Amundi on October 9 announced that it has finalized its acquisition of Smith Breeden Associates. After meeting information requirements to the regulatory authorities and receiving the consent of certain clients and shareholders, Smith Breeden Associates has become Amundi Smith Breeden, a wholly-owned subsidiary of the French asset management firm, a statement says.Patrick Pagni, senior regional officer for North America at Amundi, has been appointed executive chairman, and Mike giarla remains as chief executive officer.The acquisition of Smith Breeden meets three key objectives for Amundi: Offer its institutional and corporate clients based in Europe, Asia and the Middle East expertise in asset management for products denominated in US dollars; strengthen the US component of the Global Fixed Income fund; and to amplify distribution of Amundi expertise in the United States. For its part, Smith Breeden will, as a part of the operation, reinforce its development serving US clients, extend its institutional client base, and benefit from the all of the global resources of the French asset management firm in the areas of investment, research, customer service and support functions.The menbers of the new board of directors at Amundi Smith Breeden are: Patrick Pagni, Amundi Senior Regional Officer for North America, Executive Chairman, Amundi Smith Breeden; Mike Giarla, CEO, Amundi Smith Breeden; Stephen Eason, CFA, Senior Executive Vice President, Amundi Smith Breeden; Markus Krygier, PhD, Senior Executive Vice President, Amundi Smith Breeden; Pascal Blanqué, deputy CEO of Amundi, CIO, director of the institutionals and third-party distirbutors division; Eric Brard, global head of fixed income management at Amundi; and Bernard de Wit, Ddeputy CEO of Amundi, Chief Operating Officer, responsible for support and development.

Fourpoints IM has recruited Emmannuelle Ferreira as an analyst manager on the management team in Paris. Ferreira, who holds a DESS In portfolio management from the University of Paris XII and SFAF (CIIA), had been a manager of the SICAV des Analystes at Acofi Gestion. Fourpoints IM has over EUR1bn in assets under management, after an incrase of 46% in its assets since the beginning of the year, and of over 57% since the merger between PIM Gestion France and IT Asset Management in May 2012, a statement says.

The savings office of the Korean post office, which has about USD60bn in assets under management, has launched a request for proposals for a global mandate for at least USD1bn, in order to increase its exposure to US and European real estate, Asian Investor reports. At least 80% of initial investmnts will be dedicated to US and European real estate assets. For the United States, the strategies will be value, distressed or opportunities, while for Europe, they will bbe distressed or opportunity-driven. As an additional requirements for European real estate, at least 50% must be invested in OECD member countries. The request for proposals is open until 30 October.

In a few weeks, FX Concepts, which was the largest asset management firm in the world focused on currencies, will be closing its asset management activities and repaying money to investors, the Wall Street Journal reports. Assets have fallen to USD660m, from USD14bn at the onset of the financial crisis.

AXA commits to better integrating environmental, social and governance (ESG) criteria into investment decisions of the Group’s insurance companies, according to a statement. Furthermore, AXA signs the UN Principles for Responsible Investment (UN PRI). AXA’s RI policy is a significant move forward and a strong reflection of the Group’s longstanding belief that ESG factors have the potential to impact investment portfolios across companies, sectors, regions and asset classes over time, thereby affecting risk and returns - and as such require active consideration and monitoring. Based on this conviction, ESG criteria are being progressively and systematically integrated in AXA’s investment mandates, across asset classes and regions. Specific measurement tools are also being refined to ensure that ESG performance is tracked accurately. This «mainstreaming» process, which complements the creation of specialist, dedicated RI products, applies to the Group’s general account investments, whose current strategic allocation between asset classes remains unchanged. The policy also sets the framework for the structured development of investment guidelines for sectors that can pose environmental, social or ethical challenges. Furthermore, it initiates the Group’s pioneering «Impact Investment» project, which aims to allocate capital to organisations that address key societal challenges in the areas of environmental (e.g.: climate change), life (e.g.: health & longevity), or socio-economic (e.g.: poverty) risks. Impact investments seek to create both financial returns and a positive social or environmental impact that is actively measured. The Group has initially committed Euro 150 million to this initiative that will invest in various social funds as well as environmental projects which also demonstrate social impacts.

