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.
Representatives of various Swiss Pensionskassen agreed that funds should take risk, if they can afford it.
As increasing life expectancy and regulations pressure pension funds to de-risk their investments, UK schemes are calling for more long-dated gilts.
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.
Fitch Ratings has said European asset managers must restore investor interest in actively managed investment through greater transparency on their products, processes, and communication.
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.
Ceres, a national network of investors, environmental organizations and other public interest groups, has kicked off a campaign among global investors with assets totaling more than $2.5 trillion, urging energy companies to be open and transparent with investors and stakeholders.
Shawn Kravetz writes about how Green Swans are both a risk and an opportunity for investors.
The active versus passive investment debate has raged within academic circles for decades without resolution. Unfortunately for the world’s asset owners, this has left them wondering what game—Chase alpha? Ride beta?—they should be playing.
The consensus: The rise of derivatives and, more recently, extreme equity volatility have driven many asset owners into the arms of risk parity vendors. The debate: Is this a good thing?