From ai5000 Magazine: Risk Parity, or Just Risky?
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?
Risk
Following the Crash and Nassim Taleb, Firms Start to Offer Black Swan Protection
PIMCO is the latest vendor with plans to offer protection against violent market swings following the 2008 collapse and warnings by commentators such as Nassim Taleb of “Black Swan” fame.
BlackRock Takes Over Equitable Life Mandate to Manage Risk
Equitable Life's new
outsourcing deal with BlackRock is one of the largest European asset
management mandates of the year.
Report Says Harvard Endowment Losses Deepened Crisis
A new report says Harvard University and five of its New England
peers took too much risk and accelerated the financial crisis.
Norway Ministry of Finance to Lower Active Risk
Presented by the
country’s parliament, the proposal is part of a report on new
regulations for risk and active
management for Norway's Government Pension Fund.
UK Pension Agency Boosts Alternatives as Private Equity Fell Sharply in '09
Despite a recent report that shows pension funds
deceased their
commitments to
private equity by 94% last year, the pension
protection fund (PPF) has earmarked up to a quarter of assets to
alternatives.
Plans Increasingly Consider Risk-Parity
Sources say the San Diego Country Employees Retirement Association is leveraging its fixed-income portfolio to create 'risk parity', continuing a trend among pension funds.
CalPERS May Cut Its Projected Rate-of-Return
The
giant pension fund’s potential decision to slash its rate of return
could force California governments to struggle paying millions more each
year to provide employees with pensions.
BMW Gets Pension Liability Insurance With Deutsche Bank
The German carmaker completed the largest-ever insurance transaction
with a pension scheme.