P { margin-bottom: 0.08in; } A survey by Cerulli Associates of US asset management firms finds that 42% estimate that institutional clients are their largest class of clients, while 24% feel that this category is larger than the others.Despite the fact that these asset management firms admit that there is a secular shift in favour of beta strategies these professionals are aware that institutional managers also need alpha. These strategies have higher margins, and can help asset management firms to combat pressure on commissions in passive strategies.Cindy Zarker, director of Cerulli Associates, says that asset management firms feel that demand from institutional investors as from retail clients for liquid alternative products is continuing to drive increases in mutual fund assets. They estimate that in ten years, the percentage of alternative mutual funds as a percetage of total mutual fund assets will reach 13.6%, compared with 2.2% as of the end of 2012.Cerulli also observes that the competition is leading asset managers to adopt a more flexible approach in order to satisfy the needs of each institutional client, in order to win new mandates. And when they set up net products in order to adapt to demand from institutional investors, product developers use a wider range of structures.

P { margin-bottom: 0.08in; } For second quarter 2013, the wealth management division of Morgan Stanley (formerly Global Wealth Management Group) has reported pre-tax profits of USD655m, compared with USD597m in first quarter and USD410m in the corresponding period of 2012. Meanwhile, pre-tax profits from asset management (investment management, ex asset management) fell to USD160bn in April-June, from USD187bn in the first three months of the year. However, it has nearly quadrupled compared with USD43bn in the corresponding period of 2012.For wealth management, assets totalled USD1.8trn as of the end of June, but client assets in fee-based accounts totalled USD629bn. In this area, net inflows totalled USD10bn in the quarter under review.In asset management, assets under management or administration as of 30 June totalled USD347bn, compared with USD311bn one year earlier. During second quarter 2013, net subscriptions totalled USD9.8bn.Across the Morgan Stanley group, net profits in April-June totalled USD980m, compared with USD962m in the previous three months, and USD591m in second quarter 2012.

P { margin-bottom: 0.08in; } Schroders has today announced the appointment of Thomas Guyot as Head of Property Investment for France. He joins the Paris-based team, and will direct the expansion of Schroders Property on the Frech real estate market. Schroders has been managing real estate funds since 1971, and now has EUR12.4bn in real estate assets under management (as of 31 March 2013). Guyot will be responsible in particular for investing pan-European funds managed by Schroders in France. He will join the European investment team, within which he will report to Tony Smedles, head of pan-European funds at Schroders. Thomas Guyot began his career as a consultant at Boston Consulting Group in Paris in 1997, and then worked in the real estate unit at Morgan Stanley, before becoming director of acquisitions and CEO of the Compagnie La Lucette. Following its acquisition by ICADE in 2010, he will continued to work for ICADE as head of commercial real estate.

P { margin-bottom: 0.08in; } For January-June, BlackRock on 18 July reported net profits by US-GAAP accounting standards of USD1.361bn, of which USD729m were in second quarter, and USD554m in first quarter, comapred with USD1.126bn in first half 2012.Assets as of the end of June totalled USD3.875trn, down 2% compared with USD3.93641trn as of the end of March, but up 8% compared with 30 June 2012.For long-term products, retail funds attracted a net USD5.076trn (to USD414.38bn as of the end of June), while iShares has seen a net outflow of USD963m, for assets of USD774.4bn. For its ETF brand, BlackRock states that net outflows over the long term are the result of outflows of USD7.2bn from emerging market equity funds, USD2bn from bond funds, and USD2.1bn for commodity funds. These outflows more than offset net subscriptions of USD3.6bn attracted to the Core Series product range, USD2bn attracted to minimal volatility equity funds in the United States, and USD2.2bn attracted to iShares European equity products.Long-term institutional products attracted USD7.794bn, and as of 30 June have total assets of USD2.37568trn.Lastly, the report states that assets in money market funds in second quarter fell 3%, or USD8.8bn, to USD252.6bn, and that total assets under advisory fell 13%, to USD40bn, due to planned liquidations from portfolios.

