The OECD has warned that pension funds will come under increasing pressure as national governments cut old-age pensions, expecting the private sector to deliver ever-higher returns to fund increasing longevity, with a report citing Germany, Ireland, the UK, and New Zealand as addressing these issues in reform agendas. (more…)
Analysis of CalPERS’ total portfolio, where equity risk accounts for nearly 90 per cent of the risk allocation and yet the asset allocation to global equities and alternative investments is about 67 per cent, corroborates the trend towards allocating assets according to risk, not asset buckets. (more…)
The $105 billion Teacher Retirement System of Texas has debated, and rejected, the idea of appointing an independent chief risk officer outside of the investment management division, with the board deciding oversight of risk is sufficient within its current practices. (more…)
Institutional investors are being urged to embrace ‘conscious currency’ by thinking of currency risks as unmanaged active portfolios, and therefore develop responses to deal separately with those risks.
The latest review of private equity markets around the world by Partners Group shows continued favouritism for the Asia-Pacific growth story but a rising wariness about competitiveness and prices. (more…)
The equity allocation of Norway’s Government Pension Fund Global, which amounts to shares in 8,496 companies, was largely responsible for its outperformance in 2010, with the basic materials sector being the best performer for the fund. (more…)