Then Invesco Real Estate’s Simon Redman, in a talk entitled ‘what new investment products can we expect?
Then Invesco Real Estate’s Simon Redman, in a talk entitled ‘what new investment products can we expect?
Contemplating a run for the border…
10:20 am 27.11.09
I am sitting on the train back from Brighton – but judging by one of the big themes at the year’s biggest investment market gathering I should be on the Eurostar.
One of the repeated messages to the 350 fund managers and advisers at the IPD/IPF conference was ‘Go Global.’
UBS asset allocator David Buckle set the ball rolling by suggesting that most funds should increase their overseas holdings from 15% to 30% plus.
Then Invesco Real Estate’s Simon Redman, in a talk entitled ‘what new investment products can we expect?’ went further still.
He caused some uncomfortable shuffling in the audience by revealing that most funds would have seen their portfolios fall in value by a mere 11% rather than the 40% they suffered if they had diversified globally more.
‘Diversification abroad will be a big trend post recession,’ he said.
There were two other big talking points: the market first.
REEEF’s highly respected research expert Peter Hobbs spoke the unspoken: that perhaps property is entering another boom rather than a bubble.
He was, of course, cautious, but in outlining a ‘high liquidity’ scenario that well regarded research group PMA has also outlined in recent weeks he showed how returns could top 15% next year.
And finally, tax. I had a chat with Deloitte partner David Brown after his talk, and we agreed that there are major issues facing Jersey and Guernsey once new European regulations on fund management come in.
Basically, it is looking tricky for funds in these juridistictions to sell to investors in the EU, although lobbying continues.
Brown is also expecting new REITs with bundles of assets to be spun out of the banks.
The one bloke I could not agree with was Conor Downey, a partner from the law firm Paul Hastings.
He spoke of the dangers of regulating rating agencies.
Eh? These were the muppets assigning triple A ratings to Lehman CDOs in 2007, weeks before the whole deck of cards collapsed.
Paul, read the excellent piece by the Edinburgh professor Donald MacKenzie on p 36 of today’s FT as he explains how the agencies got it all wrong.
Now we are getting near East Croydon. I hear that last year several fund managers ended up in the sea at 4 am.
Now where’s that Eurostar timetable….
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