According to Mutual Fund Wire, the continuation plan presented by the Securities and Exchage Commission (SEC) for the shutdown stipulates that the online EDGAR service for registration of routine filings concerning investment funds will remain open for some time. However, requests for licenses for new financial products or exemptions from the 1940 Investment Act will not be processed.The plan states that 252 full-time employees out of 4,149 are expected not to be affected by the shutdown. The SEC has reserve appropriations to allow it to continue to function at a reduced pace for a few weeks.

Rob Hall has been appointed as client portfolio manager in the multi-asset class team at Russell Investments, rejoining a group which he worked with between 1988 and 2008, Citywire reports. Hall had previously been head of manager selection at Schroders. He will be based in London.

Emma Douglas, one of the most influential women in the financial sector in the United Kingdom, will soon be leaving Mercer to join Legal and General Investment Management, according to Financial News, citing two people familiar with the matter. Douglas is currently a partner at Mercer, specialised in defined contribution plans. At LGIM, she will take over as head of the defined contribution unit.

The Fund Management 2013 report from TheCityUK (see attached PDF) finds that as of the end of 2012, total assets in funds in the British fund management sector came to a record GBP5.400trn, 30% more than at their pre-crisis peak. Of this total, about GBP2trn are managed for foreign clients, and the figures reveal that 2012 was the fourth consecutive yar of rising assets under management (at 6.5%).Nearly two thirds of assets come from institutional clients, while retail represents 14%, and the remainder is shared between private client funds and hedge funds.The United Kingdom thus continues to be one of the largest global asset management centres, with a market share of 8%, and the largest in Europe.The report by TheCityUK follows the creation of the Financial Services Trade and Investment Board (FSTIB) by the British government, to promote the international competitiveness of the United Kingdom for investment. Although London is a definitive market worldwide, there are other dynamic fund management centres in Edinburgh, Glasgow, Aberdeen, Manchester, Liverpool, Cardiff and Birmingham.

Mark Pearson, head of investment services at Aegon in the United Kingdom, is leaving the firm with immediate effect, Money Marketing reports. Currently, there are no plans to replace hm.

Cotizalia reports that CatalunyaCaixa Inversió, the asset management affiliate of Catalunya Banc, has announced the liquidation of its real estate funf CX Proprietat.A a result, in Spain there are now only four truly operational real esrtate funds: Sabadell BS Inmobiliario,Santander Banif Inmobiliario, AC Patrimonio Inmobiliario and Bankia Inmobiliario.With the two funds in liquidation, CX Proprietat and Segurfundo Inversión, total assets in Spanish real estate funds as of the end of Augut come to EUR3.926b compared with EUR8.612bn for new funds as of the end of 2007. The number of shareholders has fallen at the same time to 21,579 compared with 165,781 as of 31 December 2007.Average returns from real estate funds in 2007 came to 5.4%. Since the beginning of this year, these products have lost an average of 5.8%.

Since 2010, the average margin on AUM of European asset management firms has declined from 44 basis points down to 40 basis points, according to Fitch Ratings, which analysed a sample of 24 asset management players with combined AUM of almost EUR8trn as part of a new study of the future of the industry. “While not spectacular, this decrease illustrates the long term risk of margin pressure,” the authors of the study comment. Average margins have been impacted in recent years by a shift of the product mix away from high fee equity products, which have net management fees on average 50% higher than those on bond funds. Although a return to the equity markets is making itself felt, tensions are expected to continue, with the shift of institutional investors toward passive investments, with the concentration of distribution and by the growing demand on the retail side for low cost solutions like exchange traded funds (ETFs) or target date funds. To combat these falling margins, Fitch has identified three strategies: develop low cost products and compete on volumes; develop and strengthen high margin specialties; and build multi-asset capabilities to keep in-house the portfolio allocation part of the value. Fitch also notes that profitability levels vary significantly among the European asset managers, due to different levels of AUM margins and cost structures. On average, independent asset managers in Fitch‟s sample are more efficient than subsidiaries of larger firms. At the extreme, players like Jupiter and Ashmore stand out with both high AUM margins and low cost to income ratios. Independents have, in general, higher AUM margins than asset managers that are subsidiaries of other entities. Three quarters of the independents in Fitch‟s sample had a blended AUM margin in excess of 40bp, while only around one quarter of the subsidiaries had an AUM margin above that level in 2012. This in part reflects the product mix choices of the independents, with many more exposed to retail distribution and equities. A number of subsidiaries exhibit lower AUM margins (below 30bp) and higher cost/income ratios (above 70%), which together result in relatively lower profitability. This group includes Natixis Global Asset Management, Aviva Investors, ING and Axa. “In recent years, subsidiaries have not managed to increase AUM margins, reflecting stable product mixes and the relative inability to grow significantly AUM in higher margin specialties,” the study says. Fitch expects the situation to remain unchanged in the coming years. Conversely, subsidiaries still have room to improve their cost structure, through internal rationalisation and restructuring. Unlike subsidiaries of financial groups, independent managers have improved their cost/income ratio by around 10bp in the last three years.

