Mon, Aug 3, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Bfinance risk management survey finds diversification is key for institutional investors

Thursday, May 16, 2013

Beverly Chandler, Opalesque London: bfinance, the institutional investor consultancy, has published the results of its first Risk Management Survey of institutional investors responsible for assets under management of some $480bn, located in Europe, the US and Middle East.

Key findings included the fact that there is a growing focus on monitoring asset class correlation and seeking out diversification benefits paves the way to further improvements. The firm claims that in the "new normal", pronounced correlation effects and increases in allocation to real assets should prompt institutional investors to depart from risks models that are based on historic returns. There was also a finding that organisational changes will be driven by consensus among institutional investors that risk monitoring and management should be independent of the investment function.

There was also a finding that the resources allocated to risk management are not keeping pace with the need for heightened risk monitoring. Assuming a threshold cost of $250k for a sophisticated risk system, 72% of respondents have not invested sufficiently, the firm found. The increasing interest of investors in real assets and absolute return strategies is raising additional challenges for pension fund risk departments, they write.

Toby Goodworth, Head of the Risk Management at bfinance in London said: "The collapse of Lehman Brothers and continued market u......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: Despite bumpy June/July, CTAs hold on[more]

    Bailey McCann, Opalesque New York: To say that things have been rocky in managed futures recently is putting it mildly. In June, the industry saw its worst month on a performance basis in the past four years. Then yesterday,

  2. Investing - Hedge fund billionaires bet on London as revival gathers pace[more]

    From Bloomberg.com: London’s fund industry is bouncing back, and U.S. billionaires Steven A. Cohen and Ken Griffin are grabbing a piece of the action. Griffin’s Citadel and Millennium Management, a hedge fund run by Israel Englander, have bulked up in London, where asset growth is outpacing the U.S.

  3. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  4. Opalesque Roundup: Hedge fund assets rose to 11th consecutive quarterly record level: hedge fund news, week 31[more]

    In the week ending 24 July, 2015, the total global hedge fund industry assets rose to the 11th consecutive quarterly record level in 2Q15 to $2.97tln; Eurekahedge reported that hedge funds raised $93bn in the first six months of 2015; The SS&C GlobeOp Forward Redemption Indicator for July 201

  5. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

 

banner