Perspectives @fr

Managing Risk in Emerging Market Corporate Investments

While project loans have historically compared favorably with other asset classes, recent market changes cast new light on the advantages of investing in private debt, particularly in emerging markets. These shifts include the rapid expansion of the middle class and rising interest rates. In addition to low debt and growth rates that continue to outperform […]

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Avoiding Wealth Destruction over the Long Term

Carl Otto passed away on April 19, 2012. During his career, he was consistently at the forefront of introducing new and innovative investment strategies to pension funds. He was, as one client described him, an icon of the Canadian investment community. Carl used Perspectives to synthesize many of the ideas the he espoused throughout his […]

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The “2 and 20” Fee Structure

Not satisfied with traditional management fees of 0.2 to 1 percent, the Street has engaged in all manner of financial engineering, creating an array of “new” investment vehicles packaged under various names. These vehicles promise great returns, which allow them to charge a 2 percent management fee and a 20 percent carry fee. While this […]

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The Future Ain’t What It Used to Be

When Yogi Berra famously declared that “the future ain’t what it used to be,” he proved himself to be oddly prescient. In a similar vein, he easily could have been describing the European debt crisis when he cautioned that “it ain’t over until it’s over.” As PIMCO’s Bill Gross reminds us in his year-end Investment […]

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The Case for Emerging Market Debt

Most of us realize that over the last decade the roles of advanced economies (AEs) and emerging markets (EMs) have been reversed, but few of us have changed the structure of our portfolios to reflect this reversal. In the past, foreign-currency debt constituted a large part of the external liabilities of EMs. Today, however, foreign […]

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