Sensing a Trend, Institutions Invest in Green
While some continue to refute that human action is causing global climate change, institutions—sensing a trend—gradually are allocating funds to green investing.
While some continue to refute that human action is causing global climate change, institutions—sensing a trend—gradually are allocating funds to green investing.
Often focusing more on infrastructure—dams, roads, railways—the Canadian Pension Plan (CPP) has joined forces with venture capitalists to buy Internet communications company Skype, possibly signaling a move toward riskier assets for Canada’s large defined benefit plans.
Private equity, the traditional bastion of institutional investors, is struggling with poor returns and regulatory troubles as REITs continue to grow.
Although small fish itself, the regulator’s initiative to move existing final-salary scheme members into a defined contribution plan signals the end of an era – and may in fact encourage others to do the same.
Often viewed with a suspicious eye, SWFs – the current kings of M&A – are increasingly joining forces with local investors when making moves.
A new survey shows that pension funds and asset managers view the latter’s services in a different light, with only 5% of pension funds willing to say that their asset manager was ‘excellent’.
Studies show that large institutions are moving away from equities, burned by a decade of sub-par returns, but will such a move have caused them to miss one of the greatest bull runs in decades?
Institutions, despite being offered greater voting power in recent London proposals, are balking at a two-tiered shareholder system.
While seemingly inevitable, the focus on investment manager compensation has now spread to pension funds, a move that will concern many as talent retention worries continue.
PPIP, the government program to take ‘toxic assets’ off the books of banks, has received a lukewarm response in America; the Chinese Investment Corporation, however, is reportedly putting up $2 billion to invest in this mortgage-backed securities program.
On a macro scale, it’s confusion. But on an individual level, America’s pension plans are sure of what they need to do regarding investment risk-levels; they just aren’t all sure in the same way.
The Harvard endowment has been lambasted by critics for an illiquid
investment strategy and an overly ambitious infrastructure expansion
plan, but in possible signs of a turnaround at the world’s largest
university endowment, hiring has started once again.
With European regulators looking to tighten the alternative investment collar, UK pension funds – who now, more than ever, need the excess returns that alternatives are purported to provide – have stepped into the battle.