UK - Ex-Watson Wyatt currency specialist Kurtay Ogunc has branched off into business on his own, founding the asset management/strategic advisory firm Alpha Dynamics Group.
Currency as an asset class is a fairly nascent concept in the pension fund universe, with most funds seeking to first mitigate the effects of a rising home currency to stem losses in overseas investments, before looking at currency exposure as a possible source of alpha.
The ADG Multi Manager FX Fund, part of the start up group’s new offering, is to target an expected return of LIBOR plus 10% per annum, with a 7 to 9% annual standard deviation in a downside risk protection framework.
“The investment objective is to develop and actively manage a portfolio of currency managers that can produce attractive risk-adjusted real returns with low correlation to traditional as well as alternative investment approaches,” said Ogunc.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.