p { margin-bottom: 0.08in; } Cotizalia reports that Manuel San Salvador, deputy CEO of Banco Urquijo (private banking, business banking, asset management), has left the business after being gradually relieved of various responsibilities, as Urquijo also lost its independent status within the Sabadell group (which acquired Urquijo in 2006). Officially, it is a divorce by mutual consent. In practice, it is more a consequence of the rise to power of Ramón de la Riva, who was appointed deputy CEO of Sabadell and executive vice president of Urquijo on 25 November.

p { margin-bottom: 0.08in; } Asian Investor reports that HFT Investment Management, a joint venture of BNP Paribas and Haitong Securities, has opened a branch office in Hong Kong, becoming the most recent Chinese asset management actor to use Hong Kong as a base to launch international activities.

p { margin-bottom: 0.08in; } The Singapore hedge fund Whitefield Capital Management has decided to cease charging performance commissions until it has doubled its assets under management. Whitefield last year faced redemptions that reduced its assets under management to USD100m. The Asian Opportunities Fund, with about USD30m in assets under management, will not charge fees until it has assets of USD50m to USD100m. The fund has also earned returns of 33% this year, after results of about 80% last year.

p { margin-bottom: 0.08in; } In the past, hedge funds have had the decisive advantage over ETFs of being more maneuverable and being better able to anticipate rebalancing or adjustments of indices, which often lead to market movements that negatively impact ETFs. At the beginning of next year, the Wall Street Journal reports, the Center for Research in Security Prices (CSRP) at the University of Chicago will launch investible indices which will prevent funds which replicate them from having to make mandatory transactions when changes are made to traditional indices. The distinctions between small, mid and large caps will be expressed as a percentage of the value of the total market, rather than as fixed amounts in dollars or an unchanging number of companies. Equities will be “partially weighted” via various cap size indices. If a company grows or shrinks, its shares will no longer be required to be added or removed all at once. Additions and removals will be made gradually, adn the date on which the changes are finalised will be randomized.

p { margin-bottom: 0.08in; } Asian Investor reports that Nikhil Srinivasan, currently chief investment officer at Allianz Investment Management (CIO) for the Asia-Pacific region, has been appointed CIO for the group. He will be based at the group’s Munich headquarters. The promotion, unusual for a European firm, may be viewed as a fair reward for Allianz’s results in the region. Asian life insurance activities have grown by 45% in the first nine months of the year. Srinivasan, CIO for Asia-Pacific since 2006, reduced exposure to equities to less than 1% in August 2007, just one month before the collapse of Lehman Brothers.

p { margin-bottom: 0.08in; } Les Echos reports that the Green party MEP Pascal Canfin on Monday, 29 November published a report on proposals made by the Commission in mid-September to better regulate short-selling and transactions on credit default swaps (CDS). He would like to require investors in sovereign debt CDS to hold the underlying government debt as well. The economic and monetary affairs commission of the European parliament will finalise its position in a vote scheduled for 7 February. The planned regulations will then be subject to an agreement with the Council before being definitively passed.

p { margin-bottom: 0.08in; } In absolute terms, French funds have sustained net redemptinos fo EUR52bn in the first nine months of the year, which is the largest outflow in all countries covered by Efama, Expansión reports. However, these outflows represent only 4.15% of assets in French funds. Spanish funds may have seen outflows of only EUR16.34bn in January-September, but this total represents 10.4% of total assets under management, and thus the heaviest outflows in relative terms. The third country on the list is Italy, with net redemptions of EUR14.2bn, or 7.3% of the total. At the other extreme, Luxembourg funds have attracted a net EUR88.89bn, or 5.6% of their initial assets. But British funds have done better: their inflows of EUR38.5bn represent 7.3% of the amount observed at the end of 2009.

