Top-performing APK Pensionskasse is examining different regions and sectors, looking to increase its allocation to equity if markets decline in the second quarter. Chief executive Christian Boehm expects technological developments and geopolitical influences to affect markets, including in Europe’s financial sector.
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.
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.
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.
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.
The €72 billion Dutch metal industry pension fund has developed its own benchmark that combines ESG, long-term returns and current beneficiaries’ sensibilities with its previous passive strategy. The index’s various criteria have screened out many companies PMT previously held and reduced its allocation to US equities.
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