Wilshire’s annual review of the US$190 billion CalPERS’ internal risk managed absolute return strategies (RMARS) has revealed a number of anomalies compared with its other global equity investments, including an over-reliance on quantitative tools and inadequate staff compensation incentives. In addition, an examination of the underlying investments in six of the hedge fund-offunds (hedge FoF) portfolios, conducted by Wilshire for the first time, revealed a “surprising number” of macro, commodities and currency funds in the portfolios. It concluded that there may be more macro, currency, commodity or directional risk in the program than the investment committee prefers, and this has been reflected in the performance of the portfolio.
CalPERS to confront messy absolute return portfolio
Wilshire’s annual review of the US$190 billion CalPERS’ internal risk managed absolute return strategies (RMARS) has revealed a number of anomalies compared with its other global equity investments, including an over-reliance on quantitative tools and inadequate staff compensation incentives. In addition, an examination of the underlying investments in six of the hedge fund-offunds (hedge FoF) portfolios, conducted by Wilshire for the first time, revealed a “surprising number” of macro, commodities and currency funds in the portfolios. It concluded that there may be more macro, currency, commodity or directional risk in the program than the investment committee prefers, and this has been reflected in the performance of the portfolio.
London 2009 Program
Time Program 8.30 – 8.55 Registration 8.55 – 9.00 Conference opening and welcome by chair, Colin Tate, director of Conexus Financial. 9.00 – 9.15 National manager, financial services, Austrade, Gary Johnston highlights the growth of Australia’s superannuation and investment market, fuelled by a mandated superannuation system, and the opportunities for offshore service providers. 9.15-9.45 Senior … Read more
Creative mandates for UniSuper as new CIO settles in
Fresh from a stint as head of asset management at China’s second largest insurance company, Ping An, the new chief investment officer of the $19 billion UniSuper, John Pearce, has some definitive views on how to position the fund for the future. He spoke to Aman da White about bringing some equities management inhouse, focussing on infrastructure in the developed world, and being more creative in setting its investment mandates.
Creative mandates for UniSuper as new CIO settles in
Fresh from a stint as head of asset management at China’s second largest insurance company, Ping An, the new chief investment officer of the $19 billion UniSuper, John Pearce, has some definitive views on how to position the fund for the future. He spoke to Aman da White about bringing some equities management inhouse, focussing on infrastructure in the developed world, and being more creative in setting its investment mandates.
The Great Currency Debate
Troy Rieck hates the word ‘unprecedented’. The managing director, Capital Markets, for Queensland Investment Corporation says that crises come along all the time. And, for the most part, Australia is, indeed, the lucky country. But what makes the crisis of the past 18 months different is not so much its severity – because it is not as severe as the 1930s or even the 1970s – but the fact that so many people have so much invested in the markets. With superannuation at negligible levels in those two previous crises and well before the big government privatisations and floats which spawned stock market investing by average workers, the slump in both listed and unlisted markets, including housing, is much more of an issue this time around.
The Great Currency Debate
Troy Rieck hates the word ‘unprecedented’. The managing director, Capital Markets, for Queensland Investment Corporation says that crises come along all the time. And, for the most part, Australia is, indeed, the lucky country. But what makes the crisis of the past 18 months different is not so much its severity – because it is not as severe as the 1930s or even the 1970s – but the fact that so many people have so much invested in the markets. With superannuation at negligible levels in those two previous crises and well before the big government privatisations and floats which spawned stock market investing by average workers, the slump in both listed and unlisted markets, including housing, is much more of an issue this time around.
The incubators are at it again
Six months of rising markets have finally done it. They’ve restarted the boutique incubation industry, which has seen more deals get done in the past few weeks than it has in the few months preceding them. One really knew it was ‘game on’ when a pioneer of incubation in Australia, Treasury Group, announced its first deal in almost two years. A related party deal at that with Mike Fitzpatrick, a living reminder of private equity’s good times, who’s been back with a vengeance lately. The former investment bankers at AR Capital, whom Treasury paid $1.1 million for a 30 per cent piece of, had a four year track record on their Australian equity long/short fund.
The incubators are at it again
Six months of rising markets have finally done it. They’ve restarted the boutique incubation industry, which has seen more deals get done in the past few weeks than it has in the few months preceding them. One really knew it was ‘game on’ when a pioneer of incubation in Australia, Treasury Group, announced its first deal in almost two years. A related party deal at that with Mike Fitzpatrick, a living reminder of private equity’s good times, who’s been back with a vengeance lately. The former investment bankers at AR Capital, whom Treasury paid $1.1 million for a 30 per cent piece of, had a four year track record on their Australian equity long/short fund.
Hedgies motivated as they swim back to surface: Cliffwater
Hedge funds which survive the 50 per cent cull of the industry should be back “above water” by the first quarter of 2010, and absolute return adviser Cliffwater is taking advantage of better terms to refresh and even grow the fund-of-fund portfolios it assembles for its large US institutional clients. Cliffwater’s CEO and chief investment officer, Stephen Nesbitt, and managing director Thomas Lynch, were visiting Australia last month to promote a research relationship they have struck with Asia-Pacific alternatives consultant, Sovereign Investment Research.
Hedgies motivated as they swim back to surface: Cliffwater
Hedge funds which survive the 50 per cent cull of the industry should be back “above water” by the first quarter of 2010, and absolute return adviser Cliffwater is taking advantage of better terms to refresh and even grow the fund-of-fund portfolios it assembles for its large US institutional clients. Cliffwater’s CEO and chief investment officer, Stephen Nesbitt, and managing director Thomas Lynch, were visiting Australia last month to promote a research relationship they have struck with Asia-Pacific alternatives consultant, Sovereign Investment Research.
AXA leans on local knowledge in Chinese property hunt
AXA Real Estate Investment Managers (AXA REIM) entered the Chinese real estate market last month, signing a memorandum of understanding with Ping An Trust, a subsidiary of giant domestic insurer Ping An, to co-invest in residential projects within large cities. The deal marked the manager’s first strategic partnership in the region. It was in the process of signing a similar agreement with a “household name” financial institution in Japan, and is seeking co-investment partners in Australia and India, Frank Khoo, AXA REIM’s global head of Asia, said.
