Strategy
Get the latest news on pension fund and investor strategies, plus in-depth analysis of industry successes and tactical U-turns
Latest news
BASF Pensionskasse amasses €4.6bn in new fund of funds
The scheme has seen an increase in its allocation to European bonds and global bonds, offset by a decline in emerging market bonds
Shell to pay at least €500m to Dutch pension fund upon switch to DC
The agreed compensation for the disappearance of the sponsor guarantee is several hundreds of millions of euros higher than previously foreseen by the company
German church scheme shifts strategy towards bonds in developed countries
As a result, equity investments were cut, particularly European stocks
Railpen takes ‘holistic approach’ to external managers
Scheme wants any external managers to look at mandates in the context of a wider growth fund or pooled fund rather than a standalone mandate
Investment governance of Swiss pension funds is put to the test
CFA Society Switzerland position paper sets recommendations to fine-tune the investment governance of Swiss pension funds
Compenswiss: a newcomer to private credit
Four European pension schemes outline their activity in the private credit market
Denmark’s Lærernes ups its appetite for private credit risk
Lærernes Pension (LP), the pension fund for teachers in Denmark, started investing in private credit in 2018, in small amounts. In 2021 it made a more sizeable strategic allocation to the asset class.
CDC pension fund benefits from a steady stream of young members
The Cassa Dottori Commercialisti (CDC) is one of the most sustainable casse di previdenza, the Italian privatised first-pillar funds for professionals, thanks to prudent asset allocation and the CDC’s policy to attract young Italians to the chartered accountancy profession.
NEST’s outsourcing strategy
When NEST was weighing up whether to outsource some of its private markets allocations, the decision was not straightforward.
Mansion House Compact: spotlight on Scottish Widows
Scottish Widows joined the Mansion House Compact in July 2023 as one of the founding signatories committing to allocating at least 5% of its default funds to unlisted equities by 2030
Mansion House Compact: spotlight on M&G
M&G joined the Mansion House Compact in July 2023 as one of the founding signatories committing to allocating at least 5% of its default funds to unlisted equities by 2030
Mansion House Compact: spotlight on Aon
Jo Sharples, CIO for Aon’s DC solutions, spoke to IPE about Aon signing up to the compact and how it plans on embarking on a private markets journey
Mansion House Compact: spotlight on Phoenix
Sam Tufts, head of strategy and solutions in asset management team at Phoenix, spoke to IPE about the group’s plan to extend its private markets experience for DC
US pension plans wrestle with China private market exposure
After a horrible 2023, Chinese stocks look cheap and attractive. But most US pension funds do not seem interested in investing in the Chinese stock market. On the contrary, they have reduced their holdings since 2020 and some are exiting entirely, according to Bloomberg analysis.
Swiss occupational scheme tenders up to CHF1.2bn in bond mandates
The searches are for emerging market debt and US high yield bonds, considering both active and passive options
Dutch company schemes ditch active investing
HAL and Provisum have concluded the additional costs of active investing in equities do not outweigh the benefits
Global active assets drop below 70%
Overall AUM measured across the industry grew 8.6% in 2023, topping €111trn
Equities: a return to passive safe havens
In an effort to counterbalance an uncertain economic outlook and geopolitical tensions, many institutional investors are avoiding active management
Swedish agency gives early details of €12.5bn Swedish equities tenders
Funds lobby warns reducing the number of domestic equity premium pension funds offered could harm liquidity on local stock market
Swiss occupational scheme tenders up to CHF1.2bn in bond mandates
The searches are for emerging market debt and US high yield bonds, considering both active and passive options
Dutch company schemes ditch active investing
HAL and Provisum have concluded the additional costs of active investing in equities do not outweigh the benefits
Border to Coast set to launch global multi-factor equity index fund
The pool is searching for an external manager to support its first equity index proposition
Global active assets drop below 70%
Overall AUM measured across the industry grew 8.6% in 2023, topping €111trn
Equities: a return to passive safe havens
In an effort to counterbalance an uncertain economic outlook and geopolitical tensions, many institutional investors are avoiding active management
LD picks BankInvest for listed alternatives, citing quant, factor-based approach
Danish pension fund manager “pleasantly surprised” by volume of extremely high quality offers received
European investors remain sceptical on artificial intelligence impact, Invesco finds
A majority of North American and Asian investors believe, however, that traditional methods for investment analysis will be overshadowed by AI applications
Did smart beta go ‘horribly wrong’?
In 2016, we published a paper titled ‘How can ‘smart beta’ go horribly wrong?’, the first in a series on the future of factor investing and other forms of so-called smart beta. Did smart beta go horribly wrong? Yes and no.
Ireland’s Pensions Authority launches trustee guidance on liquidity risk
The Authority’s guide highlights LDI, leveraged LDI, sale and repurchase agreements, swaps, currency hedging and inflation hedging as strategies to look out for
CBI, CSSF finalise yield buffer rules for sterling LDI funds
Measures complement guidance issued by UK regulators in wake of UK LDI crisis
Mercer’s upbeat vision for UK pension funds and their investment advisers
James Lewis, UK CIO at Mercer, is optimistic about the future of the UK’s DB and DC industries
Case study: Caja de Ingenieros Gestion - The rise of smart beta
The Spanish pension provider Caja de Ingenieros Gestion serves more than 215,000 members, predominantly from the Spanish engineering sector, using an investment style based on independent analysis, with a bottom-up approach.
Smart beta pioneer reignites debate on factor timing
Research Affiliates founder Rob Arnott finds ‘most factors look very cheap’ in a new paper highlighting the attractiveness of many equity factor strategies
Viewpoint: Alternative risk premia strategies stand tall amid turmoil
While bond and equity markets have been pummeled in 2022, Alternative Risk Premia strategies have at last been able to demonstrate their diversification prowess. Will this year’s performance restore investor confidence in these strategies after the painful results of 2020?
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