Holding tight on allocations ensures investment success
Fund CIOs keep their focus during early days, and see good results
Chief investment officers secret for investment success in 2020 was simple: stick to the plan.
None of the CIOs
Pensions & Invest
ments contacted said it was easy to manage multibillion-dollar defined benefit plans during the early phase of market turmoil that flared up in response to the COVID-19 outbreak.
But they stressed that by maintaining their asset allocations through rigorous portfolio rebalancing and by taking advantage of distressed investment opportunities created by pandemic conditions, their portfolios came out of the panic phase in 2020 in good shape and went on to produce strong performance in the year ended Dec. 31.
Largest funds come out ahead in volatile year
The 1,000 largest U.S. retirement funds emerged from the year ended Sept. 30 with healthy coffers, despite a period marred by bouts of historic stock market losses and volatility.
During the year ended Sept. 30, retirement funds saw their assets grow 6.6% to $12.09 trillion, in comparison to the previous year when assets of the 1,000 largest funds grew by only 3%, results from Pensions & Investments annual surveys show.
Over the five years ended Sept. 30, assets in this universe grew 36.7%, up from $8.84 trillion.
Jonathan Pliner, the New York-based U.S. head of delegated portfolio management at Willis Towers Watson PLC, noted that retirement funds having largely weathered historic lows in the stock market was not entirely surprising … given the speed with which markets rebounded in the second quarter of 2020 following the onset of the coronavirus pandemic.
Bipartisan Commission Of Business, Civic, And Academic Leaders Develop A Framework For Inclusive Capitalism
New Proposal Outlines 21 Policies for More Equitable and Inclusive Outcomes for the American Worker
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WASHINGTON, Feb. 2, 2021 /PRNewswire/ The Coalition for Inclusive Capitalism, a not-for-profit organization dedicated to making capitalism work for everyone, today launched the Framework for Inclusive Capitalism: A New Compact Among Business, Government, and American Workers. The framework demonstrates the potential for business to work with labor to craft bold but pragmatic policies that equitably extend the benefits of our economic prosperity to all workers. It rests on three core objectives: create more worker opportunity, expand the workforce, and enable fair gainsharing for workers. To achieve these objectives, the framework outlines 21 policy and business practice recommendations to ensure equitable and m