CIO’s Ninth Annual Industry Innovation Awards: Nominations Open

It’s time again to nominate and celebrate the industry’s most innovative asset owners and managers/servicers. CIO’s ninth annual Industry Innovation Awards will take place December 13 at the New York Public Library, celebrating the most innovative and talented players of institutional investing.

Please nominate asset owners and managers/servicers for this year’s awards. Nominations will close August 4, and all finalists will be announced in early September.

This year, the CIO editorial team will consult an advisory board of former and current chief investment officers, including Raphael Arndt, CIO of Australia’s Future Fund; Jagdeep Singh Bachher, CIO, vice president of Investments, University of California; Matt Clark, CIO, South Dakota Investment Council; Scott Evans, CIO of the New York City Pension Funds; David Holmgren, CIO of Hartford HealthCare; Tom Joy, CIO, Church of England; Kim Lew, CIO, Carnegie Corporation of New York; Richard Nuzum, president of Mercer’s global wealth business (2017 Consultant of the Year); and Bob Watson, CIO of FCA US. Some categories, such as investment outsourcing, transition management, and corporate investment strategies, will be judged largely on data collected via the CIO survey system.

The lifetime achievement award, which Ashbel C. “Ash” Williams, executive director and CIO of the Florida State Board of Administration (SBA), won last year, will be presented at the dinner. An overall winner from the asset owner categories will also be chosen and awarded CIO of the Year (presented last year to Evans).

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Our Next Generation Award is chosen the evening of the awards dinner, following a panel at the CIO Influential Investors’ Forum.

This year’s asset owner categories include (2017 winners in parentheses):

Foundation (Carnegie Foundation, Kim Lew)

Endowment (Church Commissioners for England, Tom Joy)

Corporate Defined Benefit Pension Plan Below $5 Billion (Computer Sciences – CSRA Inc., Brian Reed)

Corporate Defined Benefit Pension Plan Above $5 Billion (ABB, Elisabeth Bourqui)

Public Defined Benefit Plan Below $15 Billion (South Dakota Investment Council, Matt Clark)

Public Defined Benefit Plan Between $15 Billion and $100 Billion (Hawaii Employees’ Retirement System, Vijoy Chattergy)

Public Defined Benefit Plan Above $100 Billion (NYC Retirement System, Scott Evans)

Sovereign Wealth Fund (Australian Future Fund, Raphael Arndt)

Healthcare Organization (Hartford HealthCare, David Holmgren)

Defined Contribution Plan (Fiat Chrysler FCA US, Bob Watson)

ESG (University of California Regents, Jagdeep Singh Bachher)

Next Generation (W.K. Kellogg Foundation, Carlos Rangel)
Consulting (Mercer, Rich Nuzum)

*New 2018 Category: Collaboration

Asset management categories include (2017 winners in parentheses; italics indicate altered category):

Fixed Income (Nuveen Asset Management)

Equities (including alternative equity beta) (BlackRock)

Multi-Asset (including risk-balanced strategies) (Neuberger Berman)

Private Equity (Apollo Global Management)

Hedge Funds (Citadel)

Real Assets (AEW Global)

Defined Contribution Strategies (Prudential)

Investment Outsourcing (Russell Investments)

Corporate Investment Strategies (includes the overall criteria to help corporate CIOs achieve their goals including positioning for growth, innovation in risk management, and hedging overall portfolios.)

(Legal & General Investment Management America)

Transition Management (BlackRock)

Data & Technology (FactSet)

ESG Investing (Generation Investment Management)

*New 2018 Category: Emerging Markets

*New 2018 Category: Corporate LDI Strategies

Tags: CIO, Industry Innovation Awards

Danish pension fund ATP has shifted DKK20 billion ($3.1 billion, or 2.5%) from its $119.3 billion investment portfolio to its hedging portfolio amid new data showing its beneficiaries should live longer than pensions officials had thought.

The fund is extending the beneficiaries’ mortality expectancy by nearly four years for newborn Danish boys and two for girls, leading the fund to reposition its investments. ATP said it has been “carrying out a thorough review” of its life expectancy model for the past six months. Its CEO, Christian Hyldahl, noted the fund expects 40% of all newborn girls in 2018 to see their 100^th birthday.

By moving a chunk of its assets to its hedging operation, the fund hopes to score better returns that it will need to meet the longer lives of its beneficiaries.

The organization uses demographics information from around the world. But it moved to remove Americans because their causes of death are less common in Denmark, such as drug- and traffic-related instances. The US’s data had accounted for 40% of the data in the life expectancy model.

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In addition, Scotland and Luxembourg are now included in the data. Both countries are similar to Denmark in terms of fatalities.

ATP said although total assets will remain the same, the transfer will hinder half-year results. After the switch, its hedging portfolio will be at DKK677.3 billion, leaving DKK99.1 billion in bonus potential, a separate reserve designed to keep its risk consumption in check.

The mandatory plan covers the retirements, social security, and welfare of more than 5 million members. It is 114% funded.

Tags: ATP, Denmark, life expectancy, Pension