Pension Funds Failing to Take Hedging Plunge
Longevity, inflation, and investment risks are the biggest fears for pension fund trustees, so why are so many failing to address them?
Risk
What Do Australia's Super Funds Want?
Australia's superannuation funds have moved away from active management toward cheaper access asset classes such as equities amid limited diversification, according to a paper by Round Tower Solutions.
Paper: Opportunities Scarce for Active Managers, Risk Recovery on the Horizon
Last year was disappointing for active equity managers and as an overall climate of risk aversion persists, many of the early indicators of a risk recovery are emerging, Wellington concludes.
Is Yale's Endowment the New Tiger Management?
From aiCIO Magazine's April Issue: Julian Robertson’s Tiger Cubs started some of the aughts’ most impressive hedge funds. Are David Swensen’s Yale Pups, increasingly in control of other foundations and endowments, the current decade’s equivalent?
Is Defined Aspiration Simply Risk-Shirking?
From aiCIO Magazine's April Issue: Is the 'third way' of corporate pension provision just another risk avoidance tactic for employers?
Low-Volatility Equity Strategies: A Common-Sense Perspective?
Low-volatility equity strategies are a realistic and common sense approach to target a reduction of risk while not necessarily sacrificing long-term returns, says Adrian Banner, Ph.D., Chief Investment Officer at INTECH Investment Management.
Low-Volatility Investing: A Panacea for Meeting Liabilities?
Critics poke holes in low-volatility strategies for investors aiming to match plan liabilities while reducing fluctuations in their portfolio.
Poor Investment Expertise Drives Japanese Public Pension Domestic Bias
A huge majority of Japanese public pensions have no investment experience, driving home-country bias in the region, says Sadayuki Horie, senior researcher at the Nomura Research Institute.
Equal vs. Value and Price-Weighted Portfolios: Who Wins?
Equal-weighted portfolio of stocks in the major US equity indices with monthly rebalancing outperforms value- and price-weighted portfolios, a new report claims.
How a CIO Built an Alts Portfolio From Scratch
The Profile: Jeremy Wolfson, Chief Investment Officer who currently manages the $8 billion dollar Los Angeles Water and Power Employees' Retirement Plan, speaks about how he has been able to grow the fund's alternatives allocation with the support of his consultant and the eventual approval of his board.
CalPERS Board Reduces Fund's Investment Return Target to 7.5%
Acknowledging lower returns and higher costs, the board of the $235 billion California Public Employees' Retirement System has approved reducing its rate to 7.5% from its longstanding rate of 7.75%.
Pension Buyouts for All as Deal Volume Spikes
Pension funds still allowing further member accrual have been thrown the lifeline of ‘buyout’ in a new deal that could see further volume in the already burgeoning sector.
Consultants: Derivatives Emerge As 'Quick and Dirty' Solution to Bond Shortage
Derivatives and other hedging strategies are logical solutions for corporate pension funds in the United States as they face heightened volatility along with interest rate and market movements amid a constrained bond market, investment consultants say.
Oaktree's Marks: UPenn Underperformance Due to Defensive Posturing, Attempting to Please University
In order to survive and have a chance to produce long-term performance, investors have to live up to their constituencies in the short run, according to a memo from Oaktree Principal and Chairman Howard Marks.
Is Risk Measurement Damaging Long-Term Performance?
Measurement of risk, rather than the management of it, is damaging investors’ prospects of long-term returns and meeting their liabilities.