Morgan Sze, the global head of Goldman Sachs’ biggest proprietary trading desk, GS Principal Strategies, has begun raising money for a hedge fund which is to be called Azentus Capital and will be based in Hong Kong, according to the Financial Times. It is going to start trading with between USD1bn and USD1.5bn, people familiar with the launch told the Financial Times. Mr Sze has yet to leave his position at Goldman.

p { margin-bottom: 0.08in; } According to a study by independent analysts at the Fonds Consult agency, published exclusively by Handelsblatt, wealth management in the form of shares in investment funds often results in insufficient or below-average returns. In Germany, this market measures EUR28bn, and is sometimes aimed at clients with as little as EUR10,000.The leader in this market is DekaBank, which alone manages EUR11.4bn, and has a relatively good rating, although the two leaders in terms of returns are Fürst Fugger Privatbank and Commerzbank, with assets in this market niche of EUR0.3bn and EUR3.1bn, respectively. Lower in the rankings are the two institutions of the co-operative banking sector.Fonds Consult adds that the products on offer are often expensive, with fees sometimes reaching 3% for strategies based on equity funds.

p { margin-bottom: 0.08in; } According to sources close to the German savings banks, shareholders at DekaBank have reached an agreement, the Frankfurter Allgemeine Zeitung reports. The asset management firm is valued at EUR4.6bn, and the 50% stake controlled by the Landesbanken (WestLB, LBBW and NordLB) would be sold for EUR1.3bn to the savings banks, which already control a 50% stake in the firm. The remaining EUR1bn would be paid by DekaBank itself, whose owners’ equity would thus be reduced to EUR3.4bn.

p { margin-bottom: 0.08in; } Following the first step announced this summer with its participation in the management firm N+1 Syz Gestión, the Swiss banking group SYZ & CO on 15 December announced that it is strengthening its presence in Spain with a second entity, N+1 SYZ Agencia de Valores, which will be dedicated to management for high net worth private clients. To create the new firm, in addition to personnel from N+1 and SYZ & CO, the new partnership will team up with several front-line personalities in the Spanish finance sector. The team at the new firm, led by Alfonso Gil, will include 20 people, with an average of over 15 years’ experience in private banking at domestic and international entities. Initially, N+1 SYZ will be active in Madrid and Bilbao, but other locations are also planned. It is 50% owned by SYZ & CO, while the remainder is shared by N+1 and employees of the new firm.

p { margin-bottom: 0.08in; } Both general partners and limited partners are anticipating a 5 to 10 percent decrease in the internal rate of return (IRR) for private equity programmes in the next few years, according to the first international survey by bfinance on the subject of private equity. In addition, eight out of ten limited partners (81%) say the performance of investments in private equity will be more diffuse and volatile in the future. As a result, 71% of institutional investors surveyed are planning to reduce the number of partnerships they enter into with general partners, as well as the number of private equity funds in their portfolios, in order to limit the dispersion and the expected decline in returns. The survey also finds that 74% of limited partners are expecting an IRR of over 15% for their investments in private equity. The asset class will continue to be privileged by institutional investors with an eye to diversification and the overall improvement of the performance of portfolios. Despite a decline in expected returns, the weight of private equity in allocations is expected to remain stable overall. In their responses, limited partners and general partners gave three major reasons for declining returns in this asset class. Significant amounts of uninvested capital are leading program heads to be more aggressive, and to offer higher prices when they see an investment opportunity. Leverage levels for funds have tended to be reduced. And lastly, the growth of businesses is expected to be sustainably affected by the economic context. The same reasons also go to explain the expectation that the performance of funds will be more varied in the future. Private equity will remain a major source of portfolio diversification for institutionals. However, in a context of falling returns, the choice of general partners will become even more important. According to Oliver Cassin, managing director and head of the research and development department, “limited partners no longer have a passive approach to their investments in private equity and are increasingly seeking to identify sustainable competitive advantages of managers who will generate consistent returns in the future. As a result, we are seeing an increase in demand for advising for this asset class, as investors seek to maintain the quality of their exposures.”

