Risk Parity is Too 'Extreme' – MIT's Lo Presents His Third Way
Andrew Lo, MIT Sloan Professor of Finance, calls for a happy medium between risk parity and mean variance optimisation.
Risk
British Researchers Call for Shared Liability to Save DB Plans
To save defined benefit plans members need to assume more risk, researchers have found.
Corporate CIOs Know Liabilities (But Not Longevity)
A MetLife poll of plan sponsors showed CIOs are more liability-aware than ever--except regarding how long those liabilities will stick around.
Calling All Asset Managers: The Dutch Are Ready For DC
One of the Netherlands’ biggest insurers backs a shift towards defined contribution.
Who Cares about Inflation?
Not many people it seems—there are greater pressures to deal with in the short term.
Beware the End of the Glide Path
Rising rates would hit the end people nearest retirement disproportionally hard, according to a Casey Quirk paper, as glide paths derisk approaching their target date.
Going Big: Norway Takes on Risk Factors for Large Portfolios
Practical complications get in the way when risk-factor models are applied to funds over $100 billion, and Norway’s Ministry of Finance has released a how-to guide for considering them.
European Investors Take on More Risk as Confidence Grows
Institutions starting to breathe easier over their equity allocations, State Street Global Markets finds.
Flush With Cash: How a US Town is Using Sewers to Shrink its Deficit
Leasing assets to fund your pension deficit is becoming more popular.
Children’s Charity Pensioners Safeguarded in Innovative Derisking Deal
The charity's buy-in includes a deflation costs deferral to keep the buy-in premium price down.
Risk Monitoring Lag Hitting Pension Portfolios
If you don’t know what risk you are holding, how can you manage it?
Cross-Sector Signals Can Boost Alpha
Considering a range of signals could boost your equity returns, research has found.
Is Medical Underwriting the Future for Pension Derisking?
Impaired annuity deals help smaller schemes to take advantage of buy-ins.
Hedge Fund Leverage Approaches All-Time High
Remember when “leverage” was a dirty word? It isn’t any more.
Tilting Portfolios to Take Advantage of Inflation Cycles
Which assets perform best throughout the inflation/deflation cycle – and how to make sure you access them.