P { margin-bottom: 0.08in; } A team of 13 people based in Hong Kong and Shanghai, including portfolio managers, analysts and traders, has been made responsible for the launch and management of the Neuberger Berman Greater China Equity Fund (tickers: NCEAX, NCECX and NCEIX), which will invest in equities in businesses based in continental China, Hong Hong, Taiwan and Macau. The two lead portfolio managers are managing directors Yulin (Frank) Yao and Lihui Tang.The objective is to generate attractive total returns with a portfolio of 30 to 50 positions, large and mid-cap equities, selected according to a bottom-up, “research driven” approach, with a value bias, and the ability to invest in securities which do not belong to the benchmark (MSCI China Index).Yao, who is also vice chairman of Neuberger Berman for Asia-Pacific, directs a team which already manages USD1.7bn for institutional and retail investors in other Neuberger Berman products as well as some private funds and managed accounts, ranging from Chinese A-class equities to greater China equities.The two major investment themes are related to economic growth. They are, on the one hand, sectors which depend on consumer spending, such as agriculture, automotive, leisure, food and beverage, hygiene and retail commerce, and on the other, infrastructure, with equipments, machinery and utilities.Neuberger Berman had USD214bn in assets under management as of the end of June.

P { margin-bottom: 0.08in; } Aberdeen Asset Management Deuschland has announced that its semiannual distribution in July 2013 to shareholders in open-ended real estate funds DEGI Europa, whose liquidation was decided in October 2010, and which must complete by 30 September 2013, has been postponed to September.The delay comes due to the fact that payment for properties being sold will extend until September. Some revenues will be used to pay off debt.The fund (ISIN code: DE0009807800) as of the end of May still had assets of EUR691.6m.As of 30 September, the remainder of the fund will be transferred to the depository bank, Commerzbank.

P { margin-bottom: 0.08in; } Funds People reports that Banco Mediolanum has launched Mediolanum Camignac Strategic Selection, a global investment fund of funds from the French asset management firm, which is intended to offer a mid- to long-term solution with volatility control through active management. The product comes as an addition to the BlackRock Global Selection and Morgan Stanley Global Selection funds of funds, which are a part of the Mediolanum Best Brands range.The portfolio is composed of 11% international equity funds, 7% European equity funds, 19% global diversified funds, 19% Euorpean diversified funds, and 44% international bond funds.Mediolanum makes a selection of flexible funds from Carmignac Gestion. Front-end fees vary from 0% to 5.5%, depending on the total invested and the asset class. The management commission may vary from 1.65% to 1.95%, depending on the share class.

P { margin-bottom: 0.08in; } The European Securities Markets Authority (ESMA) on 18 July announced that it has approved seven co-operation agreement between securities commissions and their counterparts worldwide responsible for the surveillance of hedge funds, private equity funds and real estate funds. At a meeting in July, the Council of Supervisors at ESMA approved memoranda of understanding (MoUs) with authorities in the Bahamas, Japan, Malaysia, Mexico and the United States. Negotiations are continuing with the Chinese regulator. ESMA has now negotiated a total of 38 agreements on behalf of the 31 national securities commissions in the European Union and the European Economic Area. The agreements allow for exchanges of information, cross-border on-site visits, and mutual assistance with enforcement of respective supervision laws. In May, ESMA approved 31 memoranda of understanding with other regulators outside Europe.All of these agreements represent preconditions set by the alternative investment fund management directive (AIFMD) to allow asset management firms in third-party countries to access markets in the European Union or manage funds through outsourcing from managers in EU countries, after 22 July 2013. Memoranda are signed with:  Commodity Futures Trading Commission, United States of America;  Financial Services Agency of Japan;  Ministry of Economy, Trade and Industry of Japan  Ministry of Agriculture, Forestry and Fisheries of Japan;  Securities Commission, Malaysia;  National Banking and Securities Commission of the United Mexican States; and  Securities Commission of the Bahamas.

P { margin-bottom: 0.08in; } Expansión reports that, despite an unfavourable opinion from FIFA and UEFA, the Spanish government wants to save the finances of Spanish football and is expected to include a clause in the new framework law for the sport, which will be renewed at the end of this year, to allow private investors, such as investment funds, to acquire stakes in the economic rights of football players.

P { margin-bottom: 0.08in; } Mike Gould, who had been director of compliance at Russell Investments, has been recruited as director of retail strategy for the Investment Management Association (IMA), Fundweb reports. Gould will be responsible for strategy concerning fund distribution and the retail market, including pensions.

P { margin-bottom: 0.08in; } RBC Wealth Management, an affiliate of the Royal Bank of Canada, has appointed Daniel Ellis as chief investment officer for the British isles, Investment Week reports. He will begin in his new role from 1 October. He will be based in London, and will oversee management teams for the British isles, while making additions to the wealth management product range.

