p { margin-bottom: 0.08in; } “The socially responsible investment (SRI) process, particularly the selection of ‘best-in-class’ type shares, sometimes struggles to demonstrate its impact on environmental, social and governance (ESG) practices at businesses,” says Dominique Blanc, head of research at Novethic. For this reason, some investors and management firms are turning to shareholder engagement practices, which involve an investor “taking a stand on ESG challenges, and demanding that target companies improve their practices over time,” according to the definition provided by Novethic in its study of shareholder engagement, which surveys the state of these practices, which are worth EUR1.5trn in Europe. Shareholder engagement practices, “when they are carried out methodically and consistently, may lead to significant changes at businesses,” Novethic says. The firm says that “it would seem coherent to complement a socially responsible investment approach with engagement activities. Businesses which are open to dialogue and which are proactive on ESG questions may legitimately be privileged for investment, while those which refuse to take better control of their extra-financial risks in the face of demands from their shareholders may a priori be removed from portfolios.”

An analysis of the European asset management market by Morningstar has found that the traditional rankings of the top management firms have been upset in the “white year” which was 2010, with heavy outflows from money market funds, which is dangerous for the French asset management industry, compensated by inflows to higher-risk assets. Counting ETF funds, the industry overall saw inflows of over EUR30bn.Three firms form a strong group of leaders with high inflows (Franklin Templeton, with EUR31.62bn, Pimco, with EUR21.29bn, and Carmignac, with EUR17.04bn), while three other ones did poorly, with significant net redemptions (JPMorgan, at EUR11.34bn, BNP Paribas with EUR9.96bn, and Natixis, with EUR9.09bn in outflows).By assets, the top asset management firm, despite net outflows, is JPMorgan (EUR190.62bn), followed by UBS (EUR134.67bn), Crédit Agricole (EUR114.01bn), BNP Paribas (EUR113.9bn) and BlackRock (109.54bn). Two other firms have over EUR100bn in assets: DWS (EUR105.85bn), and Fidelity (EUR104.68bn).The past year was characterised by high subscriptions to the higher-risk assets which are most lucrative for managers (global equities, emerging market debt, high yield bonds), and a marked reallocation to emerging markets, to the detriment of the Euro zone and Europe. Morningstar also observes that ETFs and thematic allocation (high alpha) management have gained momentum, to the detriment of benchmarked management with low tracking error.The agency also points out that there has been significant progress for specialised independent management firms (Franklin Templeton, Schroders, Fidelity, Vanguard, Carmignac, Comgest, and others) which have achieved the all-around triumph of inflows in all asset classes, while the major generalist networks have lost places in the overall rankings, and have seen outflows in all asset classes.There has also been an increasingly clear transformation of the sector towards a genuine European asset management market, with a growing presence of Anglo-American management firms (Franklin Templeton, Pimco, BlackRock, BNY Mellon, and others) which have a pan-European product range (Luxembourg or Irish-registered), to the detriment of banking-insurance groups which often rely on domestic funds.

p { margin-bottom: 0.08in; } The French asset management firm PhiTrust Active Investors, a specialist in shareholder engagement, would like to propose an environmental resolution with the support of other shareholders at the general shareholders’ meeting for Total on 13 May 2011. The move would be in partnership with Greenpeace France and the Natural Resources Defense Council, an environmental defence organisation based in the United States. The resolution would ask the French oil company to publish more information on the environmental and social risks connected with its plans to exploit oil tar sands in Canada and their long-term financial impact. According to a Novethic report on shareholder engagement, this would be the first environmental shareholder resolution in France. The PhiTrust initiative echoes the campaign “Tar sands: counting the costs,” which was led by the British NGO FairPensions in 2010, and which brought two resolutions asking Shell and BP to publish data on the environmental, social and financial risks related to their plans to exploit Canadian tar sands.

