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Multi-Asset Demand Drives Institutional Business

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JP morgan

To save the global economy, central bankers have played the free money melody, entrancing asset managers and asset owners such as sovereign wealth funds and public pensions. With probable shifts in key interest rates, institutional investors are re-examining new strategies and solutions. One of these solutions is multi-asset investing. For example, Latin American pension funds and afores admit their high exposure to domestic markets, some view multi-asset strategies as a liquid alternative to gain exposure to international markets and varying asset classes. Institutional money managers of all stripes are hiring multi-asset operators, salespeople and executives en masse, cashing in on the demand for multi-asset strategies. Asset managers are hiring professionals with deep-rooted client connections from competitors, with experience running multi-asset portfolios and individuals with clear communication skills. In September 2014, Pictet Asset Management made moves into the multi-asset world by hiring Percival Stanion, Andrew Cole and Shaniel Ramjee from Baring Asset Management. The key man departure effect was devastating; Baring Asset Management’s flagship multi-asset fund experienced outflows of £5.5 billion (US$ 8.9 billion) in a time span of 7 weeks after Stanion announced his exit. Insight Investment, a unit of BNY Mellon, lured Victoria May away from JPMorgan Asset Management where she was a managing director in the global multi-asset team – parting a career at the firm starting in 1999. The skill of hiring a multi-asset manager is quite high, typical of a hedge fund manager. Furthermore, multi-asset operators are tasked with the art of modifying asset class weights to produce returns within defined risk parameters.

Pensions can circumvent this by moving multi-asset strategies into the absolute return silo.

Benchmark Fatigue

A good number of institutional investors feel hornswoggled by asset managers, growing tired of beating benchmarks, but losing money. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Robert Priestley Exits Future Fund and ASX Boards

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Robert Priestley who was a member of Australia’s Future Fund Board of Guardians has resigned. He is the former the Chief Executive Officer of J.P. Morgan Australia and New Zealand (left in May 2017). He also resigned from his director role at ASX Limited. Priestley remains the non-executive chairman of J.P. Morgan Australia and New Zealand.

In a released statement by Priestley, he said, “Given my decision to step aside from the ASX board, I think it is also appropriate that I step aside from the Future Fund board of guardians.”

Australia and New Zealand Banking Group Ltd (ANZ) is in hot water with Australian regulators, facing criminal cartel charges on an ill-fated institutional placement. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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SWFI First Read, June 20, 2018

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State Street Launches Real Assets Fund Services Group

State Street Corporation formed a real assets fund services group in anticipation of further growth in world of global infrastructure investing. This newly-formed group will leverage the company’s existing real estate platform.

Cadillac Fairview Unveils Massive Building Project – Slated New HQ for OTPP

Cadillac Fairview is a real estate unit of the Ontario Teachers’ Pension Plan (OTPP). Cadillac Fairview, in a partnership with the Investment Management Corporation of Ontario (IMCO), revealed the construction of a new 46-storey office tower at 160 Front Street West, on the northeast corner of Front Street and Simcoe Street in downtown Toronto. This new building will be the headquarters of OTPP at 160 Front Street. This C$ 800 million development will be one city block from Union Station.

James Edwards Head to BMO Global

James Edwards was hired by BMO Global Asset Management to be director of U.K. sales. Previously, Edwards was a Fixed Income Product Specialist at BlackRock.

Peter Diamond Exits Deutsche Bank

Peter Diamond is exiting as Head of SSA Origination and Structuring at Deutsche Bank – a position he had in London.

Hideharu Ichii Joins AMP Capital

Hideharu Ichii left APG Asset Management Asia to join AMP Capital, effective July 2, 2018. Ichii took the position as a Portfolio Manager on AMP Capital’s global listed equity team in Hong Kong. Ichii was a Senior Portfolio Manager in listed real estate Asia-Pacific region at APG.

Keppel Corporation Sells Stake in Development

Shenyang SUNAC Xinxing Enterprise Management acquired a stake for US$ 43 million in the Keppel Township Development (Shenyang) Co. Ltd. from Keppel Corporation.

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Mauritius Aims to Sell Citizenship and Passports to Bolster National Wealth Fund

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The island country of Mauritius plans to offer foreigners a chance to obtain country citizenship in exchange for a non-refundable contribution of US$ 1 million to the national sovereign wealth fund. [ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

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