P { margin-bottom: 0.08in; } The asset management firm Tobam, a quantitative management specialist which focuses on seeking ways to maximise diversification of investments, on Friday, 1 March announced that it is luanching a series of share classes in its Anti-Benchmark range which comply with the Retail Distribution Review in the United Kingdom, a statement says.Three new share classes in sterling are now available to UK retail investors, mostly with a minimal investment of one share (net asset value of GBP100):Tobam Anti-Benchmark UK Equity (R units ISIN: FR0011412618)Tobam Anti-Benchmark Emerging Markets Equity (R units ISIN: FR0011412634)Tobam Anti-Benchmark World Equity (R units ISIN: FR0011412626)The asset management firm has also reported net inflows of USD631m in 2012, down 14.84% compared with 2011 (USD741m). However, due to market appreciation, assets under management at Tobam rose 52% in 2012, compared with 44% in 2011. Since 31 January 2013, the asset mangement firm has over USD3bn in assets under management. 95% of this total comes from foreign investors.

P { margin-bottom: 0.08in; } The in the wake of two insurance firms buying stakes in its capital, the Swidish asset management boutique Tundra Fonder, founded in 2011, is planning to add to its fund range and to recruit new managers, Investment Europe reports. The asset management firm specialised in emerging markets has recently raised capital through the entry of the Finnish insurers Alandia-Bolagen and Ålands Ömsesidiga Försäkringsbolag in its capital, with a 9% stake each. Tundra Fonder is planning to increase its range of funds from three currently to seven, with the introduction of US dollar and euro-denominated versions of all sub-funds and strategies. By this summer, the firm is hoping to launch three new funds, including one fund dedicated to frontier markets, Frontier Opportunities, which may be made available in mid-March. A fourth fund ia planned for this autumn. At the end of its first full year of activity, Tundra Fonder as of the end of December had EUR46m in assets under management in three funds (pakistan, Russia and Agri & Food).

P { margin-bottom: 0.08in; } The head for the Asia-Pacific region at Pimco, Ki Myung Hong, has decided to leave his position from 28 February, Asian Investor reports.Until a successor for him can be found, his responsibilities will be taken over by the chief operating officer, Douglas Hodge, for the interim.Ki joined Pimco in July 2010.

P { margin-bottom: 0.08in; } The wealth management division of the British Lloyds banking group has earned underlying profits of GBP358m, up 25% compared with the previous year, according to a statement released by Lloyds Banking on 1 March. Assets under management by the united last year increased by GBP71.bn, to a total of GBP189.1bn. This development is largely due to a positive market effect. Assets under management at Scottish Widows Investment Partnership (SWIP) as of the end of December totalled GBP141.7bn, compared with GBP139.9bn one year earlier, while assets at St James’s Place totalled GBP34.8bn, compared with GBP28.5bn. The group is continuing to restructure and to invest in wealth management, an activity in which it is planning to gain market share, developing a product range aimed at mass affluent and affluent client segments in the United Kingdom.

P { margin-bottom: 0.08in; } The Inverco association of Spanish asset management firms has reported a net inflow to securities funds of EUR1.195bn in February, the highest level posted since March 2006. The first two months have been positive to the tune of USD2.257bn.

P { margin-bottom: 0.08in; } The financing deficit for 109 public pension funds in the United States increased by 20% last year, to USD834.2bn, after two years of decline, according to the Wilshire consultancy, cited by Agefi.

P { margin-bottom: 0.08in; } Morgan Stanley has allied with the Chicago-based financial services firm Mesirow Financial to launch a CTA strategy on its alternative fund platform, Citywire reports.The UCITS-compliant fund, MS Discretionary Plus, is the most recent CTA strategy to be added to the FundLogic Alternative platform from Morgan Stanley. The new strategy replicates the CTA fund from Mesirow Financial, the Mesirow Absolute Return Plus Strategy.The fund aims to have at least 75% exposure to commodities, while identifying two or three macro themes which are then exploited with futures contracts.The manager of the fund will be Mesirow senior strategist Tom Willis.

P { margin-bottom: 0.08in; } Banca Monte dei Paschi di Siena (BMPS) has decided to file lawsuits against two of its former managers and Deutsche Bank and Nomura International for their role in complex financial operations which plunged the group into turmoil in January.The lawsuits for liability, filed in a Florence civil court, names the German and Japanese banks, former chairman of the bank Giuseppe Mussari and former CEO Antonio Vigni, BMPS announced in a statement on 1 March.The bank will seek damages and interest for the prejudice caused by the group as part of financial operations begun in 2008 and 2009, which the new heads of BMPS claimed only to have discovered last autumn, and which triggered a scandal in Italy.The bank has since indicated that these transactions could cost it up to EUR730m, which comes on top of a situation where the institution has already been made fragile by the economic crisis, and has borrowed USD4bn from the Italian government.