Meredith Whitney, whose negative recommendations on financial sector stocks before the financial crisis made her one of the most famous analysts on Wall Street, has asked for her eponymous brokerage firm to be de-registered, and is planning to launch a hedge fund, the Financial Times reports. Whitney has tol Finra that she is founding a firm entitled Kenbelle Capital. “I am the managing principal/chief investment officer for a long/short fund,” she wrote in an official document.

Paris-based asset management firm BNP Paribas Investment Partners (BNPP IP) has recently obtained a first important endowment mandate from the United States, Newsmanagers understands. The mandate may be for several hundred millions of dollars, from the endowment of the University of Michigan. The mandate open attractive prospects on a promising market, as endowments, like other US institutional investors, tend to extend mandates when they are satisfied with the results of their first bet.

David North, the former head of asset allocation and high yield at Legal & General Investment Management, is returning to the asset management industry, Investment Week has announced. He is reportedly seeking to raise capital for a fund similar to the global macro fund which he had managed for many years at LGIM.

Tom Stevenson of Fidelity Worldwide Investments has joined the personal investing activity at the group to help develop a direct range for consumers, Investment Week reports. Stevenson had previously been a spokesman for the firm.

Gary Clarke, co-head of global thematics and retail in the global equities team at JP Morgan, has left the firm, Citywire repots. Clarke, who had previously been head of the European equity team at Schroders, managed a range of funds alongside Peter Kirkman. Kirkman is now the only manager of the funds.

Sovereign funds remain too little legible and too dependent on the influence of politics. Only one third of the 26 sovereign funds which have signed the Santiago generally accepted principles and practices (GAPP) which aims to promote the “objectives and finality of sovereign funds” passed the good governance, transparency and resopnsibility tests, acording to a sruvey by the Swiss consulting firm GeoEconomica.The survey finds that many sovereign funds, particularly Russian and Middle Eastern funds. Do not respect the basic principles fo good governance or financial information at all.Pension funds from the Norwegisan government top the rankings, with a rating of 94% on the Santiago Principles compliance scale, while sovereign funds from Bahrain take the bottom spots in the rankings, with only 24%. The global ratio is 70%.According to the survey, five funds, which received ratings of under 50%, do not respect the Principles, particuarly since they do not publish financial information.One of the most dynamic sovereign funds, QIA (Qatar Investment Authority), does not offer satisfactory information concerning mandates, its financial reports or its governance framework. The fund received a rating of only 31%.

More than two thirds of asset management boutiques worldwide say that they have been inundated with increasing regulatory requirements and the institutionalisation of the sector, which has led to additional barriers to entry to raise assets and an increase in cost/income ratios, according to a study carried out by Tabb Group in September of 202 boutiques worldwide. The study is entitled «Boutique Business Model Under Attack. Bruised by Regulation, Crippled by Costs?» by Adam Sussman, a partner at TABB, director of research, and co-author of the study by Valerie Bogard. In this environment, the giants of the sector have the advantage of size, while hedge funds continue to attract capital seeking higher-than-average returns. This may result in a rampant consolidation on the buy-side, as companies may be led to consider the costs prohibitive to continue their activities. This development is frankly not desirable, according to TABB, which says that an environment in which banks have become the congruent portion would have negative implications for investors in the sector. “A high degree of concetration would only exacerbate the problems which are driving investors to stay on the edge: correlations between asset classes, a lack of outperformance, and costly management commissions,” TABB says.

Household net worth worldwide is expected to rise steeply between now and 2018, driven by emerging markets, primarily India and China, according to a study by Credit Suisse published on 9 October (“Global Wealth Report 2013.”) The number of millionaires will also spike, particularly in Latin America, economists at the bank predict.Household net worth worldwide is expected to rise by nearly 40% by 2018, to USD334trn. Emerging countries are expected to increase their share of this total to 23%, of which 10.7% will be in China alone. The United States will remain the world’s uncontested leader of the rankings. Annual growth in household net worth will reach 9.1% in emerging markets, with 9.3% in India, and 6.1% developed markets.The number of millionaires worldwide is expected to increase by 50% to 47.6 million people. Africa will see an 81% rise in the number of millionaires, while the expected absolute number (163,000) is relatively low compared with other regions, Credit Suisse reports.Asia-Pacific is expected to see the number of millionaires rise 75% to 11.5 million, Europe 47% to 15 million, Latin America 64% to 936,000, and North America 40% to 21 million.In 2013, the total wealth of households worldwide posted growth of 4.9% in one year, to USD241trn, despite the economic crisis. Due to rising property values and a rebound on the equity markets, North America has seen the assets of households increase 11.9%, while Europe has risen 7.7%.In Japan, however, the fall of the yen against the dollar has led to a 20.5% decline in household net worth, bringing down all of Asia-Pacific by 3.7%. Outside Japan, the region has posted gorwth of 6.2%, however.Latin America has gained 3.6%, and Africa 1.2%.Switzerland, for its part, remains the global champion in personal net worth, with USD512,000 per individual. The strong growth in assets since 2000 has been largely due to the rising Swiss franc.

