Pensions

Diversification works — until the regime changes.

In “Points of Return” this week, Bloomberg Opinion’s Richard Annerquaye Abbey and John Authers featured a comprehensive discussion of pensions investing based on our FY2024 return estimates for the largest U.S. public pensions: Magnificent Seven: Don’t Dismiss the Correction Too Much – Bloomberg
“Unlike mutual funds, it’s impossible to have anything close to a real-time measure of the performance of the big public pension funds based on their holdings, no matter how tempting the idea may be. While we wait [for pensions to publish their fiscal year performance], an analysis by Markov Processes International using its proprietary model to project the performance of public pension funds managing more than $20 billion in the year from July 2023 to June 2024, came to one conclusion — funds with higher allocation in US equities are poised to outperform. No other asset comes close.”

Exposure to stocks again seen driving public pension returns in FY2024. Georgia and Kentucky Teachers projected at top of league tables again. Public-private markets divergence continues—systems with higher equity exposure expected to fare better than those with elevated allocations to privates.

For the past 20 years Texas Teachers Retirement System’s performance mimics the average of large public pensions tracked by MPI Transparency Lab.

One-of-a-kind offering provides unique insights into some of the largest and most opaque funds so all stakeholders can better understand their performance and potential risks.

Webcast November 17, 2020 & November 19, 2020

We invite you to join us for our latest webinar, where we’ll use MPI’s patented Dynamic Style Analysis to decipher different volatility strategies, including Allianz‘s Structured Alpha, Gateway and others to provide insights into their performance during the crisis.