR PROFILE

Understanding complexity at BCIMC

On the first page of the British Columbia Investment Management Corporation (BCIMC) annual report is a flow chart titled “complexity and connections”, outlining how the Japanese earthquake and subsequent tsunami and nuclear disaster sent shock waves through the global economy. Understanding complexity and both the risks and potential opportunities that can arise from an increasingly... Read more »
INVESTOR PROFILE

CPPIB doubles logistics spend in China

The $165.8-billion Canadian Pension Plan Investment Board (CPPIB) has substantially increased its investment in logistics properties in China, doubling its funding of a partnership with the Goodman Group. It is the second time in a year that CPPIB has doubled its exposure to logistics properties in this Chinese joint venture, with its latest injection of... Read more »
RESEARCH

The pitfalls of risk modelling

Many portfolio managers use multi-factor models, but these are only as good as the various inputs used to construct them. MSCI looks at how flawed-model construction can result in optimised portfolios that are not efficient. The paper, Is Your Risk Model Letting Your Optimized Portfolio Down?, reveals that faulty risk models tend to underestimate risk... Read more »
NEWS

The Caisse, Future Fund into infrastructure

Two of the world’s biggest institutional investors have recently made significant forays into Australian infrastructure, seeing opportunities in the country across a wide array of assets. Canada’s second largest pool of pension assets, la Caisse de dépôt et placement du Québec (the Caisse), has made a $139.2-million investment in five projects. Macky Tall, the fund’s... Read more »
NEWS

Cal pension reforms set to pass

Governor of California, Edmund G Brown Jr, has announced proposed legislation that outlines sweeping reforms to the state’s pension system, but appears to have stepped back from a proposal to create a hybrid pension plan. The hybrid defined-contribution/defined-benefit plan was proposed last year when Brown launched a 12-point reform package. It was widely opposed by... Read more »
ANALYSIS

DB plans continue to slide

The funded status of US defined-benefit corporate-pension plans continued to worsen last year, despite plan sponsors increasing contributions by $70 billion, a new Mercer study reveals. Mercer found funding levels have slipped to 2009 levels, with the outlook for 2012 likely to extend the bleak news for plan sponsors. The funded status of pension plans... Read more »
NEWS

Super standard risk measure

Australian superannuation funds are now required to disclose a measurement of risk to fund members, with trustees encouraged to use a standardised measurement backed by regulators and industry peak bodies. The Standard Risk Measure will provide a rating of a fund’s investment option based on the likely number of negative returns this option is predicted... Read more »
NEWS

CalSTRS puts small caps under microscope

Encouraging the widespread corporate adoption of a majority-voting standard, promoting diversity on boards and collaborating to improve the way funds report environmental performance are just some of the focuses of the CalSTRS corporate governance team. Anne Sheehan, CalSTRS’ director of corporate governance, talked exclusively with top1000funds.com about what the key issues are for the self-described... Read more »
NEWS

Mercer to review pay at Florida’s SBA

Florida’s State Board of Administration (SBA) has appointed Mercer to conduct a broad-ranging review of staff compensation that was initiated and will be overseen by the organisation’s independent investment advisory council. As part of this review, the investment advisory council (IAC) passed a motion at its recent quarterly meeting to provide annual recommendations to trustees... Read more »