Another worry of a credit union lender

first_imgFor CUES member Marty Pell, CIE, SVP/chief lending officer for $3.2 billion Coastal Federal Credit Union, Raleigh, North Carolina, the economic landscape is top of mind when it comes to the future of lending.“We’re late in the cycle,” Pell says. “But as credit unions, are we prepared for a potential slowdown? What consumer behaviors or governmental policy shifts will impact our business? We must be poised to take proactive steps.”When Pell thinks about the shifting economy, he considers:Asset quality. When delinquency naturally increases as part of the economic cycle, the dynamics change from growing to protecting the portfolio. “In advance of a recessionary environment, determine which loans have historically performed the best in such scenarios and compare those to your own loan portfolio,” he advises. “See how the portfolio structures align. If your portfolio lacks the performing loans it needs, … adjust your strategies.” continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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​AP1 picks managers to run €4.3bn in global emerging market equities

first_imgAberdeen Standard InvestmentsBlackRockFirst State InvestmentsFisher Asset ManagementGMOGQG PartnersJP Morgan Asset ManagementKBI Global InvestorsLegal & General Investment ManagementRBC Global Asset ManagementRobecoTOBAMUBS Asset ManagementWellington ManagementAP1 said it expected that these managers would diversify the fund’s portfolio and provide flexibility, and as well as complementing each other well in terms of investment styles and risk profiles.In its 2018 annual report, AP1 reported a 0.2% investment loss for the year – although this was 1.7 percentage points above its benchmark.Chief executive Johan Magnusson said in the report: “For several years now we have been saying that the extremely favourable returns on the financial markets are not sustainable in the long term.“We can now see signs that conditions are changing, and we therefore anticipate a growing challenge in terms of achieving our real return target of 4%.”Further readingHow We Run Our Money: Första AP-fonden (AP1) Chief investment officer Mikael Angberg outlines the fund’s investment philosophy to IPE’s Carlo Svaluto Moreolo AP1, one of Sweden’s four main state pension buffer funds, has selected 14 managers for its SEK45.3bn (€4.3bn) allocation to emerging markets equities.In May 2018, the SEK324bn fund moved to re-tender its entire allocation to emerging markets equities and entrust it to a range of external managers.Majdi Chammas, head of external asset management at AP1, told IPE: “These are the approved managers for EM equity, but not all of them will manage money. The funding decision is separate from this, but these are all eligible for managing money on behalf of AP1.”The managers selected are:last_img read more

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