Opinion
Active management holds an advantage over passive indexing in emerging markets
“I think recently we introduced a emerging markets fund. It took us a little while to get the structure put into place because of some of the things that are unique in emerging markets and clearing. But that is an area that certainly we believe that active has …”
Opinion
State pension funds operate some highly sophisticated investment teams
“When you go to talk to most of the leaders on the very large state pension funds today, those guys are really smart. And so I'm really encouraged when thinking about the public DB sector, for instance, that the level of talent that they've been able to attract…”
Assertion Contradicted
Dayton Hudson pension gained 1,700 basis points on Black Monday
“And then October 19 came, and I think we made 1700 basis points in a day, which was great. You know, the Wall Street Journal highlighted us on their front page”
Insight
Rising rates make stable value a superior intermediate bond substitute
“We think this is a really great time to have stable value, whether it's in your target date funds or in other balanced portfolios. Only because as interest rates are rising, you don't have that impact of duration in stable value that you have in intermediate b…”
Disclosure
Billion-dollar allocator mandates structurally exclude hiring sub-billion AUM asset managers
“The downside to that is you probably cut off the bottom end of the types of managers that you can hire in terms of, you're not going to give a manager that has seven hundred million AUM a billion dollars. And we have a lot of billion dollar mandates.”
Disclosure
Dayton Hudson pension hedged 50% of its portfolio before 1987 crash
“So we took a 100% hedged exposure against equities and in the core of the portfolio, so about 50% of the pension fund.”
Assertion Supported
Howard Hughes Medical Institute internally managed its $11B endowment
“It was the second largest medical foundation in the world besides Burroughs Welcome. They were running everything internally at the time. It was about, I think at the time it was about 11,000,000,010 or eleven billion dollars.”
Assertion Supported
Howard Hughes Medical Institute's committee included Yale's David Swensen
“Here we had a very select number, maybe three folks on the investment committee. Folks that, Ted, you know, and David Swenson, who was there from Yale. We had the CIO from General Motors and the former CIO at IBM.”
Insight
Morningstar style boxes communicate strategy best to retail retirement participants
“We decided that one of the best ways to do that was not to think about funds relative to their Lipper universes, but to think about them in terms of Morningstar style boxes, in terms of a way to convey that, because for retail investors and Morningstar spent s…”
Disclosure
ICMA will use stable value products to reduce portfolio duration risk
“But now that we are a CIT, we're going to reintegrate that as a substitute for bonds. And reduce the amount of duration risk in the portfolio.”
Assertion Supported
Equities yielded positive annual returns in 74% of years since 1926
“Strategas, and they showed annual returns since 1926. It showed that 74% of the time equities are positive. 59% of the time equities provide investors with greater than a 11 to 40% rate of return.”
Disclosure
ICMA saw $5B shift from equities to stable value post-2008
“Between oh eight and probably 20 11, we saw that About five billion dollars shift from equities into stable value, which doubled the size of our stable value fund.”
Disclosure
ICMA shifted from '40 Act structures to collective investment trusts
“Recently we went from being a forty-act structure to one that is more into collective investment trusts, and I would say that that gives us a number of freedoms that we did not have When we were in a 40 act format”
