The chief investment officer and senior investment professionals at the $88 billion Teacher Retirement System of Texas can earn up to 125 per cent of their base salary in performance compensation, under a new version of the fund’s pay rules.
Sweden’s AP3 on the hunt for active credit exposures
The $27.3 billion Tredje AP-Fonden (AP3) of Sweden has instituted a search for active fixed income managers to run portfolios of US, European and UK credit.
Australia’s DC funds take on more risk than OECD peers
Pension funds in Australia allocate a higher proportion of assets to shares than pension funds in any other country, according to a survey which looked at the asset allocation of pension funds in selected OECD countries.
No free lunch in asset allocation
In his editorial for the November/December issue of the Financial Analysts Journal, Richard Ennis confidently consigns the term “uncorrelated return” to the scrap heap of asset allocation lingo, reminding readers there is no free lunch in asset allocation, and that in order to collect the risk premium, investors must also bear the risk.
Loaded with liquidity, South Carolina fund pushes for diversification
With a massive allocation to cash of 14 per cent and an underweight to domestic equities and real estate, the $21 billion South Carolina Retirement System Investment Commission is uniquely positioned as a liquid investor ready to pounce. Chief investment officer, Bob Borden, spoke to Amanda White about the advantages of coming to the diversification … Read more
Japan’s pension giant hires, fires managers while buying up domestic bonds
The world’s largest institutional investor, the Â¥122,100 billion ($1.4 trillion) Government Pension Investment Fund of Japan (GPIF), has increased its allocation to domestic bonds and short-term assets at the expense of international bonds and domestic and international equities in the six months since the end of its fiscal year, a period which saw 12 managers terminated and 21 new managers appointed in a flurry of mandate activity.
