Latest from IPE Magazine – Page 678
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Features
Follow first principles
It is important to recognise that asset allocation is inherently a two-stage process. The first step should be to formulate a benchmark position, based on weighing the investor’s return desires against their tolerance for risk, be it in absolute terms or relative to a liability ‘benchmark’. Once the investment policy ...
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Features
Make liabilities the starting point
As we head for the third straight year of falling equity markets with pension fund surpluses no longer the norm, we are all too painfully aware of the importance of aligning pension strategies with their ultimate objective. Pension assets need to be invested with reference to pension obligations (ultimate cashflows) ...
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Features
Using benchmarks with right focus
Pension fund investors are demanding more of their benchmarks in the 21st century. The traditional qualities required of a benchmark index are: that it fairly represents an asset class; and is a measure which fund managers are happy to use in running and monitoring portfolios. However, this is no longer ...
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Features
Independence day for managers?
In this month’s Off The Record we look at the issue of investment and independence. How much value do European pension fund managers and administrators place on the independence of their investment managers – and how much are they are prepared to pay for this? The question arises because many ...
