ALO22: Finding an Absolute Return Solution for a C$11BN Pension Plan ft. Christophe L'Ahelec
Top Traders Unplugged
Shownotes Transcript
Christophe L’Ahelec, Managing Director of Public Markets at University Pension Plan Ontario, joins Alan Dunne in this episode to discuss their approach to managing the C$11bn defined benefit pension plan. We discuss the high level Strategic Asset Allocation of the plan and also how the changed macro environment in recent years has motivated a shift in the asset allocation towards more absolute return strategies. Such strategies play a dual role of diversification and return enhancement for UPP and we discuss how Christophe thinks about an appropriate strategy allocation within absolute return. We also delve into the challenges of manager selection and evaluation, why it is important to remember that you are buying an “investment process” not historical returns when allocating to managers and discuss when is it appropriate to remove a manager and when not.
EXCEPTIONAL RESOURCE: Find Out How to Build a Safer & Better Performing Portfolio using this FREE NEW Portfolio Builder Tool)
Follow Niels on Twitter), LinkedIn), YouTube)** **or via the TTU website).
**IT’s TRUE **? – most CIO’s read 50+ books each year – get your FREE copy of the Ultimate Guide to the Best Investment Books ever written here).
And you can get a free copy of my latest book “Ten Reasons to Add Trend Following to Your Portfolio” here).
Learn more about the Trend Barometer here).
Send your questions to [email protected])
And please share this episode with a like-minded friend and leave an honest Rating & Review on iTunes) or Spotify) so more people can discover the podcast.
Follow Alan on Twitter).
Follow Christophe on LinkedIn.)
**Episode TimeStamps: **
**02:50 - **Introduction to Christophe L'Ahelec
**07:06 - **A new initiative
**10:01 - **What kind of strategy drives their asset allocation?
**12:40 - **What goes into which bucket?
**14:45 - **What makes absolute return exposure more attractive at the moment?
**16:31 - **Constructing an absolute return portfolio
**18:38 - **How they approach trend following
**21:58 - **Why do they use leverage?
**23:32 - **What do they expect from their portfolio?
**25:12 - **Managing liabilities
**27:58 - **Public equities - where do they stand?
**30:59 - **Investing in niche strategies
**34:11 - **How they evaluate managers
**36:21 - **Open to early stage manager risk?
**41:42 - **What makes a manager stand out?
**44:56 - **When should you remove a manager?
**46:47 - **What is their governance process?
**50:36 - **How they make decisions as a team
**52:20 - **Advice for new investors
**55:34 - **Thanks for listening
Copyright © 2024 – CMC AG – All Rights Reserved
PLUS: Whenever you're ready... here are 3 ways I can help you in your investment Journey:
**1. eBooks that cover key topics that you need to know about **
In my eBooks, I put together some key discoveries and things I have learnt during the more than 3 decades I have worked in the Trend Following industry, which I hope you will find useful. Click Here)
**2. Daily Trend Barometer and Market Score **
One of the things I’m really proud of, is the fact that I have managed to published the Trend Barometer and Market Score each day for more than a decade...as these tools are really good at describing the environment for trend following managers as well as giving insights into the general positioning of a trend following strategy! Click Here)
3. Other Resources that can help you
And if you are hungry for more useful resources from the trend following world...check out some precious resources that I have found over the years to be really valuable. Click Here)