In the UCITS fund market, hedge fund strategies are growing at a faster pace than expected. In the first nine months of the year, inflows to UCITS-compliant hedge funds, or Newcits, totalled EUR25bn, according to a study by Strategic Insight on behalf of ALFI (the Luxembourg investment fund association), with the assistance of the Luxembourg for Finance (LFF) association.Inflows for the year as a whole may total about EUR33bn, compared with EUR19.2bn in 2009. Assets under management in over 1,000 Newcits as of the end of September totalled EUR114bn.The study finds that products domiciled in Luxembourg this year represented more than half of all inflows and Newcits account for 45% of all funds. Excluding funds domiciled in the UK, Luxembourg funds account for two thirds of all flows.Most funds use hedge fund strategies adapted for the increasing need for absolute return solutions, with lower volatility and lower correlations, in order to diversify portfolios.Gains remain concentrated in a few products: only 50 funds account for 90% of net inflows for the year. Some funds have shown spectacular inflows. The Global Absolute Return Strategies fund from Standard Life Investments has posted net inflows of EUR3.5bn, and the Julius Baer BF Absolute Return has attracted a net EUR2.1bn. Three other funds have collected over EUR1bn this year.The fundamentals which have supported the development of Newcits remain solid, say the authors of the study. Liquidity, a rigorous regulatory framework, transparency and the UCITS brand are all factors which support the development of UCITS hedge funds. And the study points out that these are all factors which on balance outweigh access to investors, the AIFM directive and its impact, or the need for absolute returns and diversification.The estimate of net inflows of EUR33bn for the year cited above represents 15% of all net inflows to long-term UCITS funds. If this percentage increases to 25% by the end of the next decade, and inflows increase by only 5% per year – two relatively conservative estimates, the study says – then Newcits will accumulate net assets of EUR600bn in the next decade.

p { margin-bottom: 0.08in; } Hedgeweek reports that Frontier Capital Management has launched a second managed futures fund, the FrontEdge Managed Futures Fund. The defensive qualities of managed futures, one of the most liquid absolute return strategies, were once again demonstrated when the markets fell in 2008, and the segment saw positive returns of about 17%. The fund has initial capital of USD40m in investments, which will increase to USD60m by the end of the year. The lead portfolio manager on the fund, Alex Gaitan, while Marc-Philippe Davies, head of investments, is its co-manager.

p { margin-bottom: 0.08in; } On 26 November, Arcano announced the launch of the Arcano Emerging Markets Funds, which claims to be the first private equity fund of funds in the world to focus on emerging markets. The gross annual performance objective is 20%, says Funds People. Arcano is planning to raise USD150m to USD200m for the new product.The fund will invest in Latin American, African and Middle Eastern private equity funds, with a specialisation in Brazil, Mexico, Colombia, Peru, South Africa, Egypt, Turkey, and Nigeria.The fund, managed by Lorenzo Nogales and Sven Soderblom, is largely aimed at pension funds, family offices, and endowments.The first closing is slated for 2011.

p { margin-bottom: 0.08in; } On 26 November, Deutsche Börse announced that it has added its 753rd ETF to trading on the XTF segment of its Xetra electronic platform. It is the German-registered bond fund iShares Markit iBoxx Euro High Yield (DE000A1C8QT0), which replicates the Markit iBoxx Euro Liquid High Yield Index, an index of high yield bonds issued by businesses and denominated in euros, although the issuers are domiciled outside the Euro zone. Ratings are below investment grade. Each issue must have a volume of at least EUR250m, and the weight of each issuer is limited to 5% of the index. Management commission is 0.50%.

p { margin-bottom: 0.08in; } Deutsche Börse has announced with a slight delay that it has admitted the Goldman Sachs Absolute Return Tracker Index ETF Portfolio fund to trading on the XTF segment of its Xetra electronic platform. The Luxembourg-registered product (LU0529341090) charges 1.215%, and replicates the Goldman Sachs Absolute Return Tracker Index. The index reflects the evolution of a basket of long and short investible market factors. An algorithm determines the composition of the basket, in order to replicate potential evolution of a wide range of hedge funds as faithfully as possible. This is the first ETF which Goldman Sachs Structured Investments Sicav II has listed in Germany.

