Global Investment Matters - 2011

Comments

Aftershocks from the global financial crisis still threaten to upset the nascent economic recovery.  There is broad acceptance that higher levels of uncertainty are the new norm, and that investors will need investment strategies that are more flexible and adaptable than they have been in the past.

In this publication we review the economic and financial conditions of the major governments, focusing particularly on the euro area, as the levels of government debt continue to be a key risk for the global economic recovery in 2011.  We also consider how investors can take advantage of equity market volatility and review some of the risks and how to hedge them.

DC pension schemes have grown in number and importance over the last ten years and the level of governance and management oversight has increasingly come under the spotlight. We explore how DC pension schemes can improve their governance and some of our DC experts discuss how DC investment risk can be better understood, measured and managed.

These are just a few of the topics that we cover in this issue of Global Investment Matters.

Contents

• Introduction
  Carl Hess, global head of investment
• Under pressure
  Considering the economic outlook for 2011, with a focus on Europe
• Global news
  Our local investment teams review what has been happening around the world and the outlook for 2011
• Profiting from volatility
  How can investors take advantage of equity market volatility?
• Discussing Investment risk in DC
  Three of our DC experts discuss how DC investment risk can be better understood, measured and managed
• Fiduciary management
  Thoughts from the Netherlands and the UK
• Active management: tipping the odds in your favour
  When should you go active and when not?
• The sting in the tail
  What is left-tail risk and how can funds protect against it?
• Thematic investing: capitalising on the future
  What is thematic investing and how can funds do it?
• Dealing with risk dynamically
  Implementing a dynamic risk management strategy for a pension scheme
• A risky business
  A review of some of the risks faced by institutional investors and how to hedge them
• Should CFOs be singing from a different song-sheet?
  Six key questions for CFOs in relation to managing their pension scheme risks
• DC best practice governance
  How can DC pension schemes improve their governance?
• Asset allocation for non-profits: a US perspective
  An integrated approach to investment