An Overview of Real Asset Investing

Aug 26th, 2015 | Filed under: Infrastructure, Intellectual Property, Private Equity, Real Estate, Risk management, Today's Post

Guest columnist Andrew Smith, CAIA, provides an overview of real assets and their commensurate risks and rewards.

PwC Looks Ahead to 2020: Offers a Roadmap for Alternative Investment Managers

Jul 5th, 2015 | Filed under: Best Practices, Emerging markets, Hedge Fund Industry Trends, Hedge Fund Strategies, Infrastructure, Technology, Today's Post

PwC offers a glimpse of a 'day in the life' of a typical compliance analyst in 2015 and again in 2020. As these authors tell it, the day is filled with data, darkness, and drudgery at present, but it will be airy, alliterative, and analytical in another five years.

Farm Land: The Risks & Rewards of Buying Direct

Jun 7th, 2015 | Filed under: Farmland, Infrastructure, Institutional Investing, Real Estate, Today's Post

Guest columnist Andrew Smith, CAIA, examines the risks and rewards of investing directly in farmland.

Some Assets are Hard to Ignore

Apr 23rd, 2015 | Filed under: Alpha Hunters, Alpha Strategies, Currencies, Gold, Hard metals, Infrastructure, Today's Post

Guest columnist Diane Harrison looks at the world of alternatives to alternatives, including stamps, cars, farmland and more...

Gazelles, Exports, and Infrastructure: A View from the UK

Mar 11th, 2015 | Filed under: Conference report, Infrastructure, Today's Post

The Confederation of British Industry has taken a look at some of the issues that do and should concern investors in the industries of those islands. Among much else, the CBI wants the government to kick-start the private placement market. And to worry more about infrastructure.

Long-Term Infrastructure Debt: The Valuation Issue

Feb 26th, 2015 | Filed under: Alpha Strategies, Asset pricing, Infrastructure, Insolvency, Today's Post

Three authors at EDHEC propose a two-step modeling process for the valuation of certain infrastructure debt. One of the key ideas they incorporate is the value of the step-in rights that come when the issuers violate a covenant or otherwise find themselves in technical default.

Down Memory Lane: That WTI-Brent Divergence

Feb 18th, 2015 | Filed under: Academic Research, Asset pricing, Commodities, Infrastructure, oil, Today's Post

For one professor, the surprising divergence in the prices of WTI/Brent crude in the period 2010-2012 was a case study in how commodity prices can teach us about supply chain conditions. Faille looks back at his article, and forward past today's calmer but still-fluctuating spread.

The Building of an Infrastructure for Renewables: A Report

Nov 5th, 2014 | Filed under: Alternative energy, Alternative energy investing, Commodities, Infrastructure, Private Equity, Socially responsible investing, Today's Post

In 2012, [as the crude oil price was settling in to $110 and low vol,] the renewables’ infrastructure space for private funds reached an aggregate estimated deal value of $132 billion. In 2013, that fell to $95 billion. It now seems unlikely that 2014 will match last year.

Custodians Helping Customers with Securities as Collateral

Sep 11th, 2014 | Filed under: Infrastructure, Insolvency, Risk management, Today's Post

How address issues of supply/demand imbalance in the world of collateral requirements? Custodians can do a good deal on behalf of their customers here, and are exploring just how much.

Advancing the Infrastructure Investment Narrative

Aug 11th, 2014 | Filed under: Alpha Strategies, Infrastructure, Insolvency, Today's Post

Intuitively, the problem with valuing the debt issued by an private SPE in an illiquid infrastructure project is this: the free cash flows of the SPE aren't easily observed. So how does one go about deriving their present value?

EDHEC: Investors Who Don’t Want to be Mushrooms Need Benchmarks

Jun 16th, 2014 | Filed under: Asset pricing, Infrastructure, Private Equity, Today's Post

Investors need benchmarks, especially benchmarks of likely infrastructure return, because the long-term illiquid nature of that investment increases information asymmetry between investors and managers, whereas benchmarks keep this asymmetry bearable. So explains Frédéric Blanc-Brude of EDHEC.

European ETFs: Innovations the Key to Growth

Mar 27th, 2014 | Filed under: Academic Research, Alpha Strategies, Alternative Beta & Hedge Fund Replication, ETFs, Infrastructure, Today's Post

The way to keep growing is to keep changing. For the European ETF market, that means product innovation, from infrastructure funds to smart beta.

Global Warming and Human Ingenuity

Mar 17th, 2014 | Filed under: Book review, Infrastructure, Risk management, Today's Post

Early on in this book the author mentions that Deutsche Bank has made a small play in Royal Boskalis, a Dutch dredging and infrastructure company, one which may be in a position to capitalize on rising sea levels by building the sea walls this will require.

