Connect with us

PIMCO Retains Bernanke as Senior Advisor

Published

on

Pacific Investment Management Co. (PIMCO) has hired former Federal Reserve Chairman Ben Bernanke as a senior adviser. Suffering from record redemptions, PIMCO is looking to retain assets and provide its clients with the ultimate insight – view’s from a former Fed top dog. In the past, PIMCO relied on its founder Bill Gross for expertise on bonds and the Federal Reserve. Gross left PIMCO for Janus Capital in September 2014.

Bernanke will assist PIMCO on guidance on investment process and Federal Reserve policy. Bernanke will also at times meet with PIMCO clients. To be fair, former Fed Chair Alan Greenspan joined PIMCO as a consultant after his tenure at the central bank.

In a Bloomberg telephone interview, Group Chief Investment Officer Daniel Ivascyn said, “Obviously his experience within central banking is important at the moment, given where we may be in terms of the U.S. economic cycle, but we’re looking for and excited about his ability to make broad-based contributions to our strategy.”

In a statement, Bernanke commented, “I am delighted to work together with Pimco’s strong team of investment professionals and contribute to its investment process in my role as an advisor to the firm.”

Earlier in April, Bernanke joined the Chicago-based hedge fund Citadel (managed by hedge fund billionaire Ken Griffin) as a senior advisor.

Can Old Mutual Weather the Prolonged Storm?

Published

on

South African insurer Old Mutual Ltd.’s earnings are out, and it isn’t a pretty picture. Old Mutual announced that it suffered a 12% drop in adjusted full-year profit. The hoped-for 2018 targets were missed, and their local economy remained anemic. Though Old Mutual is the second biggest insurance company in the country, it was unable to thrive against this sullen backdrop. Old Mutual sought to appease shareholders and potentially benefit from the swoon in the stock price with a US$ 138 million stock buyback. The company has lost nearly a third of its value since listing in Johannesburg less than one year ago. South Africans are not making their premium payments, and currency devaluation made for a difficult year in Zimbabwe. Earnings per share fell to US$ 0.16, down from US$ 0.18 a year earlier, when it was still working to shed its former conglomerate structure. The growth target of gross domestic product growth plus 2% was also missed. Operating profit fell 4% as well. South Africa’s GDP growth was a disappointment at 0.8%.

Norges Bank Investment Management, on behalf of Norway Government Pension Fund Global, is a major institutional shareholder in Old Mutual.

[ Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view content. ]

Continue Reading

Upcoming April 2019 Issue of the Sovereign Wealth Quarterly

Published

on

Below is the cover of the upcoming April 2019 issue for the Sovereign Wealth Quarterly. Sovereign Wealth Quarterly covers institutional investors such as sovereign wealth funds, pensions, endowments, central banks, and other long-term institutional investors.

Continue Reading

Chinese Stock Picker Raises $10 Billion in Half a Day

Published

on

Chen Guangming, a former star portfolio manager at Orient Securities Asset Management Company Limited, started Shanghai-based Foresight Fund. Despite the Chinese stock market crash of 2015 still being an imprinted memory, Foresight Fund ceased receiving client subscriptions in its fund after going well beyond its 6 billion RMB fundraising target. According to news sources, the money was raised in less than half a day. The company allegedly raised more than 70 billion RMB (US$ 10 billion) for its mutual fund called the Ruiyuan Fund. Roughly 20 billion RMB was from China Merchant Bank Company’s fund distribution platform.

Chen Guangming generated big returns at his old employer. Orient Securities Asset Management Company is owned by Orient Securities Co., Ltd., also known as DFZQ. Chen Guangming is the former Chairman of Dongzheng Asset Management and personally oversaw Dongfanghong No. 4. from its inception in 2009 to the end of 2017.

Foresight Fund is cautiously optimistic on China, still seeing growth. In a local news story from Sina, Chen Guangming China’s growth is estimated t be less than 6%, but compares it to the U.S. whose GDP never exceeded 10%, but has experienced high growth in its stock market.

Continue Reading

Popular

© 2008-2018 Sovereign Wealth Fund Institute. All Rights Reserved. Sovereign Wealth Fund Institute ® and SWFI® are registered trademarks of the Sovereign Wealth Fund Institute. Other third-party content, logos and trademarks are owned by their perspective entities and used for informational purposes only. No affiliation or endorsement, express or implied, is provided by their use. All material subject to strictly enforced copyright laws. Registration on or use of this site constitutes acceptance of our terms of use agreement which includes our privacy policy. Sovereign Wealth Fund Institute (SWFI) is a global organization designed to study sovereign wealth funds, pensions, endowments, superannuation funds, family offices, central banks and other long-term institutional investors in the areas of investing, asset allocation, risk, governance, economics, policy, trade and other relevant issues. SWFI facilitates sovereign fund, pension, endowment, superannuation fund and central bank events around the world. SWFI is a minority-owned organization.