bfinance Asset-Owner Survey Finds More Complex, Diverse Portfolios; Lower AM fees

Over the last three years, extending a trend that began in the wake of the financial crisis, the average institutional investor has transitioned its investment portfolio to one that is not only more complex and diverse, but which features a greater proportion of illiquid investments, according to the findings of the 2018 Global Asset Owner …

As AMs Ramp-up Tech, Institutions Must Clarify Their Needs

The investment data and transparency demands of some institutional investors, and their drive to reduce asset management costs, have had a “transformative” effect on technology development in the investment industry, since the financial crisis, according to investment consultants and tech-sector specialists. They caution, however, that to optimize how they adopt or use these new tools, institutions …

With Private Credit Strategy Benchmarks Proving Inapt, Researchers Say LLI May be Best Bet

Many consultants and investors face a conundrum when trying to formulate a performance benchmark for private credit.  There are a variety of product types within the asset class, making it hard to evaluate them all under one roof. Researchers also point to the evolving nature of the asset class, which includes a relatively small number of …

Asset Owners Must Reconsider Business Models to Succeed in the Future: Consultant’s Report

Asset owners looking to succeed in a world of substantial changes in technology, demography, globalization, environment and social norms will need to significantly reposition their business, operating and investment models, according to new research from global advisory broking and solutions company, Willis Towers Watson. In a just-released paper, titled The Asset Owner of Tomorrow, the …

Sexual Harassment is Institutions’ Top Emerging Due Diligence Target: IA Survey

Institutional investors surveyed by IA recently on the importance they attach to four ascendant asset-manager engagement due-diligence criteria indicated that they place the most importance on managers’ records on sexual harassment, followed in descending order of importance by their records on environmental, social and governance (ESG), cybersecurity and diversity. In response to a brief thought …

Use of Disparate Benchmarks by Public Pensions Muddies Fee Comparisons

There is little uniformity in the use of benchmarks for different asset classes among public pension plans, according to a new report from the Center for State and Local Government Excellence (SLGE) and the Boston College Center for Retirement Research (CRR). Given that pension plans pay their asset managers based on the expectation that they will beat …

As Investors Embrace ESG, Inconsistent Analysis Questioned

As socially responsible investing continues an inexorable march toward the investment mainstream, some institutions are questioning the consistency or uniformity of environmental, social and governance (ESG) analysis, and how this analysis is adopted across investment managers. Some are questioning more deeply, also, the degree to which asset management firms meet certain ESG criteria for themselves …

OCIO Assets on Track to Climb by One-Third in One Year

Total reported outsourced chief investment officer (OCIO) assets managed by U.S.-domiciled firms, listed by Tucson, Ariz.-based executive recruitment firm Charles Skorina & Company, have grown 16% in just six months (October 2017 – March 2018) to now total approximately $1.97 trillion. By extrapolation, those assets under management are tracking to grow one-third over a full …

Alaska’s Comp. Plan: A Fitting Model for Public Fund In-House Asset Management?  

The recent approval of new incentive compensation guidelines for investment and other staff by the board of the Alaska Permanent Fund Corporation (APFC) runs the risk of critical news headlines—a perennial risk faced by publicly funded investing institutions when they move to compensate financial-market professionals on staff competitively.  But so far criticism of the initiative …

Colorado’s FPPA Reaps Rewards of Long Investment Governance Revamp

Staff members of the approximately $4.5 billion Fire & Police Pension Association of Colorado (FPPA) are feeling pretty good about themselves currently. Why? In 2009, an informal level of questioning, second-guessing and  hypothesizing among board and staff members regarding the fund’s longstanding, heavily-consultant-driven asset manager hiring process coalesced into formal action to change that process …