News category: MandateConnect

Parametric Pitches U.S. Plan With Novel Risk Mitigating Overlay

Nov 9, 2023

Parametric Portfolio Associates recently pitched using a portfolio overlay to boost risk mitigating strategies such as convexity and trend following for a U.S. pension plan. The asset manager, which already provides overlay services to many U.S. institutional investors, laid out how such a defensive overlay could work in an educational presentation to the Illinois State Universities Retirement System.

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Leverage In Spotlight As Some Plans Consider Ramping Up, Others Cut

Nov 2, 2023

Just as two large U.S. public investment programs are considering adding leverage to their portfolios, others are cutting it. MandateConnect data show U.S. public pensions with leverage in their investment policy statements are mostly under-levered relative to targets that range from 3% to 15% of their total portfolios.

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Financing Costs Prompt Leverage, Synthetics Review At West Coast Plan

Nov 1, 2023

San Francisco Employees’ Retirement System is reviewing its leverage and use of synthetic equity exposure as part of a wider asset liability study. The USD33 billion plan cut its use of leverage in July as financing costs climbed with higher rates, it revealed in an educational presentation to board members on Wednesday. Now, as part of a broader asset liability review, the public pension and its consultant Wilshire plan to discuss when and how much leverage to apply to its portfolio.

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Most U.S. Public Plans Are Overweight Cash

Oct 26, 2023

Most U.S. public plans are overweight cash, MandateConnect data show. The data, from 53 city, county and state plans that provide quarterly updates on cash position, reflect that U.S. pensions are proceeding cautiously in the current environment.

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What If Cash Is Still Trash? - Sunday Roundup, October 22, 2023

Oct 22, 2023

Cash is proving so attractive that more and more investors are choosing to invest in it. Bloomberg’s John Authers said a quick look at the yield of six-month Treasury bills proves their point. “For the first time this century, cash pays a higher yield in interest than the S&P 500 does in earnings,” Authers wrote. So it is no surprise a number of global fund managers talking to EQD have considered upping allocations to cash; NY Police Pension Fund, Fullerton, Lombard Odier, Maryland and Veritas, to name a few.

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