Posting bonds not cash as collateral: Belgium’s KBC on LDI

Like many UK pension funds, Belgium’s KBC Pensio
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US endowment returns rocket on SpaceX windfall

US endowment returns rocket on SpaceX windfall

Early venture bets on SpaceX have ballooned into major portfolio positions at some US university endowments, with new analysis estimating the aerospace firm contributed as much as 10.6 percentage points to annual returns. Michael Markov, founder of US quantitative researcher Markov Processes International, says the windfall is now creating a concentration risk that investors cannot ignore.

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Ignore diversification: BCI’s Dunatov

Stefan Dunatov, head of investment strategy and risk at Canada’s $170 billion British Columbia Investment Management, says long term investors should forget about diversification at the strategic level and instead focus on buying growth beta assets.

Air Canada’s TCC prepares for take off

Air Canada, the pension fund for Canada’s flagship carrier, is preparing to manage external assets in a bid to let other pension funds and institutions tap into its top decile performance and 65-strong expert internal team.

Active US large cap adds nothing

Active investing in US large caps has detracted value from US pension fund portfolios and exposures should be indexed, according to new research by CEM Benchmarking. This could result in huge cost savings and have implications for how pension funds spend their active budget.

KLP shows the active side of passive

Norway’s fund for local government employees and healthcare workers, KLP, abides by strict internal ESG principles. Sarah Rundell looks at how this translates to investments in emerging markets, its view of indexes and a concentration of manager relationships.

Past returns: don’t even guide the past

The Thinking Ahead Institute's Tim Hodgson argues that past returns were over-stated, and future returns will be lower. More accurately, total value created will need to increase for shareholders to retain the same amount of value as previously.

Future Fund adds risk and liquidity

The Future Fund is adding risk to its portfolio, and focusing on liquidity, as part of a part of an ongoing strategy to free up more capital in the portfolio in the event of a drawdown. It is in the midst of selling off a “large slice” of private equity assets on the secondary market and has bought listed equities in emerging markets in the past year.

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