Europe rearms, defence returns surge, asset owners rethink exposure

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Defence was once treated by many asset owners as a
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Inside the year-and-a-half-long review into ATP’s complicated portfolio

Inside the year-and-a-half-long review into ATP’s complicated portfolio

Danish pension giant Arbejdsmarkedets Tillægspension (ATP) has been urged to cull risk, establish formal portfolio benchmarks and reduce private markets exposures, according to an external review committee which handed down a 536-page report into the fund’s investment operations after an 18-month review. Following the release of the report by the board this week, co-author of the review Andrew Ang unpacks the findings with Top1000funds.com.

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Nest favours institutional-first managers as retail exodus pressures private credit

Nest, the largest workplace pension in the UK, says that private credit managers who prioritise institutional clients will be more favourably viewed. The £61 billion ($82 billion) fund has awarded a £450 million ($605 million) US direct lending mandate to Crescent Capital this month, citing the manager's institutional-client-first approach as a key attraction.

Inside CPP Investments’ TPA engine

TPA allows investors to better manage investment trade-offs, such as liquidity, costs and alpha, and has public and private investments compete explicitly on a common risk-adjusted basis, according to a new paper by CPP Investments. The Canadian giant, which has been practising TPA for two decades, says TPA cannot eliminate uncertainty, but it helps build resilience to it.

Long term lens shields Colorado from private credit jitters

As concerns in private credit mount, Colorado PERA CIO and COO Amy McGarrity says the pension fund isn’t seeing any strains in its growing allocation to the asset class, arguing that long-term investors are shielded from the risks because they can lock up their capital to weather market cycles.

Canada to allow retail contribution to new SWF

Canada has established its first national-level sovereign wealth fund with a seed of C$25 billion ($18.3 billion) to underwrite “nation-building” projects like ports, mines and energy infrastructure. In an unusual funding mechanism, the fund will issue a retail product that will allow individual investors to invest with the SWF and “participate in Canada’s growth”.

PKA ups the risk; builds out infrastructure

PKA, one of Denmark’s largest pension service providers, is exploring whether to increase its risk budget by 10 per cent to boost returns. Michael Flycht, deputy director of equities and liquid alternatives at PKA, outlines why the fund is achieving this objective via leverage rather than direct exposures, and where it's allocating towards in hedge funds and infrastructure.

NPS raises hedging ratio as Korea’s capital outflows weigh on won

South Korean investors’ pursuit of offshore investments has become a significant source of won weakness and triggered a shift in hedging rules for the $1 trillion National Pension Service. With an overseas asset exposure greater than Korea’s national foreign reserves, NPS’ move demonstrates the scale of impact FX risks can have on portfolios.

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