P { margin-bottom: 0.08in; } According to Les Echos, sovereign funds are remaining prudent. In 2012, they undertook 270 acquisition transactions of publicly-traded equities, for a total lf USD58.4bn, according to statistics from the Sovereign Investment Lab at the Università commerciale Luigi Bocconi. Although the number of trades was up by 14% year on year, they are down 30% in value. Les Echos points out that slightly more than 1 out of every 2 dollars was spend in developed countries, for a total of USD33bn. “The gradual reorientation of funds from developed countries to emerging countries, which began three years ago, has continued: the weight of emerging markets has increased from 8.5% to 13% of their total investments between 2011 and 2012. The weight of the BRIC countries (Brazil, Russia, India, China) is down slightly, from 29.2% to 26%,” the newspaper says.

P { margin-bottom: 0.08in; } According to a survey carried out in March and April by NMG Consulting of about 400 British financial advisers, the percentage who are diassatisfied with RDR regulations has declined slightly, to 43% from 51%, ahead of the introduction of the system which will put an end to kickbacks and require that advising be paid for. Meanwhile, 48% of respondents are of the opinion that they were correct to predict that the introduction of the RDR would be difficult, and 38% say that it proved more onerous than they had predicted. Despite the challenge which compliance with the RDR may have presented, the reaction from clients is reassuring so far, NMG Consulting claims. Although the real impact of RDR on clients will take more time to become clear, 26% of advisers already report that the reaction from their clients has been positive, while 20% report a negative reaction. And 67% say that they have not lost clients following the introduction of the RDR, while only 7% say they lost more than 10 clients.Lastly, NMG Consullting notes that among advisers and paraplanners, 10% have changed their activities due to the introduction of RDR. In this segment, 58% of professionals are now providing mortgage advising, general insurance or protection contracts, but they have ceased to offer advising in wealth management, in order to avoid adopting the adviser charging system, and bringing themselves into compliance with the other requirements of RDR.

P { margin-bottom: 0.08in; } Russell Investments has appointed Mike Clark as director of socially responsible investment, Citywire reports. The London-based asset management firm has selected its current head of Systanability Council to serve in this new role. He will initially aim to develop the Russell product range in socially repsonsible investment, and to ensure that the United Nations Principles for Responsible Investment (UN-PRI), signed by Russell, are adhered to.

P { margin-bottom: 0.08in; } Jorg Sunderman, who had until recently been director of market research at the Netherlands-based Robeco, in early July joined Canara Robeco Asset Mangement as COO, Fondsnieuws reports. Canara Robeco AM is a joint venture of Robeco and the Indian firm Canara Bank on the Indian market. The firm manages equity and bond funds. At Robeco, Sunderman is replaced by Margret Smits.

P { margin-bottom: 0.08in; } On 18 July, Liechtensteinische Landesbank AG (LLB), whose assets as of 30 June totalled CHF50.5bn, provided preliminary indications regarding its semiannual accounts, which will officially be published on 29 August, indicating that several one-time factors reduced its profits in Janary-June 2013 to CHF14bn (compared with CHF61.6m in the corresponding period of 2012). Excluding these one-time charges, net profits are estimated to have been CHF72m.LLB, which has reported net subscriptions of CHF210m in first half, says tat it has made a provision of CHF31m to cover its ongoing legal action with the US tax authorities. The conflict has also driven LLB to defer the sale of swisspartners Investment Network AG until further notice, which has resulted in a one-time charge of CHF14m. The closure of LLB Switzerland has led to a charge of CHF10m, and provisions for restructuring total CHF4m.

P { margin-bottom: 0.08in; } From 1 October, Christoph Mauchle will become a member of the executive managaement group at VP Bank, where he will be responsible for the newly-created “client business” unit. The Liechtenstein-based bank is reorganising the client business unit, following the merger of the Banking Liechtenstein & Regional Markets division with the Private Banking International division on 1 July. Mauchte joins from Credit Suisse, where he had been head of private banking for German, Luxembourg and Austrian markets. In the new organisation which will be in place at the beginning of fourth quarter, the group executive management will be composed of four people: Alfred W. Moeckli (CEO), Mauchle (client business), Juerg W. Sturzenegger (COO), and Siegbert Näscher (CFO). Fredy Vogt remains chairman of the board of directors.