Alternatives and Thailand’s Infrastructure

Jan 14th, 2014 | Filed under: Alternative Mutual Funds, Emerging markets, Infrastructure, Today's Post

Despite the uncertainties generated by contemporary politics, Cerulli is convinced that "investing in alternatives such as property and infrastructure funds should remain a major theme in the Thai mutual fund space in 2014."

The Growing Problem of Technology Risk

Jan 12th, 2014 | Filed under: Infrastructure, Risk management, Technology, Today's Post

Does your risk management policies cover the "blue screen of death?" Maybe they should. Guest author Stephanie Hammer looks at the growing risk associated with technology and it's not just for high-frequency traders.

A Bird’s Eye View of India’s Real Estate Development and Regulation

Dec 23rd, 2013 | Filed under: Emerging markets, Infrastructure, Real Estate, Today's Post

Guest columnist Sourabh Jeswani explains regulatory changes in India's real estate market and the opportunities these changes may offer.

Celent: Back Office to the Front Burner

Dec 10th, 2013 | Filed under: Best Practices, Infrastructure, Today's Post

A new report, which concerns specifically the post-trade operations of equities and fixed income instruments, says that since the crisis of 2008 the management of costs has become "an utmost priority." Cost management, though, isn't the same as downsizing.

The Case for Investing in Green-Field Projects

Aug 14th, 2013 | Filed under: Infrastructure, Institutional Investing, Today's Post

Pension fund managers and insurers have long been less than thrilled by the idea of risking their assets in long-term, illiquid, infrastructure projects. EDHEC-Risk makes the case that their wariness, though not irrational, may be excessive.

Squeezed Margins and a Move to the Clouds

Jun 12th, 2013 | Filed under: Infrastructure, Performance, Analytics & Metrics, Today's Post

The world of cash equities trading is changing and will continue to change, says Celent. Brokerages will have to outsource in order to reduce costs and restore their margins: and some of the outsourcing will involve "the cloud."

Investing in Britain’s Infrastructure: With and Without Guarantees

Jan 28th, 2013 | Filed under: Infrastructure, Institutional Investing, Today's Post

The bottom line of EDHEC's study is that there is no need to create new public sector liabilities to get private sector institutions to invest in infrastructure.

More than $3 Trillion AUM for Top 100 Alternative Investment Managers

Jul 25th, 2012 | Filed under: Alpha Strategies, Hedge Fund Industry Trends, Hedge Fund Strategies, Infrastructure, Institutional Investing, Private Equity, Real Estate, Today's Post

The survey also asked that the asset managers state where their total assets are invested, using four geographical categories: Europe; Central/North America; Asia Pacific; Other. Commodity funds were easily the most heavily invested in C/NA, to the extent of 94 percent of their portfolios. Private equity funds are 61 percent invested in C/NA, and PE FoFs also have the majority of their portfolios there, at 54 percent.

Pension Funds and Blair’s PFI Legacy

Mar 21st, 2012 | Filed under: Infrastructure, Institutional Investing, Posting Categories, Social investing, Today's Post

Britain’s Private Finance Initiative has continued through the administrations since Blair’s, and indeed has inspired emulation across the Channel. At the same time, it has stirred up a good deal of criticism, and in November 2011 the Chancellor of the Exchequer announced a plan to reform the PFI. One of the reform proposals is to seek broader participation by pension funds, or in pale bureaucratic jargon, “access a wider range of financing sources.”

Crumbled Portfolios Look to Rebuild with Infrastructure Investments

Feb 9th, 2012 | Filed under: Alpha Strategies, Infrastructure, Today's Post

Infrastructure is a perpetual investment, whether it's rebuilding old, existing underpinnings in developed markets or building the foundations that turn an emerging nation into a developing one. Preqin looks at this lesser known investment that underpins many alternative portfolios.

Infrastructure: High in hiearchy of investors’ needs and hearts

Jan 23rd, 2012 | Filed under: Alpha Strategies, Infrastructure, Today's Post

Infrastructure is a basic need for any country, no matter what size. However, investing in infrastructure funds has been scant since its peak in 2007. That may be about to change.

The Investor’s Climate Change Conundrum: Is It Worth Watching Your Hamptons Beach House Sink Beneath the Waves Just to Make a Few Bucks from Carbon Emitters?

Dec 13th, 2011 | Filed under: Alpha Strategies, Infrastructure, Today's Post

We report on a talk given by Dr. Keith Crane of the Rand Organization about renewable energy and climate change at a meeting of the FInancial Policy Council. Dr. Crane showed that the cost differences between renewables and coal shrink when the costs of carbon emission controls are also counted. Subsequent research revealed possible reasons why the average person in the United States has a unique inability to accept climate science, in opposition to the conclusions of the U. S. Defense Department.