CalPERS is considering doing away with traditional asset class classifications in favour of classifying assets according to fundamental characteristics in a bid to provide a better understanding of portfolio risks and performance drivers and so move to a more effective portfolio construction and risk management framework. In response to analysis of the CalPERS portfolio, which found that the big Californian public sector fund did not have a meaningful-enough exposure to assets that could have been a hedge in times of financial crisis and provide adequate liquidity to the fund, the staff and the board’s consultants – Wilshire and PCA – have developed an alternative classification of assets based on underlying fundamental characteristics.
MetLife to defend 700,000 customers
MetLife will be fighting a group insurance war on two fronts in this quarter as both First State Super and Statewide put out their group insurance arrangments to tender. Michael Dwyer, First State’s CEO, says the tender documents are being drawn up to ensure “the best insurance possible” for members, a complex proposition given the insurer must deal with occupations as varied as policing, teaching and office administration.
Anxious wait for Wilshire fund-of-fund investors
Investors in Wilshire Private Markets’ Australian and international private equity funds-of-funds are waiting for the manager to call an investor meeting, at which the ongoing management of the funds will be decided following the trigger of key-person provisions by the resignations of most senior staff. Global chief investment officer Jeffrey Ennis, and senior managing directors Ovidio Iglesias and Dan Allen, ran the business until last June when parent company Wilshire Associates installed Kevin Nee as president of the private equity advisor and fund-of-funds manager.
AMP Capital’s new division will ask investors what they want
Through its new multi-asset group (MAG), AMP Capital Investors aims to distinguish itself from other big multi-managers by tapping into its asset allocation and manufacturing capabilities to build customised products in consultation with institutional clients – rather than promote existing investment strategies. David Kiddie, director of MAG, will have access to the $96 billion manager’s primary manufacturing and strategy capabilities: the strategy and research team, led by Shane Oliver, head of investment strategy and chief economist; the multi-manager Future Directions Funds (FDF) business under director Sean Henaghan; and the funds and structured team, led by Gerald Naughton.
You’re there for members, not for money: JANA’s Coombe
John Coombe, one of the most prominent gatekeepers in industry superannuation, has slammed professional super fund trustees for being more responsive to their paycheques than the interests of the members they were appointed to serve. Speaking in panel session at the 2010 Conference of Major Super Funds (CMSF) last month, the JANA Investment Advisors executive director declared: “I can’t stand professional trustees, they know nothing about the memberships of all the funds they sit on, they couldn’t give a stuff unless you’re writing out a cheque for them.”
Regional asset consultant role for Steve Roberts
Stephen Roberts, the BT and Russell institutional business veteran last spotted briefly on the van Eyk board, will resurface in a major role at a different asset consultant.Telstra Super recasts alternatives roles
Following the exit of alternatives chief Nicole Connolly, Telstra Super has expanded the roles of two asset class heads to include private equity and infrastructure, and has hired a hedge fund specialist and a private equity deputy.Cambridge hunts local for its latest consultant
The Australian arm of Cambridge Associates has recruited the latest member of its research and operations team from PricewaterhouseCoopers (PwC).
ACTU sends fourth to AvSuper board
AvSuper has appointed an economist nominated by the Australian Council of Trade Unions (ACTU) to complete its board of trustees.
I&T News takes Easter breather…
…but we’ll be back in your inbox first thing on Wednesday, April 7. Enjoy the break.
Industry funds: Macquarie wants to be your lifetime partner
Macquarie Longevity Solutions has bet against the Henry Review recommending the Government become a lifetime annuity provider, launching a “Lifetime Income Guarantee” product combining a lifecycle asset allocation strategy with a protected capital base accessible at any time, which it claims is more attractive to consumers than traditional annuities, and is useable by any platform or industry super fund.
Excellent advice 'crucial' to keep members
Excellent financial advice from super funds will be the key differentiator in serving members post-retirement, according to two of Australia’s largest funds.
