Sun, Apr 22, 2018
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. Investing - Sequoia takes Facebook stake as shares slide in data controversy, $1.4b hedge fund sees intact fundamentals for Facebook, Jim Cramer reveals some 'suggested hedge fund trades' amid the Trump tariffs[more]

    Sequoia takes Facebook stake as shares slide in data controversy From Bloomberg.com: The $4.2 billion Sequoia Fund bought a small position in Facebook Inc. as the stock slid late in the first quarter, investment manager Ruane, Cunniff & Goldfarb told clients. "The recent controversy enab

  2. Activist Investors - Blue Sky-owned Wild Breads faces uncertain future[more]

    From AFR.com: A Blue Sky private equity investment in artisan-style baker Wild Breads enjoyed multiple valuation upgrades despite losing millions and breaching its lending covenants, accounts lodged with the regulator last week show. Wild Breads lost $2.4 million in 2017, but Blue Sky ascribed a hig

  3. Opalesque Exclusive: Barnegat to close hedge fund to outside investors on weak opportunities[more]

    Komfie Manalo, Opalesque Asia: Bob Treue's Barnegat Fund Management said it is closing its $666m fixed income relative value hedge fund to outside investors. "The negative side to gains in Fixed Income Arbitrage is that unless we find new opportunit

  4. Investing - Hedge fund makes a big bet on malls, British hedge fund manager Odey short UK government bonds on QE bet[more]

    Hedge fund makes a big bet on malls From Barrons.com: The dominant narrative on American shopping malls is that they're dead. Crushed by Amazon.com, many brick-and-mortar retail stores are destined for bankruptcy. And where is the most retail, clustered all together? Malls. From a

  5. Performance - Hedge funds suffer first back-to-back loss in two years, Netflix performance burns hedge fund short sellers, Macro hedge fund up 14.5% in first quarter sees dollar falling, Renaissance Technologies rebounds across hedge funds in March[more]

    Hedge funds suffer first back-to-back loss in two years From Bloomberg.com: Hedge Fund returns sank for a second straight month in March, the first back-to-back loss since the first two months of 2016, as trade wars, tech-sector woes and a Fed rate hike dragged down the S&P 500 from its