We were recently invited by FT’s Pensions Expert to provide an article debating the potentially thorny question: Is ESG Compatible with the Rise of Passive Management? This brainteaser was born out of a plausible tension between two of this decade’s most significant trends.
The year was 2009. Amid a climate of investor cynicism, disappointment and self-examination, two papers were published that would fundamentally change the way that the investment industry viewed active equity management.
The resurgence of investor appetite for emerging markets is proving to be the most significant allocation trend of 2017, at least according to bfinance data on new mandates.
Investors' costs have never been more vigilantly scrutinised than they are today. New bfinance data published in investment Management Fees: New Savings, New Challenges (May 2017) reveals falling fees in several sectors, especially where providers have been under pressure from cheaper competitors or the investment landscape has evolved.
Read more: Fund of Hedge Funds Cut Fees to Regain Lost Ground
Unitranche debt / loans, which increasingly dominate European private debt funds and also play a key role in the US market, were only invented a decade ago. GE and Allied Capital (later Ares) teamed up to offer a single-tranche of lending where the first-out position was provided by GE and the second-out by Allied. The borrower received one set of pricing and one loan agreement: for them it was more expensive but simpler and, importantly, enabled greater leverage
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