p { margin-bottom: 0.08in; } Irving Picard, the court-appointed trustee in charge of liquidating the management firm operated by the US frauster Bernard Madoff, is seeking USD19.6bn from the UniCredit family of companies, Agefi reports. Candidates to acquire the asset management unit of the Italian bank are now seeking to evaluate the litigation to determine whether it will create liabilities for Pioneer. “This is one more factor to be taken into account in the due diligence,” says one of them. So far, with EUR185bn in assets under management as of the end of September and EUR247m in pre-tax profits for the first nine months of the year, Pioneer is estimated to be worth about EUR3bn. This price may be adjusted depending on the manner of payment of the acquisition price. Meanwhile, discussions are also taking in sensitive subjects, including distribution commissions paid to networks by the asset management firm. These now come to about 50% at Pioneer, compared with 65% to 70% for the industry as a whole in Italy. If Pioneer had to raise its commissions to this level tomorrow, its profits would decline, and therefore also its value, the newspaper reports.

p { margin-bottom: 0.08in; } In an interview with Cinco Días, Alfonso Gómez Garcimartín, CEO, says that BBVA Banca Privada is expecting to have recruited a net total of 6,000 new clients this year. Assets under management will have increased by 5%, Banca Privada is dedicated to clients with over EUR300,000 in financial savings, while BBVA Patrimonios is aimed at investors with savings of over EUR2m; on average, accounts measure EUR500,000 and EUR5.7m, respectively. Garcimartín says that BBVA Banca Privada relies on open architecture, and offers 50% third-party products. He also says that at present there is no observed trend of Spanish investors’ assets expatriating to Luxembourg. Client demand is currently focused on fund portfolios and custom structured products.

p { margin-bottom: 0.08in; } Citywire reports that Schroders has decided to close its Asia fund, Schroder ISF Asian Total Return, based in Luxembourg, to retail investors. Assets under management in the fund, launched in late 2007, now exceed USD1bn. The fund shows returns of 47.2% from its launch to the end of November, compared with losses of 8.2% for the MSCI AC Asia Pacific ex Japan index. The decision to close the fund aims to protect the performance of the fund, as inflows were highly dynamic in 2010. Schroders says that the strategy cannot claim to manage over USD1bn in assets without risk. Schroders states, however, that institutional investors will be able to continue to invest in C and I class shares for the near future.

China Development Bank is set to launch the country’s first private equity fund of funds, according to the Financial Times.The product is scheduled to raise a total of Rmb60bn (USD9bn).

A Preqin survey of more than 100 alternative management firms and investors finds that slightly over one third of respondents support the final version of the AIFM directive. This is a “significant minority,” says Preqin, which also reports that 89% of respondents say the directive should be amended to take into account the differences between various asset classes.Nearly one respondent in two (45%) says it is probable or highly probable that management firms will leave Europe as a result of the directive, while 26% say that their firm is likely to make that move.28% of respondents say that the introduction of the European passport will have the largest impact on the sector.

p { margin-bottom: 0.08in; } Legal & General Investment Management (LGIM) has appointed Andy Clark as head of the distribution team for the Middle East. Clark, who will be based in London, previously worked at Northern Trust Global Investments.

BlueCrest Capital Management has appointed Jaime Valdivia as head of global emerging markets research and strategy. He joins from the Emerging Sovereign Group where he was a partner, portfolio manager and director of global macro research specialising in global sovereign credit and rates strategy.

p { margin-bottom: 0.08in; } According to reports in Citywire, Richard Timberlake and Paul Kim have resigned from FundQuest. They may join LV = Asset Management.

p { margin-bottom: 0.08in; } Gervais Williams, former head of UK small caps at Gartmore, is joining MAM Funds, a management firm listed on the AIM in London. He will be appointed managing director, pending the approval of shareholders. At the same time, Ian Dighé will be appointed executive chairman, and Graham Hooper director of distribution. Meanwhile, MAM Funds has also announced plans to raise a further GBP20m.

