FirstFT: Dangerous market fuels the prosperity of outsourcing investment teams


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The market for outsourcing investment teams is “Blazing“Because of the bleak prospects for future returns, capital allocators are increasingly entrusting the entire multi-billion dollar task to external fund managers.

Small scale, unable to hire expensive internal investment team, usually outsourcing management to investment consultants such as Mercer or asset management companies such as BlackRock, the latter has a professional “outsourcing chief investment officer” or OCIO.

The scale and scope of the OCIO industry continue to expand, because large companies and institutions outsource pools of funds to experts in view of the increasingly dangerous investment environment. According to the annual survey by Pension & Investments, by the end of March 2020, approximately US$2 trillion of global assets are wholly or partly managed by OCIO.

“It’s hot,” said Michelle Seitz, chief executive of Russell Investments, an asset management company that owns a large OCIO business. “There are many activities. It is one of the fastest growing (if not the fastest) areas in the industry.”

There are five more stories in the news

1. The U.S. Senate approves a $1 trillion infrastructure plan The Senate has pass This comprehensive bill will provide hundreds of billions of dollars to upgrade the crumbling transportation system, a victory for Joe Biden and the Democratic Party. What is in the infrastructure plan?Read our explainer here.

  • there are more: The Senate continues with the next task, the budget bill, with an estimated price tag of $3.5tn, The Democrats plan to act alone.

2. The chairman of the Conservative Party failed to disclose the donor relationship with the Middle East envoy Conservative party co-chair Ben Elliott discussed a plan with foreign ambassadors to grant Conservative donors Sensitive role In the Middle East relations of the British ruling party, it was not disclosed that the donor was also his paying customer.

3. Andrew Cuomo resigns after sexual harassment report Governor of New York State Step down After crushing his accusation reputation And swallowed his government. His resignation will take effect in 14 days, after which the state’s Lieutenant Governor Kathy Hochul will become the first female governor of New York State.

4. Hackers stole $600 million in digital tokens A decentralized financial network says hacker Absconding with about $600 million worth of cryptocurrency is one of the biggest robberies against the fast-growing digital asset industry.

5. Amazon pays customers up to $1,000 loss The e-commerce giant will start offering compensation As independent sellers face the pressure of cargo safety on their websites, they cause personal injury or property damage to products sold by independent sellers. More than half of the products sold on Amazon come from third parties and have not been reviewed by the company.

Coronavirus Digest

  • inside UK, more than Three quarters Of adults have received two doses of the Covid-19 vaccine. The NHS has urged school leavers to sign up for health care; one £15 million package The goal is to bring in 5,000 workers.

  • need London office space Starting Rebound, According to Derwent London and IWG, but newer buildings and shorter leases are advantageous.

  • Israel Weighing blocking and expanding access Booster shooting After the number of infections surged to the highest level since February.

  • Germany Will stop Free Covid test For people who have not been vaccinated this fall.

  • Japanese Parents send relatives Rice bag Copy the feeling of hugging a newborn during a pandemic. (FT, BI)

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the day before

Inflation data German consumer price coordination index released in July todayThe US Department of Labor also released monthly consumer price index data, which is expected to show continued inflation Increase, Although the speed is slower.

  • View: Although the central bank’s forecast is reassuring, there are signs that we will soon have to worry about price increases. Chris Giles wrote.

Messi leaves Barcelona Paris Saint-Germain will hold a press conference the day after Lionel Messi sign Signed a two-year contract with a club owned by Qatar.The Argentine football player landed in Paris yesterday Tearful farewell To Barcelona Football Club.

income Companies reporting earnings include Deliveroo, eBay, Duolingo, Admiral Group and ABN Amro. Read the full list here.

What are we still reading

How to reach the unvaccinated Carrot or stick? As the Delta variant spreads around the world, governments are facing the delicate issue of how to persuade indecisive citizens to take action.Their solutions usually include Motivation and coercion. Should the government mandate the use of vaccine passports? Vote in our latest poll.

How A-level high scores hit a record high In England, Wales and Northern Ireland, the number of A and A* results reached 44.8%-up from 25.5% in 2019. For many people, this is worth celebrating.But the result squeezed the university quota and raised a question Exaggerated grades After the epidemic, it will return to normal.The British “Financial Times” view is that part of the blame is dependent on Teacher evaluation.

Robinhood’s “Entertainment Money” Problem Stable long-term investors are skeptical about the future revenue growth of brokers.But analysts and competitors say there is still a long way to go: Customers told the Financial Times that Robinhood is Where they play Around, while holding large and less active investments elsewhere.

Investors should beware of the unpredictability in Beijing The structure of China’s IPO allows careless people to think that investing in China is no different from investing money in developed markets. This is a terrible mistake, Writes Master BrookeShareholders are buying an arbitrary system in which the rules can and do change overnight.

Brooke Masters:

Brooke Masters: “Even when Alibaba goes public, many uncertainties are obvious, but enthusiastic investors choose discounts” © Ellie Foreman-Peck

The dangerous climate roulette of global leaders Given that the need for action today is no different from eight years ago, why is it paralyzed, Ask Anjana AhujaIn a climate emergency, the pursuit of certainty is the enemy of action.

travel

Live like a king in Versailles Simon Kuper spent one night at the newly opened Le Grand Contrôle Luxurious retreat In the grounds of the Paris castle, guests will be greeted by staff dressed as 18th-century servants.

The Necker Suite, the old apartment of Jacques Necker, who served as the chief financial officer during the time of Louis XVI © Renée Kemps

The Necker Suite, the old apartment of Jacques Necker, who served as the chief financial officer during the time of Louis XVI © Renée Kemps

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