Malcolm Hamilton shares his concerns around alternative investments.
Coverage of the 2012 Investment Innovation Conference.
Infrastructure is a key investment strategy for Canadian pension plan sponsors. Access to assets that are typically hard to enter, stable cash flows and some volatility protection make this asset class attractive.
Hammered by poor returns, pensions turn away from public equities.
If Canada’s growth stalls, the government will be pushed to find fresh ways to spur the economy and fire up investors.
Towers Watson recently released its annual Global Alternatives Survey in conjunction with the Financial Times of London, England. The survey, in its ninth year, gathered information on alternatives products offered to investors, including pension funds, sovereign wealth funds (SWFs) and insurance companies, as at the end of 2011.
BlackRock has acquired Swiss Re Private Equity Partners (SRPEP), the European private equity and infrastructure fund of Swiss Re, in a move that expands BlackRock’s European and Asian footprint, and infrastructure investing capabilities.
In recent years, infrastructure has emerged as an attractive asset class for Canadian pension plans and endowment funds looking for long-term, stable investments with strong risk-adjusted return characteristics. Large pension plans have developed into global leaders in infrastructure investing, as they have built teams of experienced investment professionals and committed billions to the asset class. However, infrastructure investing is also a good fit for most any size of pension plan.
Northleaf Capital Partners’ infrastructure investment program is doing well, says the firm. The program, which launched in mid-2011 and is focused on direct investments in OECD markets, has reached approximately $500 million in capital commitments.
And other pension news in brief.