p { margin-bottom: 0.08in; } The Hamburg-based independent management firm Varengold Wertpapierhandelsbank on 15 December annoiunced the launch of a managed futures hedge fund which complies with the UCITS III directive, with daily liquidity. It is the first “newcits” fund from Varengold, and replicates an “innovative” managed futures index developed in-house, the Varengold Alternative Alpha Index. The concept is based on highly stable performance and zero correlation with equities and bond markets.The new Varengold Alternative Alpha is available immediately in the form of institutional shares, while retail shares will be released in early 2011. The objective is to earn returns 10 percentage points higher than the Euribor 3-month.In order to be included in the index, managers must be present on managed accounts platforms with daily liquidity, have a real track record of at least two years, and assets equal to or higher than USD100m. In addition, they have to have achieved top results in the risk management ratings system developed by Varengold.Currently, the index includes seven asset management firms, of which 45% are in short-term trading, 30% in event-driven, and 25% in global macro.CharacteristicsName: Varengold Alternative AlphaISIN code: DE000A1C5D54 (institutional share class)Management commission: currently 1.34%Performance fee: 10% with high watermark and hurdle rate (Euribor 3-month)

p { margin-bottom: 0.08in; } Legg Mason has signed an agreement with Südtirol Bank, by which the financial distribution firm for the Italian region of Bolzano-Bozen will distribute its funds. Among the products which will be offered to clients of the Italian establishment are the Legg Mason Western Asset Global Multi Strategy Fund and the Legg Mason Western Asset Asian Opportunities Fund, both of which are managed by the Legg Mason affiliate Western Asset Management, a press release states. The range will also include the Legg Mason Permal Global Absolute Fund, which is managed by the fund of hedge fund firm Permal.

p { margin-bottom: 0.08in; } Sigurbjorn “Siggi” Thorkelsson, who has already been head of Asia-Pacific equities since April, has been appointed head of equities, EMEA at Barclays Capital, which announced the promotion on 15 December. Thorkelsson will be in charge of the development of the equities platform for the investment bank. He will move to London in 2011, and will continue to report to Jerry Domini, global head of equities.Before joining Barclays Cap, Thorkelsson was head of equities, Asia Pacific, at Nomura. He previously served 13 years as head of equities, Asia Pacific at Lehman Brothers.

p { margin-bottom: 0.08in; } More than 70% of European institutional investors think that funds that comply with the UCITS directive may represent a growing proportion of absolute return products, as their liquidity and transparency presents a definite advantage, according to a survey by Aviva Investors of investors in several countries with EUR280bn under management. Respondents included institutional investors and financial establishments in Germany, Switzerland, France, Italy, Spain, Belgium, Norway, Ireland and Denmark. 67% say that they are also attracted to the products due to the regulatory security provided by UCITS status. These findings come at a time when 90% of investors say they are prepared to increase their exposure to absolute return strategies in the next three years. The absolute return strategies which interest them most are: global macro (67%), volatility trading (67%), long/short equity (60%), and market neutral (53%). When asked about the characteristics they look for in managers using absolute return strategies, European institutionals point to unanimity and rigour of the risk management framework. 80% also prefer a manager who is familiar with alternative management techniques, while 67% say the existence of an outperformance track record for the strategies is essential.

p { margin-bottom: 0.08in; } Aberdeen Asset Managers announced on 15 December, without disclosing the purchase price, that it has acquired a real estate complex which was fully renovated this year, located in the commercial district of Pforzheim, with 4,200 square metres of retail space and 700 square metres of office space, for its Aberdeen European Balanced Property Fund. The vendors are Centrum and the B&L group.The fund has already attracted EUR302m from institutional investors. Its commercial and office real estate portfolio as well as its logistical centres represent EUR380m, in Germany, Belgium, Finland, France, and the Netherlands.

