The market is reflecting a high state of systemic risk and turbulence, and investors should adjust their allocation to growth assets accordingly, says Lucas Turton, chief investment strategist of Windham Capital Management.
Why institutions trade their reputations for profit
It is a key assumption that financial institutions such as auditing firms and credit ratings agencies will act in an ethical way to protect their reputation because it is, ultimately, the source of their profitability. But groundbreaking work by Harvard University postdoctoral fellow Abigail Brown posits that institutions may actually be incentivised to cyclically “trade down” their reputation in an effort to maximise profit.
Reclaiming fiduciary duty balance
Reclaiming fiduciary duty balance between prudence, loyalty and impartiality is critical to sustaining pension promises, this article claims. It would encourage better alignment of pension service providers’ supply chain interests, adoption of fit-for-purpose pension fund governance practices, and implementation of precautionary risk management policies.
How to avoid being the butt of a carbon price joke
Executive director of the Asset Owners Disclosure Project and business director of the Climate Institute, Julian Poulter, aruges the progress of carbon legislation in Australia is a wake-up call to asset owners around the globe.
What price is right for a low carbon future
Australia’s lower house of Parliament passed a carbon tax yesterday. It prices carbon at $23 a ton. India’s carbon tax is 80 rupees (about $1) a ton. So what is the appropriate price of carbon? According to Robert Litterman in his Financial Analysts Journal editorial, it is a complex equation that should reflect fundamental uncertainty about catastrophic risks and a high level of societal risk aversion.
Déjà vu as Wilshire warns CalPERS of ARS portfolio risks
CalPERS’ absolute return strategies program is over-reliant on quantitative tools, inadequately staffed and may be overweight in certain strategies and risks, according to Wilshire’s annual review of the portfolio.
