Diversification Beats Portfolio Optimization: Study
Equally weighted stock portfolios consistently rank among the largest mean returns, best Sharpe ratios, and lowest turnover, according to Horizon Investments.
News
Orange County Pension: Meketa in, NEPC out
The Boston-based firm beat out five other bidders, and won Orange County’s grueling 56-page RFP for a new general consultant.
Ex-HP CIOs on the Ideal Asset Allocation Model
Move away from the policy portfolio and dive into factors, long-short positions, and alpha-beta separation, Ken Frier and Gretchen Tai argue.
Debunking International Investing ‘Truisms’
Popular advice on how to invest in international equity markets is often mistaken, says Parametric’s Paul Bouchey.
Citi Fined $425M Over Benchmark Manipulation
The US Commodity Futures Trading Commission charged the bank and its Japanese branches with rigging interest-rate benchmarks.
Shareholders Split on Climate Change Action
An activist group is stepping up pressure on the Netherlands’ biggest listed company—but the country’s top investors are wary of extreme action.
New Mexico CIO: Don’t ‘Pander’ to Asset Managers
Investment chief Jon Grabel says public pensions should continue to be wary of investment terms that overly benefit general partners.
US Trust Wins Three OCIO Mandates
The OCIO manager has picked up assets from the Healthcare Foundation of Wilson, the Leukemia & Lymphoma Society, and the BHP Billiton Foundation.
Funds-of-Funds Top Pick for Pensions in Private Equity
More than two-thirds of North American public and private sector pensions choose funds-of-funds for private equity exposures, Preqin has found.
Climate Change’s Systemic Risks
Addressing the uncertain and unpredictable effects of climate change is “the essence of risk management,” Wilshire Associates argues.
Asset Owners Reevaluate Tobacco
Just as America’s largest pension fund weighs getting back into tobacco investment, the world’s largest insurance fund announces a break up with the sector.
Legal & General Inks £3B Annuity Deal with Aegon
The UK insurer’s American investment arm meanwhile will dive into risk-premia strategies with a new multi-asset team.
Harvard Endowment Chief Goes on Medical Leave
The fund’s COO Robert Ettl will serve as interim investment head until CEO Stephen Blyth returns.
Asset International Acquires Market Metrics, Matrix Solutions
The acquisition broadens Asset International’s portfolio of proprietary, actionable data, insights, and business intelligence.
Another Trillion Dollars for Private Equity
Dry powder levels won’t diminish anytime soon, Deloitte warns.