This new paper by Rob Bauer, Martijn Cremers, and Rik Frehen uses the CEM pension fund data set to document the cost structure and performance of a large sample of US pension funds. It finds that small-cap mandates of defined-benefit funds have outperformed their benchmarks by about 3 per cent per year. Concluding that while large scale brings cost advantages, liquidity limitations seem to allow only smaller funds, and especially small-cap mandates, to outperform their benchmarks.
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.
This research insight by MSCI, shows global small caps still exhibit distinct characteristics that provide opportunities for portfolio diversification and active management. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
The second paper by AQR examining inflation considerations in institutional asset allocation finds an equal risk-weighted portfolio performs better on average and is less dramatically affected by individual inflation and growth scenariosmrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
The first of a two-part series by AQR provides some analysis for investors deciding how to position a portfolio for various inflationary environments, and clarifies some misconceptions about inflation, and inflation-linked assets. The second paper will discuss the potential risks and rewards of holding various assets during distinct economic environments. Inflation in 2010 and Beyond
As recent events in the EU spark anxiety in financial markets, researchers at EDHEC Risk Institute examine various performance attribution models and the relation to currency decisions and overlay management. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Numerous regulatory and legislative activity is affecting 401(k) plans in the US. Fee disclosure, target date fund disclosure and a rule on the provision of investment advice are areas with consequences for plan sponsors and participants. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
This OECD working paper assesses the relative performance of different investment strategies, and whether the specific glide-path of life-cycle investment strategies and dynamic features in the design of default investment strategies significantly affect retirement income outcomes. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
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