From IPE: What do sovereign funds consider to be alpha these days? The immaculate storm of 2008-2009 that swept every asset class off their peaks appears to have influenced sovereign funds and central banks’ expectations of investment performance.
In the 2006-2007 period when markets were sanguine, some investors expected an information ratio of 1 or greater from their externally managed portfolios; recently, some institutions have revised their expectations to a ratio of 0.7, says David Smart, global head of sovereign funds and supranationals at Franklin Templeton Investments……………………………………….Full Article: Source