(February 6, 2014) — Asset managers, consultants, and other providers with a flair for innovation have been recognised as winners in their field in the aiCIO European Innovation Awards 2014.
Across a wide field of categories, the best were shortlisted through client nomination and selected by the aiCIO Advisory Board.
Winners will be honoured at the annual aiCIO European Innovation Awards dinner at London’s Savoy on May 15, when the victors of the asset owner categories will be revealed.
Some 31 pension funds have been shortlisted for eight prizes for innovation, with a further seven fund CIOs or investment heads nominated for an individual award. Nominations for these categories were announced yesterday.
The asset manager/servicing awards are broken down into four broad categories: Core Investments, Alternative Investments, Strategy & Tactics, and Servicing.
For the full list of nominees—including details behind the nomination—click here.
Core Investments
Fixed-income: Twenty Four Asset Management
This group of (mainly ex-Morgan Stanley) bond traders burst on to the scene amid the chaos of the financial crisis. They have impressed investors with their innovative approach to fixed income instruments, explored the basis of duration—and secured some very high class clients in the process.
Equities: Nordea
The discerning North Europeans’ favourite, Nordea has made a name for itself around the rest of the continent. Its range of funds is huge and offers investors exposure to markets previously only (well) known to locals.
Emerging Markets: Lazard Asset Management
By combining multi-asset and emerging markets Lazard earned a place on this year’s nomination list. Aside from the Market Allocation Fund, the manager’s largest range of funds fall into the emerging markets bracket offering a wide range of options.
Strategy & Tactics:
Multi-Asset & Smart Beta: Amundi
This new arrival has gained several fans in the institutional investment community. “In multi-asset, you need to look for new, open funds with good ideas—and this is one of them,” said one investment consultant. Blackstone’s former head of distribution joined the firm in June coinciding with its acquisition of a US adviser to support the French asset manager’s reach across the Atlantic.
Liability-Driven Investing: Insight Investment
Arguably the godfather of the UK LDI market, Insight has gained more market share and pushed into the US market. Home clients are fans of its bond portfolio—and the investment experts who put it together.
Swaps/Buy-in: Pension Insurance Corporation
Not only does PIC push the boundaries on what was traditionally considered to be “too difficult” deals, the company’s portfolio allocations help to ensure the pension assets it takes on are spread across some of the most uncorrelated investments in the industry.
Fiduciary Management: Cardano
The Anglo-Dutch firm is the only one to report its clients’ results to the wider market for them—and prospective clients—to use as a benchmark. “This is our second year with Cardano and we have been impressed with their investment thinking and their performance to date relative to liabilities,” said one client.
Investment Consulting: Redington
“Redington continue to break down the barriers to effective investment consulting. They are continually innovating and providing properly frameworked holistic solutions to pension schemes’ funding,” said one CIO. “…they have continued to use innovative solutions to help pension schemes earn more attractive returns whilst rigorously managing their risk and have worked hard to make their solutions quick and easy to implement,” said another.
Manager Selection: Russell Investments
This global consulting power house effectively covers investors’ manager selection enquiries, they say. Wide-ranging and up to date – just what is required.
Alternatives
Overall: AQR
Appointing a former pension fund manager to its ranks did AQR no harm this year, and the manager continued to push out alternative premia funds to investors looking to match their various risks to uncorrelated income streams.
Real Estate & Infrastructure: Allianz Global Investors
After hiring a specialist team, AGI pushed out a UK-first: a fund to construct public buildings that should help boost jobs and the economy. Can’t get more innovative than that.
SRI/ESG: Generation Investment Management
Al Gore and David Blood’s ethically clean funds have impressed investors, chalking up large inflows in its decade of business and counting some of the largest pensions as clients. However, it is the commitment to long-term investing that CIOs appreciate, rather than the commonly heard lip-service on the topic from competitors…
Servicing:
Transition Management: BlackRock
Not just a popular choice for investing assets, BlackRock is one of the largest players in transitions too. It offers a full-scale service, including fiduciary management, securities lending and a range other options under its “solutions” banner.
Securities Lending: eSecLending
The specialist lending agent moved up a gear last year, after its purchase by a private equity group. A raft of ideas from new executive staff has seen the company target collateral transformation services and collateral optimisation, alongside its unique auction-based lending service.
Custody/Asset Servicing: State Street
State Street’s Global Exchange allows asset owners and their managers to access real-time, accurate data on liquidity, risks and overall exposure. It is data management 2.0, say investors.