With recent mandates seemingly on the rise for third-party
securities lenders, custodians – the traditional bastion of the business – are
fighting back.
The manager of the world’s largest bond fund, who sold out of all his holdings in US Treasury bonds in March of this year, is pushing investors to move away from Treasuries and seek global investments for better yield opportunities.
Reflecting a general movement by investors to diversify away from portfolios dominated by the “home bias” of domestic stocks, as noted in a survey by aiCIO, a new paper by Hermes Global Equities Advisers shows that investors must become increasingly global to capture superior returns.
As part of the recovery of funds that were frozen in an investment fraud case in New York, more than $215 million in Iowa public employee retirement funds have been transferred to the state.
A report by asset management consulting firm Cerulli Associates shows that assets in Latin American pension and mutual funds will reach $1.4 trillion over the next five years, with Chile becoming the most attractive market.
The Federal Reserve has announced that it now expects headline inflation to reach 2.1-2.8% during 2011 before returning to the official target of under but close to 2% in the following year.
Timothy Corbett, who has been the chief investment officer of Connecticut's $25 billion pension fund since July 2009, has resigned and will head into the private sector.