P { margin-bottom: 0.08in; } As of 30 June, assets in funds in Denmark totalled SEK1.26trn (about ERU169bn), compared with SEK1.221trn as of the end of December 2012, according to the InvesteringsForeningsRådet association of asset management firms. Net subscriptions in first half totalled SEK46bn, of which SEK19bn were for retail funds (with SEK10.7bn for foreign bond funds and SEK7.3bn for Danish bond funds). In this period, funds distributed dividents totalling approximately SEK22bn.

Pierre Michel, Directeur général adjoint chargé des finances de la Caisse Centrale de Réassurance (CCR) à l’occasion d’une conférence organisée par Aberdeen : Les actifs illiquides représentent 12-13% de nos encours totaux, et correspondent à des ressources peu exigibles dont la duration est comprise entre 5 et 7 ans. Comptablement, leur valorisation est plutôt stable et et présente donc une stabilité pour nos passifs. A l’intérieur de ce budget d’investissement, nous n’avons pas de risque d’illiquidité qui obligerait à vendre tous les actifs car nous n’avons pas de scénario adverse. Il s’agit en effet d’immobilier détenu en direct, des obligations cotées ou encore du private equity, des fonds de créances. En revanche, nous restons à l'écart des infrastructures car nos passifs ne sont pas assez longs. Enfin, en ce qui nous concerne, le critère de ratio d’emprise s’applique sur des actifs supposés être liquides.

La performance globale du portefeuille de titres de la Caisse de Prévoyance du Personnel Enseignant de l’Instruction Publique et des Fonctionnaires de l’Administration du Canton de Genève, calculée selon la méthode du taux de rendement interne, s’est inscrite à 11,87 %, soit légèrement au-dessus du résultat du benchmark stratégique (11,40 %). Cette performance est essentiellement due au résultat des portefeuilles investis en actions qui enregistrent une progression de 15,7 %. Profitant notamment de la baisse généralisée des taux d’intérêt, les placements obligataires ont dégagé une performance de 7,9 %. Finalement, seule la valeur des fonds en matières premières, dont la Caisse a décidé de se séparer, a reculé durant l’exercice (-0,2 %). Gestion des portefeuilles obligations Une gestion prudente du risque monétaire a conduit la Caisse à se désinvestir complètement des obligations Monde au profit des obligations Monde entièrement couvertes contre le risque de change. Le portefeuille géré par l’UBS en obligations gouvernementales a ainsi bénéficié d’un apport de CHF 52,6 millions et celui géré par Dynagest en obligations d’entreprises de CHF 10 millions. Les obligations d’entreprises en euros ont également été augmentées. Le mandat conféré à Standard Life s’est vu doté d’un montant supplémentaire de CHF 10 millions. A noter que la CIA a parallèlement augmenté d’un montant équivalent le mandat de currency overlay sur l’euro confié à Dynagest. Les rendements peu attractifs offerts par les obligations en francs suisses ont à nouveau conduit la Caisse à réduire progressivement ses investissements dans cette classe d’actifs. Au total, CHF 26 millions ont été retirés du portefeuille géré en interne pour être affectés à la trésorerie générale. Actions En 2012, après une longue période de surperformance, l’indice des actions suisses des petites et moyennes entreprises a dégagé une performance inférieure à l’ensemble du marché. Rappelons que la Caisse avait vendu en 2011 une partie de ses investissements dans les petites et moyennes capitalisations. Le comité de la Caisse a examiné de manière détaillée les résultats du portefeuille investi en actions Europe ex-Suisse par Amundi et demandé qu’il soit à l’avenir géré de manière indicielle. Les parts que la Caisse détenait dans un fonds géré de manière active par Lombard Odier en actions Monde ex-Europe ont été vendues en raison de la sous-performance du portefeuille par rapport à son indice de référence. Le produit de la vente a été réinvesti dans un portefeuille géré de manière indicielle par Pictet. En ce qui concerne les marchés émergents, la Caisse a mené une réflexion en vue d’un éventuel investissement dans des portefeuilles dédiés aux pays « seuils », à savoir qui n’appartiennent pas à l’indice MSCI des pays émergents. En raison notamment de la taille limitée de ces marchés et de la concentration géographique et sectorielle de leur indice de référence, la Caisse a renoncé à créer des portefeuilles spécialisés tout en continuant à autoriser les gérants des actions des pays émergents, FSI et Pictet, à investir une part limitée de leur portefeuille dans les pays « seuils ». Actions non cotées La Caisse a continué d’investir dans les actions non cotées, participant à la deuxième clôture du fonds Eclosion 2 pour environ CHF 2,3 millions et souscrivant pour la première fois à un fonds des pays émergents, Baring Vostock Equity V, pour CHF 5 millions. Par ailleurs, le concept d’investissement déterminé par le Comité a été élargi afin d’autoriser la commission financière à investir également en Amérique du Nord. Désormais, l’allocation géographique visée est la suivante : 40 à 60 % en Europe, 20 à 40 % en Amérique du Nord, 20 à 40 % dans les pays émergents. Matières premières Depuis 2012, la CIA a mandaté Ethos pour assurer une veille des controverses susceptibles d’engendrer une initiative d’investisseurs à laquelle la Caisse pourrait s’associer. Ce contrat a conduit la CIA à signer trois premières initiatives sur des thèmes fort différents : l’exploitation des phosphates au Sahara occidental, l’extraction de pétrole à partir de sables bitumineux en Alberta et la réforme du marché de l’audit dans l’Union européenne. Gestion immobilière La performance globale du parc immobilier de la Caisse en 2012 s’est élevée à 6,22 %, par rapport à 6,35 % en 2011. Ce résultat est composé d’un rendement net direct de 5,17 % (5,33 % en 2011) et de l'évolution de la valeur des immeubles de 1,05 % (1,02 % en 2011).

