In an era of downgrades managing sovereign risk is a growing concern, and in the current environment investors need to actively manage their fixed income portfolios, says Russell Investment’s Andrew Pease.
Plumbing the depths of water risks
Norges Bank Investment Management, which manages the 3.1 trillion kroner ($580 billion) Norwegian Pension Fund Global, has reported on the water management risk disclosure of the companies it invests in for the first time.
Is the end nigh for the euro?
The outlook for the euro is dire, according to the Frankfurt-based Georg Schuh, head of fixed income, Europe, for Deutsche Asset Management, and investors should react accordingly.
Bernanke fails to provide a ray of light in the gloom
While cautiously optimistic about the chances of a global recovery, State Street Global Advisors chief economist Dr Christopher Probyn says last week’s speech by US Federal Reserve Governor Ben Bernanke was disappointing.
Colorado gears up for local stoush
A potentially bitter legal battle shaping up between a municipal hospital and Colorado’s public pension fund demonstrates the likely pressures that underfunded funds face as they are caught up in local and state government efforts to slash their budgets.
How passive investing increases market vulnerability
This new research, to be published in the FAJ, shows that the rise in popularity in indexing, through passive mutual funds and ETFs, contributes to higher systematic market risk. It shows, consistent with the accelerating growth of passive investing, that equity betas have not only risen but converged in recent years.
