The investment and governance policies of the largest Asian pension reserve funds are in transition, according to Allianz Global Investors. Looking at funds run by Australia, China, South Korea and Japan, managing a total of €766bn, Allianz found “a pronounced return orientation” replacing politically-driven, low-yielding investments like housing loans, infrastructure or below-market rate loans to the funds’ respective governments.
Investment banking is set to redefine itself as an industry of boutique partnerships, according to TABB Group CEO Larry Tabb. Regulatory pressures will force risk and remuneration levels down, and the more highly-compensated will leave to set up partnerships which are small enough to take on the old investment banking risks without threatening “financial Armageddon”.
Every single one of the equity markets indexed by Standard & Poor’s declined in September, wiping out $4100bn. Luxembourg was the biggest loser, down 46.46 per cent.
