Investor Profile
Textron seeds new products for edge
The $10 billion Textron pension fund lowers fees and increases its influence by backing new product designs with capital. CIO Charles Van Vleet embraces active and some blasts from the past.
The Latest
Analysis
GPIF fee structure aligns interests
The world’s largest investor restructured how it pays its active mandates to get more certainty from managers. Its actions, which were taken after self-reflection, will affect the entire sector.
Equities
Thirst for data serves Mass PRIM
The $71.9 billion Mass PRIM pores over the numbers to be sure it pays active managers only for skill. That's just one way it uses intense analysis to deliver.
CFA Institute
GPIF insists on paying only for alpha
Hiro Mizuno, CIO of the world's largest investor, told the CFA conference that in exchange for multi-year commitments its mandates would now claw back fees when firms don't reach alpha targets.
OPINION
Canadian case for active management
Many active managers in Canada were able to exceed a passive benchmark return by 50-100 basis points, net of fees, for the decade ending December 31, 2016, Russell Investments research has found.
Investor Profile
Texas Teachers overhauls equities
Texas Teachers has made extensive changes to its equities portfolio, increasing risk premia, reducing active management and applying new strategies developed by the fund’s research arm.
Equities
CPPIB active in emerging markets
The Canada Pension Plan Investment Board has increased its focus on emerging economies, using active management to access local expertise and maximise its advantages of scale.
Equities
Future Fund revamps equities
Australia’s sovereign wealth fund has revamped its equities portfolio to take on deliberate factor risk and target idiosyncratic risk. The fund’s head of equities, Björn Kvarnskog, explains.
Analysis
Factors trump skill: MSCI
MSCI research has shown that, among top-performing funds, more than half of active returns come from factors, rather than manager skill, and style factors have the biggest impact.
Analysis
UK watchdog set to back pension mergers
The UK Financial Conduct Authority’s upcoming report is expected to call for consolidation in pension funds, tighter controls on active management fees and greater transparency.
From the CIO’s chair
Active? Only when necessary
High management margins and low returns will continue to push owners towards passive investments. But active managers can add value in asset classes that require special expertise or access.
Equities
Minnesota’s push into passive
A disillusionment with active has led Minnesota to double its passive allocation in public equities, a strategy that sits alongside a commitment to long-term investing in private markets.