Style investing remains a powerful tool in periods of market volatility and, in particular, style analysis reminds investors to be aware of the distinction between overall market risk and stock specific risk. Amanda White spoke with director of Style Research, Robert Schwob.
Risk reduction pays off for ABP
The giant Dutch pension fund ABP’s plan to reduce investment risk as a means of recovery from an underfunded position is paying dividends, with the coverage ratio increasing from 86 to 91 per cent from March to April.
What the crisis teaches us about sustainability
Institutional asset owners who have signed the UN Principles of Responsible Investing were told they must make the effort to help pioneer a sustainable economy, in an address from David Blood, co-founder with Al Gore of Generation Investment Management.
…as New Mexico Governor latest to ban third-party marketers
Bill Richardson has directed the State Investment Office to ban the use of third-party placement agents on investments of the state’s Permanent Funds.
CalPERS formally adopts placement agency policy…
CalPERS has officially adopted a placement agent policy, in light of recent pay-to-play allegations at other public funds, and introduced an investment policy for leverage, as its total fund value increased to $177.5 billion as at April 23, up from $169.4 billion at the end of March.
US funds change strategies in preparation for termination
The majority of US corporate plan sponsors want to terminate their frozen pension plans quickly but don’t have the sufficient assets to do so, according to Cecil Hemingway, US Retirement Practice Leader with Aon Consulting. A new survey by Aon, of more than 70 US organisations with a cumulative total of frozen pension plan asset of more than $50 billion, found that 81 per cent are planning to change their investment strategy in the near future, with many looking to hedge significant risks (35 per cent), change investment to reflect the shorter investment horizon to termination (27 per cent) or move to a more liability-driven investment strategy (19 per cent).
