Institutional Investing - Canada | GE Asset Management



Click to listen to and view GE Asset Management�s Q3 2011 Global Trends Quarterly Market Outlook Update.



GE Asset Management�s Nick Koutsoftas, Senior Vice President and Portfolio Manager � Commodities, recently spoke at World Commodities Week 2010 in London. In his presentation, he addressed the case for active management in commodities investing and our firm�s approach to gaining exposure to the asset class. Click on the links to watch highlights of his remarks. Please see important notes below pertaining to the content of these clips.*



Making the Case for Commodities**
Active vs. Passive Investing
GE Asset Management�s Approach






Despite their compelling return and risk characteristics, mid-cap stocks encompass what historically has been an overlooked area of the market. Some investors believe they are able to achieve ample mid-cap exposure through their large- and small-cap allocations�negating the need for a dedicated mid-cap allocation. In this paper we offer our views on why equity investors should be wary of confusing a large/small barbell allocation with a portfolio that is well diversified across the full market cap spectrum. We also examine the factors that have made mid caps an attractive asset class, providing not only impressive returns over time, but, more importantly, consistently better risk-adjusted returns versus both large- and small-cap stocks. Finally, we look at the potential benefits of adding mid caps to a hypothetical barbell portfolio with only large- and small-cap allocations.



Tax-exempt municipal bonds, long sought by individual investors given their low historic default rate, tax advantaged status and staid investment experience, have sequentially undergone a dramatic change in perception over the last three years. Starting with the financial collapse of the monoline insurance industry in 2007, the ensuing recession and impact on state and local financial resources and more recently a public scrutiny questioning the ability of municipal issuers to ultimately fulfill their obligations, have tarnished the entire asset class with a broad brush. Individual investors have dramatically altered their investment behavior, and may have interpreted recent events as systemic weakness as opposed to several isolated events. We take issue with those conclusions and believe that when a rational, balanced examination of the facts takes place, there is strong investment opportunity available in this asset class.



In this white paper, we discuss how housing reform, home ownership, and housing supply and demand metrics have impacted borrowers and the housing recovery.



GE Asset Management�s Ping Zhou, Portfolio Manager of China Equities, discusses our approach to investing in this dynamic market and the opportunities it presents to investors in an interview with The Wall Street Transcript.




Defined benefit plans have experienced a wild ride in pension funding levels since 2008. For many plan sponsors, the volatility in funded status, cash contributions and pension expenses - as well as the need for yield to support beneficiary obligations - represent significant challenges taht are likely to persist. Given the outlook for coninued low interest rates, below-trend ecomonic growth and potentially lower investment returns, the demand for attractive, regular income is high. We believe that the narrowing of the gap between dividend and bond yields makes a strong case for including stocks with above-average yield, the prospect for growing dividends and lower market beta as part of an overall strategy for de-risking portfolios without de-railing potential return.


"Shifting Opportunities in Emerging Markets" by Chris Kennedy (March 7, 2011)


"Rally in oil prices powers energy stocks to gains" by Michael Mackenzie and Michael Stothard (February 3, 2011)


“GE Lights Up New Commodities Strategy” by Paul O’Dowd (May 3, 2010)


“GE Pension Trust’s active commodities strategy unlocked” by Richard Lowe (May 6, 2010)

Tactical Asset Allocation Review

	De-risking portfolios without de-railing potential return

	The Growing Trend Toward Commodities Exposure

	Emerging Markets: Positioned for Growth

	More White Papers

	Viewpoints on the Financial Crisis

	U.S. Equities Review & Outlook: A Q&A with Dave Carlson

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	Fourth Quarter 2011

	Performance 4Q 2011

	Dmitri Stockton Named President and CEO of GE Asset Management


	GEAM Awarded $150 Million China A-Share Quota

	GEAM Introduces Actively Managed Commodities Strategy for Institutional Investors



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*FEATURED VIDEOS IMPORTANT DISCLOSURE NOTES

**Important note regarding the first slide appearing in this clip: On a total return basis, the S&P Goldman Sachs Commodity Index (S&PGSCI) has returned 9.5% per year since 1970, basically in line with the 9.8% return of the S&P 500 Index for the period 1/30/70 � 8/31/10. These returns are annualized. There is significant volatility on a per year basis and commodities may not outperform every year or over the short or long term. The risk of loss in commodities investing can be substantial. Prospective investors should consider carefully whether commodities trading is suitable for them and their investment objectives.

Nothing presented via the links above is or is intended to constitute investment advice, and no investment decision should be made based on any information provided herein. Information provided reflects GE Asset Management�s views as of a particular time. Such views are subject to change at any point and GE Asset Management shall not be obligated to provide notice of any change. Any securities information regarding holdings, allocations and other characteristics are presented to illustrate examples of the types of investments or allocation that GE Asset Management may have bought or pursued as of a particular date. Such information may not be representative of any current or future investments or allocations and nothing should be construed as a recommendation to purchase or sell a particular security or follow any strategy or allocation. Any forward looking statements or forecasts are based on assumptions and actual results are expected to vary from any such statements or forecasts. No reliance should be placed on any such statements or forecasts when making any investment decision. While GE Asset Management has used reasonable efforts to obtain information from reliable sources, we make no representations or warranties as to the accuracy, reliability or completeness of third party information presented herein. No guarantee of investment performance is being provided and no inference to the contrary should be made. The information provided shall not be copied or distributed without the prior written consent of GE Asset Management. There is a risk of loss from an investment in securities. Past results are not necessarily indicative of future results. GEAM is not currently registered with the CFTC as a commodity trading advisor (�CTA�) and qualifies for an exemption or exclusion from applicable CFTC registration requirements. As such, the Commodity Futures Trading Commission (�CFTC�) has not passed on the adequacy or accuracy of these presentation materials. No commodity investment is without risk regardless of whether the strategy is actively or passively managed. While commodities carry risk levels comparable to equities, their prices can be impacted by a wide range of forces, including demographic and technological changes as well as weather and geopolitical events, which may create substantial uncertainties in the marketplace. These uncertainties can cause individual commodity prices to move sharply higher or lower exposing an investment to volatility that may not be suitable for all investors.

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