In seeking to minimise pension risk, many companies have chosen to freeze or close defined benefit pension plan in the hope such an approach might give them time to adjust and increase corporate value. In a recent article published in the Financial Analysts Journal, Brendan McFarland, Gaobo Pang and Mark Warshawsky examine the impact of freezing or closing a defined benefit plan on the sponsoring companies’ market value.
Singapore’s two largest asset owners, GIC and Temasek, see attractive opportunities in climate adaptation solutions – a relatively underfunded area compared to decarbonisation. The former has already made selective adaptation investments and said the opportunity set across public and private debt and equity could increase to $9 trillion by 2050.
Turnover in a portfolio reflects the extent of a manager’s long-term focus. A new report finds most equity managers replace their shares at a rate more than twice what’s thought of as ideal.
Recent reports highlight challenges sovereign wealth funds face in reconciling long- and short-term objectives – and how success in private markets comes from finding and developing talent.
New research has found that organisations and teams with more altruistic motivations for working in the investments industry are also more likely to deliver superior long-term returns.
Norges Bank Investment Management would like to see an increase in the number of company listings and suggests more flexibility from exchanges and index providers could facilitate this.
Norges Bank’s latest paper in its Asset Manager Perspective series examines the feature of “last look” in foreign exchange markets.
The investment industry should be constantly looking at the impact of technology on the status quo. Just because indexes have been defined as cap-weighted portfolios, doesn’t mean that can’t change. In fact, the evolution in portfolio management necessitates a change in thinking with regard to the definition of indexes, in particular so risk management can
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