From aiCIO Magazine's Summer Issue: CEOs are demanding that their pension funds be de-risked to avoid large contribution surprises, yet de-risking means lowering equity exposure when underfunded pensions need equity-like returns.
The A$5.8 billion MTAA Super fund is being investigated by the Australian Prudential Regulation Authority (APRA) over its response to the global financial crisis.
Bruce Tomlison, Sunsuper's portfolio manager, has expressed his support of smaller hedge fund managers in favor of larger ones; consultants have an all-embracing approach, saying "it would be foolish to completely shun the large guys."
Standard & Poor's credit rating of the US government's heightened debt level reflects an awareness that has long been understood by institutional investors, consultancy NEPC believes.
From aiCIO Magazine: Risk management as transportation metaphor:
walk (minimal risk), take a car (moderate risk), or fly a plane
(riskier)? And remember: wear a seatbelt.
From aiCIO Magazine: For years, there's been a shift toward
alternative assets, but much of the recent action in transition
management is toward decreasing plans' reliance on U.S. equities—in
particular, de-risking pension plans through liability-driven investing (LDI) strategies
From aiCIO Magazine: The solution to the FX issue historically has
been the standard three-month forward contract. Some funds execute this
strategy internally; others outsource it.
UK pensions are increasingly transferring risk to insurance companies, driven by M&A activity, a growing number of closures and part-closures of defined benefit pension schemes, and concerns over longevity risk.
New research in the Credit Suisse Global Investment Returns Yearbook 2010 by professors from London Business School has shown that over the long run, equities have outperformed inflation, bonds and cash in every market examined.
