p { margin-bottom: 0.08in; } From 12 January, the management of the fund Capital UFF FCP, which is eligible for PEA (equity savings plans), has been contracted to Carmignac Gestion, and the product renamed UFF Grande Europe 0-100. The product was previously managed by Aviva Investors France, which helped to redefine the orientation of the fund: “the uncertain evolution of conjuncture and the new fiscal situation in 2011, which makes PEA once again attractive, has led the Union financière de France (UFF) to analyse its range of funds eligible for PEA,” the product presentation states.The fund invests at least 75% of its assets in equities from the European Community. Stock-picking selects the shares with the most potential, and up to 25% of the fund is invested in the best “opportunities” from countries outside the European Union (including Turkey and Russia). From this point of view, the fund faithfully reflects the management undertaken by Carmignac Gestion for its Carmignac Grande Europe fund.The exposure of UFF Grande Europe 0-100 to equities markets is completely flexible, and may vary from 0 to 100%, due to the use of derivative instruments, which implies a wholly separate management, both from the range of funds available from UFF through its PEA, and from funds currently managed by Carmignac Gestion for its own clients. This highly reactive mode of management is “particularly well-adapted to confront periods of volatility on the market such as we may see in 2011,” explains Nicholas Schimel, president and CEO of UFF. CharacteristicsName: UFF Grande Europe 0-100ISIN code: FR0000034548 Minimal subscription: EUR762.25 (C and D shares); EUR300,000 (V shares)Management fees: 2.25% (from 1 March 2011) for C and D shares; 1.75% for V sharesPerformance commission: 10% of net performance of funds exceeding 7.5% in annualised terms

p { margin-bottom: 0.08in; } With the MMA Praxis International Index Fund, MMA Praxis Mutual Funds has launched a socially responsible investment fund for which it hopes to find enough investments to achieve a 20% exposure to emerging markets, the Wall Street Journal reports.The manager will make an effort to exclude shares in companies with poor compliance with socially responsible investment (SRI) criteria, and the tobbaco, alcohol and weapons sectors, but does not hope that all companies in the portfolio will meet all the criteria, says Chad Horning, CIO of MMA Praxis.

p { margin-bottom: 0.08in; } According to financial industry sources, Deutsche Bank is rumoured to have backed down from plans to sell BHF-Bank as a single entity, the Frankfurter Allgemeine Zeitung reports. LGT may now acquire only the wealth management and SMB banking activities, while Deutsche Bank would retain some market activities of BHF.

p { margin-bottom: 0.08in; } Since 2006, when the asset management and real estate management activities were merged, Alexander Klein has been COO in charge of all back-office activities at SEB Investment, the fund management firm of SEB Asset Management Germany. He has been appointed as a board member at SEB Investment from 1 January 2011, and will retain his position as COO. He will be in charge of finance, risk management, controlling, and IT.

p { margin-bottom: 0.08in; } Peter Vogel, head of sales for structured funds at Bank of America Merrill Lynch since December 2009, has been recruited by MainFirst Asset Management, an affiliate of MainFirst Bank, as head of sales and marketing. He will also be a member of the asset management committee at MainFirst.

p { margin-bottom: 0.08in; } Pope Benedict XVI has appointed cardinal Attilio Nicora as chairman of the new Financial Information Authority (Autorità di informazione finanziaria, or AIF) at the Vatican. The entity will also include the Vatican Bank, and the ministry of finance for the apostolic state, the Amministrazione del Patrimonio della Sede Apostolica (APS), the Börsen-Zeitung reports. The cardinal, a reputed lawyer, will retain his position as president of the APS.

F&C has announced plans to enhance flexibility of its cost baseand annual cost savings of GBP12 million. The primary aim of this initiative is to create an operational cost base which will more readily adapt to future changes in F&C’s business profile as the UK asset manager focuses on diversifying its business and caters for new client needs. As a core part of this project the group has been in discussions with a number of potential outsourcing providers and is now close to selecting a preferred partner from a short-list of two (subject to contract, due diligence and completion of employee consultation processes). The asset management company will also reorganise its remaining business processes around the outsourced operational model. The restructuring programme will create an operational cost base that varies with assets under management and transaction levels.F&C estimates this restructuring programme will reduce annual operating costs by at least GBP9 million. Based on the expected implementation timescale, the first of these savings will commence in Q2 2011 and be substantially achieved by Q3 2012. Associated one-off net costs to achieve these reductions are expected to be no more than one full-year of the annual savings.The outsourcing arrangement will affect approximately 110 staff, which represents around 70% of the group’s existing operations staff, a significant number of whom are expected to transfer to the outsourcing provider. This initiative does not affect the staffing of investment, distribution and client service functions.The group has also identified an additional potential annual cost saving of GBP3 million arising from reduced premises requirements following the reduction in head count.In addition to the initiatives announced on Friday, F&C continues to review further opportunities for cost reduction and business simplification, including product rationalisation.

