Timberland Investment case (PDF 813 KB)
Timberland investment has historically produced a steady stream of returns with premiums above inflation and low correlation to traditional asset classes. Apart from the strategic case, the recovery of the US housing market, expected increase in demand for timber from developing countries and an expected decrease in supply from Canada, a major timber exporter, have made the investment opportunity potentially more attractive. This paper explores the potential benefits and risks of investing in timberland, and how a pension scheme can incorporate this investment in its portfolio.
Allocation to Investment Grade Corporate Bonds – is it time to reconsider? (PDF 675 KB)
UK pension funds traditionally allocate to investment grade bonds as part of their matching allocation to hedge some liability risks and achieve a return above gilts. This paper revisits this against the backdrop of the current market conditions. We believe there are alternative approaches which can provide better liability hedging whilst maintaining, or even enhancing, the expected return of the overall portfolio.
New Frontiers - Investing Beyond Emerging Markets (PDF 121 KB)
Emerging market equities have seen a growing allocation in client portfolios over the last 10 years. We consider some of the exciting prospects and associated risks of investing in frontier markets - viewed by many as the emerging markets of tomorrow.
2013 KPMG LDI Survey
We have yet again taken the temperature of the LDI market for UK pension schemes and have found that removing uncertainty, where cost effective, and focusing on seeking opportunities for growth appears to be the focus for UK pension schemes, with continued volatility and uncertainity around the direction of interest rates.
Financial Transaction Tax (PDF 1.08 MB)
In February 2013, the European Commission published a proposal under enhanced cooperation to introduce a Financial Transaction Tax (FTT). The aim of the FTT is to raise additional tax revenue from the financial sector to bolster the public finances of the 11 participating Member States. The FTT will have implications for UK pension schemes even though the UK is not a participating Member State.
Senior Commercial Real Estate Debt (PDF 492 KB)
Recent market dislocations have led to the development of an attractive investment opportunity in commercial property lending for pension schemes that can afford a degree of illiquidity in exchange for attractive returns and low risk.
RPI: ... the reports of my death have neen greatly exaggerated (PDF 66 KB)
Following a lengthy review, on 10 January the ONS announced there would be no change to the formulae used to calculate RPI and this paper sets out the implications for pension schemes and investors.
RIP to RPI calculation? Implications, market reactions and what to do next (PDF 649 KB)
This paper analyses the potential impact of a proposed change in the calculation method of Retail Price Index (RPI) on pension schemes and investors.
European responsible investment fund survey (PDF 1.1 MB)
In this first edition of European Responsible Investing Fund Survey, KPMG gives a snap shot of the European Responsible Investing Fund universe as at 31 December 2010.
The evolution of an industry: 2012 KPMG/AIMA Global Hedge Fund survey (PDF 1.43 MB)
This paper features analysis of KPMG and AIMA’s recent survey of 150 global hedge fund managers and highlights their insights and opinions on a range of issues that are changing the face of the industry.