Pending the introduction of an emissions trading scheme (ETS), between 1 and 2 per cent of shareholder value in the top 200 Australian listed companies will be at risk if they do not reduce or mitigate their exposure to carbon. Paul Newland, managing director of Arbor Partners, an advisor to institutional investors which focuses on the impacts of sustainability on portfolios, said the potential carbon liability of the ASX200 varied significantly across sectors, industries and companies. Arbor has used various third-party researchers and analysis to calculate a price for carbon if the proposed emissions trading scheme, which uses a cap and trade mechanism, is legislated.
Consultant puts a price on carbon for ETS future
Pending the introduction of an emissions trading scheme (ETS), between 1 and 2 per cent of shareholder value in the top 200 Australian listed companies will be at risk if they do not reduce or mitigate their exposure to carbon. Paul Newland, managing director of Arbor Partners, an advisor to institutional investors which focuses on the impacts of sustainability on portfolios, said the potential carbon liability of the ASX200 varied significantly across sectors, industries and companies. Arbor has used various third-party researchers and analysis to calculate a price for carbon if the proposed emissions trading scheme, which uses a cap and trade mechanism, is legislated.
How hedge fund managers answer liquidity and stability concerns
The hedge fund industry has been reinventing itself in the past two years and, notwithstanding massive redemptions as the credit crunch spread throughout markets, managers are looking to bring revamped and new strategies to the market. Most of the changes look to address major criticisms of hedge funds during the crisis, namely transparency, ownership stability and liquidity. According to Tom Strauss, the chief executive of the hedge funds of funds group of US-based diversified alternatives manager Ramius Capital, high yield bonds went through a similarly unpopular period in the early 1990s.
How hedge fund managers answer liquidity and stability concerns
The hedge fund industry has been reinventing itself in the past two years and, notwithstanding massive redemptions as the credit crunch spread throughout markets, managers are looking to bring revamped and new strategies to the market. Most of the changes look to address major criticisms of hedge funds during the crisis, namely transparency, ownership stability and liquidity. According to Tom Strauss, the chief executive of the hedge funds of funds group of US-based diversified alternatives manager Ramius Capital, high yield bonds went through a similarly unpopular period in the early 1990s.
JANA halves hedge fund fees, reins in risk with managed accounts
JANA Investment Advisers believes identifying the beta drivers in hedge fund returns has enabled it to halve fees in the notoriously expensive asset class, as the consultant recommended clients allocate as much as 15 per cent of their portfolios to the strategies. Michael O’Dea, portfolio manager of JANA’s Triplepoint hedge fund-offunds (hedge FoFs), said investors in hedge funds should only pay for manager skill and use a managed account structure to monitor risk and control counterparty relationships. “The only thing worth paying a performance fee for is the skill.
JANA halves hedge fund fees, reins in risk with managed accounts
JANA Investment Advisers believes identifying the beta drivers in hedge fund returns has enabled it to halve fees in the notoriously expensive asset class, as the consultant recommended clients allocate as much as 15 per cent of their portfolios to the strategies. Michael O’Dea, portfolio manager of JANA’s Triplepoint hedge fund-offunds (hedge FoFs), said investors in hedge funds should only pay for manager skill and use a managed account structure to monitor risk and control counterparty relationships. “The only thing worth paying a performance fee for is the skill.
The two ‘pure’ consultants lay down law on fees
The two major asset consulting firms which do not have related funds management operations, Frontier Investment Consulting and Watson Wyatt, made strong statements on fee reform last month. Frontier managing director, Fiona Trafford-Walker, emailed every manager in the firm’s database on October 21, setting out its support for a “flat dollar fee, with an annual inflation ratchet that simply covers the cost of managing your business (excluding inappropriately large salaries and bonuses)…then a performance based fee which aligns the interests of the manager with the client”.
The two ‘pure’ consultants lay down law on fees
The two major asset consulting firms which do not have related funds management operations, Frontier Investment Consulting and Watson Wyatt, made strong statements on fee reform last month. Frontier managing director, Fiona Trafford-Walker, emailed every manager in the firm’s database on October 21, setting out its support for a “flat dollar fee, with an annual inflation ratchet that simply covers the cost of managing your business (excluding inappropriately large salaries and bonuses)…then a performance based fee which aligns the interests of the manager with the client”.
Currency to crimp the master trusts’ comeback
The comeback of retail master trusts against industry funds in the performance stakes will face a headwind if the Australian dollar remains high, because their average strategic hedging level is much lower, according to data from Chant West Financial Services. “To the extent that anyone’s not 100 per cent hedged, they are suffering at the moment,” UniSuper’s chief investment officer John Pearce said last month, and master trusts will be suffering most of all given their average 27 per cent hedging level as at June 2009.
Currency to crimp the master trusts’ comeback
The comeback of retail master trusts against industry funds in the performance stakes will face a headwind if the Australian dollar remains high, because their average strategic hedging level is much lower, according to data from Chant West Financial Services. “To the extent that anyone’s not 100 per cent hedged, they are suffering at the moment,” UniSuper’s chief investment officer John Pearce said last month, and master trusts will be suffering most of all given their average 27 per cent hedging level as at June 2009.
Consultants’ Revival
Dynamic asset allocation, enhanced asset allocation, strategic overlay, stractical investing: call it what you like, there’s a new kid on the block and it’s occupying the minds of super funds, asset consultants and funds managers alike. With super funds beginning to value downside protection more than incremental return, asset consultants and multi-managers have seized the opportunity by offering a service that moves away from “set-and-forget” strategic asset allocation (SAA) by taking intentional tilts over a medium term time horizon. KRISTEN PAECH reports on the investment phenomenon that has given consultants a new lease of life.
Consultants’ Revival
Dynamic asset allocation, enhanced asset allocation, strategic overlay, stractical investing: call it what you like, there’s a new kid on the block and it’s occupying the minds of super funds, asset consultants and funds managers alike. With super funds beginning to value downside protection more than incremental return, asset consultants and multi-managers have seized the opportunity by offering a service that moves away from “set-and-forget” strategic asset allocation (SAA) by taking intentional tilts over a medium term time horizon. KRISTEN PAECH reports on the investment phenomenon that has given consultants a new lease of life. 
