Blog
Archive August 2024
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Understanding DROPs: Essential Strategies and Insights for Public Safety Retirement
On September 19th, NCPERS will host a webinar to explore why Deferred Retirement Options Programs (DROPs) are so popular with public safety members, especially as some advocate for their use to mitigate staffing shortages in the post-COVID environment. We spoke with the panelists about the actuarial trends they’re seeing with public safety retirement systems and what public pension leaders should know about DROPs.
A Paradigm Shift: Infrastructure Equity 2.0
By: Mina Pacheco Nazemi and Addie Sparks, BaringsHistorically viewed as a yield-oriented and inflation-protected (but lower returning) asset class, infrastructure equity is transitioning to assets that could drive alpha in an investor’s portfolio.
Data Breaches: A Looming Threat for Pension Administrators
By: ABL Tech TeamData breaches are a constant worry in today's digital age. Even industry giants aren't immune, as high-profile cases involving UnitedHealthcare and AT&T demonstrate. These incidents highlight the vulnerability of sensitive data, which is a major concern for pension administrators entrusted with protecting participants' financial information.
Private Infrastructure Debt: A Growing Asset Class for Public Pension Investors
By: Brian Collett, I SquaredPublic pension investors will learn that private infrastructure debt is becoming an asset class, providing diversification, steady income, and downside protection. They will understand the significant opportunities this asset class presents due to the global infrastructure funding gap and the benefits of stable, inflation-linked cash flows, lower default rates, and increased security compared to corporate debt.
Financial Gravity
By: Kevin Kneafsey, Allspring Global InvestmentsWhy has the rapid rise in interest rates had such little impact on the U.S. economy? Some think it’s the shift from manufacturing to services. Kevin Kneafsey, from Allspring Global Investments’ Systematic Edge team, explores the effect of financial gravity and implications for investors.
Risk Mitigating Strategies
By: Jean-Francois Tormo, WilshireOver the last several years, Wilshire has observed increased appetite from institutional investors for Crisis Risk Offset, also referenced as Risk Mitigating Strategies. These programs tend to capture several strategies which have in common a low to negative correlation to equity markets. Most are systematic and capitalize on well-documented and researched risk premia and factors.
Balancing a Plan’s Risk Exposure with Securitized Fixed Income
By: Dan Dreher, LGIM America“Crisis Risk Offset” or “Risk Mitigating” portfolios are designed to better protect assets during deep and extended equity market declines. Plans are increasingly recognizing the need for liquidity as fulfilling private market capital calls, quarterly rebalancing activity, and benefit payments are essential to their operations.
How the Inflation Reduction Act is Reshaping the Investment Landscape
By Tom Osborne, IFM InvestorsIFM Investors' Executive Director, Infrastructure Tom Osborne looks at how the Inflation Reduction Act is leading the world in showing how to accomplish a just transition while unleashing significant investment opportunities for asset owners.
Don’t Get Your Value from an Index
By: Andrew Wellington, Lyrical Asset ManagementLarge-cap value stocks have a long history of delivering market-beating returns. Unfortunately, getting access to these returns requires some homework. The large-cap value indices, and the passive and active products that track them, have been poor proxies for value stock returns.
Building Organizational Resilience to Ensure Successful Change Management
By: Karen Chavez, SegalThis article by Karen Chavez in Segal’s Administration and Technology Consulting Practice discusses organizational resilience and how it can help public sector retirement plans cope with change and uncertainty. It also lays out steps to build a resilient organization that can anticipate, prepare, respond, and adapt to changes.
