Performance-based fee compensation relies on performance fee models that require that specific parameters be clearly stipulated in the investment management agreeement. This case study is one example of the misinterpretation that can occur when the fee model’s parameters are not specifically defined.
Investing in commodities via passive strategies presents some unique challenges due in part to the structure of futures contracts. GE Asset Management which has been managing commodities for the GE pension fund for five years, and opened that expertise to external clients last year, believes a better approach is active management using fundamentals.
Despite much work on hedging in incomplete markets, the literature still lacks tractable dynamic hedges in plausible environments, in this article, Professor Suleyman Basak and Dr Georgy Chabakauri provide a simple solution to this problem. (more…)
The newly appointed senior investment officer of the alternative investments management program at CalPERS, Real Desrochers, will have authority and management delegation reinstated after it was withdrawn when the former SIO resigned amid a fraud lawsuit. (more…)
It’s well-known that girls have always had a not-so-secret camaraderie with diamonds, now it seems the fund world is getting in on the benefits of that acquaintance. Diamonds are the icon of a harmonious bond, and the relationship between Harry Winston Diamond Corporation and Diamond Asset Advisors makes that symbol literal. (more…)
Setting a new asset allocation is one thing, implementing it is another thing altogether. CalPERS expects to have its new asset allocation implementation policies completed by the beginning of July, so head of asset allocation, Farouki Majeed, discusses the challenge. (more…)