p { margin-bottom: 0.08in; } Scottish Widows Investment Partnership (SWIP) has appointed Kevin Addison as head of wholesale sales, replacing Tony Maddock, who has joined Lazard AM. Addison, who joined SWIP in 2008, will report to John Brett, director of sales and marketing at SWIP.

p { margin-bottom: 0.08in; } Graham Kitchen will replace Bill McQuaker as head of equities at Henderson Global Investors. When the firm acquired Gartmore recently, McQuaker decided to concentrate primarily on management of his funds. He becomes assistant to his successor.

p { margin-bottom: 0.08in; } Anne-Laure Frischlander, CEO of BNY Mellon Asset Management for France, has told Newsmanagers that net subscriptions in France last year totalled USD415m, out of USD700-800m in gross inflows, and that assets totalled USD1.9bn in France as of the end of the year. Very strong subscriptions have continued in the first weeks of 2011.Inflows totalled 50% for an emerging markets local currency debt fund, the BNY Emerging Markets Debt Local Currency Fund (which now has over USD4bn in total assets), from the firm’s affiliate Standish. The asset allocation bond fund BNY Mellon Euroland Bond (also from Standish) has also attracted significant subscriptions.In 2011, BNY Mellon is planning to put the emphasis on the new BNY Mellon Latin America Infrastructure fund (see Newsmanagers of 11 January). The manager is also planning to offer real and absolute return products, as well as some Luxembourg-registered absolute return newcits from its affiliate Insight.Frischlander also says that her team at the Paris office now includes 7 people, counting herself.

p { margin-bottom: 0.08in; } Sonal Desai has been appointed as Michael Hasenstab’s back-up for the management of three funds from the Franklin Templeton Fixed Income Group: Templeton Global Bond Fund, Templeton Global Bond (Euro) Fund, and Templeton Global Total Return Fund. She will assist the manager in the management of these products. Dr. Desai joined Franklin Templeton in October 2009 as head of research for the international bonds department of the Franklin Templeton Fixed Income Group, in charge of providing all macroeconomic analysis for the bond team.

p { margin-bottom: 0.08in; } The asset management unit of JPMorgan earned net profits in fourth quarter 2010 of USD507m, an increase of 20% compared with the corresponding quarter in 2009. This largely reflects a 19% increase in net revenues year on year, to USD2.6bn. For the quarter, JP Morgan has seen net redemptions of USD2bn. For the year, the firm also shows a negative bottom line, of USD20bn. Assets nonetheless increased 4% in the last quarter, to USD1.3trn, due to positive market effects.

p { margin-bottom: 0.08in; } BNP Paribas Wealth Management on 14 January announced a reorganisation of its Asian wealth management activities, and the creation of a new affiliate dedicated to its ultra-high net worth (UHNW) clients. As a part of the reshuffle, BNP Paribas is redeploying its affiliates in Asia as key markets, with a separate director in charge of each market: Serge Janowski for Hong Kong, Mignonne Cheng in the interim until a head is appointed for China, Henry Pang for Taiwan, Stephane Honig for India, Serge Forti for Singapore, Malaysia and Indonesia, and Eric Morin for the other Asian Markets, including Korea, the Philippines and Thailand. The bank will also set up an affiliate dedicated to ultra-high net worth clietns, which for most establishments in the sector, requires a minimum of USD30m (EUR22m) in assets to invest. The identity of the heads of the new affiliate dedicated to high net worth clients will be announced at a later date, BNP Paribas Wealth Management says in a statement. In the interim, Mignonne Cheng, who will retain her position as chairman and CEO of wealth management for the Asia-Pacific region, will also become head of UNHWI & Independent Wealth Managers for Asia-Pacific. Ernest Leung has also been appointed head of strategy and development of wealth management activities for Asia-Pacific, and will work in partnership with the market heads to develop initiatives in the region.