«European managers who are well positioned in the cross border space and in global bonds, global equities, specialities or multi-asset are likely to grow more as these areas will attract investor flows,» says Aymeric Poizot, managing director in Fitch’s Fund and Asset Manager Rating Group. Fitch Ratings expects in a new research that the European asset management industry to continue growing in 2014, supported by improving investor confidence and a more solid macro-economic background. However, the agency expects that growth will be unevenly shared, as competition remains intense and market conditions as well as investor demand continue to change. Half of European managers had no fund inflows in the three years to end-July 2013, while the top 10 firms received 50% of inflows in bonds and mixed asset funds, and 75% of inflows into equity funds. With changing market conditions and investor demand, business diversification and a clear marketing strategy capable of anticipating cycles will be increasingly important considerations, according to Fitch Ratings. In addition, innovation and a strong franchise in multi-asset and solutions will be a key performance driver, particularly as this business is less cyclical than traditional equity or bond fund management. The development of defined contribution pension schemes and retail investors’ need for diversified low risk products support growth and innovation in this area.

The hedge fund Chenavari Capital has raised over USD200m for a new fund, which will help European banks to reduce their requirements in terms of owners’ equity, by moving the risks off their balance sheets, the Financial Times reports. The Chenavari Capital Solutions fund, which will be listed in London, aims for returns of 12% per year.

In August 2013, UK funds have posted net retail subscriptions of GBP1.8bn, compared with GBP2.2bn in July and GBP94m in the corresponding month of last year. This total nonetheless remains higher than the average of GBP1.3bn observed in the previous 12 months. Institutional net inflows totalled GBP284m in August, compared with GBP851m in July, and net outflows of GBP{604m in August 2012.Statistics from the Investment Management Association (IMA) also reveal that assets as of 31 August had fallen to GBP732bn, though they had peaked at GBP743.9bn one month earlier. However, this remains higher than the GBP6722bn as of the end of August 2012.The IMA also notes that the best sales and strongest subscriptions in August went to equity funds, with GBP1.1bn, compared with GBP1.4bn the previous month, and an average of GBP650m in the past twelve months.Ethical funds attracted ony GBP18m in august, compared with GBP37m in July. Their assets at the end of the month totalled GBP8.57bn, compared with GBP8.69bn as of the end of July.

Michel Schulz, deputy director of proucts and head of client monitoring for multi-asset class funds at Union Investment, has been appointed head of marketing for Northern Europe at Baring Asset Management. He will be based in Frankfurt, and will report to Claire Fraser, head of marketing & communication.

The Japanese government has launched a system of individual tax-exempt savings accounts (NISA) to encourage the population to save better and to invest, Les Echos reports. The government of Shinzo Abe wants to incite Japanese households to be more audacious with their savings, which have been sitting in bank accounts at interest rates of 0.02%. Of estimated total savings of EUR12trn, more than EUR6rn are currently tied up in bank or postal accounts. Only 12% of household savings are invested in the stock market or investment funds, according to the Bank of Japan.

After the resignation of chairman of the managing board Frank Niehage at the end of December 2012, Bernd Würfel on 30 September resigned from his position as deputy chairman of the managing board at the German affiliate of the Swiss bank J. Safra Sarasin, finews reports.The affiliate had been through a turbulent period with the restructuring process on the one hand, and losses of over EUR75m in credit to the wind farm company Windreich, which went bankrupt, on the other. Several clients accuse the firm of having actively recommended that they subscribe to Windreich bonds.

La Banque centrale de Norvège est la deuxième institution étrangère à obtenir un quota supérieur au milliard de dollars en tant qu’investisseur insitutionnel étranger qualifié (QFII), rapporte Asian Investor. Le mois dernier, Norges Bank a reçu un lot supplémentaire de 500 millions de dollars, ce qui a porté son quota à 1,5 milliard de dollars.L’administration des changes de la Chine (Safe) avait attribué en août dernier un premier quota supérieur au milliard de dollars à l’Autorité monétaire de Hong Kong (HKMA). La Chine avait décidé de supprimer le plafond de 1 milliard de dollars pour les quotas QFII en décembre dernier.

The Financial Conduct Authority (FCA) has launched the second phase of its examination of RDR regulations, in the form of a questionnaire sent to 120 consulting firms, Investment Week reports. The questionnaire, part of a study of the impact of RDR regulation, will be “statistically more pertinent” than the first one, which aimed to measure respect for the new price structure by evaluating practices in the profession.

ING Investment Managers will be renamed as NN Investment Partners (NN IP). ING Insurance, for its part, will become NN,” and will present a new identity, which will highlight both “the wealth and Dutch roots of the group with the standards of an international and lating brand.” The change will coincide with the IPO of the European asset management firm from ING, planned in 2014.

On 2 October, Pictet Asset Management opened its online PUNT platform in the Netherlands. On this site, investmnt specialists at the asset management firm share their opinions on recent developments in the world of asset management, particularly concerning market trends, the evolution of various asset classes, and thematic investments.PUNT will be regularly updated with articles, videos and expert commentary from Pictet. It will be available at the address http://www.pictetfunds.nl/.Barbara Kos of Pictet Nederland says that PUNT is not about figures, but ideas. This will all be published on a website which aims to be of high quality and to encourage reflection.

