Australian hedge funds, including offshore funds sold in Australia, returned 0.18 per cent in January 2011. Long/ short equity and fixed-income strategies boosted the total with their respective 1.33 per cent and 1.06 per cent results. However, global macro, commodities, managed futures strategies and global macro funds-of-funds hurt posted -0.98 and -1.41 per cent returns.
American FATCAts could cost super funds
Australian superannuation funds may have costly obligations under the Foreign Account Tax Compliance Act (FATCA), a new chapter of the US Internal Revenue code aimed at boosting the tax-take from Americans living overseas, warns the financial services division of Deloitte. MICHAEL BAILEY reports.
Storms gather in the cloud
It’s the crim e that dare not sp eak its name – cyber-theft. Estim ated to cost Aust ralia $2 billion a year, cyber-fraud and identity theft could be an even larger problem than the investment and superannuation industry acknowledges, because no-one wants to admit that members’ accounts can be infiltrated. PHILIPPA YELLAND reports.
Emerging markets: understanding the risks
Emerging markets offer compelling long-term return potential, but continue to present risks that every investor should understand. NORIKO KUROKI, of the emerging markets equity team at J.P. Morgan Asset Management, discusses the risks inherent in emerging markets and looks at the effect they have had on economic and investment performance.
Boon for managers: Korea fund outsources billions
The National Pension Service (NPS) of Korea will outsource 26 trillion Korean won – the equivalent of $23 billion – to external funds managers this year as it moves towards its 2015 strategic asset allocation (SAA), which will see a dramatic increase in equities and alternatives. The fund’s long-term SAA sees domestic equities shifting to more than 20 per cent, from its current 15.9 per cent allocation, and by 2011 the fund aims to have that allocation sitting at around 18 per cent of the fund, the head of institutional networks and communications at the NPS, Ha- Young Kim, said. The other major shift will be in the alternatives allocation, shifting from the 2010 allocation of 5.5 per cent to 7.8 per cent at the end of this year, and ultimately to more than 10 per cent by 2014.
Australia’s Catastrophe Crossroads
Natural disasters belted parts of Australia and New Zealand this summer. As affected people of Queensland and Christchurch begin to rebuild their lives, and governments and insurers tally up the costs, there has been speculation about whether this episode of nature’s fury warrants a domestic catastrophe bond market. MIRANDA WARD reports. It will be some time until reinsurers determine whether the earthquake that hit Christchurch on February 22 was a standalone seismic event, or an aftershock from the quake that rocked the city in September 2010. In other words, it will take weeks to determine who, be it reinsurance companies or the New Zealand Government, has to foot the multi-billion dollar damages bill.
ESG matters in emerging markets
Martin Currie has unveiled its new emerging markets strategy ahead of the launch of an Australia-domiciled fund. The new team, recruited from Scottish Widows Investment Partnership (SWIP) last year, has a strong sustainability bent. GREG BRIGHT spoke with two of the team leaders, Kim Catechis and Andrew Ness.
State Street plans next 25 years in Australia
State Street celebrated its 25th anniversary in Australia last month with the opening of a new office in the heart of Sydney which enables, for the first time, the company’s 700 local staff to come together in the one building. Jay Hooley, the company’s chairman, president and chief executive, elaborated on the milestone. GREG BRIGHT reports.