We understand that Sébastien Barbe is leaving Rothschild & Cie Gestion, «legendary» head of the fixed income opération, who had been appointed partner ot the company a few days ago. He is reported to join a third party company with a wider task.His position will be modified so that the «Europe convertibles» he had in charge on top of fixed income will be integrated to the equity and balanced department under Didier Bouvignies and Philippe Chaumel, respectively CIO and co-head of Asset Allocation. For the convertibles opération, Krustell Agaesse, co-manager for the last four years, would take over for the management, and one person is about to be hired to reinforce the team. As far as fixed income is concerned, the team with Christophe Peyraud, Emmanuel Petit and Julien Boy are supposed to concentrate ont Euro govies, Euro credit and insurance mandates. In the meantime, until a replacement is hired for a new head of the fixed income and money market teams, these teams will report directly to Didier Bouvignies.

p { margin-bottom: 0.08in; } Assets under management at the US asset management group Eaton Vance totalled USD188.7bn as of 31 December 2010, compared with USD185.2bn as of 31 October. Assets in equities increased to USD113.7bn, compared with USD109.1bn, while fixed income contracted to USD42.3bn, from USD54.2bn previously.

p { margin-bottom: 0.08in; } Richmond Park Capital (RPC), the parent company of Richmond Park Partners, will acquire the alternative multi-management firm Olympia, owned by Sagard Private Equity Partners and the employees and management of Olympia CM, a statement released on 4 February states. The personnel at the firm have agreed to remain in the group after the operation is completed, pending the approval of regulatory authorities.RPC says that it will help the management at Olympia CM, which currently manages about EUR1.5bn in assets, to develop its operations, foregrounding its strengths in the investment process, extending its product range, and adding to its marketing approach.The terms of the acquisition deal have not been disclosed.

p { margin-bottom: 0.08in; } Asian Investor reports that Harvest Global Investments (in which Deutsche Bank holds a stake) has recruited Choy Peng Wah as vice chairman and CEO of Harvest in Hong Kong, from 14 February. Wah is currently deputy CEO of Fullerton Fund Management in Singapore.

p { margin-bottom: 0.08in; } Michael Böhm, director of capital market legislation on the executive team at the bank HSBC Trinkhaus & Burkhardt, was appointed on 1 January as a member of the executive board and chief operating officer at HSBC Global Asset Management (Deutschland). In this role, he will be responsible for legal affairs, compliance, controlling, IT, and projects. He will coordinate cross-border distribution of asset management products with the Paris and London offices.

p { margin-bottom: 0.08in; } The Asset and Wealth Management (AWM) unit within the PCAM (Private Clients and Asset Management) division of Deutsche Bank in 2010 earned net profits of EUR3.9bn, up EUR1.2bn, or 4.6% over the previous year. Part of these gains (EUR646m) were related to the acquisitions of Sal. Oppenheim and BHF. For the year as a whole, AWM earned pre-tax profits of EUR100m, including a loss of EUR368m related to the Sal. Oppenheim and BHF acquisitions. In 2009, pre-tax profit totalled EUR200m. As of 31 December, assets under management in the AWM unit totalled EUR873bn, up EUR27bn from the end of September 2010.

p { margin-bottom: 0.08in; } From 1 January, clients of the life insurer Allianz Lebensversicherungs-AG (Allianz Leben) may select sustainable development funds, products from external management firms, and ETFs for their unit-linked retirement savings accounts. The list was released on 3 February.In the first category is Allianz RCM Global Sustainability – A – EUR, a best-in-class product, and the SRI funds Allianz Euroland Equity SRI – A – EUR, Pioneer Funds Global Ecology A, Sarasin OekoSar Equity – Global – A – EUR and Sarasin Sustainable Bond EUR, which are managed according to environmental, social and governance (ESG) criteria.Allianz Leben has also made available its range of three DWS funds (DWS Top Dividende, DWS Vermögensbildungsfonds I and DWS Deutschland) and the Aberdeen Global Emerging Markets Equity.The offer also extends to ETFs with the addition to the list of four ComStage products, the ComStage ETF DAX® FR, ComStage ETF EURO STOXX 50® FR, ComStage ETF S&P 500 and ComStage ETF MSCI World TRN.

p { margin-bottom: 0.08in; } Agefi Switzerland reports that a study by the consulting firm Etops seeks to combat the prevalent idea in Europe that Geneva is the most attractive location for hedge funds in Switzerland. To the contrary, the firm claims that with the cities of Zug and Pfäffikon, the Zurich region “is far ahead of Geneva” as a financial centre of choice for asset managers and hedge funds. The Zurich region accounts for about 40% of Swiss investors likely to invest in hedge funds, compared with 30% in Geneva, the consulting firm, itself based in Pfäffikon, claims.

p { margin-bottom: 0.08in; } The US hedge fund Elliott Associates (USD17bn in assets) has called for the resignation of the president and CEO of Actelion, a Swiss biotech firm in which it is the largest shareholder, the Financial Times reports. In a letter to directors on Thursday, of which a copy was obtained by the newspaper, the hedge fund is severely critical of the management of the firm.

