Investment grade corporate debt, non-agency residential and
commercial mortgages, high yield corporate debt, and private equity distressed
debt all constitute recommended potential mandates in the credit markets,
according to director of research at US-based Wurts and Associates, Eric
Petroff.
Decision-making revamp crucial to exploiting investment opportunities
Investors with investment decision-making processes that embrace uncertainty and manage risk will be the investment winners in the next five years, according to global chief investment officer of Mercer, Tim Gardener, who believes institutional investors need to revamp their decision-making processes.
Rebalancing revisited: putting risk back on the table
By adopting a contrarian approach to rebalancing which takes account of both assets and liabilities, pension funds could enhance long-term returns and reduce the volatility within their portfolios, new research reveals.
Rebalancing Revisited, a paper by Syd Bone, former chief executive of VFMC, and Andrew Goddard, an ex-Russell investment veteran, advocates super funds rebalance to a preset target, for example an investment return target of CPI +5 per cent per annum.
Abu Dhabi fund hires up for regional M&A service
Continuing its expansionist aims, the Abu Dhabi Investment Corporation (ADIC) has lured an investment banker from Rothschild to focus on cross-border merger and acquisition (M&A) activity, which it expects to spike as the financial crisis wears on.
Beware the illiquidity delirium when buying-up credit
Bond markets might be offering comparable returns to equities and a higher place in the capital structure, but they should be approached cautiously as they lack what institutions around the world are trying to maintain – liquidity.
European funds look to alternatives to manage future risk
European pension schemes are increasing their allocations to non-traditional asset classes as a way to manage risk as a result of turbulent market-prompted investment reviews, according to Mercer’s annual European Asset Allocation Survey.
