P { margin-bottom: 0.08in; } Two pioneers of the multi-family office, SandAire and Lord North Street, both based in London, both announced on 20 March that they have reached an agreement over the terms of a merger. The operation will create a new entity with 50 employees distributed over three offices in London, Geneva and Singapore. Following the agreements, the new enlarged business will become a global leader in the multi-family office sector. The two firms currently manage “meaningful” assets for two high net worth families and globally known foundations, including several Oxford and Cambridge university professors. SandAire and Lord North Street have both won numerous prizes for the quality of their services and their leadership in the sector. Following the merger, the founder of SandAire, Alex Scott, will serve as executive chairman. William Drake and Adam Wethered, co-founders of Lord North Street, will be appointed as vice-chairmen. The two men will also become shareholders in the new firm, in which the Scott family will be the majority shareholder. The management team will be extended with the appointment of Alexanrda Altinger as CEO. Altinger has more than 20 years of experience in the asset and wealth management sector worldwide. She spent a part of her career in Asia and the United States, and has worked for Lansdowne Partners. Previously, she had been responsible for the European division of sub-advisory and fund distribution for Wellington Management.

P { margin-bottom: 0.08in; } Further to the announcement by Aberdeen Asset Management on 18 November 2013 relating to the acquisition of Scottish Widows Investment Partnership Group (SWIP), Aberdeen has announced that the Financial Conduct Authority yesterday confirmed its consent to the proposed change of control. As a result, the acquisition is expected to complete following close of business on 31 March 2014. The acquisition will allow Aberdeen to make a place for itself as the largest asset management firm in Europe in terms of assets, with nearly GBP350bn in assets under management.

P { margin-bottom: 0.08in; } The former Lombard Odier manger Michal Wozniak has joined BlackRock in its emerging market debt unit, Citywire reports. Wozniak left the Geneva-based group last year. He appears to have joined BlackRock in London in late 2013, and joined the team lead by BNP Paribas IP veteran Sergio Trigo Paz.

P { margin-bottom: 0.08in; } Capital markets, whose perimeter includes equity as well as debt financing, are significant vectors for economic growth, and their increase in size may offset a decline in bank financing after the financial crisis, according to a new academic article published by two well-known researchers, in partnership with the AIMA, the global hedge fund industry association. Growth of one third on capital markets is likely to feed a real long-term growth in GDP per household of about 20%, accoridn to the new study, by Christoph Kaserer, professor of finance and chair of capital finance at the TUM school of management in Munich, and Marc Steffen Rapp, professor of finance in the finance and accounting group at the School of Business and Economics at Philipps-Universität of Marburg, Germany. The study is entitled “Capital Markets and Economic Growth – Long-Term Trends and Policy Challenges.” The new article shows that capital markets support economic growth by providing new sources of financing for long-term investments, and encourage improvement in corporate governance. They thus create a link between pension fund activities, non-banking lenders, and active investors such as hedge funds, and growth in the real economy. The article also emphasizes that economies which are traditionally thought to be based on bank financing have adopted capital markets in recent years, and suggests that the old distinction between economies that are dependent on bank financing, especially European economies, and those which are more dependent of market financing, especially British and American mariets, is in the process of rapidly disappearing. According to Jack Inglis, CEO of AIMA, the article “emphasizes the significant role played by the capital markets and their actors in economic development. It throws light on the very positive role of hedge funds and asset managers, using their expertise and engagement to positively develop gorvernance at the companies they invest in. Hedge funds are thus on the capital markets, providing important liquidity and risk management, and they actively participate in the determination of correct prices.” Inglis adds that “athough the article takes economies of the European Union as examples, it shows how countries worldwide can benefit from good development of capital markets. This is especially true for countries which are still dominated by the bank financing model. Bank loans are clearly not in phase with demand, and the global economic rebound may be compromised, unless new sources of financing are found, especially in the asset management industry. We also encourage governments worldwide to put rules in place to protect or enlarge capital markets.”

P { margin-bottom: 0.08in; } Assets under managemet at the LGT group, a specialist in private banking and asset mangement, as of the end of 2013 totalled CHF110bn, compared with CHF102bn one year earlier. Net subscriptions represented CHF7.5bn, up by 7%. Inflows were coming mostly from Swiss, German and Austrian clients, the firm has told Finews.

