Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
Property remains after Investec deal with BoQ
Investec Bank said Friday that property funds management would remain a core business unit for the group in Australia following the sale of its “professional finance” business to the Bank of Queensland.
The professional finance business includes deposits asset finance and leasing. BoQ told the market it would pay $440 million in the deal.
Apart from property funds management, Investec will also continue to offer corporate and institutional banking services and investment banking. The sale followed a review which was announced late last year. About 310 staff will transfer in the arrangement.
Ciaran Whelan, Investec chief executive, said: “Investec Group remains committed to the Australian market. We have an experienced leadership team with a focused business backed by a strong global balance sheet and parent. We are in a good position to concentrate on what we do best within our specialist niches and to demonstrate our distinctive approach.”
