A new infrastructure sustainability benchmark has been developed by a group of eight institutional investors, alongside GRESB, to enable systematic evaluation and industry benchmarking of the sustainability performance of their infrastructure assets. Despite large and widespread allocations by Canadian and Australian pension funds to infrastructure, institutional investors globally do not have large allocations to
It is well documented that local bias exists in US state pension fund holdings, but now an article in the Journal of Financial Economics (forthcoming) finds evidence not only of local bias, but bias towards politically-connected stocks. Not only that, but the article finds that political bias is detrimental to fund performance. “Political bias is
Equity prices in continental Europe and emerging markets, including China, are below fair value, and present an opportunity for investors, but the ‘entanglement of risk’ in current markets is making Brian Singer, partner and head of dynamical allocation strategies team, William Blair cautious. William Blair typically targets around 10 per cent volatility in its portfolios,
Institutional investors now dominate the free float holdings of listed companies and exchanges need to adapt to this enduring change in market structure and investor needs, according to Norges Bank Investment Management, manager of the $818 billion Norwegian sovereign wealth fund. Norges Bank, which itself owns around 1 per cent of the world’s listed stock,
The US Federal Reserve is not paying enough attention to secular forces affecting the market, according to chairman and founder of Bridgewater, Ray Dalio, who says the “risks of the world being at or near the end of its long-term debt cycle are significant”. In an opinion piece posted on LinkedIn, The Dangerous Long Bias
Fiduciary law, which creates the boundaries and rules for asset owners managing other people’s money, is evolving. The short-termism, misaligned incentives and complex and over-supply of services that characterises financial services, is under fire. Regulators around the world are increasingly looking at how to change the behaviour and supply chain dynamics in the industry, and
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