GPIF, ADIA: complex success
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.
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Is diversification really a free lunch?
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.
Denmark’s PKA profits on alternatives
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.
Why Andrew Ang joined Blackrock
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
Japan’s GPIF sets investment principles
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
Fees eat diversification’s lunch
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,
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