OPTrust is making investment look easy
Canada’s OPTrust has impressive stats. In 2015, it returned 8 per cent and remained fully funded. Its plans for the year ahead include infrastructure, hedge funds and managing even more in-house.
Volatile markets have provided a rich hunting ground and opportunistic best ideas have come thick and fast for AP4’s new five-pronged global allocation made up of systematic equity, currency and rates, asset allocation, hedge funds/external mandates and analysis. Magdalena Högberg explains the risks and opportunities of the best ideas allocation.
Canada’s OPTrust has impressive stats. In 2015, it returned 8 per cent and remained fully funded. Its plans for the year ahead include infrastructure, hedge funds and managing even more in-house.
Created two years ago when two of Finland’s largest pension funds merged, the country’s “new kid on the block,” Elo, is building its in-house capabilities.
On the eve of its centenary, Alecta’s head of investment management reflects on the low-cost, Sweden-centric, active in-house strategy which has kept the pension provider on top of its game.
The total investment costs of AP2 are only 17 basis points, yet the portfolio is described by chief executive, Eva Halvarsson as complex and advanced. So how do they do it?
SWIB is in unprecedented territory with half of the fund’s assets in passive strategies. But it is building a portfolio of hedge funds and an internally managed, multi-asset division.
Alaska Permanent Fund will focus on smart beta strategies as it seeks to further increase in-house management. It will also develop income-generating strategies away from traditional fixed income, leveraging its size and infinite investment horizon in competing for US infrastructure and real estate assets.
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