03.09.2010 - Sovereign wealth funds re-define their alpha targets
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
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