p { margin-bottom: 0.08in; } Bank Julius Baer on 13 January announced the appointment of David Lim as CEO of Bank Julius Baer Singapore, effective immediately. Thomas Meier, a member of the executive board and CEO for Asia and the Middle East, who was also CEO for Singapore, will continue to be based in Singapore as a member of the executive board, and will direct activities and promote Asia as the second major market for the firm, after Switzerland.

p { margin-bottom: 0.08in; } On Friday, Pimco (Allianz Global Investors group) announced on its website that the allocation of the Pimco Total Return Bond Fund, managed by Bill Gross, to Treasuries, Treasury Inflation-Protected Securities (TIPS), agency bonds and futures and options based on Treasuries as of the end of December totalled 22%, its lowest level since February 2009, though the level stood at 30% in November, the Wall Street Journal reports.Assets in the fund fell to USD240.7bn, from USD250.2bn as of the end of December, and USD255.9bn as of the end of October. This compared with USD115.9bn in assets at the end of 2009, with the increase due to significant net subscriptions during most of last year.

p { margin-bottom: 0.08in; } As of the end of December, assets under management by Invesco totalled USD616bn, compared with USD604.5bn one year earlier, while assets in equities funds totalled Usd294.1bn, compared with USD294.4bn. Assets in ETFs contracted, to USD80.3bn, compared with USD89.9bn.In December, Invesco completed its acquisition of the Asian asset management activities of AIG Global Real Estate, including USD5.4bn in alternative assets (out of a total of USD78.1bn as of the end of December), of which USD0.2bn are in passive management (out of USD60.3bn).

p { margin-bottom: 0.08in; } The US management firm Principal Global Investors, which has about Usd227.4bn in assets, or about EUR170bn, on 13 January announced that it has signed up to the United Nations Principles for Responsible Investment (UN PRI).

p { margin-bottom: 0.08in; } Agefi reports, citing financial industry sources, that the French asset management firm LFP-UFG will finalise its investment in Cholet-Dupont by the end of February. UFG-LFP will replace Crédit Agricole Indosuez BP Holding, and will control a 33.4% stake in the business, specialised in management of financial portfolios and wealth organisation advising. The CMNE affiliate is also buying a 51% stake in the Cholet-Dupont Partenaires platform (see Newsmanagers of 19/10/2010), which was previously 100% controlled by the holding company, the same sources cited by the newspaper say. UFG-LFP has also made its agreement with Siparex in venture capital official. It owns 66% of UFG-Siparex, the newspaper notes.

p { margin-bottom: 0.08in; } The college of managing partners at Rothschild & Cie Gestion is now planning to take on two new members. They are Denis Faller, head of multi-management, and Philippe Chaumel, co-head of asset allocation, and equities and diversified portfolio management, La Tribune reports. According to the newspaper, at the same time, Daniel Fighiera and Sébastien Barbe, head of midcaps management and head of fixed income management, respectively, have been promoted as managers at the management firm, along with Arnaud Perrier, director of sales development and marketing.

p { margin-bottom: 0.08in; } Some major asset management firms have shown that an investment in their own shares brings better performance than the funds they offer, Expansión reports. Shares in Schroders and Aberdeen have gained 48% and 75% in value in the past twelve months. Shares in F&C have gained 33%, and T. Rowe Price is up 21%, while shares in Henderson gained 20.7%. Shares in Invesco were in line with the market, rising 11.5%, while BlackRock shares lost 16%.

p { margin-bottom: 0.08in; } La Tribune reports that in connection with the Madoff case, an Irish court has asked the British bank HSBC to provide documents in relation to the UCITS-compliant feeder fund Thema International (EUR1.1bn in assets), for which the bank was the depositary. “The bank is required to produce the documents, justifying respect for article 39(d) of the transposed UCITS 3 directive,” and it “must provide its accounts to investors, understood as the parties able to demonstrate that they are economic beneficiaries of the fund,” judge Frank Clark states in his opinion.

p { margin-bottom: 0.08in; } Maria Cassinello has been appointed head of Banif Advisory, a new service which the Santander private banking arm offers its clients with liquid savings of at least EUR3m, who do not contract out the management of these savings, Funds People reports.Each dedicated adviser at Banif Advisory will contact the client in real time to inform them about market developments and investment opportunities, and will provide information about the bank’s recommendations. The final decision will be made by the client. The adviser at Banif Advisory will work in a team with the private banker in charge of the account. The objective is to provide portfolio advising similar to what clients who have contracted the management of their Sicav to Banif receive.

p { margin-bottom: 0.08in; } According to sources familiar with the matter cited by Reuters, Clive Cowdery is preparing a takeover bid for the asset management firm Pioneer, via his firm Resolution, which has been contacted by the potential seller, UniCredit, the Börsen-Zeitung reports.

