Surging equity markets generated a double-digit return for the 26 billion ($35.5 billion) Ilmarinen of Finland last year. Now the fund aims to boost its exposure to emerging markets at the expense of “old Europe” equities, says Timo Ritakallio, deputy CEO and investments chief at the pensions company, and further globalise its real estate and private equity portfolios. Simon Mumme reports.
The benefits of US regulatory reform
US regulatory reform, such as the SEC’s plan to restore the uptick rule and the Volcker rule to restrict proprietary trading, are a step in the right direction for those advocating transparency. Amanda White explores the story with the chief executive of Principal Global Investors, Jim McCaughan, and head of research, analysis and strategy at Man Investments, Thomas Della Casa.
CalPERS considers new asset class classification
CalPERS is considering doing away with traditional asset class classifications in favour of classifying assets according to fundamental characteristics in a bid to provide a better understanding of portfolio risks and performance drivers and so move to a more effective portfolio construction and risk management framework. Amanda White reports.
Why credit matters
In this updated paper, Janus expands on the emerging themes in the fixed income market, highlighting that important factors in 2010 include rising interest rates, spread tightening and the US government’s support of the mortgage market, which all have potentially serious implications for yield-seeking investors.
Risk parity becomes bittersweet flavour of the month (2)
 “Understanding a program’s results involves attributing relative performance to active management, identifying any tactical asset allocation decisions and assessing mechanical factors such as leverage costs. “For most investors implementation of a leveraged strategy would likely require the retention of a beta overlay manager to execute and maintain the desired leveraged systematic exposures or an … Read more
Selective opportunities in private markets: Wurts
Private market investors should focus on distressed debt and to a lesser extent secondaries, according to the annual private equity outlook by consultant Wurts Associates, which contrary to other industry observers believes value can be added through top down analysis of the sector.
