In an overhaul of investments impacting almost every asset class, Spain’s largest corporate pension fund, is looking to increase diversification and improve its ESG ratings. It’s decreased equities in favour of US government bonds as part of a strategy to protect the portfolio in a potential downturn, this strategy also includes tail risk hedging, currency hedging and slashing its hedge funds allocation.
In line with its strategy to reduce costs, while maintaining returns, one of the UK’s new mega funds, the £45 billion LGPS Central will reduce the number of managers it uses from 250 to 50.
The $42 billion Illinois Municipal Retirement Fund is dedicated to investing in emerging managers with a commitment of 22 per cent of its total portfolio. The relationship with minority and women-owned managers is mutually beneficial. Sarah Rundell talks to head of the IMRF emerging managers program and the co-chief investment officer of equities at one of its managers, Piedmont.
Illinois State Treasury is planning a new $700 million allocation to student loans in the first investment of its kind for any US state treasury. The $32 billion state treasury has never been scared to innovate.
The £65 billion Universities Superannuation Scheme is investing in inflation-linked emerging market bonds to profit from developing economies higher bonds yields and levels of inflation.
Iceland’s ISK900 billion ($7.5 billion) Lífeyrissjóður Starfsmanna Ríkisins (LSR), the Pension Fund for State Employees and the Pension Fund for Nurses is poised to invest more overseas as capital controls introduced in the wake of Iceland’s 2008 banking crisis finally ease.
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