Sun, Aug 28, 2016
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. Strategies - The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I, Hedge funds get more pushback on terms as enthusiasm for strategy wanes[more]

    The 'Holy Grail' hedge fund strategy to handle a black swan the size of World War I From IBTImes.co.uk: To illustrate a strategic gap common to today's portfolio managers, George Sokoloff, PhD, founder and CIO at Carmot Capital, proposes an interesting thought experiment – a breakdown of

  2. Institutional investors - Investors set to increase allocation to private debt, With investment income key, Richmond retirement system faces funding challenges[more]

    Investors set to increase allocation to private debt Investors are set to increase their allocation to private debt, with 60% revealing they believe the private debt market will grow over the next 12 months, according to a new study by Elian, a leading funds services provider. 41%

  3. Investing - Hedge funds snap up banks, unload Apple, Some of hedge funds' favorite stocks are finally starting to beat the market, Einhorn's Greenlight shifts positions, Treasury yield climbs to two-month high as Fischer joins hawks, 9 stocks smart investors put their money in last quarter[more]

    Hedge funds snap up banks, unload Apple From Barrons.com: Prominent hedge funds have a newfound love of big banks, and some have a distaste for shares of Apple, regulatory filings released last week show. The filings suggest that the funds have been pivoting their portfolios in recent mon

  4. Chesapeake energy seeks $1 billion loan to refinance debt[more]

    From Bloomberg.com: Chesapeake Energy Corp. is seeking a $1 billion loan as the company battered by cratering fuel prices and credit downgrades takes a step to address its $9 billion debt load. The natural gas producer hired Goldman Sachs Group Inc., Citigroup Inc. and Mitsubishi UFJ Financial Group

  5. Institutions - Nordic pension funds magnify focus on unlisted and direct investing, building up teams[more]

    From IPE.com: As bond yields remain at low or negative levels, pension funds and other institutional investors in the Nordic region are stepping up efforts to find higher returns by adding more unlisted investments to portfolios and are expanding in-house teams in order to do this, according to new