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Investor Profile

Centrica focuses on dynamic decision making

For the Centrica pension fund, which adopts a liability-matching portfolio approach, last year was busy for appraising new opportunities arising out of the fact banks are no longer lending. This year its focus is on being more dynamic. Amanda White spoke to chief investment officer of the £5.5 billion ($9 billion), Chetan Ghosh. The Centrica […]
Research

Macroeconomic risk and hedge fund returns

This paper estimates hedge fund and mutual fund exposure to newly proposed measures of macroeconomic risk that are interpreted as measures of economic uncertainty. The academics, from Georgetown and Stern, find the resulting uncertainty betas explain a significant proportion of the cross-sectional dispersion in hedge fund returns. However, the same is not true for mutual […]
Uncategorised posts

Investors must collaborate to innovate

Institutional investors are sheltered by competition, which in some instances can be beneficial, but it also means they are shielded from competitive forces that drive innovation. A new paper by Gordon Clark and Ashby Monk, looks at why the current model of either insourcing or outsourcing investment management doesn’t allow for innovation, and the models […]
Research

Active ownership

Academics from the London Business School, Boston College and Temple University, examine the outperformance of US public companies following corporate social responsibility engagement.
Research

Capturing illiquidity premiums

This paper commissioned by the Norwegian Ministry of Finance investigates the possibilities for the Government Pension Fund Global (GPFG) to profit from liquidity premiums in  illiquid investments. It looks at the empirical evidence for the presence of liquidity effects in a broad range of asset classes: listed equities, corporate bonds, treasury and agency bonds, and […]
Uncategorised posts

Mercer’s plan for integrating ESG

How to implement ESG into portfolio construction and implementation is an ongoing challenge for asset owners. Mercer has come up with a number of strategies including the best way to use ESG ratings, active ownership, and tailored strategies that play to sustainability themes, including its own unlisted investment solution. Amanda White spoke to Jane Ambachtsheer, […]
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