diversification

Investor Profile

CalSTRS’ cautious outlook

CalSTRS' long-time CIO, Chris Ailman, is cautious about the outlook for markets with his "spider senses" working over time trying to understand the hidden risks in the economy. He told Amanda White the fund will focus the year on allocating to diversifying strategies and climate solutions.

Amanda WhiteFebruary 15, 2022

Asset Allocation

Biases: COVID-19 vaccines and investing in China

Liang Yin from the Thinking Ahead Institute examines omission bias as an explanation for vaccine resistance, and underweighting investments to China. He suggests a framework for overcoming this bias.

Liang YinMay 27, 2021

Investor Profile

Previ invests abroad as pandemic bites

Brazil's largest pension fund has been planning to invest more overseas for a while. Now economic travails in its home market due to the pandemic have stepped up the pressure to diversify.

Sarah RundellJanuary 28, 2021

Asset Allocation

Ignore diversification: BCI’s Dunatov

Stefan Dunatov, head of investment strategy and risk at Canada’s $170 billion British Columbia Investment Management, says long term investors should forget about diversification at the strategic level and instead focus on buying growth beta assets.

Sarah JonesDecember 5, 2019

Asset Allocation

Hiding behind diversification

Modern portfolio theory has created the impression that diversification is always a good thing, but asset owners could benefit from a more sceptical attitude. This article suggests over-diversification favours managers at the expense of returns to investors.

Phil EdwardsSeptember 6, 2019

Risk

Size matters: diversity across factors

The size factor has recently come under attack from smart beta providers because its performance has lagged behind other factors. A common recommendation is to remove size from the factor menu, to give more weight to factors with better performance. But due to its low correlation with other factors, size offers substantial diversification benefits.

Mikheil Esakia, Felix Goltz, Ben Luyten and Marcel SibbeJuly 17, 2019

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