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According to Reuters, the biggest US pension fund Calpers will no longer invest in hedge funds. The investment of 4 billion dollar into hedge funds made by the pension fund will be reallocated.
The German government is working on new regulation regarding infrastructure investments in order to allow more partnerships of the government and private investors for the financing of infrastructure projects.
The United Nations decided to work on an framework setting rules for the default of countries. The UN framework will especially deal with the restructuring of sovereign debt. This is a reaction on the default of Argentina.
The US Security and Exchange Commission prepares, according to the Wall Street Journal, new rules to boost oversight of mutual funds and hedge funds. This is part of a program investigating whether the asset management industry increases risks in the financial system.
The State Street Investor Confidence Index rises in August by 7.2 points to 122.8 points. This shows the rising optimism of institutional investors.
The ECB confirmed to begin the purchase of ABS in October. This is done to facilitate credit flows into the euro-zone economy. Furthermore, interest rates were decreased.
According to an S&P report, infrastructure investments do not meet the expectations of investors regarding their risk-return profile. Political and economic risks as well as regulations and a weak credit culture are deterring investors.
The ICMA advices countries to use clauses in bonds that allow them to restructure their debt if a majority of investors agrees to this.
The 11th Global Alternatives Survey from Tower Waters was published. According to the study, assets under management in alternative assets grew by 6% to 5.7 trillion USD in 2013.
German insurance companies said that they may back a government call to invest about 7 billion Euro to cover the financing of German infrastructure investments in bridges and roads.
iShares is going to close 18 ETFs due to a lack of investor interest. Pimco is going to do the same and will liquidate four funds.
According to Reuters, the twenty largest industrial and emerging economies are planning to allow regulators to control fund manager’s operations in crisis situations.
According to an regulatory statement, the UBS hedge fund O’Connor LLC was selling nearly all of it’s american real estate investment trusts in the last quarter.
The improving conditions for soy bean growing and the upcoming record harvest in the US, worlds largest producer, made money managers go short in soy beans for five weeks in a row. This is the longest sequence since 2006.
During this year emerging markets and frontier markets are performing well due to the following reasons.
Germany’s economic growth fell in the second quarter of this year by 0.2% compared to the previous quarter. Experts say that this is the effect of geopolitical effects in the short term but also upcoming structural problems in the long term.
According to Agecroft Partners, inflows in hedge funds after the financial crisis in 2007/2008 concentrate at a small number of different funds with a high reputation.
According to a survey of Bank of America Merrill Lynch, geopolitical risks is the number one concern for about half of all investors.
According to a study from McKinsey & Co published last week, hedge funds, private equity firms and other alternative investments will receive up to 40% of the revenues made in the asset management industry by 2020.
Infrastructure investments are popular due to many advantages as attractive returns, security against inflation, reliable cash flows and low correlation with other asset classes but increasing interest rates are a risk for their returns.