Credits attractive but not without risk
Many corporate bonds offer great value but investors must choose their credits carefully to avoid defaults in a tough market. By Henry Smith.
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In brief
Irish funds were opened to the Chinese market via the Qualified Domestic Institutional Investor (QDII) regime for the first time on October 23, following a memorandum of understanding between the respective regulators.
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Tough time ahead for private equity
The next 12 months look set to be turbulent for private equity funds as credit markets remain seized-up even as bargain multiples come to market. Many are warning that institutional investors faced with problems elsewhere will have to reduce their commitments. By Martin Steward.
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MARKET ANALYSIS: Europe
European equities are good value for investors with a long-term view, writes Arvind Sabharwal.
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Diversification may hold schemes back
Strategic diversification – and governance constraints – has offered little protection over recent months and could get in the way of exploiting opportunity, according to two leading consultants. By Martin Steward.
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MARKET ANALYSIS: North America
Private sector exposure to mortgage-related securities must be reduced to bring about the end of the credit crisis, writes Christopher Probyn.
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Funds move to ensure liquidity
Money market funds hope that having central bank funds to fall back on will calm investors' fears and therefore avoid the need to draw on the reserves. By Nat Mankelow.
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MARKET ANALYSIS: South America
In light of the recent depreciation of the real, it is time to reassess Brazil's monetary stability, writes Floris Kleemans.
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MARKET ANALYSIS: Asia Pacific
Despite fears of a recession, many of Asia's emerging markets have strong economic fundamentals, writes Yong Moon Kim.
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UK unaware of TLP benefits
Hapless British investors, rocked by the turmoil in financial markets, should have been rushing to embrace traded life policies (TLPs) as a non-correlated asset class delivering potential returns of around 8-10 per cent per annum. By Henry Smith.
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Hedge funds victims and not villains
Hedge funds have been cast as the villains who caused the market to collapse when in reality they are the victims of the credit crunch. By Henry Smith.
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Searching for the shoots of recovery
Things are probably going to get worse before they get better but there may be opportunities out there for adventurous investors, writes Henry Smith.
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Increasingly diverse
Pension funds are keener than ever to diversify asset allocations in light of the financial crisis, and also plan to review their choice of investment managers, writes Vicken Berberian.
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Derivatives prove their worth
Derivatives promise to reduce volatility and downsize risk, and have delivered in the financial crisis, writes Theo Kocken.
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Wilfred Sit |
Bringing Asian equity to Europe
Emerging-markets giant Mirae Asset Global Investments has taken its expertise out of Korea and into the wider Asia Pacific markets. Wilfred Sit dicusses the roll-out of the Sicav versions of its core strategies for European retail and institutional investors. By Martin Steward.
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Jacques-Philippe Marson, CEO, BNP Paribas Securities Services |
Expanding on a global scale
Jacques-Philippe Marson, CEO at BNP Paribas Securities Services believes that investing more in new technology sets the firm apart.By Henry Smith.
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Sir Mark Moody Stuart |
A very long-term engagement
As the consensus that ESG factors impact long-term financial performance grows, so do the challenges of quantifying and integrating those factors into the optimisation of traditional diversified portfolios. By Martin Steward.
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Delivering the shareholders’ message
Hermes offers two distinct services around governance and shareholder engagement: Equity Ownership Services pools investors’ assets behind active engagement programs, while Hermes Focus Asset Management offers products that extract the alpha from those processes. By Martin Steward.
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Sustainable alternatives
If an ESG policy is to be coherent, it will eventually have to apply across an investor’s entire portfolio – including alternative investments. But are the relevant questions being seriously formulated yet, let alone being asked? By Martin Steward.
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Rebuilding after the 'breakpoint'
Triple A liquidity funds got the fright of their lives when a US fund ‘broke the buck’ this year for the first time in history. However simpler portfolio construction and tougher risk management is seeing investors’ faith return. By Nat Mankelow.
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Boris Lipiainen |
Defining the middle ground
The expanding role of the middle office, particularly in terms of risk management, is leading some money managers to consider outsourcing part, or all, of their responsibilities. By Nat Mankelow.
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Controlling OTC Derivatives
Steve Cheng, head of solution, investment control at DSTi discusses the benefits that the new Investment Control solution can bring to clients.
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Serge Moulin |
Derivatives booming in volatile climate
Investors looking to maintain exposure to equities but avoid the extremely high levels of volatility in the markets are making this a busy year for derivatives, from plain vanilla hedges through to more complex products. By Ceri Jones.
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Hedge funds to go back to basics
Hedge funds are struggling to attract investors and Asia-based funds are suffering more than most. Managers hope that avoiding riskier strategies and a reduction in fees can draw in an increasingly sophisticated client base. By Henry Smith.
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A confident outlook
ETFs have enjoyed a strong end to 2008 and with numerous new launches planned for next year the industry's success looks set to continue. By Nat Mankelow.
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The riskiest asset of all
Economic decoupling is real and emerging markets are likely to lead the world out of the downturn, say our top managers. But despite both being bottom-up and defensive, their responses to risk and opportunity have been quite different. By Martin Steward.
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Providing best execution
Execution algorithms can give clients greater control but the expensive technology and lack of liquidity in the markets have stalled their growth. Nevertheless, market participants believe their use will increase in the future. By Rekha Menon.
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Not quite a global one-stop shop
Fund administrators have massively broadened their global reach but no one house can provide all the services required in every corner of the world, and whether they admit it or not, they still require local partners. By Gerry O’Kane.
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