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 …

Paltry Rates Perplex Life Insurers as Pre-Crisis Debt Matures

Investment executives at U.S. life insurance companies continue to lose sleep over identifying the best reinvestment opportunities for maturing debt in which they invested a decade ago. With interest rates much lower now than before the financial crisis, the challenge for life insurers is to find new investment classes that meet their yield requirements without …

Saudi EMI Inclusion Already a Boon to Country-Focused Investors

The announcement at the end of June of the upcoming addition of Saudi Arabia to the MSCI Emerging Market (EM) Index was not only a win for Saudi Arabian companies, but also a win for investors who took advantage of the news to invest in BlackRock’s Saudi Arabia ETF (KSA)—which is up 17% year to date, …

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 …

Canada Leads the ETF Charge

Canadian institutions are at the forefront of a growing move by institutions worldwide to integrate exchange-traded funds (ETFs) into their portfolios, according to the 2017 Canadian Exchange-Traded Funds Study, recently released by Greenwich Associates. In fact, the 52 Canadian institutions that participated in the study currently allocate an average 18.8% of their total assets to …

Amid Rising Interest Rates, Investors See Liquidity Benefit in Fixed-Income ETFs. 

Institutional investors are moving in increasing numbers into fixed-income exchange-traded funds (ETFs), according to a recently released Greenwich Associates study, ETFs: Valuable Versatility in a Newly Volatile Market. The heightened demand for these products is derived from insufficient liquidity in the fixed-income market as well as institutional portfolios adjusting to an environment of rising interest rates, …