THE SHRINKING COST OF CARRY IN CURRENCY HEDGING

The cost of hedging exposure to foreign currencies is coming down for some investors. Though hedging can help investors avoid losing money amid swings in the foreign-exchange market, the strategy can be an expensive one for investors based in countries with structurally low interest rates. But that is changing as a result of monetary policies in major economies.

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THE IRRESISTIBLE RISE OF REITS

Last fall, MSCI announced the upgrade of real estate to a stand-alone sector in GICS®, the global industry classification standard jointly developed by MSCI and Standard & Poor’s, carved out from the financials sector. The change, which is slated to take effect at the close of business on Aug. 31, recognizes real estate’s distinct characteristics and prominence in the global economy.

Public Real Estate Investment Trusts (REITs) have increased their share of the global equity universe, as regulations around the world have loosened and a steady stream of initial public offerings and capital increases have seen REITs grow in volume (see below exhibit).

Alternative investment funds industry doubles in size in a year

AIFs report fastest growth among traditional investment vehicles such as mutual funds and market-linked insurance products.

Mumbai: India’s alternative investment funds (AIFs), or money collected from high net-worth investors to invest primarily in unlisted securities, more than doubled during the past year—the fastest among all other traditional investment vehicles such as mutual funds and market-linked insurance products. Read more ….

Interview- Mr. Vaibhav Sanghvi,  MD & Fund Manager, Ambit Investment Advisors & Governing Council Member- Indian Association of Alternative Investment Funds (IAAIF)

Interview- Mr. Vaibhav Sanghvi,  MD & Fund Manager, Ambit Investment Advisors & Governing Council Member- Indian Association of Alternative Investment Funds (IAAIF)

Vaibhav has 14 years of experience in the Indian markets and at Merrill Lynch was instrumental in building the Proprietary Trading team, managing and advising over US$1 bn of capital. He  oined Ambit in October 2008.

During his career Vaibhav has successfully outperformed the markets utilizing long/short strategies, which in turn has enabled him to generate positive absolute returns in different market conditions.

Vaibhav is currently Managing Director of Ambit Investment Advisors  Private Limited and Fund Manager of Ambit Alpha Fund (One of the largest onshore long/short equity fund).

Click here to view his interview

 

Pan Asia: Leveraged and Inverse ETFs Have Increased in Turnover

In recent years, leveraged and inverse (L&I) ETFs have gained significant traction in Asia. Thanks to the relaxation of listing regulations, more L&I ETFs are listing in Japan, Korea, Taiwan, Australia, and recently Hong Kong.  The number of L&I ETFs listed in Asia is on the rise; it was up to 87 as of June 13, 2016 (see Exhibit 1).

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Why alternatives have come of age

Most market commentators tend to agree the current lower growth environment is set to continue for the short to medium term. In the context of these market conditions, traditional asset classes are unlikely to offer returns that investors have become accustomed to.  Read more

TECH COMPANIES ARE ACTIVELY AVOIDING GOING PUBLIC IN 2016

For the first time since the worst months of the Great Recession in 2009, not one tech company went public last quarter.

Much like the water levels in Californian lakes and reservoirs in the past few years, the initial public offering market in tech has dried up drastically. Just two years ago, 62 tech companies went public. After high hopes in the beginning of 2015, the global economy’s slowdown—most notably seen in China’s dropping stock market—has stalled the march of tech companies listing their stocks for sale in a public market.

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CalPERS refines real assets strategy

CalPERS refines real assets strategy

The California Public Employees’ Retirement System (CalPERS) has established a ‘harmonised’ real-asset strategic plan for the next five years. The $293bn (€259bn) pension has been evaluating its approach to real assets for the past year to reduce risk, costs and complexity. Read more 

Also in the US, the Oregon Public Employees Retirement Fund plans to commit $2bn to its alternatives portfolio. The fund is considering a North America and Europe value-add infrastructure fund, as well as a global infrastructure debt fund, among other strategies. Read more 

Sovereign wealth funds team up with hedge fund group on transparency

Sovereign wealth funds (SWFs) worth $5.5trn (€4.8trn) have joined the Hedge Fund Standards Board (HFSB), allowing for greater influence on the disclosure framework of the funds.

The International Forum of Sovereign Wealth Funds (IFSWF), covering more than 30 of the world’s sovereign investors, has agreed to be an observer to the HFSB.

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