Page 766 – Investment Magazine

Going Passive

03/07/2009 by Staff Writer

Insto investors question active management

The big question now is: what to invest in? If you believe in the recovery and mean reversion then this could be the best beta play of all time. On the other hand, active managers claim the markets represent a stockpicker’s paradise. The old active versus passive debate has returned with a vengeance. SIMON MUMME and GREG BRIGHT report.

Going Passive

03/07/2009 by Staff Writer

Insto investors question active management

Never before, or at least never in living memory, have super funds faced such uncertainty as in the past 12 months. But with signs of recovery emerging for both markets and the global economy, trustee boards are feeling that it is safe to get back into the water. Most have been sitting on cashflow build-ups and have recovered a good part of their Aussie dollar hedging losses from last year. The big question now is: what to invest in? If you believe in the recovery and mean reversion then this could be the best beta play of all time. On the other hand, active managers claim the markets represent a stockpicker’s paradise. The old active versus passive debate has returned with a vengeance. SIMON MUMME and GREG BRIGHT report.

Pages: 1 2 3 4 5 6 7 8 9 10 11 12

Cbus puts risk back on the table… slowly

07/02/201903/07/2009 by Staff Writer

The $13 billion Cbus is looking to gradually increase the amount of risk within its portfolio, hiking its allocation to equities over the next six to 12 months. Trish Donohue, investment manager at Cbus, said the fund had not yet reallocated the money redeemed from the international equities mandate terminated with AllianceBernstein earlier this year, however in line with its strategy it would be looking to “gradually increase exposure to equities over the next six to 12 months”. Cbus moved to a more defensive position in the lead up to the global financial crisis, increasing its allocation to cash and underweighting its allocations to equities.

Cbus puts risk back on the table… slowly

07/02/201903/07/2009 by Staff Writer

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Funds mull currency strategy after 2008’s losses

06/08/202103/07/2009 by Staff Writer

The financial year just gone has been challenging for super funds in so many ways, none more so than in the management of their currency exposures. In one month alone, last October, two weeks of manic volatility left the Aussie dollar reeling with a drop of US20c. Many super funds had to write very large cheques to cover their currency hedges. With the A$ back up over US80c, the chances of a similar slump up ahead are not being discounted by market observers.

Funds mull currency strategy after 2008’s losses

06/08/202103/07/2009 by Staff Writer

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* 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;} The financial year just gone has been challenging for super funds in so many ways, none more so than in the management of their currency exposures. In one month alone, last October, two weeks of manic volatility left the Aussie dollar reeling with a drop of US20c. Many super funds had to write very large cheques to cover their currency hedges. With the A$ back up over US80c, the chances of a similar slump up ahead are not being discounted by market observers.

Pages: 1 2 3

Great Depression times three, or credit’s the place to be

07/02/201903/07/2009 by Staff Writer

Financial markets are pricing in corporate credit default rates more than three times higher than during the Great Depression, meaning super funds that invest in a highly diversified portfolio of investment grade credit are likely to be compensated for the risks that they are taking regardless of whether spreads still blow out, new research has found. Research from Melbourne-based Omega Global Investors titled High Investment Grade Credit Opportunities for Institutional Investors revealed implied default rates for US corporate bonds at March 31 this year were 38 per cent for corporates and 53 per cent for financials.

Great Depression times three, or credit’s the place to be

07/02/201903/07/2009 by Staff Writer

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;} Financial markets are pricing in corporate credit default rates more than three times higher than during the Great Depression, meaning super funds that invest in a highly diversified portfolio of investment grade credit are likely to be compensated for the risks that they are taking regardless of whether spreads still blow out, new research has found. Research from Melbourne-based Omega Global Investors titled High Investment Grade Credit Opportunities for Institutional Investors revealed implied default rates for US corporate bonds at March 31 this year were 38 per cent for corporates and 53 per cent for financials.

Pages: 1 2

IBM offers all channels as it puts its technology stamp on super administration

07/02/201903/07/2009 by Staff Writer

IBM Australia is this month rolling out a new digital telephone system for its super fund administration clients, including the Watson Wyatt client funds which were transitioned from April last year. Watson Wyatt, which last year switched administration outsource partners from the former CitiStreet Australia – subsequently bought by its former client Sunsuper – to IBM, has taken an active role in the new arrangement. It was IBM’s second big win of a group of corporate super fund clients, following a similar deal with Russell Investments when it entered the Australian market two years earlier.

IBM offers all channels as it puts its technology stamp on super administration

07/02/201903/07/2009 by Staff Writer

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* 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;} IBM Australia is this month rolling out a new digital telephone system for its super fund administration clients, including the Watson Wyatt client funds which were transitioned from April last year. Watson Wyatt, which last year switched administration outsource partners from the former CitiStreet Australia – subsequently bought by its former client Sunsuper – to IBM, has taken an active role in the new arrangement. It was IBM’s second big win of a group of corporate super fund clients, following a similar deal with Russell Investments when it entered the Australian market two years earlier.

Pages: 1 2

Switching analysis finds members buying high and selling low

07/02/201903/07/2009 by Staff Writer

Super fund members are jeopardising their retirement savings by switching into higher risk investment options at the height of the market and into lower risk investment options as markets are falling, analysis of member switching behaviour by Watson Wyatt has revealed. Watson Wyatt analysed around 1750 switches by members in four of its corporate super fund clients and found they were demonstrating typical retail investor behaviour by buying high and selling low. The findings were based on data from funds in 2007 and 2008. In 2007, as markets were rising, “overwhelmingly people were switching into more risk”, according to David McNeice, principal of Watson Wyatt.

Switching analysis finds members buying high and selling low

07/02/201903/07/2009 by Staff Writer

Normal 0 false false false MicrosoftInternetExplorer4 st1:*{behavior:url(#ieooui) } /* 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;} Super fund members are jeopardising their retirement savings by switching into higher risk investment options at the height of the market and into lower risk investment options as markets are falling, analysis of member switching behaviour by Watson Wyatt has revealed. Watson Wyatt analysed around 1750 switches by members in four of its corporate super fund clients and found they were demonstrating typical retail investor behaviour by buying high and selling low. The findings were based on data from funds in 2007 and 2008. In 2007, as markets were rising, “overwhelmingly people were switching into more risk”, according to David McNeice, principal of Watson Wyatt.

Pages: 1 2

Going Passive

Insto investors question active management

Going Passive

Insto investors question active management

Cbus puts risk back on the table… slowly

Cbus puts risk back on the table… slowly

Funds mull currency strategy after 2008’s losses

Funds mull currency strategy after 2008’s losses

Great Depression times three, or credit’s the place to be

Great Depression times three, or credit’s the place to be

IBM offers all channels as it puts its technology stamp on super administration

IBM offers all channels as it puts its technology stamp on super administration

Switching analysis finds members buying high and selling low

Switching analysis finds members buying high and selling low

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