The investment/wealth management team in Spain at Deutsche Asset & Wealth Management, led by Nicolas Barquero, has been strengthened with the addition of Carlos Mazano, director of corporate strategy at BAMI since 2010, as well as Paulo Barrio, who since 2011 had been head of the structured product line and sales at Banesto, Funds People reports.

The international alternative investment management association (AIMA) on 9 October announced the publication of an updated version of its guide to best practices in hedge fund valuation.The most recent version took into account recent regulatory changes, including requirements under the AIFM directive concerning valuation.The guide, whose most recent previous edition was written in 2007, also takes into account new international rules concerning accounts, including the introduction of fair value into financial reports.

With the transposition of the European alternative management directive into the German KAGB Law, the Frankfurt-based firm SEB Asset Management (EUR12.9bn) sees new opportunities for real estate funds on the local market.This will initially result in the launch of the open-ended real estate fund SEB Konzept Stiftungsfonds, which is aimed specifically at charities, and for which the minimal subscription is set at EUR50,000.As soon as legally possible, SEB AM is also planning to launch two open-ended real estate funds under the new KAGB regime. The “Basis” module will concentrate on assets located in Germany, but may also invest elsewhere in Europe. These will be properties leased for the long term, with good locations and tenants who have good solvency, so that returns may only be moderate.The “Chance” module will also have a European universe, but with a way to invest outside Europe. The assets will be located in “B” rated areas, and SEB AM would like to find high vacancy rates, because that opens the prospect of re-leasing under good conditions. In total, returns are expected to be higher, as is risk.

Deutsche Börse has announced that it has admitted an additional ETF from Lyxor Asset Management to trading on the XTF segment of its Xetra electronic trading platform. It is a French-registered, UCITS-compliant product specialised in Japanese equities. The product, which is hedged against euro/yen currency risk on a daily basis, brings the number of ETFs listed in Frankfurt to 1,034.CharacteristicsName: Lyxor UCITS ETF Japan (TOPIX) – Daily Hedged D-EURISIN code: FR0011475078Benchmark index: Topix Gross total returnTotal expense ratio: 0.45%

11 Chinese banks will be authorised to conduct asset management activities independently during a trial period, Financial News reports, citing an article in the Chinese newspaper 21st Centry Business Herald. The banks are the following: Industrial & Commercial Bank of China, China Construction Bank, Bank of Communications, China Merchants Bank, China Citic Bank, China Minsheng Bank, China Everbright Bank, Ping An Bank, Shanghai Pudong Development Bank, Industrial Bank and Bohai Bank.

During a meeting on 9 October, the Federal Council took fiscal measures to assist in the introduction of its financial markets policy. It has approved the signature of the OECD and Concil of Europe convention concerning mutual administrative assistance in tax matters. The Federal Council has also passed a draft mandate concerning a revision to the agreement on taxation of savings signed with the European Union (EU). Since March 2009, Switzerland has agreed to follow international standards in the area of taxation. The signature of the OECD and Council of Europe convention “is a sign of its desire in this respect. This signature also confirms the participation of Switzerland in the global fight against tax fraud and tax theft, strengthening the reputation of the Swiss financial market,” a statement says.

Ignis Asset Management has launched the Ignis Global Macro Government Bond, domiciled in Luxembourg, for Russ Oxley, head of fixed income, Investment Week reports. The fund will target absolute returns of 10-12% per year over cash. With seeding assets of GBP25m, the manager will take long positions on government bonds and currencies on the basis of macroecnomic scenarios.

The trustee for the fund of Bernard Madoff on Wednesday appealed to the US Supreme Court in a bid to obtain the right to seek damages from the banks JPMorgan, UBS< HSBC and Unicredit.Lawyers for Irving Picard submitted a request to obtain a review of the verdict delivered on 20 June by an appeals court in New York. The latter court founds that the trustee was not authorised to sue financial institutions, from which he had wanted to seek billions of US dollars in damages.