Jim O’Neill, the chairman of Goldman Sachs Asset Management who invented the term «Bric», plans to add Mexico, South Korea, Turkey and Indonesia into a new grouping with Brazil, Russia, India and China that he dubs “growth markets”.“It’s just pathetic to call these four emerging markets,” he told the Financial Times.

p { margin-bottom: 0.08in; } The IT specialist firm Markit on 17 January announced the launch of a series of emerging market debt indices. The Markit iBoxx USD Emerging Markets Sovereigns indices, which aim to meet growing demand on the part of investors for emerging market debt, come as additions to the GEMX index, launched in 2008, which tracks the performance of government debt from emerging markets in local currencies.

p { margin-bottom: 0.08in; } The Italian arm of the French firm Européenne de Gestion Privée has been liquidated by the Italian minister of the economy and finance, at the request of Consob and with a supporting opinion from the Bank of Italy, Bluerating reports. The move comes in response to irregularities and violations of regulations which occurred in the administration of the Italian entity.

p { margin-bottom: 0.08in; } Michel Camdessus on 14 January submitted his report to Chrstine Lagarde, French minister of the economy, as controller for bonuses handed out by banks which received government support for their owners’ equity levels, according to rules decided at the Pittsburgh G20 summit at the instigation of France, in relation to limiting pay scales for market professionals. The report concludes that the standards have been satisfactorily adopted by French banks overall. It points out that the application of the new standards and the actions of the bonus controller reduced bonuses distributed for the year 2009 by about EUR800m. “The full and complete application of the rules remains a priority for 2011. I expect banks to continue their efforts at moderation in 2011,” Lagarde says in a statement. To increase transparency of bonuses, Lagarde has asked the prudential control authority and the French banking association to offer a standardised presentation within two months, in the form of a poster which would be the same for all banks, to inform employees about bonuses which the banking and financial regulation laws require to be identified in a report presented at the general shareholders’ meetings of the establishments concerned.

After pointing out the key role of the global custodian in asset management worldwide, Bernard Blaud discusses recent developments in the sector of activity as well as the consolidation movement which it cannot avoid. There is no doubt that European and American firms are opposed in this area.

The European securities specialist Nicolas Walewski, founder of Alken Asset Management, on 14 January in Paris announced the launch of an absolute return fund, Alken Absolute Return Europe (AARE).The European long/short equities fund, which complies with the UCITS III directive, has daily liquidity, aims for capital growth in the mid-term, and invests largely in European equities, with the main objective of generating alpha in the case of long as well as short-term investments.The objective is to remain focused on the best ideas which generated absolute returns of 64% for the Alken Capital One fund since its launch on 21 July 2008 in European equities, through active management of the portfolio.The fund aims for gross exposure of 50% to 150%, and net exposure of -20% to 75%. For the long portion of the portfolio, which is not highly concentrated, absolute return will be the priority, and when opportunities present themselves, the fund will also make small arbitrages, For the short portion of the portfolio, the fund, which will invest in individual shares as well as indices and baskets, will act as a hedge fund and directly.An initial share class will be offered from 17 January with a commission of 0.9%, instead of 1.5%, The offering is scheduled for 31 January.As of 31 December, assets under management at Alken AM totalled over EUR2.7bn, of which EUR2.18bn were in the Alken European Opportunities fund, which has outperformed the Stoxx 600 index by 21% since its launch in January 2006, and by over 6% in 2010.

L’Autorité des marchés financiers a accordé le 6 janvier la certification à l’agence japonaise Japan Credit Rating Agency (JCRA). Les notations délivrées par JCRA peuvent donc être utilisées à des fins règlementaires dans l’Union européenne, sans que l’agence ait une présence physique en Europe.