08.06.2016 - Why Sovereign Wealth Funds Should Look at Currency Alpha
Steady globalization, government interventions and increased investment into rapidly developing economies are key factors influencing emerging market currencies. Sovereign funds and large Canadian pensions, such as the Canada Pension Plan Investment Board (CPPIB) and Ontario Teachers' Pension Plan (OTPP), continue to invest capital into markets such as India, Brazil and China. Sizable portfolios of listed securities have accumulated for wealth fund investors in non G-7 economies, thus exposing them to currency risk. Public institutional investors continue to weigh the benefits of currency management and alpha opportunities versus the cost. According to SWFI Compass, an RFP and opportunity tracker, there continues to be compelling demand in 2016 for allocation to emerging market external fund managers...............................................Full Article: Source
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