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Discover how Iceland's Lífeyrissjóður verzlunarmanna (LV) achieved a remarkable shift by significantly increasing the passive allocation in its global equity portfolio. In an exclusive interview with CIO Arne Vagn Olsen, learn about the strategic decision to negotiate fees with major index managers like BlackRock and Vanguard. The move away from active managers, who struggled to outperform, resulted in an impressive 80 per cent of the global equity allocation now being in passive investments. Keep reading to learn more. https://lnkd.in/g6pFtAXM

In the past week, Bloomberg has had the following headlines: * June 5th: ‘Everything Is Not Going to Be OK’ in Private Equity, Apollo’s Co-President Says   * June 7th: Private Credit Defaults Will Purge ‘Tourist Investors,’ BCI Says   * June 11th: Pimco Warns of More Regional Bank Failures on Property Pain   * June 11th: Private Equity Faces ‘Lost Generation’ on Higher Interest Rates   It would seem that “higher for longer” is causing discomfort for those asset owners and allocators with private market exposure. Those practitioners were likely attracted to the esoteric alchemy of private markets and the allure of higher returns with lower mark-to-market volatility.   Meanwhile, go-forward public market returns for broad equity exposures tethered to the S&P 500 are widely forecast to be meager as well.    Hence, after 40 years of persistently declining yields, quantitative easing (QE) and then ZIRP, the previous, seemingly ever-present, generous supply of adequate, above-spending investment returns - for both commonly utilized public and private market investing - has withered. For the foreseeable future the cupboard is bare, and the continuing potency of long-tenured, status-quo methods, prescriptions and dogmas must now be questioned and reconsidered.   In the new post-ZIRP environment, the most relevant benchmark becomes the asset owner’s minimum required spending threshold plus inflation (typically estimated to be 7-8%).   Therefore, the pursuit of satisfactory investment outcomes that are relevant to asset owners’ actual spending needs and goals is essential, rather than continuing the historically common practice – and expected future folly – of tethering one’s equity beta to that of an equity benchmark whose performance from today’s elevated levels is widely expected to be sluggish and insufficient to fund an investor’s minimum liabilities (ie: payout rates, actuarial hurdles, spending goals, etc.). As the Bloomberg headlines underscore, signposts are popping up warning of the dangers ahead in private assets with the preponderance of NAV loans, secondaries, “democratization”, gating of LP exits, maturity walls, doubts about IRR calculations, distributed to paid-in capital (DPI), etc.   Fresh perspectives and differing ideas about public market equity implementation that strive for satisfactory, above-spending outcomes are starving for attention. Layan Odeh

This type of investing can be used as a launchpad for discussing how family wealth can have a significant impact on pressing global issues. The post Responsible investing can help bridge the generation gap during wealth transfer appeared first on RBC Wealth Management.

Tapio Koivu, Portfolio Manager at Veritas Pension Insurance Company explains how and why the pensions company is changing its handling of investments in China. ”We used to outsource all investments in China to global external managers, but now China is becoming, in a way, a separate element within our emerging markets portfolio, which we can adjust ourselves," Koivu says to AMWatch. At the end of the first quarter of 2024, Veritas managed assets totaling EUR 4.56bn, of which some 36% was invested in listed equities. #finland #nordic #china #equities #emergingmarkets #pensionfunds #pensioninsurance #institutionalinvestor #institutionalinvestments #assetmanagement #assetmanager #portfoliomanager #portfoliomanagement #asianequities #stockpicking #mandate

Among U.S. institutional investors, Schroders was the 76th-most-recognized brand in 2018, according to a NMG Consulting report. But it has made significant progress since: It was ranked 57th in 2019, 39th in 2020, 21st in 2021 and 14th in 2022... I spoke to Phil Middleton and Tiffani Potesta about the asset manager's expansion progress and plans in the Americas — more details in Institutional Investor: https://lnkd.in/d67SffwN #assetmanagement #esg #alternativeinvestments

Great piece in Spear's Magazine by Clare Anderson (UK Head of Schroders Family Office Service). It's well worth a read for anyone working in the Family Office space. Clare discusses: 📈 The resilience of markets in 2023 despite global recession predictions 🗺 Highlights the importance of careful asset management for wealthy families amidst significant geopolitical realignments and global upheavals 👨👩👦👦 Recent increase in sales of family-owned businesses 🌳 Growing focus on environmental and social issues in investment portfolios

We look forward to the discussion on Fixed Income Comeback at Innovation and Resilience Forum next month!

📣 PERSONAL NEWS 📣 Since entering the #wealthmanagement industry almost twenty years ago, I’ve been hooked. Bank wealth management, #privatebanking,#RIAs, #brokerdealers and geographical differences in the US, Canada, Europe, Latin America, Asia Pacific, and the Middle East and Africa have made this an amazing industry in which to innovate and have led to its rapid expansion. But what’s an industry leader to do? How can you keep up? Where’s the playbook? We need to create one. So many variables at once: changing demographics among global investors, inter-generational wealth transfer, sustainable investing, the rise of female and diverse clients, the ascent of ultra-high net worth, social/digital media, changing world views of Asia, philanthropy, and all against a backdrop of dynamic and volatile geopolitics. An industry that investors rely on for their very survival and one where business decisions potentially impact the lives of millions! Furthermore, at the heart of wealth management, there is the promise and opportunity to fulfill investor’s dreams, create legacies, and truly make an impact on our world if this transformation is managed correctly. I am thrilled to announce that I will be publishing a book on wealth management and financial advice next year, in partnership with the renowned multinational publishing firm Wiley. The book will cover the industry’s transformation in the twenty-first century and key opportunities that are available to wealth management firms and financial advisors. It will also serve as a readable guide to those who wish to learn more about this fast-growing field. My co-author will be the highly knowledgeable subject matter expert and former Financial Times journalist and UBS executive director, Nick and our Wiley editor will be the esteemed Judith Newlin Nick and I have known each other for over a decade. We first met when I was a source for Nick while at FT. He was our client at UBS. Now, we are in the agency world together. Nick is the perfect complement to my background and also a true friend. It’s such a pleasure to be working with him once again. And that is just part of our “dream team” that’s been assembled. We are also both equally grateful to be collaborating with Judith and others at Wiley (and special thanks to Nicole Casperson for putting us in touch). I will dedicate this book to the "OG" The Rudin Group, my sons Alec L. Rudin and Joshua L. Rudin 乔书华, who have witnessed first-hand how hard work and perseverance can pay off. Thanks to everyone in advance at the The Rudin Group, Wiley, and Nick’s firm Brunswick Group for their help and encouragement. I'm truly grateful to a warm global community of colleagues, clients and friends who have helped me to gain first-hand knowledge and perspectives. I'll be in touch. And if you are a financial advisor or wealth management leader with an amazing story to tell, please get in touch. I'd love to hear it!

Several Republican representatives are proposing a law in New Hampshire that outlaws the CONSIDERATION of ESG criteria in investment decisions. This may seem like the latest installment of the anti-ESG legislation, or does it just highlight the level to which a three-letter acronym has been completely misunderstood? Can you show me an investment manager that the New Hampshire Retirement System could invest in that does not CONSIDER governance at the bare minimum? #esg #esgintegration #esginvesting #responsibleinvestment #newhampshire #nhrs https://lnkd.in/ewCREyyV