Years of hard-line exclusions of the defence industry kept many asset owners out of one of the strongest-performing sectors. Now, as Europe rearms, investors are reworking defence policies – cautiously and under intense scrutiny.
Ilmarinen, Finland’s €63 billion ($73 billion) pension insurer, is laying the ground to significantly increase its equity allocation ahead of new pension rules in the country. CIO Mikko Mursula is preparing for a sharp increase in volatility of annual returns and the enhanced role and importance of diversifying the portfolio.
For years Central Bank bond buying has supressed the volatility on which hedge funds thrive. At Finnish pension fund Ilmarinen hedge funds are back in favour, particularly volatility, momentum, and macro strategies that don't correlate to equities.
Ilmarinen CIO Mikko Mursula looks to shrink its holdings in bonds while adding real estate and equity away from Europe, as the fund seeks protection from potential interest rate moves.
“Geopolitics does matter and how to navigate geopolitical events on a portfolio is challenging,” argues Tom Clarke, partner and portfolio manager at William Blair speaking at the Fiduciary Investors Symposium at Rhodes House, Oxford University. In a session dedicated to macro strategies for investors to best navigate today’s complex investment universe and diversify risk, Clarke argues that “hiding” from
Real estate is back in fashion, at least according to a range of recent surveys indicating the growing institutional investor appetite for bricks and mortar. After a tough few years for the industry and with European investors’ priorities changing, the possible renaissance might come with a marked change in investing patterns, though. More control The
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