p { margin-bottom: 0.08in; } As announced previously (see Newsmanagers of 1 October), the Munich-based RE fund management firm KanAM has paid out a first round of USD250m to shareholders in the real estate fund KanAm US grundinvest, which was the first German fund of its kind to be liquidated (over two and a half years, to conclude on 31 March 2012).Following the distribution to shareholders, the net asset value of the fund is reduced by half, to USD22.48.So far, the management team has succeeded, despite the difficult situation prevailing on the US real estate market, in selling 11 of the 17 properties in the portfolio in only eight months. The property sales have so far been made at a markdown of only 2% compared with the most recent expert valuations.The next payment is scheduled for June 2011. By that time, six other properties will be sold, with the exact amount of the distribution to be determined by the tax status accorded to the operations by the US and Canadian tax authorities.Since the launch of the fund on 20 May 2003 until 15 December this year, performance totals 20.1%, equivalent to 3% per year for an average investment duration of 5 years. KanAm states that 97% of assets have been in the fund for over two years; the fund has been closed to subscriptions for one year.

p { margin-bottom: 0.08in; } Several quantitative management professionals have teamed up to create QuantValley, an association under the 1901 Law led by Arnaud Chrétien (founder of Aequam Capital), whose founding members are the managemetn firms Aequam Capital, CFM, Cogitam, Finaltis, John Locke Investments, Numbers AM, Rivoli Fund and Seven Capital. The association aims to promote the expertise of the Paris financial industry in quantitative finance worldwide. “QuantValley aims to create sustainable ties between the academic and professional spheres, and to set up collaborations to foster financial innovation,” a statement says. The project is supported by the Institut Louis Bachelier and the “Finance Innovation” global competitiveness unit of Paris Europlace.

p { margin-bottom: 0.08in; } The most recent quarterly survey by Russell Investments has confirmed that investors’ interest in equities has begin rising once again, as 88% of managers responding to the survey saying they plan to increase their exposure to equities markets in the twelve months to the end of 2011, and 40% predicting that markets may gain 10% or more in 2011. Fears of a double-dip recession appear to have dissipated, as managers’ optimism is also based on solid fundamentals at businesses, as well as new growth opportunities, among others for major multinational companies. The durvey also finds that 52% of managers estimate that markets are correctly valued, whereas in September this year, 57% estimated that they were undervalued. Only 38% are of this opinion now. IT remains the favourite sector for managers, with 80% unreservedly optimistic about the sector, compared with 69% in September. Energy is also gaining popularity, with the percentage of managers favourable to the sector up from 51% to 68%. The real estate sector, an asset class which is generally overlooked in these quarterly studies, has also achieved an unprecedented result, with 31% of managers saying they are optimistic about the sector, 10% up on September. However, US Treasuries no longer seem to be attracting the managers, with a vote of only 5%, the lowest since June 2004.

p { margin-bottom: 0.08in; } Michel Audeban, director of commercial distribution at Fidelity France, will be leaving the firm at the beginning of January 2011. He is planning to carry out a project which will require several months of preparation. According to information obtained by Newsmanagers, Fidelity France is currently seeking a replacement for Audeban.

p { margin-bottom: 0.08in; } BNY Mellon Asset Management has appointed Thom Fisher as country head for Japan, Asian Investor reports. BNY Mellon is also seeking a successor to David Jiang, former CEO for the group’s activities in the Asia-Pacific region, based in Tokyo.

p { margin-bottom: 0.08in; } More than two and a half months after the departure of Iñigo Bilbao-Goyoaga, who created the affiliate and directed it for eight years, Axa Investment Managers has announced the appointment of Beatriz Barros de Lis as director for Spain and Portugal. The Iberia team (5 members) also provides operational support for the group’s activities in Latin America. Barros de Lis was previously head of AllianceBernstein for Spain and Portugal.

Les prétendants au rachat de la société de gestion restent focalisés sur l'accord de distribution dans les réseaux d'UniCredit

Les prises de bail pour plus de 2.000 m² ont triplé en un an. Mais la faiblesse de l’offre neuve risque de ralentir l’activité en 2011

Baptisée QuantValley, cette association, qui regroupe vingt membres, travaille sur la création d’un indice de place et d’une plate-forme au sein de Natixis

Si les commercialisations devraient être rares l’an prochain, elles augmenteront ensuite significativement

La dette espagnole continue de faire l’objet d’une forte défiance des investisseurs malgré la création du mécanisme de sauvetage européen