Investment Strategy

… as fund gets financial health check

In a first for the superannuation industry, Mercer has produced a financial condition report – required by legislation in the insurance industry – for NGS Super assessing the operational risks within the fund, and now plans to roll out the service to other large superannuation funds.
Hedge Funds

Tail wags the dog – modelling tail risk in alternatives

  When it comes to modelling the potential risks and returns of alternatives, trustees continue to rely on mean-variance approaches (such as expected average returns and annual return volatility), but acknowledge it is not the best solution as correlations are non-stationary (that is, can vary over time), and illiquidity and leverage create tail risk. In […]