CPP, NBIM CEOs swap notes on leading through teams, not bureaucracy

John Graham (L) and Nicolai Tangen

In a high-level exchange between two of the world
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Why traditional investment committees can amplify group biases

Why traditional investment committees can amplify group biases

Investment committee meetings, a governance cornerstone at every asset owner organisation, run the risk of amplifying group biases and social dynamics, and can push the IC towards recommending more extreme investment positions collectively than the average of their individual views. Bernhard Scherer, head of portfolio implementation at ADIA, unpacks the thesis in a new paper.

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Top five topics for investors in 2019

It’s a VUCA world (volatile, uncertain, complex and ambiguous). In such times, it’s especially important for investors to have guiding principles. The Thinking Ahead Group provides a handful of key themes to manage in the year ahead.

UK reforms have pension schemes in mind

The UK’s Competition and Market Authority has put forward several changes to the investment consultant and fiduciary manager markets designed to ensure competition improves outcomes for pension schemes and other institutional investors. A competitive tender process would be required, as would clear distinctions between advice and marketing.

Cost-templates pilot begins in UK

The Cost Transparency Initiative has entered its pilot phase, in which five of its templates will be tested in coming weeks. Data from the testing will be used to rationalise templates across the industry. The idea is to provide consistency of clarity of fees and costs, so trustees can compare funds easily.

Illinois looks inward for new portfolio

The $42 billion Illinois Municipal Retirement Fund is using its enhanced internal management capabilities to start a quantitative portfolio applying multifactor strategies. The strategy is designed to build some downside protection into the fund’s equities allocation.

Seeing pension costs should be easy

How much does it cost? It should be the most basic of questions from pension fund trustees when decisions are made about how to invest members’ assets, yet it appears this is often not the case. A lawsuit originating in the US state of Kentucky has the potential to change matters for the better.

Washington works to be the best LP

Private equity has been a stand out for the $130 billion Washington State Investment Board and CIO Gary Bruebaker says the real trick is attracting the top general partners. That means making sharp investments, being true to your word and nurturing the relationship.

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