p { margin-bottom: 0.08in; } Agefi Switzerland reports that Martin Gut has become the new director of institutional activities at BlackRock for Switzerland. He was previously head of relations with major institutional clients in Switzerland at Credit Suisse, where he previously spent ten years as director of Credit Suisse Bond Trading activities.

p { margin-bottom: 0.08in; } According to legal documents released yesterday by the legally-appointed trustee for Bernard Madoff, Irving Picard, JPMorgan Chase played a role in providing cover for the Madoff scandal, Les Echos reports. The allegations come as part of a legal action by the trustee against JP Morgan to recover USD1bn in profits and USD5.4bn in damages and interest. According to the lawsuit, filed on 2 December, but which had previously been kept secret at the request of the bank, “directors at JP Morgan had expressed serious doubts about the legitimacy of the Madoff investment firm, more than 18 months before the collapse of his Pomzi scheme, but they continued to do business with him.”

p { margin-bottom: 0.08in; } HSBC has recently registered two products with the CNMV: HSBC MSCI World ETF and HSBC MSCI Turkey ETF. The management firm has told Funds People that it is planning to release an additional series of ETFs in Spain that will replicate bond and equities indices.

p { margin-bottom: 0.08in; } Jupiter on 3 February announced that its Luxembourg Sicav Jupiter Global Fund is now registered for sale in the Netherlands and Portugal. The development is a further sign of Jupiter’s desire to develop outside its main markets, which are Germany, France, and Switzerland. The number of sub-funds available via the Luxembourg Sicav has increased from seven three years ago to 14 currently. Assets under management in the Sicav totalled GBP1.1bn as of 31 December 2010.

p { margin-bottom: 0.08in; } On 3 February, Standard Life Investments (SLI) announced that its Global Absolute Return Strategies (GARS) portfolio, launched in November 2005, which has already raised EUR8bn, is now available in Sicav form in the United Kingdom (where it had been available as a unit trust since 2008), as well as in Germany, Denmark, Spain, Finland, Ireland, Luxembourg, Norway, the Netherlands, and Sweden. In the past three years (to 31 December 2010), the product has earned annualised gross returns of 8.62%, with volatility of 7.5% Its objective is to outperform the Euribor 6 month by 500 basis points.

Standard Life Investments has announced that it has completed the launch of its Global Absolute Return Strategies portfolio (GARS) to European investors. Structured as a sub-fund forming part of Standard Life Investments’ Luxembourg-domiciled SICAV range, the Fund is now available in Denmark, Finland, Germany, Ireland, Luxembourg, The Netherlands, Norway, Spain and Sweden. The SICAV version is now also available in the United Kingdom, where a unit trust structure has been in place since 2008. GARS seeks to deliver an absolute return similar to what might be expected from equities in the long-term, but with significantly less risk. This is sought through a dynamic multi-asset, multi-market strategy that manages investments across a range of traditional and non-traditional sources of return. GARS currently has EUR8 billion of assets under management and 331 institutional clients.The strategy is managed by a team of 24 investment professionals with an average of 15 years’ investment experience.

p { margin-bottom: 0.08in; } The activist investor Edward Bramson has won his battle for control of the UK asset management firm F&C, in which he controls 17% of capital via his firm Sherborne Investors. His resolutions to install himself as head of the management firm were massively approved by shareholders at an extraordinary general shaoreholders’ meeting on 3 February, held at his request. 65% of shareholders voted in favour of the departure of Nick MacAndrew, chairman and director of the firm, and 61% voted for the departure of Brian Larcombe from his position as director. 70% of shareholders voted in favour of the appointment of Bramson as director, and he was then appointed the new chairman of F&C. 54.7% and 70.8% of shareholders, respectively, chose to appoint Ian Brindle and Derham O’Neill as members of the board of directors. Total votes on the fice resolutions represented more than 80% of capital issued by F&C. Back in August, Sherborne Investors, which defines itself as an investment company specialised in recovery at troubled businesses, announced its acquisition of a 5% stake in F&C. The stake was then increased, up to the present level of about 17%. At the end of December, Sherborne called for an extraordinary general shareholders’ meeting to replace the current management of the firm.

