Equal vs. Value and Price-Weighted Portfolios: Who Wins?
Equal-weighted portfolio of stocks in the major US equity indices with monthly rebalancing outperforms value- and price-weighted portfolios, a new report claims.
Risk
How a CIO Built an Alts Portfolio From Scratch
The Profile: Jeremy Wolfson, Chief Investment Officer who currently manages the $8 billion dollar Los Angeles Water and Power Employees' Retirement Plan, speaks about how he has been able to grow the fund's alternatives allocation with the support of his consultant and the eventual approval of his board.
CalPERS Board Reduces Fund's Investment Return Target to 7.5%
Acknowledging lower returns and higher costs, the board of the $235 billion California Public Employees' Retirement System has approved reducing its rate to 7.5% from its longstanding rate of 7.75%.
Pension Buyouts for All as Deal Volume Spikes
Pension funds still allowing further member accrual have been thrown the lifeline of ‘buyout’ in a new deal that could see further volume in the already burgeoning sector.
Consultants: Derivatives Emerge As 'Quick and Dirty' Solution to Bond Shortage
Derivatives and other hedging strategies are logical solutions for corporate pension funds in the United States as they face heightened volatility along with interest rate and market movements amid a constrained bond market, investment consultants say.
Oaktree's Marks: UPenn Underperformance Due to Defensive Posturing, Attempting to Please University
In order to survive and have a chance to produce long-term performance, investors have to live up to their constituencies in the short run, according to a memo from Oaktree Principal and Chairman Howard Marks.
Is Risk Measurement Damaging Long-Term Performance?
Measurement of risk, rather than the management of it, is damaging investors’ prospects of long-term returns and meeting their liabilities.
European Aging on the Rise
Improving longevity is hastening and set to stretch pension funds liabilities even further.
Rates Rise; Then What?
From aiCIO Magazine's February Issue: What happens to the assets and liabilities of various capital pools when--not if--rates eventually rise?
Dutch Masters on Unfamiliar Turf
From aiCIO Magazine's February Issue: The Dutch pension market is often cited as the best in the world, but are problems emerging in this supposed pension El Dorado?
Denmark to Issue First Inflation-Linkers
Investor demand has led Denmark to issue its first inflation-linked bonds, which solve some major pension scheme problems.
Paper Explores Value of Tail-Risk Hedging in a Volatile Market
Investors need to better understand how tail risk hedging works, the tradeoffs involved, and how the costs are determined, according to a whitepaper by BNY Mellon.
Towers Watson Launches First Transition Management Service
Towers Watson is creating the first panel of transition managers to make the service more easily available for investors and monitor the outcomes.
The Norway v. Yale Models: Who Wins?
Both the Norwegian Government Pension Fund Global and Yale University's endowment -- run by the popular David Swensen -- have emerged as industry pillars in asset management, and a new paper compares and scrutinizes their reputations.
Pension Funds to Drop Derivatives?
Derivatives may become too costly and too complex for some pension funds to want to use, Towers Watson has warned.