Sriram Lakshminarayanan, CIO of IPERS, discusses the pension fund's approach to active risk, which includes portable alpha, tactical asset allocation (TAA), and alternative risk premia (ARP). The fund aims to seek uncorrelated returns and integrate them with market betas. Lakshminarayanan also emphasizes the importance of manager selection and eliminating unconscious biases. IPERS is establishing an internal private market co-investment program to increase transparency and reduce concentrated risk. The fund is also focused on long-term investment, patience, and a flat organizational structure. The article also includes information about other pension funds' investment strategies.
Apollo Tactical Income Fund Inc. is a unique investment fund that focuses on tactical investments to generate higher returns. The fund's strategy includes tactical asset allocation, flexible investing, income generation, and risk management. The investment team conducts thorough research and analysis to identify opportunities and strategically allocates capital. The fund invests in a diversified portfolio of income-producing securities to generate steady income. Apollo Tactical Income Fund Inc. aims to deliver attractive risk-adjusted returns and consistent income for its investors.
Christian Kjaer, head of liquid markets at Denmark’s ATP, talks about the institution’s liquid assets portfolio and his knack for game theory. ATP is a pension fund in Denmark. Kjaer discusses the fund's investment strategy and its focus on long-term investments. He mentions that ATP has a large allocation to liquid assets, including government bonds and corporate bonds. Kjaer also emphasizes the importance of diversification and risk management in ATP's investment approach. He mentions that ATP uses game theory to analyze investment decisions and assess potential risks. Kjaer believes that game theory can help identify investment opportunities and improve risk-adjusted returns. He also discusses the challenges faced by pension funds in the current low-interest-rate environment and the need to find alternative sources of return. Overall, ATP's investment strategy is focused on long-term value creation and managing risks effectively.
Investors are shifting their closed-end fund investments from Apollo Tactical Income Fund (AIF) to Apollo Senior Floating Rate Fund (AFT) due to unusual valuation divergence and AFT's focus on private credit assets. AFT is trading at an 8.5% discount and offers a 12% current yield. AFT's portfolio is primarily concentrated in loans, with 92% allocated to sectors such as Business, Tech, and Healthcare. 33% of AFT's portfolio is invested in private credit assets, which have higher yields and stable valuations. AFT has outperformed the loan CEF sector and increased its distribution by 72% since 2022. The current yield curve inversion favors floating-rate assets like those held by AFT. There is a merger proposal involving AFT and AIF by MidCap Financial Investment Corporation (MFIC), but it is not viewed as beneficial for AFT shareholders. [4dd6e834] [7c801b33] [e0e61cc2] [9a630e9e]