The State Street Private Equity Index posted its first quarterly contraction of IRR growth during the second quarter for 2008, confirming that the ongoing financial crisis is starting to affect the valuations of portfolio companies.

The ECB’s approach to rising inflation should ensure a swifter economic recovery than for the US and UK, writes Tom Beevers.

Investec Asset Management re-domiciled the 26 sub-funds in its Global Strategy Fund range from Guernsey to Luxembourg on July 1, as part of its bid to take its brand to European institutional investors. The move comes hot on the heels of a major mandate from the heart of Europe – a deal to run €1bn of global equities for Raiffeisen Capital Management.

A rising dollar and resurgent equities leaves the US in a better position than Europe, writes Andrew Tunks.

Pioneer Investments has belatedly entered the Irish institutional investment market, and aims to offer “solutions-led” mandates to pension funds. By Henry Smith.

Argentina may have got a bad press recently, but the country could offer a prime investment opportunity, writes Raphael Kassin.

Corporate bond managers have become cautiously bullish again – after getting caught out by central bank hawkishness over spring and summer. Investors are once again predicting loosening policy and a correction from spreads that are pricing-in unrealistic corporate default rates.

Despite current worries, Chinese equities look healthy over the long-term, writes William Fong.

The rapidly growing popularity of global equity mandates, particularly among UK pension funds, is contributing to a steady decline in the volume of UK equities under management.

Europe’s securitisation market celebrates a successful transaction and the promise of beneficial law changes in France. By Nat Mankelow.

After a dismal few months for structured finance, a number of deals have come to the marketplace spurred on by the recent injection of central bank liquidity into the financial system.

International Asset Management, the specialist fund of hedge fund manager, has undergone a management buyout to take it out of Fortis Investments. The Belgian group acquired IAM when it merged with ABN Amro’s asset management business in April. By Peter Quest.

The ECB is right to raise interest rates, ensuring inflation expectations do not take off, writes Raj Shant.

The European private equity industry defied the worst of the credit crunch last year, raising €79bn and returning 11.8 per cent on a pooled average basis, net of management fees and carried interest, according to newly-released figures from the European Private Equity and Venture Capital Association (EVCA), Perep Analytics and Thomson Reuters. By Martin Steward.

A US recession now seems inevitable; the question is just how bad things will get. But there are bargains to be had in every bear market, writes Angus Campbell.

Asset managers have to ensure that the default fund option in defined contribution pension schemes must be simple to understand but not simplistic in approach. By Henry Smith.

Brazil has been a success story for investors, but vast improvements could still be made to the country’s economy, writes John Cleary.

Pension funds are prepared to put their weight behind ethically active managers according to a new survey commissioned by KPMG into attitudes towards the Hedge Fund Standards Board (HFSB) best practice standards. By Martin Steward.

Indian growth may slow in the short to medium term, but the long term picture is a healthy one, writes Vinay Gairola.

US institutions surveyed by Greenwich Associates and Global Custodian in October 2007 found 23 per cent planning to increase their hedge fund allocations by 2010 and only 2 per cent set to reduce them. By Martin Steward.

New provisions introduced by the Financial Services Aurthority in their Code of Market Conduct are seen as a response to “bear raids”. By Martin Steward.

Institutional investors and investment banks had inadequate risk models and internal controls to understand and address the risks contained in structured finance products, a report into last year’s credit crisis has found.By Nat Mankelow.

The European Central Bank remains fully focused on the threat of inflation, writes Tony Dolphin.

F&C Investments has opened a new office in Hong Kong with a view to targeting institutional investors and mutual fund distributors in the Asia-Pacific region.By Henry Smith.

Stocks must overcome a wide variety of issues before they can start a

meaningful recovery, writes Daniel Farley.

A new poll by SEI has found that the current market conditions mean pension fund managers would rather decrease portfolio volatility than increase returns.By Martin Steward.

Some countries are squandering the windfall export revenues that they have been enjoying, writes Gorky Urquieta.

June 2008 may turn out to have been a key month for oil prices. June 6 saw a rise of almost $11 (€7)/bbl, the biggest ever single-day increase, and prices nudged a new record at just under $140/bbl on June 16. By Martin Steward.

Intra-regional trade and domestic demand offers some protection against the US slowdown, but the threat of inflation continues, writes Vanessa Donegan.

No evidence has emerged to support fears that the investment behaviour of sovereign wealth funds is politically motivated.By Henry Smith.

The liquidity mismatch developing between funds of hedge funds and the underlying funds could be exposed if investors withdraw. By Martin Steward.

The buyout by Paternoster of the Lonmin Superannuation Scheme and buy-in by Norwich Union of Friends Provident’s DB scheme are indicative of the current scramble for business which, according to a new report from Lane, Clark & Peacock (LCP), has pushed pricing below the typical UK scheme’s funding reserves. But Pension Buyouts 2008 suggests that today’s bargains may represent a “window of opportunity” for sponsors considering the market. By Martin Steward.

Central European currencies have seen massive appreciation against both the Euro and the dollar, writes Jerome Booth.

Middle Eastern fund manager EFG Hermes is looking to exploit the inefficiencies of the Gulf’s largest market with its new Saudi Equity Fund, which is currently raising funds from European and North American investors. By Peter Guest.

Volatility in equity markets means that quality stocks can be picked up at bargain prices, writes Neil Michael.

Institutional investors could have significantly less money available to allocate to private equity, and may be much choosier where they put it. By Martin Steward.

Emerging local currency strategies may provide interesting investment opportunities, writes John Cleary.

A new report from the Tabb Group has found that, despite the credit crunch, the average size of hedge funds has increased significantly in the last two years. By Peter Guest.

Despite struggling so far this year, the future looks brighter for Asian equities, writes Yong Moon Kim.

Sovereign wealth funds should invest through asset managers rather than directly to avoid political repercussions. By Henry Smith.

The multi-boutique operating model must recognise the benefits of passion, persuasion and persistence to get the best out of staff. By Henry Smith.

While the giant American pension systems are refuting South Korean claims and keeping faith with US treasuries, European schemes are keeping their own counsel, reports Nat Mankelow.

Credit spread products and large-cap equities are looking particularly attractive, according to an optimitstic prognosis from the US supergroup. Martin Steward reports.

Intech, the specialist quantitative equity manager for institutional investors, presented research at the NAPF [UK National Association of Pension Funds] Investment Conference in Edinburgh that challenges the widely accepted view that average active managers consistently underperform equity indices.

The investment options under Personal Accounts, the government’s complementary pension scheme due for launch in 2012, are likely to be dominated by passive strategies in order to keep costs down, according to Paul Myners, chair of the Personal Accounts Delivery Authority (Pada).