Germany’s €70 billion pension provider VBL is increasing its diversification, notably investing in overseas real estate outside Germany for the first time. It's also increasing its tilt to international equities over European stocks, enabled by an organisational and investment process overhaul.
This paper, “Property Derivatives for Managing European Real-Estate Risk,” co-authored by Frank Fabozzi from the Yale School of Management, Robert J. Shiller from Yale, and Radu Tunaru from the Cass Business School was recently awarded the European Financial Management Best Paper Award.
In an era of downgrades managing sovereign risk is a growing concern, and in the current environment investors need to actively manage their fixed income portfolios, says Russell Investment’s Andrew Pease.
The volatility in global markets has prompted the $154 billion CalSTRS to an underweight global equities position, moving assets into cash, its chief investment officer, Chris Ailman, said.
New Zealand pension funds were the best performing in the OECD last year, with an average of 10.3 per cent, followed by Chile, Finland, Canada and Poland, with 2.7 per cent the average across all countries.
New Jersey’s public pension fund is looking to almost double its allocation to alternatives, particularly hedge funds, lifting that allocation to a third of its assets, and is scaling back on equities despite it being its best performing asset class this year.
China is the largest investment destination for Temasek Holdings, with Bank of China and China Construction Bank two of its most significant holdings. Finding investment opportunities in Asia is also the key focus for the Singaporean investment company.
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