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Merton’s message: give up on alpha

Nobel Prize winner, Robert Merton, has thrown down the gauntlet. He claims that by focusing on a retirement income goal he can beat any competitor that is managing a 70:30 portfolio that has wealth accumulation as the goal. Do you dare take him on? The defined contribution pension management industry has it wrong, according to […]
Research

The price and performance of wine

Because it’s nearly Christmas, and conexust1f.flywheelstaging.com will close down for the holidays, we thought this research piece was apt. Elroy Dimson, Peter L. Rousseau, and Christophe Spaenjers, have looked at the impact of aging on wine prices and the performance of wine as a long-term investment, using a unique historical database for five long-established Bordeaux […]
Organisational Design

Merton’s message: give up on alpha

Nobel Prize winner, Robert Merton, has thrown down the gauntlet. He claims that by focusing on a retirement income goal he can beat any competitor that is managing a 70:30 portfolio that has wealth accumulation as the goal. Do you dare take him on? The defined contribution pension management industry has it wrong, according to […]
Research

Why Washington keeps giving in to Wall Street

Wall Street’s leaders are largely unrepentant for the immense harm their institutions inflicted on the U.S. economy during the financial crisis, and their outlook nd behavior have not changed in any significant way since the crisis, according to a George Washington University Law School paper. However the lengthy and detailed paper argues there is hope. […]
Investor Profile

A new era for London Pension Fund Authority

An investment banking background brings a different perspective to the role of pension fund chief investment officer, and for the London Pension Fund Authority that means more focus on risk management, quantitative tools and processes, and implementation cost savings. Amanda White speaks with CIO Alex Gracian.   Alex Gracian has only been the chief investment […]
Technology

Big data, big opportunities: investors wake up to analytics

As pension funds act more like asset managers, with internal investment responsibilities, they should focus on the competitive advantages to be gained from data and analytics.   The healthcare industry has seen a 20 per cent decrease in patient mortality by analysing streaming patient data. The Telco industry has seen a 92 per cent increase […]
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