The increasing size of alternative investments may be driving down their benefit for institutional investors, says Stephen Johnston, director at Omnigence Asset Management. “There are trillions of dollars in those strategies. How can they generate alpha now? Because when you get to that size you start to replicate market returns.” Read: 66% of institutional investors […]
To find opportunity in times of volatility, institutional investors must consider their objectives and then expand their toolkit, said Saurabh Sud, a portfolio manager at T. Rowe Price, during the Canadian Investment Review‘s 2023 Investment Innovation Conference in November. It’s been a challenging environment for most fixed-rate assets with surging yields and higher volatility. As a […]
Despite the low-yield environment, fixed income continues to play an important role for institutional investors looking to make their portfolios work harder in a risk-controlled fashion, said Jeffrey Moore, a portfolio manager at Fidelity Investments Inc., during a session at the Canadian Investment Review’s 2021 Global Investment Conference. “For the bond market to hurt, there needs […]
Between mixed signals about inflation, signs of structural weakness in China’s over-leveraged real estate sector and September’s low returns on global equities, institutional investors have just been through a volatile quarter. And the fourth quarter is likely to be filled with hidden hazards, both known unknowns and unknown unknowns. Most portfolio managers will try to […]
North American institutional investors are catching up to other global regions in their interest in sustainable investing, according to a new survey by FTSE Russell. Nearly half (42 per cent) of North American asset owners surveyed before the coronavirus pandemic said they’re interested in sustainable investing, up from just 17 per cent in 2019. This remains a […]
Trading volume for exchange-traded funds is rising. And as such, more ETF trades are flowing through trading desks. For ETFs with underlying securities that have different characteristics than equities, such as credit instruments or fixed income, it’s sometimes unclear who should be handling these transactions, according to a report by Greenwich Associates based on interviews […]
Discovering moments of mispricing is the soul of generating active returns, says Wylie Tollette executive vice-president of client portfolio solutions at Franklin Templeton Investments. But some investors, eager to discover opportunities to add alpha to their portfolio mix, may accidentally harness so many sources that their efforts to diversify actually hinder the benefits of doing […]
There are two fundamental reasons for including alternatives in a defined contribution pension portfolio, according to Ed Studd, solutions manager for U.S. portfolio solutions at Schroders, during a session at Benefits Canada’s 2019 Defined Contribution Investment Forum in Toronto on Sept. 27. First, alternatives can help the portfolio achieve better diversification by accessing different types […]
Why your factor beta comes with a lot of noise.
A large majority (91 per cent) of institutional asset owners either have some allocation to a smart beta strategy, have evaluated the concept or are planning to evaluate it in the coming 18 months, according to FTSE International Ltd.’s latest survey on the area. “With five years of results for our global smart beta survey, we are […]