Pension Funds: Asset Allocation and Sector Updates
Where are pension funds investing their assets?
Countries around the world continue to look at how they can recalibrate their retirement systems. Naturally, developed markets face different challenges than developing ones do. The selection of papers below provides a wide range of insights into asset allocation pertinent to pension funds across the world, as well as some of the latest perspectives on retirement systems.
ASSET ALLOCATION UPDATES
The Road Ahead: Five Reasons To Buy Bonds (Man Group)
Bonds vs. equities? This is the perennial question for many investors, including pension funds. The answer depends on what your investment goals are.
20 Years Of The S&P 500 Equal Weight Index (S&P Dow Jones Indices)
Data shows that the more the S&P 500 Equal Weight Index historically outperformed the S&P 500, the more actively managed funds outperformed the S&P 500.
Risk And Reward: Research And Investment Strategies - Q3 2023 (Invesco)
This report looks at recent developments which are at the core of financial markets. It is an essential read for any institutional investor aiming to grasp the macro picture.
Income Investing In Multi-Asset Portfolios (Wellington Management)
Investing in higher-income asset classes tends to mean that more of a portfolio’s total return comes from income and less comes from capital return, and often with a trade-off.
Fixed Income Insights: Global – Oct 2023 (FTSE Russell)
For compliance reasons, this paper is only accessible in certain geographies
Four in-depth reports covering the U.S., UK, Japanese, and European fixed income markets, highlighting the latest developments relevant to allocators.
Fixed Income Outlook: It's Hard Not To Be Bullish (Robeco)
Two key features of the current macro landscape are the resilience of U.S. economy, in the context of weak growth in China and Europe, and the resilience of global labor markets.
Honey, the Fed Shrunk the Equity Premium (AQR)
What, if any, are the implications for asset allocation of substantially higher interest rates in the medium term?
Cash is the Most Robust Equity Portfolio Hedge (Price Action Lab)
Diversification can be a wealth preservation scheme as long as the risk-adjusted returns it offers are reasonable. But to diversify well is difficult.
RETIREMENT SYSTEM UPDATES
Canadian Pension Model at AIMCo | Marlene Puffer (Capital Allocators)
For compliance reasons, this paper is only accessible in certain geographies
AIMCo is one of the “Maple 8” Canadian pension managers that together oversee $2 trillion in assets. In this podcast, the AIMCo CIO discusses the latest market developments.
State Pension Debt Totals $1.3 Trillion at the End of 2023 (Reason Foundation)
For compliance reasons, this paper is only accessible in the United States
Newly released forecasting by the Pension Integrity Project indicates that state pension systems will likely remain at historically high debt levels.
LDI – One Year On: How Has the Market Evolved? (XPS Pensions Group)
This report demonstrates that, far from being put off LDI as a risk management approach, pension schemes have employed it to further protect the funding levels.
DC Pensions and Savings Survey 2023 (WTW)
For compliance reasons, this paper is only accessible in the United Kingdom
A shift in the focus of UK employers and the issues they are seeking to address within Defined Contribution (DC) provision is emerging.
