In the nine months to March 2009, the $111.6 billion US fund, CalSTRS has vastly altered its asset allocation, decreasing its equities allocation, with global equities now 6.8 per cent underweight the target allocation.
$100b mismatch in private equity secondaries demand and supply
Recessions are traditionally considered a good time to invest in private equity, but liquidity constraints and the growth of unlisted assets within portfolios is causing pension funds to sit on the sideline. Sally Collier, London-based partner at global private equity fund of funds Pantheon Ventures, said there was a US$100 billion “mismatch” between the funds available for investment in the secondaries market and the “tidal wave of supply”.
Liability-responsive asset allocation
Russell Investments’ latest research argues some pension plans should consider a dynamic approach to strategic asset allocation that ties pension fund investing policy to changes in liabilities and a plan’s funded status. For the full report click here
More in-house management means lower costs, risks for Finnish fund Ilmarinen
The 21.7 billion (US$28.7 billion) Ilmarinen Mutual Pension Insurance Company is adopting a ‘back to basic’ approach to investment and relying on its internal investment team to steer it through unprecedented equity market volatility. Deputy chief executive, Timo Ritakallio, talks to Kristen Paech about the virtues of in-house management.
Managing opportunities and risks: insights from the world’s largest institutional manager
Richard Lacaille, chief investment officer of the world’s largest institutional investment manager, State Street Global Advisors, spoke with Amanda White about the economy, when markets will turn and the asset allocation and strategies that will best take advantage of that.
Dynamic AA helps underfunded plans curb risk
Last week Russell Investments released new research arguing some pension plans should consider liability-responsive asset allocation – asset allocation that changes depending on the plan’s funded status. In this in-depth interview Amanda White explores the concept with one of the report’s
authors, director of investment strategy, Bob Collie, including why until now such dynamic asset allocation has been difficult.
