Risk management’s next level
UC Regents’ Risk Management 3.0 aims to be a better predictor of financial crises, by going beyond historical trends and stress testing, to look at how people and systems behave under pressure.
Germany’s largest pension fund VBL ups diversification; invests more abroad
Germany’s €70 billion pension provider VBL is increasing its diversification, notably investing in overseas real estate outside Germany for the first time. It's also increasing its tilt to international equities over European stocks, enabled by an organisational and investment process overhaul.
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Board make-up matters
The more political appointees and worker representatives sit on US pension fund boards, the more those funds will respond to incentives that encourage riskier investing, research has found.
We need to be better than ‘optimal’
An over-reliance on mean-variance optimisation has led to portfolios that fail to take into account the radical complexity of the real world and embrace ‘pretentious and unhelpful symbols’.
Ignorance isn’t bliss
In an increasingly complex and inter-connected world, a broader perspective on risk is essential in helping investors navigate an uncertain future, writes Phil Edwards.
Opportunity in the making
It is more than ever a “market of credits” rather than a “credit market”, according to Mercer, affording those with rigorous research coupled with patience, capital and flexibility the potential
Income the key dimension
Risk should be defined as the inability to meet retirement income goals, so investors and their managers should forget alpha and other “distractions”, according to David Booth.
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