p { margin-bottom: 0.08in; } AXA announced on 3 February that it does not expect significant impact on its 2010 results due to the settlement reached by AXA Rosenberg, an affiliate of AXA Investment Managers, with the US Securities and Exchange Commission, on the basis of projections which are already reflected in results for first half 2010.The SEC announced the same day that three entities of Axa Rosenberg would pay USD242m to settle a lawsuit related to an IT malfunction. Axa Rosenberg revealed in April 2010 that it had discovered an error in a risk modelling program that had the effect of minimising some risks in its portfolio optimisation system.The Securities and Exchange Commission (SEC) says that the settlement will bring USD216.8m in reimbursements for losses by clients of Axa Rosenberg Group LLC< Axa Rosenberg Investment Management LLC and Barr Rosenberg Research Center LLC.The SEC received an additional payment of USD25m for violations of the deontology code and professional standards.

p { margin-bottom: 0.08in; } At least 15 hedge funds obtained confidential information about businesses from directors at the companies, according to regulators investigating insider trading on Wall Street, the Financial Times reports. The Securities and Exchange Commission on Thursday filed charges against two consultants working at the expert network company Primary Global Research, and four employees, who they accuse of providing confidential information about results and technology products to hedge funds and other parties, the newspaper reports.

p { margin-bottom: 0.08in; } The US group Ameriprise Financial has reported net profits for fourth quarter 2010 of USD305m, compared with USD237m one year previously. For the year as a whole, net profits were up 55%, to USD1.1bn. Ameriprise says in a statement that in fourth quarter 2010, Advice & Wealth Management and Asset Management activities represented 54% of pre-tax operating profits, compared with 30% one year earlier. Assets under management in the Asset Management unit increased 88% over the year to USD457bn. This significant increased, related to the acquisition of Columbia Management and to positive market effects, was nonetheless offset by outflows. Threadneedle, whose assets under management rose 8% to Usd108bn, posted a significant inflow, even though net outflows ran to USD290bn in the quarter under review. In institutional assets, net outflows totalled USD5.7bn, of which USD4.7bn were from insurance portfolios. In the Advice & Wealth Management unit, retail client assets increased 12% year on year to USD329bn.

p { margin-bottom: 0.08in; } Hedge Week reports that Frontier Investment Management has announced that it has added to its range of multi-asset class funds with the launch of the IFDS Frontier Map Cautious Fund. The new fund, which will be launched on 8 February, will include eight asset classes, including global equities, international bonds, emerging markets equities, emerging markets bonds, international real estate, commodities, hedge funds, and managed futures. The allocation of the fund will offer investors lower volatility in returns than the diversified fund. The proportion of the Cautious fund to be invested in the bond asset class will consequently be higher.

p { margin-bottom: 0.08in; } The Swiss asset management and investment fund sector has developed well in 2010, and is now looking to the future with optimism. “This year will be a good time to resolutely roll out new improvements to guiding conditions,” the Swiss Funds association says in a statement. As of the end of 2010, the statement says, 7,191 collective capital investment funds were authorised for public sale in Switzerland (6,502 the previous year), of which 1,400 (previously 1,343) were Swiss-registered funds. “The Swiss investment fund and asset management market has recovered nicely from the financial crisis, and is now in good health. But it still has room to grow, which is all the more marked as investor confidence has not yet fully recovered. But Switzerland is well-equipped to brilliantly face these challenges in the future,” says Martin Thommen, president of the SFA, cited in a statement. The number of members of the association rose by another 10% in 2010, to 171 companies. Among the new active members are Aberdeen AM Switzerland, Dexia AM Luxembourg SA, Geneva, Jabre Capital Partners SA, Geneva, LGT Capital Partners SA, Pfäffikon, Partners Group, and Reyl AM SA, Geneva.

