Investment Management
Review - Volume 1 : Issue 3
What's in Volume 1 : Issue 3?
Pan-European pensions
The issue of pensions is at centre-stage globally, from the perspective of the economy, society and investment management opportunities. The problems are well known. These include the coming demographic time bomb, with populations ageing in many leading economies in Europe, the US and Asia, and the related issues of funding and incentives to save.
Dr Wolfgang Mansfeld was closely involved in addressing the question of European pensions provision during his recent presidency of the European Fund and Asset Management Association (EFAMA). His article, "Account based schemes for occupational pensions in Europe", deals with a key aspect in which Europe lags behind the US and how it can catch up. What he has to say is of major significance to the fund management industry, particularly those companies with pan-European ambitions, for which the situation presents a massive opportunity to develop the requisite services.
Asset management in Russia
Christopher Granville, leading expert on the Russian investment scene writes comprehensively on the state and progress of the Russian asset management industry as a fascinating case study for developing fund management markets, and points out opportunities for international asset management firms.
A compelling case for M&A?
Ray Soudah, an internationally recognised and widely quoted expert on mergers and acquisitions argues cogently in "M&A critical for growth and even survival" that consideration of M&A should be an integral aspect of asset and wealth management houses' business strategy, and explains why in many cases it is preferable to attempting organic growth.
The relentless quest for alpha
Mainstream equity and bond markets are no longer expected to produce outstanding returns in the foreseeable future. Given this background, new ways of producing extra returns are being vigorously pursued by fund management houses and institutional investors.
In "The search for alpha in institutional and retail investments", Strategic Insight, a leading research house advising the investment management industry, outlines and comments on many of the new techniques and processes now being considered and implemented by the industry.
Critical directions for the future
With the many upheavals in the industry, there is no shortage of prognostications on its future. A review and analysis of Gary Brinson's authoritative comments in "Where is fund management headed?" published in the prestigious Financial Analysts Journal, touches on several industry issues and controversies of major import.
Offshore going downhill
These two articles highlight important developments in the world of private banks and point to forces in place that might cause the decline of offshore sectors.
Need for regulation
As sales of structured products soar, there is considerable concern about regulatory aspects, including that voiced by Siegel of the German fund association BVI. These are addressed in "Unfair competition".
What next for structured products?
Two articles outline and explain the differing prospects for structured products in the U.S and Pan-Asia.
A long-standing rivalry
In the battle for supremacy between Singapore and Hong Kong, who is ahead?
The fallibility of a genius
The legendary Warren Buffett has a reputation as a near-omniscient investor. In this context, one of his biggest blunders of recent times is fascinating, as analysed in "Buffett's Big Blunder".
Derivatives catch on
'Derivatives flying' provides statistics on the inexorable march in the use of derivatives and particularly the continued explosion in credit derivatives.
Complexity? A case for caution
Supermarkets are now in on the act of selling structured products and there is considerable concern about the potential problems, as highlighted in "Should supermarkets sell structured products?". "Complexity concerns from the US" also highlights the growing anxiety concerning the complexity of structured products and their suitability for retail investors.
Exchanges race for leadership
Securities exchanges continue to suffer upheavals in the form of mergers and alliances, as rival exchanges bid for pole position in the global market of securities' trading. The three articles, "Nasdaq aims to conquer", "Obstacles to Nasdaq" and "Electronic warfare between exchanges" go into the latest developments and issues.
Pension funds taking stock
Liability-driven investing has now very much come into vogue amongst pension funds and "A liability-driven wave" analyses the key issues and state of play.
Hedge fund developments
The latest developments and innovations in the hedge fund world are described in several articles.
A way out of long-term lock-ups
One of the disadvantages of private equity is the long lock-up period and resulting lack of liquidity. This problem is being mitigated in a significant way, as described in "Adding liquidity to private equity".
Enticing homes in Germany
This article outlines the attractions of investment in German residential property for global investors.
Real estate derivatives
Property derivatives have had quite a few false starts over the years but "Property derivatives about to take off?" suggests why things might be different now.
Moneymaking techniques in commodities
Commodities are yet another fashionable area for investment by institutions and the two articles, "Commodities on a roll" and "The game of contango and backwardation" deal with the complexities and pitfalls of direct investment in commodities.
What might slow globalisation?
It is widely believed that financial globalisation continues to advance apace, but "Is a single asset market a pipe dream?" reviews a presidential address to the American Finance Association by an eminent professor pointing out serious impediments.
Statistical Perspectives
A new statistical section provides data on global asset management, assets in key sectors and the leading fund management groups.