While the models of expected returns are evolving, they still do not recognise the role of expressive and emotional characteristics. In this guest editorial in the Financial Analysts Journal, Meir Statman, Glenn Klimek Professor of Finance at Santa Clara University, California, proposes including characteristics such as affect, social responsibility, status and patriotism in models of expected returns .
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While liability-driven investing (LDI) has been gaining in popularity for several years among mainly defined benefit pension plans, the strategy and products are about to get an upgrade in sophistication, according to Russell Investments. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
OECD has called for policy changes after pension funds around the world lost one fifth of their assets, equivalent to $US 3.3 trillion - in 2008.
Irish pension funds haemorrhaged an estimated euro 27 billion (US$36.5 billion) in 2008, as the global economy moved towards recession and equity markets across the world went into freefall. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
Pension fund exposure to Bernard Madoff's alleged Ponzi scheme has raised questions about the governance of so-called professional investors.
As the end of the year approaches, the issue of rebalancing for pension funds – a vexed one in the market volatility of the past year – is becoming more acute. US-based adviser Callan Associates is advising clients to depart from the normal disciplines around rebalancing in these extreme conditions. mrec4inarticleinline Sponsored Content scnative1 scnative2
Next year will herald a “new paradigm” for investors where income once again becomes a focus of thought, according to the global head of institutional investments at Fidelity International, Michael Gordon. mrec4inarticleinline Sponsored Content scnative1 scnative2 scnative3
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