P { margin-bottom: 0.08in; } The largest French insurer, CNP Assurances, has launched a request for proposals for its asset custody excluding foreign affiliates, equivalent to EUR280bn in assets as of January 2014, L’Agefi has learned from sources familiar with the matter. Since 2004, the group has been relying on its historic partner Caceis, born from the Caisse des dépôts, and now 85% controlled by Crédit Agricole and 15% by Natixis. As the contract expires at the end of the year, CNP Assurances has mandates the agency Alenium Consultants to put the mandate in play. The group is expecting a first round of submissions in early April, with a reduction in the cost of services as an objective. In addition to Caceis, the French BNP Paribas Securities Services and Société Générale Securities Services will be bidding, as will the US firm State Street. The insurer is expecting to announce a decision “in June.”

P { margin-bottom: 0.08in; } It has been a small month of February for Spanish individual pension funds. According to data from VDOS Stochastics, their assets rose modestly by 0.99% in February to a total of EUR58.25bn. With EUR45m in net subscriptions, Caixabank has posted the best performance in the past month, topping Bestinver (EUR11m) and Renta 4 (EUR8m). At the other extreme, Santander is the actor which has posted the largest redemptions, of about EUR32m, ahead of Caser (-EUR30m) and Allianz (-EUR12m). These developments will not be likely to alter the landscape for pension funds in Spain. BBVA retains its position as the top player in the market, with EUR10.79bn in assets under managemnt. The Spanish bank finishes ahead of Caixabank, with EUR8.46bn in assets, Santander (EUR8bn), and lastly, Bankia (EUR.432bn). As of the end of February, the top 10 players on the market accounted for 82.53% of total assets in pension funds in Spain.

P { margin-bottom: 0.08in; } There have been some changes to the office at Carmignac Gestion in Spain. After serving for four years as head of sales for the local arm of the French asset management firm, Nicolas Llinas has been promoted to director of development, Funds People reports.

Robeco, which was taken over by Orix in July 2013, has been working on the development of its strategy for 2014-2018 since the acquisition. The group expects to exceed an asset under managemet level of EUR 300 billion in 2018 from organic growth. During this period Robeco and its shareholder will also look for acquisition opportunities.The strategy 2014-2018 focuses on growth in three regions, the US, Europe and Asia. In these regions Robeco and Orix believe they «have a strong presence and foundations on which further expansion can be realized». In the United States, the asset manager expects strong growth of its subsidiary Robeco Investment Management (RIM) and will also strengthen the distribution of its products. In Asia, it is considering the opening of an office in Singapore with a focus on sovereign wealth funds and key accounts. The asset manager also has the ambition to expand into Asian fixed income.In Europe, Robeco will expand its European sales by adding further resources to existing sales offices and setting up an office in the UK focusing on key account management, consultant relations and the UK institutional market. As well as continuing to offer and develop pension solutions in the Netherlands, the group plans to enter the German and Swiss markets with multi-asset pension solutions.As part of the previous 2010-2013 strategic plan, Robeco’s assets under management have grown from EUR 132 billion at the start of 2010 to EUR 205 billion at the end of 2013, of which 47% are institutional. The EBIT has increased by 84% from EUR 157 million in 2010 to EUR 290 million in 2013. Despite a year of ownership change, the group managed to attract a net inflow of EUR 1.5 billion and realized a net profit of EUR 118 million in 2013.

P { margin-bottom: 0.08in; } One of the three men picked as deputies to Bill Gross, chief investment officer at Pimco, left the firm, on the day that his appointment was due to be announced, the Financial Times has learned. Marc Sneider, a generalist fund manager, interim head of equities last year, resigned in January, a few hours before the announcement by Pimco that Mohamed El-Erian, heir apparent to Bill Gross, would be departing. According to two former Pimco heads, Sneider felt that the working environment was increasingly difficult in the past 18 months, and that Gross’ behaviour had become “increasingly illogical and irrational.”

P { margin-bottom: 0.08in; } Lyxor Asset Management (Lyxor AM) on 19 March announced 2 high-profile appointment from August 2014 at its US affiliate, Lyxor AM Inc. Nathanaël Benzaken has been promoted to the position of CEO of Lyxor in the United States, based in New York. He will report directly to Lionel Paquin, Ceo of Lyxor AM. Benzanken had previously served as head of development for managed accounts (since 2009) and deputy head of alternative management since 2012. Meanwhile, Lior Segev, who had previously served as interim Ceo of Lyxor Inc., has been appointed as deputy CEO of the US entity. Segev has 15 years of experience in alternative management, 7 of them at Société Générale.

P { margin-bottom: 0.08in; } Gabriel Plotkin, one of the managers of SAC Capital Advisors, is planning to found his own hedge fund, the Wall Street Journal reports, citing sources familiar with the matter. Plotkin, who had managed more than USD1bn for the company led by Steven A. Cohen, will be leaving at the end of the year. His departure is said to be partly related to an investigation into SAC Capital Advisors for insider trading. Cohen is expected to invest a sum in Plotkin’s fund which may exceed USD200m.

