With myriad pitfalls facing institutional investors in today’s environment, it may come as a surprise to hear that the greatest menace to returns lies not with hedge funds, rating agencies, or complex derivates products, but with computerized high frequency traders (HFTs). According to a white paper by New Jersey-based Themis Trading, HFTs are currently dominating […]
Investment themes such as public policy, geopolitics, demographics and emerging wealth are being overlooked by institutional investors as profitable areas, according to a Watson Wyatt report. In its recent Macro factors – the update, report, the firm states that these so-called macro-factors themes straddle asset classes and investment managers, and can have a substantial impact […]
The funded status of U.S. pension plans is being chipped away by falling yields on corporate bonds and rising yields on Treasuries, according to Mercer. Mercer’s analysis finds that the funded status of plans sponsored by S&P 1500 companies deteriorated by US$78 billion from the end of April, bringing the estimated aggregate deficit to $245 […]
Demand is increasing amongst institutional investors and investment managers for information and analytics to support risk management, and a need to improve their organizations’ ability to successfully implement risk models in the investment process, a recent survey reveals. Northern Trust’s survey of top investment and operations executives from 50 global organizations finds that nine in […]
Consulting firm Watson Wyatt Worldwide is pouring cold water on reports that warming equities markets are providing relief for plan sponsors with solvency funding problems. “Despite the recent market rally, Canadian defined benefit (DB) pension plans’ solvency positions are not much improved from the Jan. 1, 2009 position,” says the firm’s latest Pension Barometer report. […]
Although there are growing whispers of a global recovery, asset managers face daunting prospects in diminishing profits, retaining clients and regaining their trust, according to a new report. The Boston Consulting Group’s (BCG) Conquering the Crisis: Global Asset Management 2009 report outlines how the sharp decline in professionally managed assets in 2008 has not only […]
The projected nominal GDP growth in emerging markets (EM) presents significant investment opportunities for pension funds, but plan sponsors should know the risks before wading into this asset class, explains an expert. With expected annual GDP growth of 9% to 13% for EM countries over the next three decades—compared to 5% to 7% in developed […]
Canadian pension funds are breathing a little easier lately thanks to marginal but steady improvements in equity returns and bond prices, according to Mercer’s Pension Health Index. As equities continue the long rally from the depths of March’s lows and Federal bond prices drop, pension plans are feeling less pressure on their solvency liabilities. The […]
Instead of waiting for governments to act on various environmental policies and guidelines, asset managers can take the initiative when it comes to the carbon footprint of their funds without making changes to sector weightings or their overall investment strategy, a recent study reveals. The report, Carbon Risks in U.K. Equity Funds, published by Mercer […]
The solution to Canada’s workforce conundrum requires some fresh thought and tough choices, according to the C.D. Howe Institute. Some of the suggestions contained in the think tank’s latest report are sure to raise a few eyebrows. Instead of increasing the number of young immigrants to the country to offset the mass exodus of the […]