News

(Pictured: Rohit Chopra) Australian investors have had a love/hate relationship with emerging markets for many years. Like the perception of the markets themselves, they tend to go hot and cold with that part of their portfolio. However, structural changes in some of the bigger markets may be changing both the perception and reality. Rohit Chopra, a…

(Pictured: Paul McNamara)  Currency movements over the past two years took the shine off emerging market bonds, but this is unlikely to continue, according to Paul McNamara, investment director of GAM International. As a provider of yield, emerging market bonds are in a better position in the world of sovereigns. “There were some big currency…

(Pictured: Iain Dunstan) While the past few years have basically been a nightmare for financial planners due to regulatory uncertainty compounding the yield-producing challenge facing a big proportion of their client base, perhaps dawn has broken. The latest study by Business Health in association with Rubik Financial, has some interesting findings. The study, involving a cross-section…

Hedge funds had their best year for inflows globally in 2014 since 2007 when the wheels started to fall off alternative investing as an asset grouping. But net redemptions in the month of December took the shine off the results. According to the latest quarterly hedge fund report from data provider eVestment, the total inflow…

(Pictured: Michael Armitage)  The largest US pension fund, CalPERS, turned its back on hedge funds in a much-publicised decision last year. Michael Armitage, of consulting firm Milliman, considers the implications for Australian investors. He says the decision by the largest US pension fund to scrap its $US4 billion hedge fund program should prompt Australians to…

(Pictured: Murray Brewer) T. Rowe Price has expanded its Australian business with the opening of an office in Melbourne, which will be staffed by David Frazer, who joined last year as institutional relationship manager, and Heath Branigan, as business development manager on the retail side. Branigan has been with T. Rowe Price for three years, concentrating…

(Pictured: Debbie Wilkes) Industry funds have a way to go to reach the probable new standard of one-third independents on their boards. Only 21 (11.0 per cent) of the 190 trustee directors of 20 of Australia’s largest industry funds are independent, according to a study by Industry Moves. UniSuper, HostPlus and MTAA, are the only funds…

(Pictured: Ian Dunbar) Ian Dunbar, the former head of investment platforms in the Platform Solutions Group at UBS, who left the firm last month, has started his own specialist consulting firm, FinDigital. Dunbar will be focusing on advice relating to disruption in the financial services sector from technological and other changes. He is chairing a session…

(Pictured: Michael Hunstad) With the increasing popularity of smart beta strategies, discussion among investors has moved beyond the underlying ‘factors’ – whether they are sustainable, for instance – to product design and implementation. Managers such as Northern Trust are now refining ‘pure factor’ exposures to avoid unintended consequences. Michael Hunstad, Northern Trust Investments’ head of quantitative…

(Pictured: Dean Thomas)  AMP has recruited Dean Thomas, former general manager, retail wealth platforms, at NAB as its director of product, strategy and services, commencing today (January 19). The position was formerly held by Melinda Howes, who left last year to become general manager, superannuation, at BT Financial Group. Thomas, who also has experience in…

(Pictured: David Kabiller) AQR Capital Management is to fund a new research institute for the asset management industry to be run by the London Business School. The partnership, which has a 10-year commitment from AQR, aims at advancing research and best practice in the industry globally. The US$122 billion quant-oriented equities firm, which was founded in…

(Pictured: Stephen Huppert) Australia’s implemented consultants can add value in their manager selection, but, at the whole-fund level, this tends to be dissipated by poor asset allocation decisions, according to a new report from Deloitte Actuaries & Consultants. The report published last week, entitled ‘Beating Those Super Fees: Is Active Management Delivering?’, was based on a…