After record net redemptions of USD15bn in August, the 4,937 ETP s in the world in September posted net subscriptions of USD35bn, which brings total net inflows in the first nine months of the year to USD162bn, according to estimates from the BlackRock Institute.Assets as of 30 September, at USD2.2262trn, were up by USD112.2bn, or 5.3% compared with their level as of the end of August (USD2.114trn for 4,918 ETPs).A brief calculation confirms the divergence between the US and European markets. Average assets in the 2,135 European ETPs total USD185.15m, while the 1,510 ETPs in the United States have an average of USD1.0369bn.

The Credit Suisse LAB index, which aims to reflect the performance of the entire hedge fund sector, gained 1.39% in the month of September, a statement from Jordan Drachman, head of beta hedge strategies at Credit Suisse, states. The index has gained 4.29% since the beginning of the year. The event-driven strategy was the best performer, with gains of 2.65% for the month, and 6.54% since the beginning of the year. This is followed by long/short, with gains of 1.26% for the month, and 4.82% since January, and merger arbitrage, with respective gains of 1.-04% and 6.88%.

The board of directors at Assogestioni, the Italian association of asset management proessionals, has approved the Italian code of stewardship, which in line with the analogous European code from EFAMA identifies the rights and duties of institutional investors in publicly-traded businesses. The board has also decided that it will monitor the implementation of the principles from 2015.

Wolfgang Bernadzik, head of real estate acquisition in the German-speaking countries and fundraising at GE Capital Real Estate between 2006 and 2013, has been recruited as senior business development manager – property at Aberdeen Asset Management Deutschland.Bernadzik will be responsible for advising German, Austrian and Swiss institutional investors in the area of real estate funds. In addition, he will be responsible for obtaining new mandates and advising clients on their portfolio transactions.

The AGM of the German BVI asset management association followed up the recommendations of the CEO, Thomas Richter, by voting to open the association to foreign firms as well as managers of closed funds.Membership will now be possible for managers who are responsible for German-registered funds, or who sell funds through an agency in Germany, or who are owned by a German group. Membership may also be recognised for German distribution arms of foreign asset management firms.Meanwhile, the AGM has «replenished» the BVI board, and elected the following members: Thomas Groffman (chairman of the managing board at BlackRock Asset Management Deutschland), Victor Moftakhar (chairman of the executive committee at Deka Investment) and Hans Joachim Reinke (chairman of the managing board at Union Asset Management Holding).They will replace Dirk Klee (formerly of BlackRock), Thomas Neiße (Deka Investment) and Alexander Schindler (Union AM Holding).

The German-Austrian firm C-Quadrat Investment on 2 October announced in a statement to the markets that it has signed an agreement with the Cologne-based Talanx Asset Management to create and operate an asset management joint venture in Armenia. A memorandum of understanding has also been signed between C-Quadrat, Talanx and the Armenian central bank.The joint venture will be responsible for the management of local pension funds, after the introduction of pension reform laws on 1 January 2014. The Armenian central bank estimates that overall, assets in pension funds will gradually rise to EUR2bn by 2020.

L’Agence France Trésor a placé pour 7,46 milliards d’euros d’OAT arrivant à maturité en mai 2023 et en 2029, une dernière maturité qui n’avait plus été proposée depuis deux ans. 5,10 milliards d’euros ont été placés à 10 ans, à un taux moyen de 2,37% contre 2,57% lors de l'émission comparable de septembre dernier. Le placement à 16 ans a porté sur 2,36 milliards d’euros, à un taux moyen de 3,02%.

L’indice PMI composite de la France, qui combine celui des services et celui de l’industrie manufacturière, a progressé à 50,5 après 48,8 en août, un niveau supérieur à l’estimation «flash» de 50,2 annoncée précédemment. Ce chiffre constitue un plus haut depuis 20 mois.

L’Espagne a émis pour 3,5 milliards d’euros d’obligations, soit le montant maximal prévu, à un coût en baisse. Il a placé pour 955 millions de titres arrivant à échéance le 31 janvier 2018, dont le coupon est fixé à 4,5%, à un rendement moyen de 2,795% contre 3,001% lors de la précédente adjudication comparable, le 31 mai. L’adjudication de titres 31 octobre 2018 servant un coupon de 3,75% a atteint 1,38 milliard d’euros avec un rendement moyen de 3,128%, contre 3,477% le 5 septembre. Enfin, le Trésor a adjugé pour 1,18 milliard d’euros d’obligations 4,4% octobre 2023, à un rendement moyen de 4,269%, contre 4,503% en septembre.

Les réserves en devises émergentes détenues par les banques centrales des pays développés ont fondu de 29% au cours du deuxième trimestre

Pour l’or et l’argent, les stocks représentent des décennies de demande et les prix évoluent assez indépendamment de ce ratio

En 2011, le Trésor avait échafaudé des scénarios de crise au cas où le plafond ne serait pas rehaussé. Les marchés n'attendent pas de tels expédients

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