article
APG’s view on accelerated change
APG's CIO Peter Branner explains how the pandemic has accelerated key trends already underway around digitization, central bank policy and action to combat climate change. It all points to fierce competition for private assets.
articleAsset allocation
OTPP: Prepare for tough times ahead
Canadian pension fund OTPP's chief economist forecasts tough times ahead: COVID spending has papered of the cracks of existing problems; it yields nothing but there are few alternatives to fixed income and inflation is on the way
articleInvestor Profile
USS: how to manage inflation risk
USS's head of dynamic asset allocation Bruno Serfaty reflects on the inflation risk coming down the track, and suggests ways investors can build alternative liability matching portfolios beyond government bonds.
articleAsset allocation
ESG data not fit for purpose
A cohort of ESG experts argued that the current data and research available for investors is lacking. Elsewhere they urged investors to engage with corporate boards to encourage change.
articleAsset allocation
Investors eye consumer opportunities
Protected by furlough schemes and mortgage holidays and saving money working from home, many consumers have come through the pandemic in better financial health than they were before. It could pose an exciting investment opportunity, say a panel of FIS 2020 Digital experts.
articleAsset allocation
OTPP, SSGA and USS reflect on the future
Three investors reflect on the what lies ahead highlighting a buoyant 2021 but challenges beyond. Their suggestions include allocations to real assets and diversifying out of traditional fixed income as they navigate portfolio construction considerations in a new investment paradigm.
articleAsset allocation
FIS 2020: Networking roundtables
The final session of FIS Digital 2020 allowed investors to 'meet' and share ideas via private networking groups using a breakthrough technology.
articleAsset allocation
Investors divided over inflation
Asset owners from 23 countries are reacting differently to inflation expectations, with almost half already hedging their portfolios but 20 per cent consider inflation is unlikely.
articleAsset allocation
Is LDI fit for purpose?
An LDI approach, which included a large allocation to bonds and a lot of internal investment management, helped HOOPP survive the GFC and has served it well for the past 13 years. But now – with the COVID crisis and a very low interest rate environment – that approach is being revisited and the fund is looking to invest more in alpha generating assets, and external management.
articleAsset allocation
Students show how to integrate impact
As impact investing gains momentum, the winning entries of a McGill University international investment challenge have shown the pension industry a thing or two about how to holistically tackle a triple mandate that includes impact.
articleAsset allocation
Scenario analysis tool predicts U-shape
A U-shaped recovery is the most likely economic outcome in the US for the next two years, but stagflation has a higher than anticipated chance of occurring according to a new paper about scenario analysis co-authored by State Street and GIC researchers. The study revolutionises scenario analysis by reorienting it towards a path.
Session recordingAsset allocation
Investor-led workshop
This session looks at the development of a vaccine for COVID-19 and what cooperation is needed to fight the virus.
articleAsset allocation
Is portfolio construction up to the task
The best way to integrate different scenarios into portfolio construction is front of mind for investors right now. But as David Bell explores adapting academic practices into the more complex real world is full of challenges. There are some important learnings in examining different techniques though.
articleAsset allocation
New AA model prioritises liquidity
Singapore’s sovereign wealth fund GIC and PGIM, one of the world’s largest asset managers, have collaborated to develop a world-first asset allocation framework that explicitly models the impact of private assets on total portfolio liquidity, incorporating both the top-down allocation view and the bottom-up cash flow view.
articleAsset allocation
The importance of resilience
Already OPTrust’s portfolio can best be described as resilient. But CIO James Davis, who started his career in October 1987, expects global macro economic changes from this crisis that we have never seen before and he wants to position the portfolio for whatever is around the corner.
articleAsset allocation
What past market crashes teach us
Looking back at the portfolios of large institutional investors during and after the dot.com crash and the GFC, CEM Benchmarking, reveals commonality in the portfolios that thrived. For both events the top quartile returns were more than 2 per cent higher than the bottom quartile. Analysing the asset allocation and behaviour of investors showed two clear themes: top quartile performers had more defensive allocations pre-crash; and rebalancing is a tailwind for performance.