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United Nations Joint Staff Pension Fund Cuts Allocation to Equities

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Sarah Rundell of Top1000Funds reports UN pension fund slashes equity and pushes into impact and venture: The United Nations Joint Staff Pension Fund (UNJSPF) recently reduced the allocation to equity in its $92.5 billion portfolio by 10 per cent in what Pedro Guazo, representative of the secretary-general (RSG) for the investment of the UNJSPF assets, describes as a conservative strategic allocation in response to the overvaluation in tech. Behind the defensive exterior, the fund is stepping into new allocations in venture, impact, and private credit as well as developing more sophisticated strategies in an increased allocation to fixed income. It speaks to a state of confidence after sharp losses in 2022 at the pension fund that is still in an accumulation phase; supported by a funded ratio of 111 per cent and boasts a large and growing investment team who all have skin in the game as beneficiaries. “We are in a strong position compared to peers,” reflects Guazo who has

Short Mag-7/ Long Forg-2000?

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Karen Friar and Ines Ferré of Yahoo Finance report stocks slip en route to sharp weekly losses for S&P 500, Nasdaq: US stocks fell on Friday as worries over a global IT outage calmed, with Wall Street looking for recovery from a sell-off that saw the Dow snap a run of wins and a tech rout continue. The Dow Jones Industrial Average slipped roughly 1%, coming off a drop of over 1% for the blue-chip index. The S&P 500 fell 0.7%, while the tech-heavy Nasdaq Composite declined 0.8%. Stocks are facing weekly losses after a wobbly handful of sessions that saw a dive in techs, with AI-focused chip stocks bearing the brunt. Investors are rotating out of the tech heavyweights that have fueled the recent rally and into small caps , seen by some as benefiting more from interest-rate cuts . In the early hours, investors assessed the potential impact of an "unprecedented" failure in computer systems worldwide that grounded flights and hit banks, telecoms and media compan

Texas Teachers to Slash $10 Billion From Private Equity

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Marion Halftermeyer of Bloomberg reports Texas’ biggest pension fund to pull almost $10 billion from private equity: Texas’ largest public pension fund has decided to shift almost $10 billion out of private equity investments, a blow to an asset class that has faced heightened scrutiny amid dwindling returns and a slowdown in exits for portfolio companies.  The move by the Teacher Retirement System of Texas — which manages $202 billion of assets — is another setback for an industry that has struggled with dealmaking and fundraising after a prolonged era of easy profits.  Texas Teachers is the second of the largest public pensions to officially reduce its target allocation to private equity. It’s paring that to 12% from 14% — below the average 13% for all US public pensions, pension officials said at its board meeting Thursday. The pension estimates it will report a 9.3% gain for its latest fiscal year, Chief Investment Officer Jase Auby said at the meeting. That’s compare

Priti Singh Named CPP Investments' New CRO and Heather Tobin Replaces Her

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BNN Bloomberg reports Canada Pension names its second chief risk officer in 18 months: Canada Pension Plan Investment Board moved Priti Singh to chief risk officer, replacing a former BlackRock Inc. executive who had been in the role for only a year and a half. Singh is taking over immediately from Kristen Walters, who was appointed in January of last year. CPPIB, Canada’s largest pension manager, made the decision two years ago to split the risk role from the chief financial officer’s job. “After more than 30 years in risk management, Kristen Walters will be leaving CPP Investments to be closer to home,” the Toronto-based fund said in a statement Wednesday. “Walters has made a significant contribution in establishing the CRO role as a standalone function and setting the enterprise risk strategy and we thank her for her service to CPP Investments.” A spokesperson for the $632 billion (US$462 billion) fund declined to comment further. In addition to BlackRock, Walters previ

Fitch Warns Canadian Pensions Face More Pressure on Real Estate and Private Credit

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James Bradshaw of the Globe and Mail reports Canadian pension funds face more pressure on real estate and private credit, Fitch report says: Canada’s largest pension funds will likely take more losses on real estate and see defaults on private loans rise over the coming year, but have enough financial flexibility to mostly avoid having to sell assets at depressed prices, according to a report from Fitch Ratings Inc. A higher cost of debt and slower economic growth have created a tough investing environment, pushing down the value of some private assets that pension funds own. That pressure has been most noticeable in real estate, where almost all of the country’s largest pension fund managers suffered losses ranging from 5 per cent to nearly 16 per cent, erasing billions of dollars of asset value last year. Some pension fund chief executive officers have signalled that the worst pain may be over for real estate investors as central banks have started to cut rates, giving

CalPERS Posts 9.3% Gain for Fiscal 2024

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Eliyahu Kamisher and Marion Halftermeyer of Bloomberg report CalPERS posts 9.3% gain for fiscal 2024, driven by stocks: The California Public Employees’ Retirement System reported a 9.3% gain for its latest fiscal year, with returns driven largely by public equity investments and private debt. The returns, which outpaced a 6.8% annual target, pushed total assets at the biggest US public pension fund to $502.9 billion for the fiscal year ended June 30, Calpers said Monday in a statement. That’s enough to cover 75% of its future obligations, better than 72% at the end of the previous year. The preliminary five-year average return now stands at 6.6%, up from 6.1% the previous fiscal year. Calpers said that public equity investments led the way among asset classes with an estimated 17.5% return, and that private debt came in second at 17%. Private market returns are reported with a one-quarter lag. The largest US pension fund is increasing its exposure to private equity and pri

Echos of 1999?

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Alexandra Semenova of Bloomberg reports Kolanovic's departure triggers an echo on Wall Street from 1999: It’s been about 25 years since Wall Street had a serious bear hunt. And it appears another one is starting up now. Early on Aug. 27, 1999, the finance world was rocked by the resignation of one of its most committed pessimists, Charles Clough, Merrill Lynch & Co.’s chief investment strategist. Clough’s opinion was highly regarded, but he’d committed the stock market’s cardinal sin, remaining bearish in the face of a relentless rally — in this case, the dot-com frenzy that sent the S&P 500 Index soaring 220% from the start of 1995 to the end of the century. That may feel like a long time ago, but on Wall Street, as in Shakespeare, the past is often prologue. And so, the abrupt exit of Marko Kolanovic last week after 19 years at JPMorgan Chase & Co. is reminding many traders, bankers and analysts of Clough’s adieu. Once again, a prominent strategist was tak