Demand for fixed income and real estate mandates picked up significantly in 2009 as institutional investors in Australia, UK and continental Europe sought to take advantage of low corporate bond valuations and certain commercial property markets, according to Mercer’s latest investment manager search trends report.

UK property remains the leading sector for institutional investors to loan out their shares, according to a new report on securities lending by Data Explorers.

Easy money has been made on equities, but the run isn’t over yet, writes Andrew Goodwin.

Despite increased scrutiny from shareholders, company directors are continuing to award themselves generous pay packages that lack clear links to long-term performance, according to F&C Investments.

Trends will combine to give a boost to convertibles, says Justin Kass.

The European Union’s draft directive on Alternative Investment Fund Managers (AIFM) has the potential to damage the interests of institutional investors in hedge funds, according to Stephen Oxley, CEO of the $10bn (€7.4bn) fund-of-hedge funds firm Pacific Alternative Asset Management Company.

How effective is Brazil’s monetary policy? asks Floris Kleemans.

Despite, or perhaps because of a year-long recovery in the stock market, European pension funds continue to reduce strategic allocations to equities, while increasing their exposure to bonds and alternative investments, according to Mercer’s annual European Asset Allocation Survey.

Asian markets are set for a strong year, says Mark Konyn.

Russia’s equity markets are readying themselves for a wave of institutional investor and proprietary trading activity as barriers to entry begin to fall in one of the world’s least accessible venues.

Investors’ focus is moving away from an equity-heavy to a more diversified portfolio, writes Henry Smith.

As services shift and evolve, processes become increasingly important, writes David Campbell.

American General deal:
Subprime is at the core of 2007’s crash in many people’s eyes, but some firms are keen not to let whatever value these mortgages have go to waste.

EMERGING MARKET DEBT:
Forecasts of a strong year ahead, along with Brazil’s new-found investment grade status, has convinced many schemes that EM bonds are a sound investment.

With emerging market allocation still on investors’ lips, Yuri Bender explores the economic realities linked to this hot, but volatile asset class.

This year will see private equity focus on its core values, including helping businesses improve their fundamentals, says Paul Marson-Smith.

Rudolf Apenbrink, chief executive of HSBC Global Asset Management Asia-Pacific, has made inroads into tough institutional markets and now plans to expand his presence on the ground.

Oxford University Endowment Management’s Sandra Robertson explains how adjusting the successful strategies of other college schemes has helped its funds expand.

Bond market volatility has led investors to look at new ways of constructing liability-driven investment portfolios.

With the consensus on climate change strengthening, pension funds are urged to factor climate risk into their long-term investment strategies.

Pension schemes are scrutinising active managers more closely as they search for sustainable outperformance.

The German covered bond market is positioned to see a climb over the coming months, thanks in part to a crucial announcement on cover pools.

The US Securities and Exchange Commission’s charging of Goldman Sachs with fraud has led to a detailed examination of how the financial crisis came about, and what is needed for structured finance to fully recover.

Changes in tax rules over recent years have led pension funds further towards an LDI approach to ensure the greatest return for the least risk.

The merits of dynamic asset allocation are clear for any fund wishing to quickly move capital into a rising asset class, argues Martin Fagan.

Collateralised loan obligations are capturing the attention of pension funds and insurance companies looking to increase exposure to corporate credit markets.

The European structured retail products market is gearing up for a healthy recovery in 2010, but pending regulatory changes are creating a lot of uncertainty around the nature and extent of any upturn.

Structured products fell out of favour in the US after the global crisis, but they are set for a comeback.

In stark contrast to the complex products sold in Asian markets pre-2008, the region is now simplifying its offering.

Battered and bruised by the financial crisis, money market funds fight to restore credibility and assets.

Proponents of synthetically structured exchange traded funds downplay counterparty risk.

Underlying assets have been striving to move away from complex forms since 2007, but they are still far from simple.

Europe’s leading exchanges are fragmented, but service providers are working hard to forge new market strategies.