Richard Lacaille, chief investment officer of the world’s largest institutional investment manager, State Street Global Advisors, spoke with Amanda White about the economy, when markets will turn and the asset allocation and strategies that will best take advantage of that.
Last week Russell Investments released new research arguing some pension plans should consider liability-responsive asset allocation – asset allocation that changes depending on the plan’s funded status. In this in-depth interview Amanda White explores the concept with one of the report’s
authors, director of investment strategy, Bob Collie, including why until now such dynamic asset allocation has been difficult.
Investment grade corporate debt, non-agency residential and
commercial mortgages, high yield corporate debt, and private equity distressed
debt all constitute recommended potential mandates in the credit markets,
according to director of research at US-based Wurts and Associates, Eric
Petroff.
Investors with investment decision-making processes that embrace uncertainty and manage risk will be the investment winners in the next five years, according to global chief investment officer of Mercer, Tim Gardener, who believes institutional investors need to revamp their decision-making processes.
By adopting a contrarian approach to rebalancing which takes account of both assets and liabilities, pension funds could enhance long-term returns and reduce the volatility within their portfolios, new research reveals.
Rebalancing Revisited, a paper by Syd Bone, former chief executive of VFMC, and Andrew Goddard, an ex-Russell investment veteran, advocates super funds rebalance to a preset target, for example an investment return target of CPI +5 per cent per annum.
Continuing its expansionist aims, the Abu Dhabi Investment Corporation (ADIC) has lured an investment banker from Rothschild to focus on cross-border merger and acquisition (M&A) activity, which it expects to spike as the financial crisis wears on.