The Canada Pension Plan Investment Board has increased its focus on emerging economies, using active management to access local expertise and maximise its advantages of scale.
Pension funds in many emerging economies need to diversify offshore, says the World Bank, in order to achieve higher returns with potentially lower volatility.
As China readies for its five-yearly leadership reshuffle, global investors are watching to see how they’re poised to manage the world’s second-largest economy as it faces up to its debt dilemma.
MSCI’s long-awaited decision to include China’s A shares in its emerging markets and ACWI indices will affect more than $1.6 trillion in funds that track the MSCI Emerging Markets In
The implications for investors of the inclusion of China A-shares in the wider MSCI indexes, an inevitable outcome, will be discussed at the Fiduciary Investors Symposium at Yale in October.
New research by MSCI shows a rare insight into whether the factor phenomenon, driving development market equities beta, is at play in emerging markets. The research uses the Barra Emerging Markets Equity Model to look at the drivers of performance of emerging markets, and analyses the returns of active emerging market managers to identify the... Read more »
AP4 already has US and emerging markets low-carbon mandates and plans to invest up to $1 billion across various regions. Mikael Johansson, senior portfolio manager global equities, AP4 explains how the concept of responsible investment can be integrated into the investment process of a large pension fund and the challenges in implementing low carbon mandates.... Read more »
Mercer’s chief investment officer, Russell Clarke, explains how manager research helps create the 200 building blocks of an investment operation that has grown from $20 million a few years ago to $124 billion today and which covers – uniquely – all elements along the fixed income curve. Starting from scratch in 1996, Melbourne was... Read more »
This research by academics at Duke and Columbia Universities looks at whether it still makes sense to separate equities allocations into developed and emerging market buckets. Given the dramatic globalization over the past twenty years, does it make sense to segregate global equities into “developed” and “emerging” market buckets? This paper argues that the... Read more »
Sunil Krishnan, head of market strategy at $62-billion British Telecom Pension Scheme Management Limited (BTPS), the United Kingdom’s largest pension fund for employees of global telecoms operator BT Group, has sage advice for investors contemplating their exposure to emerging markets. Examining the pros and cons of the asset class, Krishnan counsels caution. Speaking at a... Read more »
From a strategic asset allocation point of view, AustralianSuper is one of the most aggressive investors in emerging markets, particularly Asia. About a quarter of the $43-billion fund is in international equities, and nearly half of that is in emerging markets. Equities is the vehicle for AustralianSuper’s emerging market exposure because growth remains the reason... Read more »
Usually when the $129-billion Ontario Teachers Pension Plan makes a strategic move, the rest of the investing community pays attention. With a 15-per-cent allocation to emerging markets and a strategic plan to increase it to 20 per cent over the next couple of years, OTPP just opened an office in Hong Kong to take advantage... Read more »