Denmark's ATP is awaiting a review that will report on the strength of its investment strategy, and suggest how to simplify reporting. But additional transparency must not hurt the future returns for members, warns Allan Japhetson, head of investment strategy at ATP.
The $102 billion Danish pension fund, ATP, returned just 3 per cent in its return-seeking allocation in the first half of this year, buoyed by its foreign and Danish equity portfolios but pulled down by rising interest rates negatively impacting the large allocation to bonds.
ATP's Christian Kjær explains the rationale behind two new overlays to better navigate the risk of future correlations between bonds and equities which wrong footed the risk parity investor in 2022.
A recent board meeting at TRS discussed challenges in the $11 billion risk parity allocation. However, predicting stymied economic growth and continued inflation ahead, the asset class is likely to do better going forward
As he prepares to put more money to work in private markets, New Mexico’s new CIO Michael Shackelford discusses why he is paring back on risk parity and removing private credit hedge funds, and his preference for open-ended funds.
Mikkel Svenstrup, CIO of Danish fund ATP, defends risk parity despite posting the worst results in the fund's history.
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