Chicago Teachers is bullish on allocating to diverse managers, more than doubling its target allocation to more than half of the fund's AUM. Its CIO explains how the strategy adds value through access to differentiated strategies and competitive fee structures.
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.
Investors should use the strategic asset allocation process to adjust their portfolios to plug the SDGs and climate finance gap, according to an expert panel at PRI in Person.
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.
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.
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.
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.
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