Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio’s assets according to an individual’s goals, risk tolerance and investment horizon. The three main asset classes – equities, fixed-income, and cash and equivalents – have different levels of risk and return, so each will behave differently over time.
SWFs are long-term investors and will weather whatever storm is coming, says Majed Al Romaithi, chair of IFSWF and executive director of the strategy and planning department at ADIA, who also encouraged investors to consider risk in a more “sophisticated” way.
Amanda WhiteSeptember 16, 2019
Modern portfolio theory has created the impression that diversification is always a good thing, but asset owners could benefit from a more sceptical attitude. This article suggests over-diversification favours managers at the expense of returns to investors.
Phil EdwardsSeptember 6, 2019
Dmytro Sheludchenko, part of the internal quant team at AP1, underscores how leading pension funds are building internal young teams to embrace technology, look beyond short-term implementation to focus on long-term value, and draw expertise from the vast amounts of data in today’s new investment landscape.
Sarah RundellAugust 29, 2019
The board of the $154 billion Teacher Retirement System of Texas has approved changes to its strategic asset allocation as a result of its latest five-year study, increasing its allocation to private markets, risk parity and introducing leverage.
Amanda WhiteAugust 22, 2019
The $31.3 billion South Carolina Retirement System Investment Commission has launched a co-investment private equity program in a bid to reduce risk and enhance returns. Partnering with Chicago-headquartered GCM Grosvenor, RSIC will tap Grosvenor’s own private equity deal flow, as well as introductions to the manager’s GP network.
Sarah RundellAugust 19, 2019
Harshal Chaudhari recently sidestepped from his role as company-wide CIO at IBM, looking after $150 billion in pension assets, to a new role as the tech giant’s chief analytics officer. He spoke to Top1000Funds about the strategy he ran at the pension fund, his wider thoughts on the global economy and the impact of technology on the investment world.
Sarah RundellAugust 6, 2019
QSuper CIO, Brad Holzberger, has long stood out from his peers by loading up on long-term government bonds and even the recent sudden collapse of yields, as investors started pricing in slower growth, hasn’t deterred him from sticking with this asset class. The retiring CIO of one of Australia's largest funds about expectations.
Elizabeth FryAugust 1, 2019