Inflation is coming, and with commodity prices and property valuations in decline, some investors are allocating to inflation-linked bonds, which are built to outperform once economic growth is hit and real yields fall. But ‘linkers’ carry illiquidity and volatility risks that can undermine their appeal. How should superannuation funds approach these assets? SIMON MUMME reports.
Heavy hitters at the Paul Woolley conference
The Paul Woolley Centre for Capital Market Dysfunctionality will hold its third annual conference in Australia on October 28-30 at University of Technology Sydney. Running over three days this year rather than two, the conference features some interesting academics from Australia and overseas, as well as the former governor of the Reserve Bank, Ian Macfarlane, former Federal Reserve Bank of Atlanta vice president, Robert Eisenbeis, and former boss of the old BT Australia, Rob Ferguson.
Heavy hitters at the Paul Woolley conference
The Paul Woolley Centre for Capital Market Dysfunctionality will hold its third annual conference in Australia on October 28-30 at University of Technology Sydney. Running over three days this year rather than two, the conference features some interesting academics from Australia and overseas, as well as the former governor of the Reserve Bank, Ian Macfarlane, former Federal Reserve Bank of Atlanta vice president, Robert Eisenbeis, and former boss of the old BT Australia, Rob Ferguson.
Behind the fuzziness, there’s money in UN PRI
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At least one well-known funds management identity, when speaking privately about the UN PRI, will pronounce it so as to sarcastically emphasise the ‘PR’ part. He is saying what at least some of the industry is thinking. That becoming a signatory to the grandly named United Nations Principles for Responsible Investment looks great on a press release and is a nice thing to tell your members or investors, but is fuzzy when it comes to the actions required, and the outcomes that can be reasonably expected.
Behind the fuzziness, there’s money in UN PRI
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At least one well-known funds management identity, when speaking privately about the UN PRI, will pronounce it so as to sarcastically emphasise the ‘PR’ part. He is saying what at least some of the industry is thinking. That becoming a signatory to the grandly named United Nations Principles for Responsible Investment looks great on a press release and is a nice thing to tell your members or investors, but is fuzzy when it comes to the actions required, and the outcomes that can be reasonably expected.
Passive versus Active – Jack Gray and Ron Bird have their say
Normal 0 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:”Table Normal”; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:””; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:”Times New Roman”; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}Dear Editor,
Jack Gray and myself were disappointed in the general tenor of the cover story last month on passive versus active management and annoyed by some of the views expressed. Therefore, we would like to take this opportunity to “correct” some of these views. We have restricted ourselves to those that we think are most important which we will address in the order that they appear in your article:
Passive versus Active – Jack Gray and Ron Bird have their say
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Jack Gray and myself were disappointed in the general tenor of the cover story last month on passive versus active management and annoyed by some of the views expressed. Therefore, we would like to take this opportunity to “correct” some of these views. We have restricted ourselves to those that we think are most important which we will address in the order that they appear in your article:
Colonial goes global to reflect offshore revenue
One-quarter of Colonial First State Global Asset Management’s assets under management were sourced outside Australia at the end of the first quarter, but so was 40 per cent of total revenue and CEO Mark Lazberger thinks this proportion will increase.
Colonial goes global to reflect offshore revenue
One-quarter of Colonial First State Global Asset Management’s assets under management were sourced outside Australia at the end of the first quarter, but so was 40 per cent of total revenue and CEO Mark Lazberger thinks this proportion will increase.
CalPERS officially alters asset allocation, reduces discretionary ranges
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The US$183 billion CalPERS board has made the first formal changes to its asset allocation targets since January 2008, increasing exposures to private equity and cash, and narrowing the discretionary ranges around all asset classes set in December last year. The new asset allocation, which sees the target allocation for its Alternative Investment Management (AIM) program, or private equity, increased from 10 to 14 per cent, global fixed income increased from 19 to 20 per cent, and cash increased from 0 to 2 per cent, is a short-term adjustment to the portfolio in the wake of the financial market crisis with the board planning to follow it with a more full-blown asset allocation and liability analysis in autumn next year.
CalPERS officially alters asset allocation, reduces discretionary ranges
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The US$183 billion CalPERS board has made the first formal changes to its asset allocation targets since January 2008, increasing exposures to private equity and cash, and narrowing the discretionary ranges around all asset classes set in December last year. The new asset allocation, which sees the target allocation for its Alternative Investment Management (AIM) program, or private equity, increased from 10 to 14 per cent, global fixed income increased from 19 to 20 per cent, and cash increased from 0 to 2 per cent, is a short-term adjustment to the portfolio in the wake of the financial market crisis with the board planning to follow it with a more full-blown asset allocation and liability analysis in autumn next year.
JP Morgan pulls off US$1bn transition for Timorese SWF
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The US$4.7 billion Petroleum Fund of Timor-Leste has begun diversifying its portfolio away from US Treasuries by appointing, for the first time, an external manager to invest $1 billion in high-grade, diversified fixed income, and has begun researching global equity managers. The fledgling democracy’s sovereign wealth fund, which until now was fully invested in US Treasuries, awarded a dedicated mandate to the Bank for International Settlements (BIS) to manage US$1 billion in longer-dated US government debt and the sovereign credit of other nations.