P { margin-bottom: 0.08in; } BlackRock has recruited Shantanu Agrawal, former co-vice president of Pimco, as it is building a team around its new credit alpha fund, Financial News has learned. The US giant has also recently recruited Sumil Aggarwal, who had previously worked at Morgan Stanley. BlackRock is seeking to raise USD500m initially for its alpha credit fund, with a final objective of reaching USD3bn in assets.

P { margin-bottom: 0.08in; } Dominique Strauss-Kahn is planning to raise USD2bn (EUR1.4bn) to found a hedge fund dedicated to the macroeconomy, LSK & Partners, the firm led by the former CEO of the International Monetary Fund (IMF) announced on 20 March, Reuters reports. Strauss-Kahn will manage the fund with his daughter, Vanessa Strauss-Kahn, an economist, said Mohamad Zaidan, CEO of LSK & Partners, adding that Straus-Kahn senior is currently in China to raise capital from institutional investors and high net worth private clients. The fund is still awaiting the necessary permission in Luxembourg to be able to begin raising funds.

U.S. mutual fund product launches tripled in the second half of 2013, compared to the first half of 2013, according to research from Cerulli Associates."More specifically, there was an increase in the number of launches in international strategies, including global equity, emerging markets equity, and bond strategies, as well as U.S. equities including large blend and large value,"states Pamela DeBolt, associate director at Cerulli.Interestingly, many firms disclosed that they expected product development to slow last year, and it in fact accelerated. «Nearly 50% of managers reported they planned to launch less than 4 new products in 2013. Only 13% of firms indicated they planned to launch more than 6 new products in 2013, which was down from 18% in 2012,» explains DeBolt.

P { margin-bottom: 0.08in; } HSBC France is adding to its range of products denominated in renminbi aimed at businesses. Two services are offered, depending on investment horizon and risk appetite: a fixed-date savings denominated in renminbi, and the HSBC GIF RMB Fixed Income fund. This is a public/private bond fund denominated in Chinese currency, with an investment horizon of at least 5 years. The fund had previously been reserved for institutional and retail investors. “These new product ranges meet a growing need for businesses to diversify their investments and to make returns off their excess cash, while benefiting from remuneration conditions which are now more attractive than the euro or dollar, and from the rising renminbi market,” HSBC says.

P { margin-bottom: 0.08in; } Banca Fideuram finished the year 2013 with consolidated net profits of EUR313.1m, up 52.2% year on year, Bluerating reports. The Italian bank posted net inflows of EUR2.5bn (+6.4%), of which EUR5.5bn (+100.8%) were in asset management alone, As of 31 December, assets under administration by the group totalled EUR83.7bn, up by EUR4.4bn compared with 31 December 2012.

P { margin-bottom: 0.08in; } At a time when equity markets last year generally posted double-digit growth, the performance of actively-managed funds has been rather mitigated in the same period, according to the most recent comparative table published by the index provider S&P Dow Jones Indices Versus Active Funds (SPIVA®) Scorecard. In the twelve months to the end of 2013, 55.8% of large cap managers, 38.97% of midcap managers, and 68.09% of small cap managers underperformed the indices. The majority of equity managers and all domestic equity categories were unable to earn higher returns than their respective benchmark indices over three and five-year periods. Growth managers, however, did better than experts in the value approach. With the exception of small caps, most growth managers active in the large, mid and multi-caps categories posted higher performances than the indices. In terms of international equities, the majority of international developmed market and international small cap categories posted higher returns than their respective benchmarks. However, 54.09% fo global equity managers and 57.48% of emerging market equity managers failed to beat the indices. Independently of the investment horizon, international small caps are the only category which has posted constant outperformance when actively-managed.

P { margin-bottom: 0.08in; } Fidelity Worldwide Investments will be launching a new bond horizon fund on the Spanish market from 14 April, entitled Fidelity Funds – Fixed Term 2018 Fund, Funds People reports. The investment vehicle, managed by Kristian Atkinson, aims to return 100% of invested capital after 4 years, plus an annual coupon of 3%. To achieve this objective, the fund will invest 60% in investment grade bonds, largely BBB, and 40% in high yield bonds rated BB, B and CCC.

