Analysis

After a five-year burst of portfolio realignment, sovereign wealth funds (SWFs) have slowed their pace of change, according to new research. But they continue to increase exposure to alternatives. An International Forum of Sovereign Wealth Funds (IFSWF) survey released earlier this month found the “significant shift” towards alternative assets initiated by members over the previous…

(pictured: Kathryn Saklatvala) bfinance, the UK-based manager search and consulting business which set up shop in Australia this year, has proposed a redefinition of the alternative beta market, which it says has expanded by 30 per cent in just the past nine months. bfinance, which provides a different business model to that of the mainstream asset…

The private equity market has not only recovered from its doldrums of 2007-2008, it is expected to struggle to satisfy investor demand over the next decade. Two-thirds of LPs plan to increase their allocations, according to the latest survey by SEI Investment Company. SEI, a big US-based fund manager, administrator and advisory group, surveyed 200…

The UK financial regulator has gone to town on the country’s funds management industry calling for a raft of measures to reduce fees, improve disclosure and increase competition. In a wide-sweeping report released last week, the Financial Conduct Authority (FCA) recommends stronger investor best interest requirements for fund managers as well as introducing an “all-in…

(pictured: Carol Geremia) For as long as there have been performance surveys, starting with Bruce Cook’s Mercer Campbell Cook & Knight in the 1980s, short-termism has been a problem for big super funds. They continually tell themselves not to think that way, but it seems, short-termism is very difficult to avoid. A big international survey undertaken…

(pictured: Susanne Willumsen)  As demand for smart beta strategies grows, so does the range of offerings from managers looking to assist further in the evolution of quantitative investing. For some, such as Lazard Asset Management, this involves blending factors and staying one step ahead of the herd. Susanne Willumsen, Lazard Asset Management director, portfolio manager…

The KiwiSaver cluster-bomb incident should serve as a warning to other jurisdictions, according to global ESG research firm, Sustainalytics. Vanguard and other index providers in New Zealand are already being affected. In a paper published last week, Sustainalytics says the KiwiSaver cluster-bomb debate – that saw a range of providers ultimately change some underlying index…

(pictured: Michael Aked) When investors think about mean reversion they normally think about asset valuations. They should also think about liquidity, because transaction costs associated with liquidity also mean revert. They are currently at all-time lows and are set to shoot back up. A report by Research Affiliates of the US says that the costs to trade…

Perhaps it’s time for big super funds to elevate their retirement solutions staff with the appointment of a ‘chief retirement income officer’ to complement the role of chief investment officer, according to a report produced jointly by KPMG and Challenger. Funds have been working on the problematic retirement incomes issue for years now, well aware…

Believe it or not, the funds management industry is in better shape than it has been for years. However, disruption, due to a raft of technological developments, is happening now. Managers have to adapt quickly in order to survive, according to a paper by SEI Investment Manager Services. SEI, a major US-based fund manager, administrator…

(pictured: Mike Baird) by Greg Bright He may have been on the back foot over shark deterrents on NSW beaches and the cruel world of greyhound racing, but last week the NSW premier, Mike Baird, was able to stand proud before the Australian investment community on a much more important subject. He told the annual Impact…

(pictured: Rod Sims) Analysis by Greg Bright It’s not just the Link Group’s board and management that are displeased at the ACCC interim view on the proposed Pillar purchase, announced last Thursday. The NSW Government, too, along with Pillar staff, may well be the biggest losers. The final date for bids has been pushed back a…