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Big owners should act like big owners
One of the key ways that institutional investors can promote a long-term orientation in the companies they invest, is by rejecting a company’s compensation plan if it puts too much emphasis on short-term results, says Bob Pozen, visiting senior lecturer at the MIT Sloan School of Management. Writing in the Financial Analysts Journal, he says
Future Fund focuses on technology
The lessons learned from embedding ESG risk management processes into the Future Fund’s portfolio can be readily applied to helping the fund improve its risk management for technological change.
Investor behaviour erodes performance
Performance is eroded by institutional investors’ decisions around hiring and firing managers according to the preliminary results of a behavioural study by Boston University that links qualitative factors such as committee characteristics with earlier empirical research on performance.
Managing liquidity and rebalancing constraints
This extension of previous research by Morgan Stanley’s Martin Leibowitz and Anthony Bova provides an analysis of the relationships between rebalancing liquidity, portfolio flows, and diversification into illiquid assets.
CalSTRS cost breakdown supports internal savings…
A breakdown of CalSTRS’ investment costs confirms the cost savings of internal asset management, with the fund’s internal asset management costs making up only 0.07 per cent of the total portfolio management costs, but comprising 30 per cent of the total assets managed.
Sweden’s recipe for success: Active, low cost, ESG
CEOs at Sweden’s four buffer funds link stellar returns to low costs, sustainability and active management.
Report reveals Norway’s SWF climate risk
Norway’s 3496 billion kroner (US$582.7 billion) sovereign wealth fund could suffer significant losses in a range of climate-change scenarios if it fails to hedge its risk by investing in climate-sensitive assets, the release of a confidential report shows. Norway’s Ministry of Finance recently released an extensive study by asset consultant Mercer on the effects of
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