P { margin-bottom: 0.08in; } Are institutional investors in the process of returning to equity markets? Statistics published by Morningstar suggest that they are. An examination of the most popular investments on Morningstar platforms in 2012 (mutual funds, ETFs and segregated accounts) demonstrate that institutionals are primarily interested in US and international equities. In January 2012, equity mutual funds posted inflows of USD15.5bn, an amount not seen in any month since 2004, and the first time in nearly two years that equity funds have finished a month with positive results.“Institutional investors appear to be showing a preference for US equities in the full spectrum of cap sizes, as well as for international equities. It is also interesting to note that institutional investors who have conducted research in the segregated account segment last year concentrated nearly exclusively on active strategies. The lowest prices negotiated for segregated accounts fro major investors may indicate that investors still have an appetite for active management, but only at competitive prices,” says Paul Justice, director of fund research at Morningstar. Financial advisers and retail investors last year, for their part, were rather in search of return strategies which allow them to reduce risks. “Individual investors and financial advisors have an high aversion to risk, but they appear to make exceptions for emerging market equities, which appears to indicate that the remaining appetite for risk at any level is primarily international,” Justice says.

P { margin-bottom: 0.08in; } At a press conference to announce the launch of RDR share classes denominated in pounds sterling for British investors (TOBAM Anti-Benchmark UK Equity (R units ISIN: FR0011412618), TOBAM Anti-Benchmark Emerging Markets Equity (R units ISIN: FR0011412634) and TOBAM Anti-Benchmark World Equity (R units ISIN: FR0011412626)), Tobam has announced that its net inflows in 2012 hell to USD631m, from USD741m in 2011, and that its assets rose 52% last year and 44% in 2011. As of 31 January, assets under management topped USD3bn, the level reached in June 2011, with the addition of assets in funds and mandates awarded but not yet deployed (see Newsmanagers of 10 October 2011).

P { margin-bottom: 0.08in; } Warren Buffett estimates that he missed several opportunities to buy last year, and hopes to catch up this year with acquisitions totalling several billion dollars, Les Echos reports. “We have gone back out on safari, and we will be hunting elephants,” he writes in his traditional annual letter to investors, published on 1 March. However, he regrets that the value of his assets has not increased as much as the US stock exchange last year, with gains of only 14.4%, compared with 16%. In nearly 50 years of activity, this is only the ninth time that the comparison has not gone in his favour. “We are doing better when the winds are against us,” he admits.

P { margin-bottom: 0.08in; } Switzerland is calling for strict measures to combat severance pay and other golden parachutes. On 3 March, an initiative to combat abusive pay scales passed with 67.9% in favour, an all-time high. Th most recent developments in the scandal connected with Novartis chief Daniel Vasella has brought support for those who promote tightening the rules, and all cantons have voted in faour of the bill.

P { margin-bottom: 0.08in; } The Brazilian asset management firm Bradesco (BRAM) is planning to launch a fund dedicated to Latin American equities by the end of 2013, Citywire reports.The Luxembourg-domiciled fund comes as an addition to the Bradesco Sicav range, which now has five UCITS funds.The initiative comes as part of a desire on the part of the Brazilian firm to increase its presence in Europe, and in major worldwide markets.

P { margin-bottom: 0.08in; } The British asset management firm Armstrong Investment Managers, specialised in multiple asset classes, has announced on its website that it has recruited Vincent Tournant from Newedge Prime Brokerage as COO, a newly-created position. Meanwhile, the firm has recruited Philip Riris (ex Avalon Capital Markets) as analyst, and Andy Hutcheon (formerly of Barclays Wealth) as sales manager.

P { margin-bottom: 0.08in; } With the FTSE Implied Volatility Index Services (IVI) range, FTSE Group is launching end-of-day indices which measure the implied volatility of the FTSE 100 and FTSE MIB indices. For each market, implicit volatility estimates for 30, 60, 90 and 180 days will be available, and there will even be a 360-day IVI for the FTSE 100.

P { margin-bottom: 0.08in; } Index Universe on 28 February announced that, due to increases in assets, Vanguard has been able to reduce the total expense ratio for its Vanguard FTSE Emerging Markets Index ETF (NYSE Arca ticker: VWO) to 0.18% from 0.20%. It now has the same TER as the iShares Core MSCI Emerging Markets ETF, but the Schwab Emerging Markets Equity ETF costs 0.15%.

