Fri, Feb 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

More internalization: A new paradigm for large institutional asset owners

Friday, July 28, 2017

Komfie Manalo, Opalesque Asia:

Max Townshend, investment director at Local Pensions Partnership (LPP) believes that the UK will start to see more internalization by asset owners, a trend which is already a growing in Canada and Australia.

Participating in the latest Opalesque 2017 UK Roundtable, Townshend said his team began managing an internal fundamental equity program in 2014, which now accounts for about 40% of LPP's long only equity exposure. In due course and with the advent of alternative risk premia investing, some of the lower turnover futures based and single stock long/short equity factors would be potential candidates for LPP to research and manage internally.

In doing so, LPP can also take active views on the market and opportunities: "With a strategic lens, we're always interested in trying to find areas where our risks align differently to large parts of the market. An example of a risk that is structurally against us is Sterling real rates, where many corporates and pensions in the UK are forced buyers of protection. There's far greater demand for linkers than issuance by the DMO, and as a consequence the premium to hedge inflation is high. If we didn't have a Sterling liability, one might see short UK real rates as an appealing trade for the next 20 years, but we have significant real rates risk and......................

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. Art & Motion launches collectible car alternative investment vehicle[more]

    Komfie Manalo, Opalesque Asia: Luxembourg-based Art & Motion has launched a new investment vehicle dedicated to vintage cars and exceptional high-quality vehicles as this collectible market has grown exponentially the turn of the centu

  2. Opalesque Exclusive: Global Sigma captures February's long-vol trade[more]

    Bailey McCann, Opalesque New York for New Managers: Florida-based Global Sigma rode February's volatility to new highs. The firm's AGSF strategy is up +2.8 percent through February 16 and +4.2 percent YTD a

  3. Institutional Investors - Hedge funds regain their appeal for a $57 billion asset manager, Private credit strategies in stratosphere[more]

    Hedge funds regain their appeal for a $57 billion asset manager From Bloomberg.com: With volatility back on the radar, one of the Nordic region's biggest asset managers is considering relying a bit more on hedge funds to help oversee his portfolio. Mikko Mursula, the chief investment off

  4. Investing - All aboard for hedge funds as trade tide lifts shipping, Hedge funds pile into Time Warner in bet on merger success[more]

    All aboard for hedge funds as trade tide lifts shipping From Reuters.com: Forced to abandon ship after mistiming their investments five years ago, hedge funds are venturing back in a bid to profit from growing global trade flows. Around 90 percent of traded goods by volume are tran

  5. Investing - Hedge funds turn short on tech just as stock rally takes off, After biggest short, speculators slash bearish US bond bets as supply deluge looms[more]

    Hedge funds turn short on tech just as stock rally takes off From Newsmax.com: A key group of investors has just missed out on the biggest tech-stock rally since 2014. Hedge funds and other large speculators turned net short on Nasdaq 100 Index futures for the first time in 21 months, ac