Hang the expense: Norwegian fund chases Spanish alpha
The Norwegian Government Pension Fund has outsourced the management of its Spanish equities to one of the country’s top-performing managers.
Germany’s €70 billion pension provider VBL is increasing its diversification, notably investing in overseas real estate outside Germany for the first time. It's also increasing its tilt to international equities over European stocks, enabled by an organisational and investment process overhaul.
The Norwegian Government Pension Fund has outsourced the management of its Spanish equities to one of the country’s top-performing managers.
News this week that the world’s largest hedge fund manager, Man Group, is to take full ownership of Ore Hill Partners Capital Management highlights the under-researched area of event-driven hedge funds.
The institutional foray into hedge fund strategies is changing the way these managers invest. In turn, the hedge fund industry is being shaped by this now dominant investor base.
There are an estimated 1,600 private equity firms around the world in capital-raising mode at the moment, offering fiduciary investors a smorgasbord of alternatives, split on regions, style, size, stage and sector categorisations. Some recent good news for investors is that, for private equity at least, there is now evidence of performance persistence.
The National Pension Service of Korea will outsource 26 trillion Korean won – the equivalent of $23 billion – to external funds managers this year as it moves towards its 2015 strategic asset allocation which will see a dramatic increase in equities and alternatives.
As investors faced a “multi-speed world” in which uncertainty about the US and European economies contrasted with emerging markets’ rapid growth, they should not be misled by short-term signals from the markets, said Mohamed El-Erian, CEO and co-CIO at PIMCO.
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