New report shows investors taking on more risk in exchange for returns, yield.
Institutional investors are turning to riskier assets for better returns in order to cope with the current environment of low yields and volatile markets, according to a new study by Natixis Global Asset Management. Its survey of 500 global institutional investors with $15.5 trillion in assets found while increasing their exposure to riskier assets, organizations are still […]
Ten Canadian pension funds are among the top 100 global private equity investors, according to a new report by data and intelligence company Preqin. The Canada Pension Plan Investment Board was ranked No. 1 while the Ontario Teachers’ Pension Plan, at No. 6 and the Caisse de dépôt et placement du Québec, at No. 7, […]
New research looks at the long-standing link between corporate bonds and market volatility
The Canada Pension Plan Investment Board has invested US$375 million in a Chinese private investment vehicle. Owned by CapitaLand, Raffles City China Investment Partners III will focus on commercial real estate developments in gateway cities in China. CPPIB’s investment represents a 25 per cent ownership of the company. “Investing in CapitaLand’s new China investment vehicle gives […]
Exchange-traded funds are gaining ground. According to the London, England-based research and consultancy firm ETFGI LLP, assets invested in ETFs and exchange-traded products listed globally reached about US$3.1 trillion at the end of May 2016. Greenwich Associates’ 2015 study of Canadian institutional ETFs showed institutional users of ETFs had invested an average 21 per cent […]
Since the development of modern portfolio theory, many institutional investors have used mean-variance optimization techniques to help identify their appropriate asset mix. This quantitative approach allows an investor to assess various allocations by considering the trade off between risk and return, and the relationship between the assets. The inputs to this approach include expected asset […]
Pension investors have always relied on bonds as a steady source of diversification, capital preservation and a hedge for liabilities. But since the 2008 financial crisis, the once-sleepy fixed-income space has transformed into an ever-expanding universe of global bonds, credit and other new products meant to satisfy a growing appetite for yield. As interest rates […]
Research: portfolio rebalancing is inconsistent and procyclical
Part 2 in our series on the trouble with performance measurement. Read Part 1 here.