Settlement firm clears the way

Transaction settlement firm Euroclear will introduce its fund clearing platforms to the UK this month.

Pension funds have been warned against trying to capture an asset bubble by looking to buy into a market at the bottom and sell out at the top.

Recent events will mean a return to the simple life, believes Simon Thorpe.

Forestry investment looks likely to have an active remainder of the year as the asset’s performance through the credit crisis has caught the attention of many, particularly in Europe and the UK.

There is at last enthusiasm for an economic rebound, writes Peter Anderson.

Fifty per cent of defined benefit (DB) pension funds in the UK have not formulated a long-term strategy to reduce risk, according to a survey of pension scheme trustees by consultants Hymans Robertson in conjunction with the PensionChair Network and Winmark Research.

With global trade volumes at a cliff edge, are letters of credit experiencing a boom in Latin America? John Ladany investigates.

Fund managers remain cautious despite more optimism that the global economy is back on track.

There are several indicators that the Japanese economy could have a new lease on life, writes Kenichi Kubo.

No matter where the fault lies, pension funds would do well to steer clear of further asset bubbles, writes Henry Smith.

Data management has always been a concern, but less talk and more action means firms must put plans in place now, writes Peter Ellis.

12 months on from the start of the financial downturn, have investment bankers learnt their lesson, or are they still trying to flog the riskiest of products?

For years, many have questioned the usefulness of GDP as a yardstick of an economy’s health, and its flaws are also reflected in company profit analysis.

Robeco’s outgoing captain, George Moller, scored big despite the crisis with some clever footwork, writes Yuri Bender.

A call from CalPERS for hedge funds to be run like managed accounts has been met with criticism, writes Alexandre Col.

The CIO of Aviva Investors France believes a long-term view is fundamental to a successful investment strategy, although recent events have forced the firm to reassess its attitude to risk management.

Diversity has been the key to AP3’s success. After struggling through 2008, this year has brought in solid returns for the scheme, thanks partly to its confidence in forestry investments. Spencer Anderson investigates.

The asset bubble is an elusive creature not suited to long-term investment strategies, but there is speculation that Chinese stocks could be growing at a pace that could benefit investors on a global scale.

Liability-driven investment strategies were the envy of many when the markets were at record lows in 2008. But the complexity of tailoring each individual structure, along with the recent rally in equities, has resulted in little take-up.

While quantitative funds are renowned for performing well over longer time horizons, the financial crisis has thrown the strategy off kilter and is undermining the results and appeal of such funds, says Richard Hemming.

The importance of risk management was highlighted all too starkly by the credit crisis of 2008, with fund managers introducing more robust qualitative processes to replace quantitative systems that have failed to perform.

The promise of steady returns in a volatile market will always hold investors’ interest, but can absolute returns continue to produce results while there is doubt lingering over whether managers have the right skills to deliver?

With the near-term performance of government bonds set to dip, high yield and emerging market debt should be a strategic allocation in every investor’s portfolio.

Despite a positive performance this year, China’s overseas investing funds have failed to capture institutional investors’ attention and new products have been put on hold until further notice.

The business of securities lending has transformed over the past year -as supply and demand have dwindled, so lending agents have come to the fore, offering a dedicated infrastructure to deal with risk and regulation

EquiLend has implemented a series of services to cater for all stages of the securities lending trade cycle. As a result, its global client base continues to grow, says Paul Nigrelli, the firm’s managing director of North America business and product development.

Short selling, and the resultant lending of securities may have lost some of their sheen, but returns remain attractive.

As risk becomes a priority, diversification across multiple brokers will be essential for hedge funds to move forward.

As investors look to products with a low correlation to traditional asset classes, the ETF market is in a position to pick up record new business.

While investing in Japanese equities was not a consideration for most fund managers in recent years, the way it has come out of the crisis has inspired new hopes for the country.

Taiwan’s exchanges are reforming systems and regulations in an effort to open themselves up to the Asian fund market, in the hope that eventually its market will become a wealth management hub for overseas investors.

The European fund clearing system is still years away from being as streamlined as that of its US counterparts, but things are moving in the right direction.

Recordkeeping for European funds is still largely handled by third parties, but in these tough times improved automation of such back office services would offer a welcome efficiency boost.