Portfolio specific asset allocation policy and portfolio security selection, timing and fees contribute equally to the variation of portfolio returns according to new research by Professor Roger Ibbotson of Yale School of Management, progressing earlier work by Brinson et al which attributed more than 90 per cent to asset allocation.
CalSTRS will double the ranges of its active/passive global equities allocations in a bid to enable investment staff to allocate funds tactically across active and passive rather than be forced to rebalance to strategic asset allocations.
Associate director at RogersCasey, Carolyn Cross examines the SEC-approved money market fund reforms, which aim to bolster liquidity, increase credit quality, and improve the flexibility and transparency of operations to ensure money market funds can weather the next crisis, summarising key provisions of the new rules and how they impact investors.
This latest research by MSCI Barra Research analyses the equity allocations of European institutional investors, arguing the practice of separating international equities allocations into regional mandates at a strategic level “deserves a thorough rethink”
The investment committee of the New Mexico Public Employees Retirement Association approved a domestic equities restructure at a meeting last week. Amanda White spoke with the two joint acting CIOs, Joelle Mevi and Julian Baca, about the changes to the portfolio and the plans for the year including a fixed income and international equities review.
Liquidity is the paramount risk factor for institutional investors to be cognisant of according to Ben Golub, vice chairman and chief risk officer, Blackrock who has co-authored a new paper outlining the risks learned from the credit crisis. He spoke to Amanda White about the suitable internal structure for institutional risk management and the risk challenges at Blackrock.