Quantitative measurements of the culture of funds management firms can provide indications of the future success of those companies and also their ability to retain personnel, a study by researcher InvestmentQ finds.
America’s 100 largest corporate pension funds haemorrhaged US$95 billion in November alone, the highest monthly losses of 2008, after interest rate cuts and asset losses owing to global financial turmoil.
For the past two months, a document has sat on the home page of the London Pension Fund Authority (LPFA) which would be the envy of many of its fellow defined benefit schemes. The document is simply, unequivocally headlined: “Your Pension Is Safe”.
The US$7 billion Hong Kong Jockey Club fund is looking to invest in the new year into some secondary private equity and distressed debt and equity funds, to take advantage of opportunities presented by the global financial crisis.
Peer comparison is not just something that nervous super fund trustees and investment managers do.
Funds management is largely a fixed-cost business and with assets declining sharply due to both markets and redemptions, many managers are under financial pressure. Investors beware.