P { margin-bottom: 0.08in; } KBL European Private Bankers (KBL epb), the parent company of KBL Richelieu, on 20 March announced solid annual results for the fiscal year ending on 31 December 2013. KBL epb, which has operations in nine European countries, earned net profits of EUR84.5m in 2013, which represents a considerable improvement compared with the previous year. This positive performance, which far exceeded the previously-announced annual objective of EUR50m, has resulted in an increase in revenues for the group, a decline in operating costs, and a significant reduction in value corrections compared with 2012. In 2013, earnings for the group totalled EUR540.6m, up 37% compared with the previous year, in a sign of the good performance of private banking activities at the group throughout its pan-European network. This success is also due to the global investor services, global financial markets, asset management and life insurance divisions. In this period, the group has posted an increase in its assets under management and under custody. As of 31 December 2013, assets under management totalled EUR42.2m, compared with EUR40.9m on the same date in 2012. Assets under costody totalled EUR41.3bn as of 31 December 2013, compared with EUR38.6bn on the same date in 2012. Abroad, all onshore affiliates of the group are now profitable. The Spanish affiliate of the group, founded four years ago, exceeded its objectives for 2013.

Le premier ministre luxembourgeois a confirmé lors du Conseil européen qu’il consentait à signer la directive sur la fiscalité de l’épargne et l'échange automatique d'informations

Dominique Strauss-Kahn prévoit de lever 2 milliards de dollars pour un fonds alternatif macro, selon LSK & Partners, la société présidée par l’ancien directeur général du FMI. Ce dernier va gérer ce fonds de concert avec sa fille, Vanessa Strauss-Kahn, une économiste, a dit à Reuters Mohamad Zaidan, directeur général de LSK & Partners. Dominique Strauss-Kahn est actuellement en déplacement en Chine pour lever des capitaux auprès d’investisseurs institutionnels et de particuliers fortunés.

La Banque nationale suisse a confirmé hier le maintien du cours plancher du franc à 1,20 pour un euro, arguant du fait que cette politique était la plus efficace pour éviter un resserrement des conditions monétaires. Elle table désormais sur une stagnation des prix cette année et une hausse de 0,4% en 2015, soit dans les deux cas 0,2 point de moins que prévu jusqu'à présent.

La FCA a sanctionné un ex-trader de Credit Suisse qui a tenté de manipuler le marché des emprunts d’Etat dans le cadre du programme d’assouplissement quantitatif de la Banque d’Angleterre. Mark Stevenson avait acheté massivement (92% du volume quotidien) une souche de Gilts à 2017 le 10 octobre 2011, sachant que la BoE rachèterait cette ligne dans le cadre de son QE. Alertée par ces mouvements inhabituels, la banque centrale avait renoncé à inclure cette souche dans son programme. Le trader a écopé d’une amende de 662.700 livres et a été radié à vie du secteur. Credit Suisse, qui s’est félicité de cette condamnation, n’est pas mis en cause.

Plusieurs régulateurs boursiers canadiens ont publié hier un projet de règlement conjoint visant à libéraliser le secteur du financement participatif. Principal élément de la réforme, les investisseurs pourront désormais investir au capital de jeunes pousses. Les plates-formes internet dûment enregistrées pourront collecter jusqu’à 2.500 dollars canadiens par projet auprès d’un investisseur particulier.

Aberdeen Asset Management a fait part de l’approbation par le régulateur britannique de l’acquisition de Scottish Widows Investment Partnership (Swip). Le gestionnaire estime ainsi que la transaction devrait être finalisée le 31 mars prochain.

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 février 2014. 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.

Le graphique ci-contre montre la relation négative (géométrique) entre le PER de l’indice S&P500 et l’inflation sous-jacente aux Etats-Unis. Le cercle de couleur correspond au PER et à l’inflation estimée en mars 2014.

Le quotidien cite deux anciens cadres du gestionnaire californien faisant état de tensions au sein de la direction bien au-delà de différends personnels entre Bill Gross et Mohamed El-Erian. Marc Seidner, qui a ainsi quitté Pimco fin janvier quelques heures seulement avant l’annonce du départ du directeur général Mohamed El-Erian, devait ainsi être propulsé avec deux autres gérants au rang de coresponsable de la gestion. Un brusque départ ayant contraint le gestionnaire à revoir ses plans.

Le quotidien, qui cite des sources proches, indique que l’emblématique patron du gestionnaire alternatif SAC Capital Advisors (qui deviendra bientôt Point72 Asset Management pour gérer essentiellement la fortune de son dirigeant) pourrait bien investir plus de 200 millions de dollars dans le fonds qu’entend créer Gabriel Plotkin. Ce dernier, spécialiste des actions, va quitter le groupe à la fin de l’année.