L’investisseur activiste Edward Bramson a remporté sa bataille pour le contrôle de la société de gestion britannique F&C, dont il détient 17 % du capital via sa société Sherborne Investors. Ses résolutions visant à se placer à la tête de la société ont en effet été massivement approuvées par les actionnaires lors de l’assemblée générale extraordinaire du 3 février qui avait été convoquée à sa demande.Dans le détail, 65 % des actionnaires ont voté en faveur du départ de Nick MacAndrew, président et administrateur de la société et 61 % pour le retrait de Brian Larcombe en tant qu’administrateur. Dans le même temps, 70 % des actionnaires se sont prononcés en faveur de la nomination d’Edward Bramson en tant qu’administrateur, lequel devrait être désigné nouveau président de F&C. Enfin, 54,7 % et 70,8 % des actionnaires ont respectivement choisi de nommer Ian Brindle et Derham O’Neill comme membres du conseil d’administration.Le total des votes sur les cinq résolutions ont représenté plus de 80 % du capital émis de F&C.C’est en plein mois d’août que Sherborne Investors, qui se définit comme une société d’investissement spécialisée dans le redressement des entreprises, avait annoncé l’acquisition de 5 % de F&C. Cette participation a par la suite été élargie jusqu’à représenter 17 % du capital environ. Et fin décembre, Sherborne avait demandé la tenue d’une assemblée générale extraordinaire afin de limoger la direction actuelle.

Selon Hedge Week, Frontier Investment Management a annoncé un renforcement de sa gamme de fonds multi-classes d’actifs avec le lancement du IFDS Frontier Map Cautious Fund. Le nouveau fonds, qui devrait être lancé le 9 février prochain, devrait comprendre huit classes d’actifs, à savoir les actions internationales, les obligations internationales, les actions émergentes, les obligations émergentes, l’immobilier international, les matières premières, les hedge funds et les managed futures. L’allocation de ce fonds devrait proposer aux investisseurs une moindre volatilité des rendements que le fonds diversifié. La proportion du Cautious fund investie dans les classes d’actifs obligataires sera en conséquence sensiblement revue à la hausse.

Les actifs sous gestion du groupe américain de gestion d’actifs Eaton Vance s'élevaient à 188,7 milliards de dollars au 31 décembre 2010 contre 185,2 milliards au 31 octobre.Les encours en actions ont progressé à 113,7 milliards de dollars contre 109,1 milliards alors que le fixed income s’est contracté à 42,3 milliards de dollars contre 54,2 milliards précédemment.

Le bénéfice distribuable de The Blackstone Group pour 2010 est ressorti à 702 millions de dollars, dont 239 (+ 12 %) au quatrième trimestre, contre 479 millions pour l’année précédente tandis que la perte aux normes GAAP se sont contractées à 370 millions de dollars contre 715 millions, après charges nettes liées à l’introduction en Bourse et aux acquisitions. A fin décembre, les actifs sous gestion rémunérés (fee-earning assets under management) tout comme l’encours total ont atteint de nouveaux records avec respectivement 109,5 milliards (contre 96,1 milliards) et 128,1 milliards de dollars.Durant l’exercice 2010, Blackstone a engagé environ 10 milliards de dollars de nouveaux investissements dans ses différentes activités. Au 31 décembre, le groupe disposait de 30 milliards de dollars de «poudre sèche» disponibles pour des investissements.

Le groupe américain Ameriprise Financial a fait état pour le quatrième trimestre 2010 d’un résultat net de 305 millions de dollars contre 237 millions un an plus tôt. Sur l’ensemble de l’année, le bénéfice net affiche un bond de 55% à 1,1 milliard de dollars.Ameriprise souligne dans un communiqué qu’au quatrième trimestre 2010, les activités Advice & Wealth Management et Asset Management ont représenté 54% du résultat d’exploitation avant impôts contre 30% un an plus tôt. Les actifs sous gestion du pôle Asset Management ont fait un bond sur l’année de 88% à 457 milliards de dollars. Cette progression significative, liée à l’acquisition de Columbia Management et à l’effet marché, a été malgré tout amputée par de la décollecte. Dans la partie «retail», Threadneedle, dont les actifs sous gestion ont progressé de 8% à 106 milliards de dollars, a enregistré une collecte significative si bien que la décollecte nette a reflué à 290 millions durant le trimestre sous revue. Du côté institutionnel, la décollecte nette s’est élevée à 5,7 milliards de dollars, dont 4,7 milliards de portefeuilles d’assurances. Dans le pôle Advice & Wealth Management, les actifs de la clientèle «retail» se sont accrus de 12% sur un an à 329 milliards de dollars.

Le fonds d’investissement réfléchit à une vente cette année de l’enseigne française de déstockage discount qu’il a rachetée en avril 2007, a indiqué à Reuters Pascal Stefani, le gérant à Paris d’Advent International. L’enseigne avait atteint près de 165 millions de chiffres d’affaires en 2010 contre 83 millions en 2006. Advent International vient juste de vendre la chaîne allemande de mode Takko au fonds Apax Partners.