Renewable Energy Investments Taking Hold in Institutional Portfolios

Many institutional investors are looking for opportunities to invest in the renewable energy asset class.  That may explain why more than half (54%) of the number of infrastructure deals completed in Q2 2018 were for renewable energy assets, while energy assets and utilities assets each accounted for 11% of all infrastructure deals, according to a …

Investors Eye Diversification Potential in Asian Private Debt Mart

Interest in Asian private debt is growing. But while there are opportunities to be had, consultants suggest that investors proceed with caution. “We have observed more interest in Asia private credit than in previous years, as investors look to diversify their credit portfolios and gain access to a region which is regarded as having compelling …

Hawaii’s Controversial Options Strategy Looking Good Even after CIO’s Departure

The options strategy implemented by Vijoy Chattergy, the former chief investment officer of the $17 billion Honolulu-based Employees’ Retirement System of the State of Hawaii (HIERS), which targets equity like returns with 2/3 the volatility of equities over a full market cycle, is still performing well, even after his departure. “Today the strategy remains fully collateralized, and …

Consultants Address Key Concerns in Developing a Private Debt Allocation

When its clients are considering investment in private debt, investment consultant Mercer suggests to them broad diversification, both globally and within the type of private debt they are seeking, according to Bill Muysken, the firm’s global chief investment officer for alternatives. Consultants at Aon recommend using private debt to diversify a portfolio heavily weighted in …

How to Build an All-Season, Real-Assets Portfolio: Practitioners Opine    

Volatile equity markets and inadequate bond yields have driven a spike in investor interest in real assets this year. Investors are building larger and more diversified real-assets allocations, or considering doing so, by adding global and sector exposure, including infrastructure, maritime and international real estate to their real asset mainstay, domestic core real estate. IA …

Illinois U. System to Replicate $5 Bn in Equities with Exchange-listed Options  

The Champaign, Illinois–based State Universities Retirement System of Illinois (SURS), with approximately $20 billion in assets under management (AUM), is using an exchange-listed options strategy to hedge what some observers perceive as a U.S. equities market on the cusp of a painful tumble, in order to beat the market. “Some option strategies can trail. But …

Investors Avoid Options Due to Outdated Mandates, Fear of Market Timing and Perceived Risk

Just 16% of the pension plans and endowments that were interviewed for a recent Greenwich Associates’ survey, How Institutional Investors Use and Think About Exchange-Listed Options, are considering investing in exchange-listed options or increasing their allocation to them, compared with 48% of money managers. “It appears that the use of listed options has come in …