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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France’s FRR ups risk in line with longer term investment horizon

Fonds de reserve pour les retraites (FRR), France’s €21 billion ($24 billion) pension reserve fund, has increased its weighting to equity in line with a new strategic asset allocation to reflect the investor's longer return horizon. It is also eyeing more unlisted assets including private equity, private debt and infrastructure.

Asset managers can’t have it both ways on sustainability

Asset managers have recently been trying to show that they could cater to all sides, from asset owners that have spent years integrating sustainability into their investment strategies to anti-ESG elected officials in states like Texas. But Hugues Létourneau writes that they can't have it all.

AP4: Why a dynamic, shorter term allocation is paying off

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.

Why investors must engage on the growing threat of antimicrobial resistance

Will antimicrobial resistance derail decades of medical and economic progress, or can coordinated action avert a global crisis? Anastassia Johnson, researcher at the Thinking Ahead Institute, examines the growing threat of drug-resistant infections and the role investors can play in driving sustainable solutions.

University of California: Less is more and simple is better in investing

Jagdeep Singh Bachher, the CIO who oversees the University of California's $198 billion in pension and endowment assets, says that he wants to keep investment simple as the fund removed its hedge fund allocation completely, conceding "it’s not one of the things we are good at doing".

New study flags risk in Dutch pensions’ concentrated stock strategy

Under strict ESG guidelines and pressure to closely engage with their investee companies, Dutch pension funds have developed an affinity for concentrated equity allocations with some owning as few as 65 stocks in their entire portfolio. But the Erasmus University flagged the diversification risk and higher volatility the strategy introduces.

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