Hawaii’s Controversial Options Strategy Looking Good Even after CIO’s Departure

The options strategy implemented by Vijoy Chattergy, the former chief investment officer of the $17 billion Honolulu-based Employees’ Retirement System of the State of Hawaii (HIERS), which targets equity like returns with 2/3 the volatility of equities over a full market cycle, is still performing well, even after his departure. “Today the strategy remains fully collateralized, and …

Illinois U. System to Replicate $5 Bn in Equities with Exchange-listed Options  

The Champaign, Illinois–based State Universities Retirement System of Illinois (SURS), with approximately $20 billion in assets under management (AUM), is using an exchange-listed options strategy to hedge what some observers perceive as a U.S. equities market on the cusp of a painful tumble, in order to beat the market. “Some option strategies can trail. But …

Canada Leads the ETF Charge

Canadian institutions are at the forefront of a growing move by institutions worldwide to integrate exchange-traded funds (ETFs) into their portfolios, according to the 2017 Canadian Exchange-Traded Funds Study, recently released by Greenwich Associates. In fact, the 52 Canadian institutions that participated in the study currently allocate an average 18.8% of their total assets to …

Colorado’s FPPA Reaps Rewards of Long Investment Governance Revamp

Staff members of the approximately $4.5 billion Fire & Police Pension Association of Colorado (FPPA) are feeling pretty good about themselves currently. Why? In 2009, an informal level of questioning, second-guessing and  hypothesizing among board and staff members regarding the fund’s longstanding, heavily-consultant-driven asset manager hiring process coalesced into formal action to change that process …

MOSERS Board Taps New Chairwoman; ED Expected in June

The Missouri State Employees’ Retirement System (MOSERS) has appointed Crystal Wessing as Chairwoman of the Board of Trustees of the $8.5 billion Jefferson City-based retirement fund, according to a released statement from MOSERS. Separately, the system is also now in the final phase of a recruitment effort for a new executive director, which it expects …

More Power to the CEO!

Governance Guru Applauds CalPERS’ Move The decision last week by the board of the $350 billion California Public State Retirement System (CalPERS) to change its governance policy to make the CEO solely responsible for hiring, evaluating and, if necessary, terminating the chief investment officer, sits very well with Rick Funston, managing partner at Funston Advisory …

Verus Advances Ball on Emerging Manager, ESG initiative

Verus Investments, which last year kicked-off an effort to include more emerging and environmental, social and governance (ESG) managers on its approved-manager  list, is bringing  more thought to how it assists clients in identifying emerging managers and implementing their ESG mission-related initiatives, according to Eileen Neill, a managing director and senior consultant with the firm. …

Different Strokes for Different DB Plans: Corps, Publics Go Separate Ways

The world’s defined-benefit (DB) pension funds are moving  toward two very different futures, according to a recent report from BlackRock, based on a survey conducted for it by the Economist Intelligence Unit, titled Common Challenges, Diverging Paths: winding down and building up in global defined benefit pension. The report, which secures responses from 300 funds …