BMO Global Asset Management has become a signatory of the United Nations-supported Principles for Responsible Investment Initiative.
The pitfalls and best practices of bringing investment in-house.
The past few weeks have been dominated by news reports about tornadoes that have ripped through Oklahoma, causing devastation in their wake. People have died, personal property has been lost, and communities have been torn apart. While there are things that one can do to prepare for a tornado, at times, these activities are not sufficient and loss does ensue. What about those who actively choose to chase tornadoes? They put themselves in harm’s way in pursuit of a ringside seat. While tornado chasers often say they can model how a tornado evolves and, therefore, place themselves on the safe side of the storm, the loss of three prominent storm chasers suggests that even the best planning at times fails.
One of the items that received little attention in the federal government’s most recent Economic Action Plan (also known as the 2013 Budget) was a commitment to expand its issuance of long-term debt. This interesting tidbit was buried in the debt management strategy for 2013-14.
Investors who choose to invest actively do so to harness the potential for alpha or outperformance. In order to mitigate the risk of underperformance, investors will usually construct a portfolio of active managers.
As the year begins, it is instructive for pension fund managers and asset allocators to consider various macro risk scenarios that are not base-case predictions but rather relevant considerations for stress testing portfolios. It can be useful to understand how individual asset classes would react under each scenario and the resulting portfolio performance. As part of this exercise, consider the impact on liabilities and whether the risk scenario would induce pension managers to consider a change to asset allocation to suit the new environment.
Brian A. Murdock, CEO of TD Asset Management (TDAM), has resigned. He’s made a personal decision to return to the U.S. Originally from Greenwich, Conn., Murdock was previously president and CEO of New York Life Investment Management prior to joining TDAM.
For plan sponsors looking to diversify, small cap companies are an option.
Stocks and bonds are the traditional investment choices for many institutional investors. But with equity markets now moving toward their previous peaks and fixed income yields near historic lows, institutional investors are returning to the land.
Using the core-plus approach gives you the tactical approach to be able to “move where the puck’s going,” says Jeff Moore, a fixed income portfolio manager with Pyramis Global Advisors.