Deficits still have a long way to go
Pension deficits for FTSE 350 companies were reduced by £10bn (€10.7bn) last quarter, according to consultancy Hymans Robertson.

Pension schemes should steer clear of absolute return foreign exchange strategies, according to an investment consultant at Watson Wyatt.

Forecasts on the way out of a crisis are generally overpessimistic, writes Marcus Svedberg.

China is a step closer to rivalling the US as the largest provider of trade currency for Asian corporates and investors after the first ever cross-border transaction denominated entirely in renminbi (RMB).

Liquidity has restored buoyancy to asset prices,  writes Daniel C. Peirce.

Real estate opportunities in Europe have pushed one US financial services firm to expand its operations in London, which could also see a boost to its bond business.

Premiums for Latin American currencies have disappeared as markets admitted they were able to withstand the global crisis, writes Manuel Canas.

A global investor services company will add sovereign wealth funds and other state-owned investors to its books as the scramble for custody business in Asia intensifies.

Laerernes Pension (LP), the DKr26bn (€3.5bn) Danish teachers’ pension fund, has indefinitely postponed its planned Eastern European timber investments.

Despite suffering steep losses on the stock market last year, institutional investors in America have largely stuck with the same investment policies they were adopting prior to the credit crunch, according to a report by the Conference Board, a US-based non-profit management organisation.

A global economic upturn will also allow China’s export markets to recover, writes Anh Lu.

Investment consultants and trustees have failed to protect the wealth of pension fund members, writes Henry Smith.

Structured cost management achieves superior returns, but few in the industry have moved past traditional means, writes Michael Pinedo.

An Asian futures trader awaits its fate as the regulator decides whether its actions in advising clients to take a locking position were material or not.

Caution and fear of future volatility seem to have put paid to product launches and innovation, but this return to the simple life could have many benefits.

Asset managers on both sides of Paris are turning to alternatives, but whose strategies will win the day in this tale of two cities, asks Yuri Bender.

Predictions of huge global increases in demand for crops and a lack of new arable land means investment in green companies will be essential, writes Gertjan van der Geer.

As head of transaction banking in north Asia for Standard Chartered, Neil Daswani is equally at home designing cash management strategies for corporates as he is dealing with regional fund houses.

A scandalous resignation and a huge drop in value left the New York State CRF with no choice but to to dust itself off and start again. New CIO Raudine Etienne explains how her team is moving the fund forward.

Asia’s financial centres such as Hong Kong and Singapore know what it takes to rebuild confidence, restore liquidity and stress-test their market infrastructures in the aftermath of a full-blown crisis. Now, with China as the region’s powerhouse, it’s time the rest of the world took note.

Though commodities such as gold will always present a strong case to investors, pension funds’ long-term view can stifle any potential for short-term returns. However, looming inflation may well change some minds.

Pension funds are by their nature long-term, cautious investors, but since the market hit rock bottom in March, few have made any decisive moves back into equities and may lose out on significant returns as a result.

The economic downturn caused a massive drop in dividend expectations, but investors are now poised for a steep recovery.

Asian markets are in an excellent position to offer long-term investment security, with low levels of debt and strong signs of domestic growth.

Timberland investment is becoming more popular among European pension funds, but ethical concerns are high on the agenda as investment spreads into emerging markets.

Institutional investors are increasingly turning their attention to actively managed currency funds, but who loses out when investors cash in?

Like credit, FX has also been hit by liquidity constraints as it looks to compete with more traditional assets.

The lure of more global portfolios exposes investors to currency fluctuation risk, which has subsequently caused an increase in the demand for currency overlays.

Emerging markets have shown great resilience and currencies remain strong against the weaker US dollar.

With greater numbers of global representatives at the G20 table, reaching an agreement whereby the major players can work together to create solid currency policies seems a distant dream, says Simon Derrick.

Investing in currency has long been a useful diversifier due to its low correlation to equities. And now, as governments turn to quantitative easing to relieve their economies, the result could mean huge opportunities in FX strategies.

A fall-off in hedge funds has affected FX activity, but new product launches and improved performance could spur currency markets.

The return of investor optimism has brought the carry trade strategy back to the fore in currency markets, but investors must beware of acting ‘naively’.

With economies the world over feeling particularly tender, the possible regulation of exchange rates is an idea that’s returned to the table for activists and others in the FX sector.

Despite small signs of growth in the large cap equity arena, the majority of funds are still playing it safe, as volatility and unpredictable events could transform the fortunes of even the largest companies in the current economic environment.

Dimitri Sakkis, senior product development manager at Caceis Bank Luxembourg, explains how Islamic finance is developing and what it takes to implement a sharia-compliant fund.