​LD Pensions picks Acadian for first active quant mandate

first_img“In order to assess where the results come from, it has been important for us to choose a partner with transparent and understandable procedures”Kristoffer Birch, head of equities at LD Pensions“So in order to assess where the results come from, it has been important for us to choose a partner with transparent and understandable procedures,” he said.In February, LD Pensions said the mandate being tendered was for an initial amount of around DKK1bn (€134m), to be invested actively in both developed and emerging markets, adding that the product offered had to have at least €500m of available capacity at the time of signing the deal.LD Pensions has been unable to say in advance how much its mandates will be for because of the unpredictability of the eventual size of LD Feriemidler. That fund was first set to amount to around DKK100bn, though much was expected to be in the form of debt owed by employers rather than investible assets.In June, however, Danish politicians opted give workers early access to three of their five weeks of holiday allowances that had been due to be managed by LD Funds, in order to boost the COVID-hit domestic economy.This means LD Feriemidler is now to have total assets of around DKK40bn.Asked by IPE how much Acadian would now be managing, Birch said: “Any amount we are going to invest in the coming year is very uncertain due to the uncertainty around the holiday allowance fund.”LD Pensions would assess the funding after the summer, he said.Looking for IPE’s latest magazine? Read the digital edition here. Denmark’s LD Pensions has chosen US firm Acadian Asset Management from 10 firms competing to run the global active quantitative equities it put out to tender in February, citing the firm’s “transparent and comprehensible” process as a plus.But the already uncertain amount of pensions money the winning manager will have to invest has now become even less predictable, after a political decision last month more than halved the size of the holiday allowance fund LD Pensions manages.Kristoffer Birch, head of equities at the Frederiksberg-based pensions manager, said: “Acadian has developed a very interesting tool to predict stock returns, based on proprietary signals.”This differed from the method used by both LD Pensions’ smart beta managers and its more traditional active managers, so would be a “really exciting addition” to the equity portfolio. “On top of this, the fact that Acadian bases its processes on solid research made the choice even easier,” Birch said.The mandate Acadian has won is the first active quant contract for LD Pensions, and will be used to invest assets of both of the two pension funds LD Pensions runs.These are LD Dyrtidsmidler, a declining fund based on cost-of-living allowances granted to workers in 1980, and LD Feriemidler, the new fund consisting of vacation entitlements Danish employees are being granted as a result of a change in the law.In the original tender, the Danish firm said the quant investment product had to be provided as a segregated mandate, and be tailored LD Pensions’ needs by incorporating its exclusion list, tracking error as well as other restrictions.Announcing the mandate award, LD Pensions said that while traditional equity managers often ignored short-term stock movements to focus on the long-term growth potential of companies, Acadian tried to predict short-term movements.The US manager did this both by using high-frequency traditional data such as price per share relative to earnings, the Danish firm said, as well as more alternative methods including quantitative text analysis of company announcements.Birch said predicting stock returns was difficult, and quantitative stock selection with new techniques such as machine-learning could quickly become a black-box.last_img read more

FIFA Ranking: Eagles moves four places up, remain 3rd in Africa

first_imgNigeria’s Super Eagles moved four places up in the monthly Federation Internationale de Football Association (FIFA) rankings released by the world football governing body.Advertisement The three-time African champions occupy the 31st spot in the world and third in Africa.Senegal’s Teranga Lions retained their spot as the best playing nation in the continent and 20th in the world, but are closely trailed by Tunisia’s Cathage Eagles, who moved up two spots to the 27th position. Read Also: Odion Ighalo yet to train at Man Utd training groundAlgeria’s Desert Foxes also improved in the latest ranking moving three places to the 35th position in the world.Morocco’s Atlas Lions, despite dropping a spot to the 43rd position completes Africa’s top five playing nations.FacebookTwitterWhatsAppEmail分享 center_img Loading…last_img read more

‘Exciting’ Douvan all set for chasing debut at Navan

first_img Press Association Ruby Walsh expects Douvan to make a “good transition” to the chasing game on his eagerly-awaited debut over fences at Navan on Sunday. The son of Walk In The Park was a dominant winner on each of his four starts after joining Willie Mullins from France last season, proving himself the cream of the crop in the two-mile novice hurdling division with key victories in the Supreme Novices’ Hurdle at Cheltenham and the Herald Champion Novice Hurdle at Punchestown. Henry de Bromhead’s Sizing John, behind Douvan at Gowran, Cheltenham and Punchestown last season, has already made a flying start to his chasing career with successive triumphs at Punchestown and Douvan gets his chance to show his worth over the larger obstacles in the Irish Stallion Farms European Breeders Fund Beginners Chase. center_img “He seems to be in great form. He did really well over the summer. He was a big, raw horse last year and looks to have developed and matured a bit,” Walsh told Racing UK. “He’s schooled well over fences and of the horses who ran behind him last year, Sizing John has run twice and won twice, which is franking the novice hurdle form a bit. “Hopefully he’ll make a good transition. If he jumps on the track like he has at home, it should be a good transition. “He seems to have plenty of stamina, but he definitely has loads of speed as well. He’s quite a quick horse for a big horse. “He was a very accurate jumper of a hurdle and if he’s as accurate at a fence, it’ll be exciting.” Douvan, who is already a best priced 9-4 favourite to strike Cheltenham Festival gold once more in the Arkle Trophy, will face 13 rivals this weekend. Tom Taaffe’s course scorer Rogue Trader is one of five runners in the field for leading owner JP McManus, while Tony Martin saddles Blair Perrone and Bobbie’s Diamond. last_img read more