Le gestionnaire alternatif américain, géant des hedge funds et du private equity, a annoncé un bénéfice net économique plus que triplé au titre du deuxième trimestre, passant de 212 à 703 millions de dollars, sous l’impulsion notamment des performances engrangées au sein de son portefeuille immobilier.

La filiale de la Caisse des dépôts a annoncé son entrée au capital du spécialiste très haut de gamme de la peinture décorative aux côtés du fondateur de ce dernier, Antoine Courtois, du management et de l’IDI. Président de Qualium Investissement, Jean Eichenlaub s’est félicité de ce soutien à «une très belle maison française».

L’opérateur de la Bourse de Francfort a choisi Liquidnet comme agent pour un nouveau service destiné à rendre à partir du 29 juillet «plus efficiente» la négociation de blocs d’actions allemandes par les investisseurs institutionnels, avec particulièrement une amélioration du prix et un moindre impact sur le marché.

Le numéro un mondial de la gestion d’actifs a publié un résultat net en hausse de 32% à 729 millions de dollars au deuxième trimestre. Si la collecte nette s’est élevée à 11,9 milliards sur la période, elle a été, fait rare, négative à hauteur de 963 millions du côté de la filiale iShares, le mastodonte des fonds indiciels cotés (ETF). Le lancement de nouveau ETF devrait permettre à BlackRock selon son directeur général Laurence Fink d’augmenter ses actifs (de 3.860 milliards à fin juin) de 5% par an.

Delta Alternative Management, spécialiste des «situations spéciales» sur les marchés obligataires corporates, a dévoilé le lancement du fonds Delta Bond Plus. L’objectif de ce dernier est selon la société de gestion de proposer aux entreprises une «source de financement alternative et complémentaire aux canaux de crédit traditionnels, notamment bancaires» sans omettre de promettre «un rendement élevé aux investisseurs».

Les régulateurs ont validé les critères identifiant ces établissements et les grandes lignes des règles à respecter. Une première liste a été publiée

Les régulateurs internationaux viennent de publier une liste provisoire des assureurs systémiques. Ils ont aussi dévoilé la méthodologie qui a permis de les sélectionner. Celle-ci met l’accent sur les activités qui n’ont pas de lien avec l’assurance. Les établissements devront respecter des exigences en capital renforcées à partir du premier janvier 2019.

Le graphique ci-contre montre l'évolution de l’appétit pour le risque, mesuré par la corrélation de rang entre les rendements des facteurs de risque et la volatilité qui leur est associée. Si la corrélation est positive, l’appétit pour le risque a augmenté ; si la corrélation est négative, l’appétit pour le risque s’est réduit.

La banque centrale apporte sa pierre à la revitalisation des marchés de titrisation de prêts aux PME en zone euro en assouplissant les règles d’éligibilité des ABS titrisations dans le cadre des opérations de refinancement des banques

Les tableaux ci-contre présentent les meilleures et plus mauvaises performances en euros des fonds sur le marché des fonds actions américaines et le marché des fonds actions françaises au cours du mois de juin 2013. Ces performances sont mises en perspective par le calcul de la volatilité, du ratio de Sharpe sur trois ans d’historique, ainsi que du rendement depuis un an.