Thu, Aug 21, 2014
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. Institutions – Texas Employees sets 2015 tactical plan for alternatives, CalPERS' real estate consultant cautions the pension fund's investment committee, Why Sunsuper likes hedge funds[more]

    Texas Employees sets 2015 tactical plan for alternatives From PIOnline.com: Texas Employees Retirement System will invest in up to four new hedge funds in the next fiscal year, which begins Sept. 1. Trustees approved 2015 tactical investment plans for the hedge fund, private equity and in

  2. Private equity follows hedge funds into reinsurance for long-term capital[more]

    From Artemis.bm: It’s not just hedge funds that are entering the insurance and reinsurance market in search of so-called long-term capital to put to work in their strategies, private equity firms targeting the space are also seeking opportunities to add assets under management. The entry of large pr

  3. North America – New York City’s next hot neighborhoods targeted with property funds[more]

    From Bloomberg.com: New York’s real estate world is filled with tales of ordinary people who bought property decades ago and saw values skyrocket to the millions. Seth Weissman is seeking investors to get in early on the next hot neighborhoods. The veteran of Goldman Sachs Group Inc. and hedge

  4. Investing – George Soros bets $2bn on stock market collapse, Warren Buffett's Berkshire reveals Charter stake, cuts DirecTV, Hedge funds lusting to cash out of MGM, Top hedge fund managers are buying Ally Financial, Hedge funds dumped 5m Herbalife shares in Q2, Paulson & Co hedge fund ups Puerto Rico real estate bet, Netflix Inc., Citigroup Inc, Google Inc are top new picks in Tiger Management’s 13F[more]

    George Soros bets $2bn on stock market collapse From Newsmax.com: Billionaire investor George Soros has increased his financial bet that U.S. stocks will collapse to more than $2 billion. The legendary hedge fund manager has been raising his negative bet on the Standard & Poor's 500 Inde

  5. Investors now net short S&P500 and increased Russell shorts, technicals suggest further selling[more]

    Komfie Manalo, Opalesque Asia: Market Neutral funds increased their market exposure to -1% net short from -6% net short last week, according to Bank of America Merrill Lynch’s Hedge Fund Monitor. The report also added