Portfolio Management Overview

Pension plans where the employer contributes a fixed amount to an individual account for each employee, and the employee is responsible for investment decisions and the accumulation of retirement savings.

Pension plans where the employer promises a specific benefit payment to employees at retirement, based on factors like salary and years of service.

The total value of assets held by pension funds globally, including assets from both defined contribution and defined benefit plans.

The shift towards defined contribution plans and the decrease in the use of defined benefit plans.

Companies or organizations that manage investments on behalf of others, including pension funds.

The three countries with the largest amount of pension assets in the world: the United States, United Kingdom, and Japan.

The total value of assets held by pension funds in a specific country.

The principle that an institution should balance the need to provide funds for current operations with the need to preserve the purchasing power of its assets.

The amount of an endowment's earnings that is allocated to operations.

A strategy used by endowments to adjust spending based on changes in market value, aiming for a steady flow of income.

A long-term goal for the spending rate, guiding the endowment's financial strategy.

A specific constraint or restriction placed on investments, such as a prohibition on certain industries like tobacco.

A specific goal or outcome that an investment strategy seeks to achieve, like providing funding for research or education.

The process of allocating resources, including endowment funds, to various programs or initiatives.

The long-term performance of an endowment, often measured by its return on investment.

The management of an endowment's assets, including investing, spending, and reporting.

A type of investor that focuses on generating a specific real return over a long period, usually to fund their operations and future projects.

Financial institutions that accept deposits from individuals and businesses and lend money out to borrowers.

The reserves held by banks that exceed their required reserves, often invested in short-term, low-risk securities.

The ability of a bank to meet depositor requests for withdrawals promptly and efficiently.

Divisions within banks that offer investment products to individuals and institutions.

Companies that receive premiums from policyholders in exchange for providing insurance coverage.

The part of an insurance company's assets that are specifically set aside to pay future claims.

The difference between an insurance company's assets and liabilities, representing its financial strength and ability to absorb losses.

Investments in assets like stocks, real estate, infrastructure, and hedge funds that aim for higher returns but carry greater risk.

Teams within insurance companies responsible for managing the investments in their general account.

These funds are a collection of assets owned by a government, typically derived from surplus government revenues or natural resource wealth.

The total value of all the assets held by a Sovereign Wealth Fund.

A list of the largest Sovereign Wealth Funds based on their asset value.

The year in which a specific Sovereign Wealth Fund was established or began operating.

The organization responsible for managing and investing a Sovereign Wealth Fund's assets.

Insurance companies increasingly outsource portfolio management responsibilities, especially for complex alternative assets, to external asset managers.

Sovereign Wealth Funds (SWFs) often have long-term investment strategies, investing in assets like financial instruments and real estate.

SWFs have become increasingly significant, with their assets more than doubling between 2007 and 2018, indicating a growing global trend.

Life insurers typically invest in long-term assets due to the long-term nature of their liabilities, such as life insurance policies.

P&C insurers, dealing with shorter-term risks, tend to invest in more liquid and shorter-term assets, aligning with their liability profile.

A significant portion of the largest SWFs are situated in Asia and in regions rich in natural resources, showcasing a geographical concentration.

The 10 largest SWFs in the world constitute a significant portion of global investment capital, with a considerable impact on financial markets.

Large SWFs often manage billions of dollars in assets, making them important players in global financial markets.