In September, Azimut launched three UCITS funds: Lira Plus, Global Sukuk and Hybrid Bonds, Bluerating reports. The first of these, Lira Plus, is a market neutral strategy on the Turkish pound, while the second, Global Sukuk, invests in fixed and variable rate sukuks which respect the principles of Sharia, and the third, Hybrid Bonds, is invested in hybrid instruments. In September also, the Italian asset management firm recorded net inflows of EUR190m (including EUR108m for asset management).

After a decline of 15.7% in August compared with July, daily on-book trading volumes on the European markets of NYSE-Euronext increased in September by 14.2% compared with August, to EUR209.2m, which nonetheless remains 13.5% below their levels in September 2012.Total trades last year came to EUR4.4bn, 9% more than in August, and 9.2% less than in the corresponding month of last year.As to block trades, they totalled EUR200m, which represents a 47.1% decline compared with the previous month, and a 72.9% decline vs September 2013.The number of ETFs listed increased by 11 in September, including 5 EasyETF, 4 Lyxor, 1 Amundi and 1 Ossiam product. As of the end of September, the European markets of NYSE Euronext had a total of 653 products, of which 563 were primary listings, from 17 issuers.Lastly, the median spread for all ETFs listed last month totalled 28.1 basis points, compared with 27.3 basis points in August.

According to a survey carried out by Cerulli Associates, 34.8% of asset managers in Europe expect the commissions they can charge institutionals to be reduced, though only 4% said so in 2012, while 60.9% predict that they will not change, and 4.3% expect an increase. However, the future seems less dark for managers of segregated accounts, only 17.4% of whom predict a decline in commissions, while 78.3% predict that they will not change, and 4.3% expect them to increase.

La Banque centrale européenne et son homologue chinoise, la People’s Bank of China, ont annoncé jeudi la signature d’un accord pour la mise en place d’un swap de devises bilatéral, en discussion depuis plus d’un an. Cette ligne permettra de fournir jusqu'à 350 milliards de yuans à la BCE et jusqu'à 45 milliards d’euros à la PBoC. L’accord sera mis en place pour trois ans. Du point de vue européen, il permettra à la BCE de garantir aux banques de la zone euro la disponibilité de liquidités en yuans. La mise en place de telles lignes constitue une étape essentielle dans l’internationalisation du renminbi. Le conseil des gouverneurs de la BCE doit encore préciser les modalités techniques de mise à disposition des liquidités en yuan.

Fédéris Gestion d’Actifs annonce la création d’un pôle «solutions» pour mieux répondre aux attentes propres à chaque investisseur institutionnel. Ce pôle réunit l’analyse extra-financière, fil directeur de l’offre de la société, l’analyse quantitative dédiée à l’élaboration de solutions d’allocations et de gestion du risque, et l’analyse de marché. Adossé à Malakoff Médéric, Fédéris affichait 27 milliards d’euros d’encours au 30 juin.

La Bourse des dérivés de Hong Kong a annoncé jeudi qu’elle relevait la décote appliquée aux bons du Trésor américains utilisés comme garantie dans les appels de marge. Le Hong Kong Exchanges & Clearing passe cette décote de 1% à 3% sur les T-bills de moins d’un an qui servent de collatéral dans les transactions sur futures et options. Un choix de précaution dicté par la possibilité d’un défaut des Etats-Unis, a expliqué un porte-parole en référence au blocage politique à Washington sur le relèvement du plafond de la dette.

Lors des enchères CDS sur le groupe espagnol de jeux Codere, le taux de récupération pour les vendeurs de protection de credit default swaps est ressorti à 45,5%. Codere, qui était inclus dans plusieurs versions de l’indice iTraxx, a fait défaut mi-septembre sur le paiement d’un coupon.

A l’issue de sa réunion de politique monétaire, la BoE a maintenu son taux directeur à 0,5% et laissé inchangé son programme de rachats d’actifs, à 375 milliards de livres, comme attendu par les économistes. La Banque d’Angleterre n’a diffusé aucun communiqué.

La collecte nette devrait rester positive en 2014 selon Fitch, qui met en lumière le recul des marges ces dernières années