DB investors to use alternative credit for both opportunistic, structured allocation

first_imgThe use of alternative credit within defined benefit (DB) portfolios is used for both opportunistic investing and tactical asset allocation, research shows.A report, produced by CREATE-Research, into investor views on asset allocation and emerging markets found that while asset classes generally fall into either category, alternative credit is used in both.The same was found in emerging market equities.Research among 700 pension funds, pensions consultants, asset managers and sovereign wealth funds found 56% would use alternative credit for medium-term investing, matched with 48% for short-term opportunities. Within emerging market equities, 50% would use the asset class for tactical asset allocation, and 53% for opportunism.Emerging market corporate bonds were also picked by the majority of investors for opportunistic investments, compared with only 26% that would hold a medium-term allocation.The research, sponsored by Principal Global Invetsors, also looked at investor views on emerging markets.It found the proportion of investors looking for bond and equity opportunities in emerging markets jumped between 2012 and 2014.In 2012, only 15% of respondents said they would use emerging market bonds for opportunistic investing, compared with 51% in 2014, while over the same period those who would use them for buy-and-hold investing dropped from 44% to 34%.Jim McCaughan, chief executive of Principal Global Investors, said he interpreted this development as an indication of banks’ weakness.“Emerging market corporates that needed debt five years ago probably went to a European bank,” he said.He said, due to the financial crisis and regulatory changes, the shift away from banks had led to an increase in issuance for investment management firms and pension funds.“This included local currency, so investors are seeing this issuance, but also the volatility, and use it opportunistically rather than structurally,” he said.“You can also play them both long and short on currencies, as well as on the bonds.”The report also highlighted a growing consensus among institutional investors of a divergence between emerging economies and how different markets will grow in future.Sentiment for China remained strong. However, fellow BRIC nations India, Russia and Brazil all saw significant negative sentiment.Investors also expected developed and emerging economies to see a convergence among asset-class correlation and liquidity, but for buy-and-hold investing to remain a developed market concept.“This suggests a lot of trust in markets, or at least in the inevitability of adopting the Western system,” McCaughan said.“I’m not sure if that’s correct, but there is a widespread belief global best practices will spread to emerging markets.”last_img read more

Vacancy rates fall as renters return

first_imgHouse key on a house shaped keychain resting on wooden floorboards concept for real estate, moving home or renting propertyTHE city’s residential vacancy rate is sitting at 3.6 per cent as oversupply continues to get absorbed, a newly released report has revealed.The August Residential Vacancy Update undertaken by DS Economics and commissioned by Townsville Rentals shows the rental market is continuing to strengthen across the city.Vacancy rates have continued to tighten since they were sitting at 5.9 per cent in July, while they were at 5.3 per cent at the beginning of July, according to DS Economics.Townsville Rentals business development manager Tamara Beacroft said their agency vacancy rate had steadily improved and was currently at 2.1 per cent.“Townsville residents appear to be renting houses more so than units at the present time, so the suburbs that contain mostly house properties appear to be performing very well,” she said.“The report shows that the market still has a little way to go before we see increased returns on property investment, but we’re successfully finding tenants for good quality properties that are offered at a reasonable price.”More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020The report, which also breaks down vacancy rates by postcode, shows vacancy rates are as low as 2.4 per cent in suburbs with the postcode 4817, such as Kirwan.Deeragun and Northern Beaches suburbs also have vacancy rates below the Townsville-wide average with 4818 suburbs recording a vacancy rate of 2.7 per cent.Areas with plenty of housing stock are doing better, with renters preferring houses rather than units.DS Economics economist Colin Dwyer said in the past month there had been similar residential absorption activity to the same time last year.“Over 125 homes have been absorbed in the past four weeks,” he said.“That’s helped to almost halve the number of vacant properties in 12 months.“Job creation, major construction projects and grey nomads have a lot to with the much better residential vacancy rate performance.“There are more major projects in the pipeline.”last_img read more

Insurer Sued for Over US$568K Damages

first_imgTemple of Justice, where Civil Law Court ‘A’ is located. The victim of a motor accident, in which lost his left eye, has accused International Insurance Company of Liberia (IICL) of refusing to pay his hospital bill.The company’s alleged refusal has caused victim Sylvester Fallah to file US$568,620 and L$8,250 damages for personal injury lawsuit against the entity.Fallah’s lawsuit is also against David Williams, who he claimed owned the White DAF Truck with which the IICL was insured under a third party scheme when it was involved in the accident.The matter has been pending before Civil Law Court ‘A’ in Monrovia for nearly three years, because the insurance company has continuously asked for postponement of the case.The situation was again demonstrated yesterday when lawyers representing the company asked the court to suspend the case, because Williams has not been well and was seeking medication, a request which the court accepted.Fallah’s lawsuit claimed that while he was driving a Blue Nissan Primera bearing the license plate number PC-20717, on November 23, 2012, along the Cotton Tree to Harbel Road in Grand Bassa County, a White DAF truck bearing license plate BT-666, owned by Williams and operated by Manzu Bayo, entered in the opposite lane by four feet and swept the left view mirror of his car, where he sustained injury on is left eye.He claimed that a large portion of the broken glasses from the damaged left view mirror went into his left eye and caused it to bleed.After the incident, Fallah was on November 24, 2012, rushed to the Unification Town Health Center, but due to the seriousness of his jury, he was advised to seek further treatment at the New Eye Sight Center, on the S.D, Cooper Road, in Paynesville, where he underwent surgery to remove the broken glasses from his left eye.Doctors who treated him at the clinic provided a medical report and advised him to go for further surgeries, in a foreign country or elsewhere.Knowing that he could not afford the medical fees for Fallah’s eye treatment, Williams decided to introduce the insurance company as the entity that he insured his truck with.Then, Fallah alleged that the company accepted the liability for the injury as the result of the accident.“The insurance company also referred me to the S.D. Cooper Memorial Hospital, another hospital for further medical treatment to my condition,” he said.Because of the urgency of his situation, Fallah claimed that the company paid his initial hospital bill at the New Sight Eye Center, where he had been treated, before he was transferred by the insurance company to the S.D. Cooper Memorial Hospital to continue his treatment.“The hospital treated me twice but later refused to provide further medical treatment, because the company has not met its financial obligation, and they were going to only attend to me if I could afford the bill,” the document quoted Fallah as saying.“I told Williams and his insurance company about the message from the hospital and they failed to take any action to remedy my situation. They even refused and ignored every advice from the doctors for me to seek medication,” he claimed.Fallah also claimed that due to the defendants’ failure, he had not been able to do any follow-up surgery on his eye, and that has caused him to lose his left eye.Fallah also alleged that he had been advised to do further medical treatment on the other eye, otherwise the damage eye would affect the other eye.“I have spent the total US$50,000 on medical fees, and L$1,900,000 also on medical fees and I have lost all of my sources of income due to the accident that resulted to me injury, so I am appealing to you to please compel the company and Williams to pay the damages,” Fallah said, according to court records.Share this:Click to share on Twitter (Opens in new window)Click to share on Facebook (Opens in new window)last_img read more