P { margin-bottom: 0.08in; } Schroders is launching a Schroders long/short equity fund as an addition to its alternative management product range, with the release on the French market on 1 March of the Schroder GAIA Sirios US Equity. The fund will be outsourced to an external manager known for the US Long/Short Equity strategty, and will be added to the Schroder GAIA Sicav, specialised in liquid alternative strategies, adapted to the UCITS IV format. The Sicav, launched by Schroders in November 2009, has assets under mangement of over USD1.5bn as of the end of January 2013. The new long/short equity fund, managed by the US firm Sirios Capital Partners, aims to invest primarily in equities in US mid and large caps, with possible exposure to Asia and Europe. It will aim to invest in securities that combine attractive growth and valuation perspectives, while maintaining short positions on businesses with sub-optimal fundamentals and less solid balance sheets. It may also be exposed to bond markets, if the asset management team considers this opportune. Schroders now has five funds on the GAIA platform, three of which are managed by external managers (Schroder GAIA Egerton Equity, Schroder GAIA CQS Credit, et Schroder GAIA Sirios US Equity), while two focus on internal expertise (Schroder GAIA QEP Global Absolute et Schroder GAIA Global Macro Bond).

P { margin-bottom: 0.08in; } In the final days of February, Italian elections brought fears that the euro zone debt crisis would return to the foreground, to such an extent that investors put the brakes on their equity purchases. In the weeek ending on 27 February, emerging market equity funds underwent redemptions for the first time since the beginning of September, according to estimates from EPFR Global.The research agency has also observed record outflows from gold funds, which are generally a sign of a rise in appetite for risk. However, in light of the scale of the redemptions (about USD4bn), EPFR Global estimates that this is rather a short-selling operation, amid rising volatility, rumours of currency wars, and concerns about the euro zone.Certain asset classes, however, have continued to rise. Global equity funds once again finished the week with gains, and inflows for the past ten weeks of USD38.8bn. Diversified funds have posted additional net inflows of over USD1bn for the seventh time in the eight weeks since the beginning of the year.

P { margin-bottom: 0.08in; } According to Morningstar statistics, whose track record goes back to 2007, Euorpean long-term funds in January earned record net inflows of USD46.657bn in January, bringing the total for twelve months to USD244.155m, and assets to USD4.302bn, equivalent to organic growth of 6.42% over twelve months.All asset classes and nine of the top ten fund providers (BNP Paribas being the tenth) have posted net inflows in January.The strongest net subscriptions for the month were for the Templeton Global Total Return Fund, with USD1.094bn (and USD3.54m over 12 months). For the month, Pimco has attracted USD4.225bn, putting it ahead of Franklin Templeton (USD2.913bn) and Aberdeen (USD2.727bn). Over twelve months, however, Pimco stands out far ahead, with net inflows of USD34.697bn, followed by BlackRock with USD10.199bn.

P { margin-bottom: 0.08in; } Wolfgang Leoni, CIO since 2007, will on 1 April become chairman of the managing board at Sal. Oppenheim. According to a release from the Cologne-based private bank, he will be replacing Wilhelm von Haller, who is returning to “an important position” at Deutsche Bank which ordered him to the private bank when the latter was bailed out in 2009.

P { margin-bottom: 0.08in; } Assets under management at the South African Old Mutual group last year rose 3% to GBP262.2bn, according to a statement released on 1 March. Net inflows, which totalled GBP5bn, and a positive market effect of GBP26.9bn, were partly offset by a reduction in assets under management of GBP27bn due to th sale of companies affiliated to USAM, and the sale of Old Mutual Wealth activities in Finland. In the United Kingdom, net inflows to the Old Mutual Wealth platofrm totalled GP2.2bn, meaning that assets under management as of the end of 2012 totalled GBP22.6bn. In the United States, assets under management finished the year at GBP128.4bn, up 14% compared with the end of 2011. Net inflows totalled GBP0.9bn, while the 2011 fiscal year ended with outflows of GBP3bn.

P { margin-bottom: 0.08in; } Tim Yetman, a founding partner at the alternative asset management firm Olea Capital Partners, is joining Lombard Odier Investment Managers (LOIM) to create a global macro team in London, Investment Europe reports. He will report to CIO Jan Straatman.

