Everything from charging dead people fees to trustees nixing mergers out of self-interest has emerged, as royal commission hearings have exposed big flaws in the world’s fourth-largest pension system.
The $335 billion California Public Employees’ Retirement System warned this week that it is greatly exposed to a downturn in global equity markets, as it prepares to monitor active risk closely.
Low-volatility equity approaches have delivered for 10 years. As their popularity rises, Mercer looks at potential uses, causes for concern, and whether it’s time to move in another direction.
Auto-enrolment will put more people into Ireland’s public retirement system, while regulatory requirements will include tougher standards for trustees and more disclosure on ESG.
LGPS funds have objectives aligned with many of the social issues that impact investing targets. This should make the trend popular within the scheme, once decision-makers are properly informed.
Public Employees Retirement Association of New Mexico CIO Dominic Garcia is headed down the path less travelled, employing a risk-parity and alpha strategy he learned with the State of Wisconsin.
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