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.
Chief Executive of Norway's $513 billion Pension Fund Global Yngve Slyngstad believes measures that were taken during 2010 by European politicians were positive and believes yields on southern European countries' bonds will continue to improve in 2011 as a result.
Strategy + Tactics from aiCIO Magazine: "We call it a capital preservation philosophy," notes Theodore Economou, the
pension head at the European Organization for Nuclear Research (CERN),
echoing Benjamin Graham's mantra that to win, the first thing you have to do is not lose. "Losing money is not okay."
Investment managers are seeing an increase in the number of requests for proposals (RFPs) from insurance companies seeking third party services as the manager selection process evolves to meet increasingly complex investment needs.
Following allegations of influence peddling at the nation's largest public pension fund, CalPERS has revamped its governance policies, and its latest reforms are designed to help better manage risk and restore accountability.