Analysis

J. Christopher Giancarlo told a US Government ‘House Committee’ hearing last year that the failure – of the whole world – to build a system of transparency for counterparty risk by big institutions was “certainly the most disappointing” of mandates which emerged from the global financial crisis. Now, DTCC has produced a new guide. While…

by Greg Bright QIC, the $84 billion Queensland Government-owned fund manager, has been diversifying overseas for several years and now has a big presence, especially, in the US. But that is not all that has changed since Damien Frawley took over as chief executive in July 2012. He said, in a wide-ranging interview recently, that…

By Donald A. Steinbrugge* The Federal Reserve increased its target range for the federal funds rate by 25 bps to 1.50-1.75 per cent on March 21. This marks the sixth incremental increase since December, 2015, following the dramatic cut in rates during the financial crisis. In addition, the Fed has indicated that it is forecasting…

The managed-futures space continues to evolve, with some managers, such as Winton and Aspect, using non-trend signals to complement their price momentum inputs, according to the latest ‘Sector Wrap’ report on alternatives by Morningstar Australia. Investors need to be wary of rising asset prices. The report says that trend-following across asset classes has boasted strong…

by Greg Bright For years Australia did nothing. Now, at least, we are giving the formerly downtrodden but-still poor people of Timor Leste a chance for a better future, in no small part due to Steve Bracks, the chair of Cbus and former Victorian Premier, and a growing band of super industry and wealth management…

Often compared by international investors, India and China continue to face off on their prospects for both economic growth and market attractiveness. A new report by Frontier Advisors is now putting India out front over the long term. At an investor briefing in Sydney last week, Alvin Tan, a principal consultant, and Kuek Chyuan Low…

ESG factors have started to become recognised in fixed income investing as value-adding indicators of economic performance. An increasing number of macro fund managers are beginning to incorporate some form of ESG into their decision-making process. In the latest edition of ‘Global Macro Shifts’ a client report by Michael Hasenstab, the CIO of Templeton Global…

The latest theme for big super funds to consider, according to Chant West, is a focus on the outcomes of members in retirement, taking the lead from APRA’s new outcomes assessment. This is actually a seismic shift for the institutional part of the industry. It enjoins member services with investment strategies and their implementation. The…

Investors, including fund managers, can “overdo” their performance measurement assessments, according to a new paper by Research Affiliates. This may skew thinking and reactions towards short-term “noise”. US-based Research Affiliates, says in “Performance Measurement – How to Do it if We Must” that technology is making performance measurement a lot easier and, because it is…

Most corporate bonds are owned by institutions and most institutions are getting very aware of ESG issues. Here is where the rubber is starting to hit the road for ESG-aware bond managers. According to QIC, the big Queensland-government owned fund manager, it should be easier for ESG-aware investors to engage in the bond market than…

by David Chaplin The New Zealand Superannuation Fund has dialed-down active risk-taking to one of its lowest points in almost a decade, according to chief investment officer, Matt Whineray. Whineray, told the Sovereign Wealth Fund Institute (SWFI) publication last week that the almost NZ$40 billion (A$37 billion) fund had scaled back its “active risk” positions…

The global shift to index investing is unlikely to rewind despite unfavourable conditions for passive allocations across asset classes, according to Kylie Willment, Mercer Australia’s chief investment officer. Willment, who made several investor presentations last week in New Zealand, said the secular move to passive exposure had been driven by a number of forces, including: equity…