p { margin-bottom: 0.08in; } The Frankfurt-based independent asset management firm Lupus alpha on 26 November announced the launch of the German-registered, UCITS-compliant fund Lupus alpha Structure Emerging Markets, which allows subscribers to profit from the evolution of equities markets in emerging countries, without having to bear the full risks. Potential losses are limited to 10% per calendar year. The system will allow institutional investors with limited risk budgets to position themselves on emerging equities markets. Lupus alpha already manages over EUR800m in its protected Structure Invest range.The new fund will invest in a nearly index-based manner, based on the MSCI Emerging Markets index (24 countries). In addition, the management team may actively take advantage of the evolution of some more strongly-weighten country indices. The selection of countries is undertaken quantitatively with a trend-following model. The manager, Stephan Steiger, invests actively, using ETFs or futures on certain emerging markets. In addition, as the fund invests in local currencies, there may be positive currency effects if the currencies rise.The capital protection mechanism uses active management of exposure to equities using risk models which have been integrated into the Structure Invest fund from Lupus Alpha since 2003. The level of allocation to equities is determined as a function of the calculation of the expected shortfall on a daily basis, and dynamically adapted. If the value of the portfolio minus the expected shortfall is higher than a predefined limit, the manager has a risk margin which will allow him to increase exposure to equities.CharacteristicsName: Lupus alpha Structure Emerging MarketsISIN code: DE000A0YFF46Front-end fee: 5% maximumManagement commission: 1%Performance commission: 20% of performance against a composite benchmark index of 50% Eonia and 50% MSCI Emerging Markets TRInitial price of shares: EUR100

p { margin-bottom: 0.08in; } The hedge fund management firm FrontPoint Partners has announced that it has received redemption demands totalling about USD3bn, on assets of USD7.5bn as of the beginning of the month, but it hopes that some clients will reconsider their decisions, leaving it able to start 2011 with USD5bn in assets, the Wall Street Journal reports.FrontPoint is implicated in the insider trading scandal related to information from the French doctor Ives M. Benhamou. Of the total redemption demands, USD1.5bn are for the healthcare fund which was liquidated on Wednesday, for which subscribers received 97% of NAV in cash .Morgan Stanley will sell its stake in FrontPoint to the heads of the firm. The two CEOs, Daniel Waters and Michael Kelley, will control the majority of shares ones the transaction is completed.

p { margin-bottom: 0.08in; }AXA IM on 26 Novemberannounced the launch of a short-term bond fund, AXA IM Euro FixedIncome Moderato.“This type of fundresponds to real demand from investors, which the introduction of newregulations for money market funds on 1 July 2011 will only increase.By limiting the maturity of investments to two years, and limitingthe credit ratings permitted, the regulations will lead to moreattractive remuneration for securities that are not eligible underthese criteria, and will thus offer short-term bond funds newinvestment opportunities,” explains Mikael Pacot, head of the moneymarkets team at AXA IM.AXA IM Euro FixedIncome Moderato is classed as a fund of “bonds and other securitiesdenominated in euros,” which will allow its manager to invest inthe short-term bond market and apply an active and flexiblemanagement with several sources of performance.The new product hasflexible, active management of two sources of added value, interestrates and credit, with:opportunity-drivenmanagement of exposure to interest rates on the major OECD markets,which range within a total sensitivity limit of -1 to +1;active managementof credit exposure through securities rated investment grade at thetime of purchase (minimum 90%), with a maximum maturity of 3 years.The fund aims forannualised net returns higher than the Eonia (+25 basis points for“I” category shares, reserved for institutional investors).Characteristics of thefundLegal format:French-registered FCPCurrency: euroISIN codes (I, E):FR0010950063 & FR0010950055Type of share:capitalisationDate of creation:24/11/2010Valuation: daily Recommended minimalinvestment duration: over 9 monthsSensitivity range: -1to 1Risk profile: B(moderate risk)Minimal initialsubscription: EUR500,000 (I shares); none (E shares)Minimal subsequentsubscription: noneMaximal directmanagement fees: 0.20% (I shares); 0.45% (E shares)Maximal front-end fee:1%

p { margin-bottom: 0.08in; } The Scottish asset management firm Martin Currie has announced the appointment of a health sector specialist, Andrea Bici, to its consumer and healthcare team. Bici was previously at Schroders, where she spent eight years. She was focused on the North American health sector, as First Vice President and small and midcaps equities analyst.

