On the Valuation of Performance Fees and Their Impact on Asset Managers’ Incentives

We investigate the factors (“drivers”) that motivated investment in energy efficiency in commercial real estate office buildings over the 2006–2011 and 2012–2017 period, and looking forward from 2018 in the context of growing concern over carbon emissions around the world. These insights were collected from large Canadian asset managers through interviews conducted in 2017 and 2018. Key findings were that (1) organizations noted an increasing number of factors driving investment decisions over the three periods; (2) cost drivers (payback period and anticipated financial returns) were the top two drivers in 2006–2017; (3) public relations factors became significantly more important looking forward, with brand (reputational impact) as the top-ranked driver and tenant attraction tied for third place; and (4) mitigation against risks such as resilience and anticipated compliance consistently increased in importance. This study contributes to a comprehensive understanding of past, present, and near-future sustainable real estate investment priorities, changing owner behaviors, and the perceived business case for building energy efficiency investments.

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Asset Allocation Strategies and Commodities

10.1093/oso/9780190656010.003.0021 ◽

2018 ◽

Author(s):

Claudio Boido

Keyword(s):

Asset Allocation ◽

Asset Management ◽

Central Banking ◽

Fixed Income ◽

Fixed Income Securities ◽

Asset Classes ◽

Alternative Beta ◽

Asset Managers ◽

Selection Of ◽

Allocation Strategies

As a result of the financial crisis of 2007–2008 and subsequent central banking decisions, the asset management industry changed its asset allocation choices. Asset managers are focusing their attention on the search for new asset classes by taking advantage of the new opportunities to capture risk premia with the aim of exceeding the returns given by traditional investments, including traded equities, fixed income securities, and cash. By doing so, they are trying to improve the selection of alternative assets, such as commodities that sometimes have relatively low correlations with traditional assets. The chapter begins by describing the principles of asset allocation, distinguishing between passive and active asset allocation, also focusing on beta and alternative beta. It then concentrates on how investors can gain exposure to commodities through different investment vehicles and strategies.

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Investment Management and the Investment Chain

10.1093/oso/9780198802945.003.0001 ◽

2017 ◽

Cited By ~ 1

Author(s):

Diane-Laure Arjaliès ◽

Philip Grant ◽

Iain Hardie ◽

Donald MacKenzie ◽

Ekaterina Svetlova

Keyword(s):

Decision Making ◽

Asset Management ◽

Investment Decisions ◽

Investment Management ◽

Money Flows ◽

Central Argument ◽

A Chain ◽

Asset Managers

Chapter 1 introduces the idea of the chain as related to investment management. It highlights the increasing importance and influence of the asset management industry and argues that, despite this fact, the behaviour and decision-making of asset managers has been little studied. The chapter suggests that investment decisions today cannot be understood by focusing on isolated investors. Rather, most of their money flows through a chain: a sequence of intermediaries that ‘sit between’ savers and companies/governments. The chapter introduces the central argument of the book that investment management is shaped profoundly by the opportunities and constraints that this chain creates.

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