Investors favour credit
Towers Watson’s negative outlook for bonds and its advice to increase allocations to high quality credit is being reflected in portfolio shifts by institutional investors.
Towers Watson’s negative outlook for bonds and its advice to increase allocations to high quality credit is being reflected in portfolio shifts by institutional investors.
Allocations to alternative investments of the largest seven pension markets globally (P7) have increased by 15 per cent over the past 16 years, according to Towers Watson. Carl Hess, Towers Watson’s global head of investment, says the study reflects two investment themes in the past few years: globalisation and diversification. While alternatives have increased as
Investors should be looking past a “safe haven mentality” and be structuring their portfolios to deal with the possibility of a looming risk of inflation in the longer term, says Ed Britton, Towers Watson’s global head of fixed income manager research.
The manager of Timor-Leste’s $8.3 billion sovereign wealth fund, the Banking and Payments Authority (BPA), was inaugurated as the island nation’s central bank on Monday.
Towers Watson and Oxford University have launched a collaborative research effort to examine the impediments to progress in sustainability integration, with changes to mandate design one of the expected practical solutions. The project is spearheaded by thought-leaders Roger Urwin and Professor Gordon Clark.
Defined benefit funds still dominate the structure of the largest 300 pension funds globally, and this troop of large funds now make up almost half of all pension assets around the world.
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