CHARLOTTESVILLE, Va. Investors from Brazil, Russia, India and China see domestic political risk as a primary concern over the next three years, but remain more optimistic about their countrys investment market than in 2005, according to a survey of roughly 1,700 CFA Institute members.
Roughly 70% of respondents in both Russia and India and 61% of respondents in both Brazil and China indicated that securities of resident issuers would be good investments during the next three years. At the end of 2005, 66% of Russian respondents, 74% of Indians, 60% of Brazilians and 32% of Chinese respondents felt the same way.
Clearly the continued accessibility of local markets, the adoption of free-market principles and the build-up to events like the 2008 (Beijing) Olympics are having a huge internal impact on confidence, Jan Squires, managing director of CFA Institute Asia Pacific operations, said in a news release announcing the data.
U.K. funds cut
LONDON U.K. pension plans cut their equity exposure to 61% of total assets as of Dec. 31 from 62% a year earlier and 68% as of Dec. 31, 2003, according to a survey released April 10 by Mercer Investment Consulting.
The average equity allocation for continental European and Irish pension plans was 42% as of Dec. 31, compared with 40% for the previous year, according to Ralph Frank, European director of consulting at Mercer Investment Consulting.
The survey of 651 pension plans with combined assets of e423 billion ($830.64 billion) showed active currency management and tactical asset allocation were likely become more popular in continental Europe and Ireland over the next year. Currently, 4% of continental European pension plans use active currency management, compared with 8% of U.K. plans, while 3% in continental Europe use TAA vs. 5% in the U.K.
Almost 9% of continental European and Irish pension plans were invested in hedge funds as of Dec. 31, compared with 6% in the U.K. Also, 7% of continental European plans are invested in private equity, compared with 3% for U.K. plans.
Alberta may get own asset manager unit
EDMONTON, Alberta Alberta Investment Management, which manages the pension assets and other public money for the Canadian province, would be separated from the Department of Finance to create the Alberta Investment Management Corp. under terms of a bill introduced in the Alberta Legislative Assembly, confirmed Mike Berezowsky, a spokesman with the Finance Department.
Alberta Investment Management, Edmonton, manages C$70 billion ($60.5 billion) in investments, of which roughly C$26.95 billion is public pension assets. The bill is expected to pass, he said.
The separation would allow investment management officials to focus exclusively on investments, which is only one of many priorities at the Department of Finance, Mr. Berezowsky said. A commissioned study by the Alberta government in January 2006 concluded that a stand-alone entity could improve net investment returns by 25 to 100 basis points.
ZEIST, Netherlands Stichting Pensioenfonds PGGM published a list of the companies in which it holds shares, responding to concerns about responsible investing expressed by members of the e81.2 billion ($108.5 billion) plan, said spokeswoman Ellen Habermehl. The list will be updated annually, and the latest filing shows the plans shareholdings in all markets as of Dec. 31.