According to the Financial Times, Henderson has asked its advisers, JPMorgan Cazenove and UBS, to assess the feasibility of buying part or all of Gartmore. It is unlikely that Henderson would make an offer at or above Gartmore’s current share price of 103p after the departure of its star fund manager Roger Guy.

p { margin-bottom: 0.08in; } The Brazilian asset management firm Arx is planning to release its new Latin American infrastructure strategy, managed by Bruno Garcia and Rogério Poppe, in France, Alex Gorra, director of the international BNY Mellon Arx platform, announced in Paris. The product is already available in a Brazilian-registered form, and invests 75% in Brazilian and 20-25% in Mexican securities, while the remainder is invested in Colombian, Peruvian and Chilean equities. It is a strategy “which privileges domestic stories,” and which, in the case of Mexican companies like America Móvil, Cemex and Homex are absolutely not dependent on the economic activity in the United States.

p { margin-bottom: 0.08in; } Agefi Switzerland reports that Lamda Privatbank has launched its banking activities, becoming the 16th such institution in Liechtenstein. It has received authorisation from the competent authority (FMA) and will concentrate on traditional private management activities for high net worth clients.

p { margin-bottom: 0.08in; } The Treasury Select Committee, the Parliamentary financial surveillance committee, has called for written comments on the Retail Distribution Review (RDR), especially in relation to two questions: Will the RDR achieve the desired results? And may these results be achieved by other, potentially better means? Before the commission announced the initiative, the director of the FSA, Hector Sants, said in a hearing that the RDR has three major objectives: to install a more transparent and equitable remuneration system, better training of advisors, and lastly, a clarification of the various categories of advising offered to clients. The consultation will remain open until 17 January.

p { margin-bottom: 0.08in; } Asian Investor reports that Indonesian asset managers will soon be allowed to invest in foreign funds. Although the Indonesian government opposes capital flowing abroad, its position appears to have softened recently in relation to foreign investments by onshore management firms. The managers concerned will be allowed to invest up to 15% of each of their funds in offshore assets. They will not be allowed to buy shares in offshore funds, and will therefore be limited to buying offshore securities. The capital market regulator, Bapepam, is revising the new regulations in order to allow asset management firms to buy foreign funds by the end of 2010, says Abiprayadi Riyanyo, chairman of the Indonesian fund association. The change in regulations will allow businesses to increase their exposure to offshore products. However, many Indonesian asset management firms estimate that with a limit of 15%, this possibility will not be met with large demand, due to the level of research expertise needed, to say nothing of the costs related to custody for the fund, the administrative portion as a whole, and exposure to currency risks.

Le fonds alternatif de 7,5 milliards de dollars, actuellement sous le coup d’une enquête des autorités américains pour délit d’initié présumé, a vu les demandes de remboursement émanant des investisseurs atteindre 3 milliards de dollars, selon une lettre de ses dirigeants citée par Reuters.

Le fabricant de bagages envisage de s’introduire en Bourse de Hong Kong pour un montant d’un milliard de dollars (755 millions d’euros), a rapporté le Sunday Times. Samsonite, propriété de CVC et de RBS, a engagé Goldman Sachs comme conseil, a précisé le journal dominical.

Le fonds de capital investissement, détenu en partie par la famille Wallenberg, a retenu JPMorgan et Deutsche Bank afin de le conseiller sur une éventuelle mise en Bourse ou cession du troisième fabricant allemand de câble, Kabel Baden-Württemberg. L’opération pourrait rapporter près de 2 milliards d’euros, selon des sources citées par Bloomberg.

Le coutier japonais va former une équipe commerciale spécialisée sur les fonds d’investissement cotés (ETF ou trackers), à la mi-décembre, a rapporté le quotidien Nikkei.

Marc Olivier, directeur général France de Nordea Investment Funds

Laurence Boone, chef économiste France chez Barclays Capital

David Deddouche, stratégiste change chez Société Générale

Les cours ont reculé vendredi dans le sillage de l’annonce par le marché chinois du relèvement de ses exigences en termes d’appels de marge

Dans cette opération, qui relance le marché de l’investissement immobilier de La Défense, la tour CB 21, louée aux deux tiers, est valorisée 588 millions d’euros. Le mode d’investissement de CNP dans cet actif rénové témoigne de la pénurie d’offre de qualité sur le marché.