The increasingly blurry lines between alternative investment classes — as well as between those investments and traditional stocks and bonds — have some managers predicting the term “alternative investments” will no longer exist.
Significant demand for insurance-linked securities, in particular catastrophe bonds, has driven down yields and taken some of the luster off the once-shining beacons of uncorrelated assets in a pension fund's investment portfolio. But all is not lost.
Mark Fawcett, the man at the helm of investment at what could becomethe U.K.'s biggest defined contribution plan, is looking closely at potential shifts in asset allocation - including expanding its roster of investments.
David Neal, chief investment officer of Australia's A$97.6 billion (US$90.6 billion) Future Fund, says his fund's absolute-return focus, unfettered by fixed strategic asset allocations or benchmark constraints, could help it clear a challenging return hurdle over the coming decade.
Turner Investments LP, suffering from poor performance and client and staff defections, has lost 74% of its assets from its peak in 2010. But Stephen J. Negrotti, the Berwyn, Pa.-based money manager's new president and CEO, has a plan to pull the firm out of its tailspin.
Future Fund Chief Investment Officer David Neal has advice for any asset owners contemplating the kind of absolute-return-focused dynamic asset allocation strategy his fund is pursuing: If there’s too big an asymmetry in market knowledge and information between the investment team and the board of trustees, don’t even think about it.