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."
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
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.
The Massachusetts Pension Reserves Investment Management Board has decided to embark on a comprehensive asset allocation review in an effort to better fund the $48.7 billion system, highlighting the need to change thinking, strategy, allocation, and management guidelines as circumstances change, the fund's spokesperson tells aiCIO.