Australia’s Statewide Super is a top performer under Con Michalakis who embraces absolute returns and active managers while fighting against what he sees as the greatest risk of all, complacency.
MERS chief investment officer Jeb Burns still finds value in active management as he seeks to up the fund’s exposure to emerging markets, and other non-US locales, in equities and real assets.
Pension funds in many emerging economies need to diversify offshore, says the World Bank, in order to achieve higher returns with potentially lower volatility.
Japan’s GPIF has only recently moved into equities, while ADIA has a rich history of investing in a variety of asset classes. The returns of both giants show the benefits of diversification.
Diversification can be a powerful tool in managing downside risk, but it has been argued that “too much” diversification can destroy a business if it diverts too widely from its original purpose.
In one of the biggest allocations among the fund’s Danish and European peers, PKA has grown its alternatives portfolio to account for 25 per cent of assets under management.
Andrew Ang believes factor investing is a more efficient way to organise a portfolio as it allows liquid and illiquid strategies to be managed across the portfolio. It also has the added benefit of honing managers on value creation. He’s been working with a handful of investors while Professor of Finance at Columbia University on... Read more »
Japan’s Government Pension Investment Fund, the largest pension fund in the world, has established a set of investment principles that focus on its ability to take advantage of its long-term investment horizon and the fund’s ability to make pension payments. The ¥137 trillion ($1.1 trillion) fund is working to long time horizons, with a fiscal... Read more »
The balance between the allocating to the right number of asset classes and over-diversification is a concern for pension fund investment executives and committees. A new paper by professors at the US Air Force Academy examines the relationship between fees of diversifying asset classes and their diversifying benefits. The paper finds that, in many cases,... Read more »
Sunil Krishnan, head of market strategy at $62-billion British Telecom Pension Scheme Management Limited (BTPS), the United Kingdom’s largest pension fund for employees of global telecoms operator BT Group, has sage advice for investors contemplating their exposure to emerging markets. Examining the pros and cons of the asset class, Krishnan counsels caution. Speaking at a... Read more »
How should pension funds in the United Kingdom best prepare for the government unwinding quantitive easing (QE) and tightening monetary policy? The Bank of England isn’t showing any signs of ending QE just yet, its policy begun in 2009 and designed to stimulate the economy by creating new money to buy government bonds. But QE... Read more »
The rise of smart beta has just got another boost thanks to a study commissioned by Norway’s ministry of finance for its Government Pension Fund Global. It asked index provider MSCI to look into the feasibility of running smart beta strategies for large portfolios. Very few institutions with the size of GPFG’s $400-billion equity portfolio... Read more »