A small handful of new benchmarks would make alternative strategies viable under the YFYS performance test and once again allow funds to take advantage of their diversifying characteristics.
Pension funds are increasingly turning to active management to generate returns in a hostile environment. But as they seek to become true global investors, super funds face a different set of tradeoffs.
2022 has left investors battered. The start of 2023 will leave them merely bruised. But analysts and economists alike aren’t pricing recession right.
Stung by the harsh correction in the US equity market, sovereign wealth funds are looking further afield. And they’re beginning to question whether the pace of their private markets investing can be maintained.
Pandemics, invasions, and the return of inflation. If the last few years have shown investors anything, it’s that outrageous predictions can often be anything but.
The only reason private equity hasn’t suffered as much in this downturn is the discretion that sponsors have over its valuation. That’s going to change – and so is investors’ willingness to believe the impossible.
After a damaging year, the “massive technical headwinds” for emerging market debt are easing. And the biggest opportunities might be the smallest parts of the benchmark.
The chaos of 2022 has reset valuations to the point where they’re hard to ignore, according to J.P. Morgan Asset Management. That doesn’t mean the future of markets is any less cloudy.
“We had the courage to stick with our investment strategies,” ACS CIO Michael Block tells ISN. “Often what happens with a strategy that doesn’t work is you cut and run at the wrong time. We were lucky enough or clever enough or brave enough that that didn’t happen, and our members reaped the benefit this year.”
While hopes of a ‘soft landing’ abound, global pension funds are a little more cynical. A stagflationary environment is not just possible, but likely, and hedging against it will be a herculean task.