P { margin-bottom: 0.08in; } “Say on pay” may not have been the panacaea one had thought it to be. The principle was established in 15 countries of the European Union, with various formulations. And it merited simplicity: all remuneration to directors and holders of elected positions, including both set and variable pay, subject to a shareholder vote.In France, the Assemblée Nationale has released a report on the mission to gather information on transparency and governance at major businesses, which includes 20 proposals to set up more responsible governance for long-term strategies, including a French proposal for say on pay.Does “say on pay” need to be introduced for French businesses? Frédéric Palomino, a researcher in economics at the Edhec Business School, says the answer is not beyond doubt. “Say on pay” is a deliberate failure. In a position paper entitled “Remuneration of corporate management: What can we expect from say on pay?” Palomino reviews the various models which have already been established internationally for several years, for which the number of observations is wide, but the conclusions that can be drawn about the effectiveness of say on pay is based on anecdotal observations.The various empirical studies undertaken in countries where the principle has been established show that the measure does not modify pay scales. In the case of the United Kingdom, where a vote on compensation, which is genuinely non-binding, has been in place for a decade, a Feri and Maber study (2012) finds that the establishment of say on pay did not influence the rate of growth of pay scales. Say on pay resulted in a larger disparity between management pay scales, but did not have an influence on the average level.Say on pay is generally received with scpeticism by actors. The only positive aspect of say on pay appears to be corrections for extreme situations at businesses at which returns are poor and pay is abnormally high.As a result, it is legitimate to ask questions about regulations which lead to additional administrative cost for all businesses, at a time when it will only allow for some extreme cases to be corrected.

P { margin-bottom: 0.08in; } Overall net assets in collective investment and specialised investment funds as of 31 January 2013 totalled EUR2.405928trn, compared with EUR2.383826trn as of 31 December 2012, an increase of 0.93% month on month, according to figures released on 1 March by the Luxembourg financial sector surveillance commission (CSSF). Over the past twelve months, the volume of net assets has risen by 11.54%. The Luxembourg OPC industry has thus posted a positive vaulation in the month of January, at EUR22.102bn. This increase represents the balance between positive net issues of EUR26.675bn (+1.12%) and unfavourable evolution of financial markets of -EUR4.573bn (-0.19%).

La Chine pourrait décider de relever le montant de l’acompte exigé pour l’achat d’une deuxième maison ainsi que le taux d’intérêt sur les prêts d’immobiliers contractés à cet effet afin de contenir les prix dans les villes où ils augmentent trop, a dit ce week-end le Conseil des affaires de l’Etat. En février, le prix moyen des maisons dans les 100 plus grandes villes du pays ont augmenté pour le neuvième mois de suite, à un rythme toutefois un peu moins marqué que lors des mois précédents.

Le consultant Wilshire estime que le déficit de financement de 109 fonds de pension publics aux Etats-Unis a bondi de 20% l’an passé à 834,2 milliards de dollars, après deux ans de repli. Le rapport souligne l’exposition en hausse, en quête de rendement, aux classes d’actifs alternatives comme l’immobilier, le private equity ou les matières premières.

Le fonds de capital investissement Warburg Pincus a choisi JPMorgan Chase, Bank of America Merrill Lynch et Citigroup comme chefs de file de l’introduction en Bourse de Bausch & Lomb, selon deux sources relayées par Reuters. L’IPO pourrait valoriser le spécialiste des traitements oculaires de 9 à 10 milliards de dollars. Warburg Pincus continue toutefois d'étudier une cession éventuelle.

Sur renvoi de la Cour de Cassation, la Cour d’appel de Versailles a rendu jeudi dernier deux arrêts dans l’affaire Cœur Défense qui reconnaissent les droits du Fonds commun de titrisation. L’immeuble de bureaux a été acquis en 2007 pour 2,1 milliards d’euros par la société Hold, dont la maison-mère Dame Luxembourg est elle-même contrôlée par des fonds initialement affiliés à Lehman Brothers. Hold, qui a titrisé un prêt hypothécaire de 1,6 milliard d’euros, s’est placée en procédure de sauvegarde en novembre 2008. Au terme de plus de quatre ans de procédures, la Cour d’appel a confirmé un jugement d’octobre 2009 reconnaissant que les cessions Dailly de créances futures de loyers, dont le fonds commun de titrisation (Euro Titrisation) était titulaire, étaient pleinement valables et opposables à la procédure de sauvegarde, explique Gide Loyrette Nouel, conseil d’Euro Titrisation. Elle a par ailleurs annulé un jugement de septembre 2009 et arrêté de nouvelles modalités du plan de sauvegarde.

Le conglomérat de Warren Buffett a fait état d’un bénéfice de 4,56 milliards de dollars au quatrième trimestre, soit 2,76 dollars par action de classe A, contre un bénéfice de 3,05 milliards (1,85 dollars) un an auparavant. Un bénéfice exceptionnel de 1,4 milliard a été comptabilisé sur des dérivés. La valeur comptable de fin d’année a augmenté de 14% par action.

Renoncer trop tôt aux mesures énergiques de relance pourrait mettre en péril la fragile reprise de la croissance, selon le président de la Réserve fédérale américaine. «Une augmentation prématurée des taux risquerait fort de court-circuiter la reprise, ce qui pourrait se traduire de façon ironique par une prolongation de la faiblesse des taux à long terme», a-t-il précisé.