Investable hedge fund indices have failed to deliver decent performance for institutional investors who do not realise how unstable an investment structure they are.

Despite continuous discussions in the institutional asset management arena regarding the benefits of liability-driven investment (LDI), the number of pension funds which have such strategies already in place is still small.

The increased issuance of long-dated bonds by different European governments is not enough to meet investor demand for these instruments.

Corporate treasurers are showing increasing interest in yield enhanced funds, despite the growing popularity of money market funds as an alternative to bank deposits.

NTGI’s Barry Sagraves is happy in a big organisation, as his doubling of the firm’s London AUM to €30bn indicates. The firm is now actively promoting multi-manager strategies and enhanced indexing, but prefers to test Chinese waters before diving in. Henry Smith reports.

As head of investments at the post-merger F&C, Fernando Ribeiro hopes to motivate and empower his professionals to make their own decisions by introducing a more defined management structure. He talks to Paula Garrido.

Investors need to consider the possibility of market setbacks and the best protection is holding a diversified mix of investments, including hedge funds, says John Hastings.

Along with the US, east Asian equity markets could suffer on the back of higher crude prices, and investors should seek refuge in the European currencies, says Neil Mellor.

A buoyant world economy, strong corporate profitability and M&A activity will all support European stock markets in 2006. Despite three years of gains, valuations remain reasonable because profits growth has outstripped the rise in share prices.

In considering the outlook for US equity markets for 2006, preparing for disappointment is a sensible approach. There are reasons to expect fine results from US stocks this year.

Brazil’s economy is literally growing wings, boosting the rapid growth of low-cost airlines which now enjoy the highest profitability and growth rate globally - extraordinary for a country that’s better known for its commodities.

Mining stocks have been one of the hottest sectors worldwide in the last two years, driven higher by record metal prices. The story behind this is well-known – the emergence of China, and to a lesser extent India, as significant sources of new demand.

Enhanced cash products take different approaches to adding risk, limiting liquidity and increasing potential returns. If only managers could agree on a definition, writes Elizabeth Cripps.

Sander Boelen, senior vice president, global head of short term asset group sales, ABN AMRO Asset Management outlines how to optimise the trade-off between liquidity, risk and return.

A buzz currently surrounds private equity, but as the asset class becomes more established, returns are more sustainable and a new breed of elite manager is emerging. Paula Garrido reports.

With frequent confusion among institutions on the nature of liability driven investing, and as asset managers use products formerly the preserve of investment banks, more education is needed for pension trustees on the new methods to stem the deficit. Gerry O’Kane reports.

Asset managers have plunged into derivatives in an attempt to gain a foothold into the complex structured products market. However, they face a massive investment in terms of technology and expertise that could see some fall by the wayside. Gerry O’Kane reports.

Brushing aside pessimism for the new year, the competitive global equities market is looking to the long-term. Paula Garrido assesses the biggest wins in the area.

A combination of choice of currency, country and credit allocation has proved to be a successful mix for T. Rowe Price’s Global Aggregate Bond fund. However, taking a negative stance on the US and significant positions in the euroland, Canada and Mexico has added to 2005’s performance levels. Paula Garrido reports.

An automation solution for corporate actions will come through viewing it as an integrated part of the business, encompassing all functions of the entire fund management operation, writes John Mayr.

With MiFID becoming ‘increasingly prescriptive’, the technological costs of its implementation are more likely to go up than come down. Roger Aitken explains.

While the acronym MiFID (Markets in Financial Instruments Directive) might only be five letters long, its impact on Europe’s financial services sector is far reaching.

Providing customised solutions to institutional investors requires expertise and top-notch technology, which makes selection of a suitable transition manager vital, writes Roger Aitken.

As funds look for outperformance, they are embarking on new portfolio strategies, but also at ever-sophisticated methods for cutting costs for transaction implementation, writes Roger Aitken.

Electronic systems need to be able to handle consistently high trading volumes as well as manage additional peaks in trading activity generated by clients, says Martin Cook.

The acquisition of UniCredit’s Italian securities services business by Société Générale Securities Services (SGSS) just two years after its creation has elevated the bank to the third biggest global custodian in Europe, with almost €2000bn in assets under custody.

An increasing number of fund managers are taking advantage of European distribution opportunities to promote their multi-jurisdictional fund ranges throughout Europe.

Roger Aitken talks to ABN Amro Mellon Global Securities Services CEO, Nadine Chakar, on the firm’s aspiration to be the best, rather than the biggest, global custodian.