APG has successfully shifted its smaller pension fund clients to the new defined contribution pension system and now begins the huge task of moving the giant ABP as well. The defined contribution system has many implications including shedding more than 1000 staff at APG and moving investments more into riskier assets.
CalPERS and CalSTRS recently hosted over 400 attendees from academia, business, and investment to explore the connection between diversity, human capital and performance. And gave participants tangible next steps on how to increase diversity within their workplace and fresh momentum to push the diversity cause.
The output of a decision-making process is more than just a decision, which is even more good reason to work hard at getting that process right.
A knowledge exchange between the State of Wisconsin Investment Board and its manager, Parametric, has seen the fund become comfortable understanding the instruments involved to manage a chunk of its total levered allocation in-house.
Australia's largest pension fund, the A$160 billion AustralianSuper, is set to double in assets in the next five years. As a result it is sending more assets offshore and will set up offices in New York and Asia to access direct deals.
Innovation is usually viewed by economists as a productivity-enhancing force, powering economic growth in modern capitalist societies. But damage can also be done by innovations, especially in the financial sector where agency issues create the potential for negligence and rent extraction. A more cautious perspective might help investors and policymakers better manage the risks that inevitably accompany financial innovations and contribute to more stable and efficient markets.
In line with its strategy to reduce costs, while maintaining returns, one of the UK’s new mega funds, the £45 billion LGPS Central will reduce the number of managers it uses from 250 to 50.
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