Switzerland and the United States will soon sign an agreement on a solution to settle the problem of Swiss banks. The Swiss Federal Council, which yesterday examined the solution proposed by the US government to regularise the past, has approved in principle the creation of a joint agreement, according to a brief statement released on 28 August. The Federal Council has made the Federal finance department responsible for “carrying out the necessary work.” Once the joint declaration with the United States is signed, the regulatory text will be released. The signature of the joint declaration will allow Swiss banks to settle the difference over taxation which has opposed them to the United States in the existing legal order, and which in the past has damaged relations between the two countries. The Swiss banking association (ASB) has welcomed the positive decision by the Federal Council on the programme by the US authorities to regularise the situation at Swiss banks. According to the organisation, the last step to find a solution has been taken, and the United States can now launch the programme. “The programme allows Swiss banks a rapid and final settlement of their past with the United States, and creates the necessary legal security,” the ASB writes in a statement.

Auditing companies will in the future be controlled by the Swiss federal revision surveillance authority (ASR), and no longer by the financial market surveillance authority (Finma). The Federal Council on 28 August submitted a proposal to this effect to Parliament. A part of the transfer of competence has already taken place. Since September 2012, the ASR has taken over surveillance of account auditing at banks, insurers and publicly-traded collective capital investments. The other competences of Finma will be transferred after the Federal parliament has granted its approval. Currently, the ASR oversees revision firms, and Finma oversees auditors, though these activities partially overlap. The need to regroup these competences was observed in light practical experience in the past five years, and the lessons drawn from the financial crisis. The restructuring will allow for some administrative redundancies to be eliminated, structures to be rationalised, expertise to be concentrated and the quality of surveillance to be maximised, the government states.

Baring Asset Management has hired James Ross to the newly created role of director of investment process. Alongside overseeing the investment process for existing products, this role has been created to develop, implement and regularly review the investment processes for the suite of new products.James Ross was previously at Alliance Bernstein since 2001. From 2009, he was head of senior portfolio managers, Global Growth; involved in the management of the firm’s global growth equity. He starts on 2 September and will report to Marino Valensise, chief investment officer and be based in London.

The Hedge Fund Association on August 28 announced that it has formed a new academic advisory board to empower and educate students and others about the hedge fund industry.The board will hold HFA symposiums on campuses featuring well-known hedge fund managers and investors as guest speakers, along with hosting online webinars to teach the next generation of professionals not only about the industry, but also finance and ethics.The Hedge Fund Association is an international not-for-profit organization made up of hedge funds, funds of hedge funds, family offices, high-net-worth individuals, financial advisors, service providers and students.

The investment company Eurazeo has returned to profitability in first half, announcing net profits of EUR328.8m, compared with a loss of EUR126.6m in the same period of last year. In the year 2012 as a whole, Eurazeo posted a net loss for the part of the group of EUR198.5m related to one-time charges. Consolidated net income totalled EUR1.1bn in second quarter, down 1.8% year on year. For the half, it is down 2.2% to EUR2.1bn, according to a statement from the group. The amount of proceeds from sales is EUR853m since the beginning of the year, a statement says. Re-evaluated net assets (RNA), which are considered the most relevant figure for investment companies to measure the value of its stakes as a whole, totalled EUR58 per share as of 30 June 2013, up 7.2% compared with the end of 2012. The firm has since the beginning of the year made four acquisitions for a total of EUR100m (IES, Idéal Résidences, Peters Surgical and Cap Vert Finance), two of which are in the key target strategic sectors of health and the environment.

Assets under management at the LGT group, a specialist in private banking and asset management, as of the end of June totalled CHF108.7bn, up by about 7% compared with the end of December 2012, according to a statement released on 28 August. This development is largely due to a net inflows of CHF4.8bn in first half, down slightly compared with first half 2012 (CHF5.5bn), but which represents an annual growth rate of 9%, which it considers “encouraging.” Net profits, however, were down 33% in first half, to CHF86.3m, due to an increase in provisions to confront changed fiscal conditions, including a tax withholding agreement signed between Switzerland and the United Kingdom, a statement says.

Pioneer Investments has recruited Nils Hemmer as head of sales for wholesale and third party distribution, covering insurers, banks, wealth managers, distribution networks and independent financial advisers, Investment Europe reports. He joins from Fidelity Worldwide Investments, where he was head of sales in charge of insurance companies since 2008. He will report to Oliver Bilal, head of distribution for Germany at Pioneer.

MetLife Advisors has selected ClearBridge Investments, an affiliate of Legg Mason, to manage a growth fund, according to an SEC document cited by Mutual Fund Wire. The fund had previously been managed by Janus, and will thus be changing names, to become the ClearBridge Aggressive Growth Portfolio II.

For Swiss banks, the requirements of MiFid II and the financial services law (LSFIN) do not represent an insurmountable obstacle to the continuation of their activities abroad. Swiss banks estimate that international activities will remain attractive for it, despite regulations now in preparation, particularly in Europe. They see particular potential for growth in wealth management mandates, a durvey by PwC published n 28 August entitled “Barometer Investor Protection Rules,” concerning the impact of investor protection on the Swiss financial market, states. Swiss financial service providers are continuing to bet on cross-border acivities, although a future requirement for Swiss banks located outside the European Union to have a branch inside the European Union governed by MiFID II, the Euorpean directive concerning financial instrument markets, has often been mentioned, the survey finds. Two thirds of investment banks and 44% of cantonal and regional banks intend to remain attractive to clients in the European Union, and to attract them. All participants in the survey say that they would like to grow in the wealth management mandate section as a priority, where margins are comfortable. In this sector, spending related to the introduction of new regulatory rules is “relatively low” and banks could realise significant economies of scale. Another lesson of the survey is that nearly three quarters of participants would like to restrict the current diversity of complex products offered to their clients. They are planning “a general reduction in the complexity of the number of investment products, followed immediately by a decline in volume for these products.” The survey covered 30 Swiss financial service providers with a banking license in Switzerland, or licensed there for securities trading. These are investment banks (foreign and Swiss private banks and wealth managers) and cantonal or regional banks.

The Bank of Thailand is planning to create a sovereign fund in order to use its excess currency reserves and increase the revenues of the central bank, the Bangkok Post reports. The government of the central bank has for years been calling for the creation of a sovereign fund. This time, the return of this project to the foreground is related to the delicate financial situation at the central bank, which has seen losses of THB531bn, or over EUR12bn, largely due to its intervention in the currency markets to stabilise the currency. The sovereign fund, which will be known as the New Opportunity Fund, will be managed as a separate entity or by the central bank itself. The size of the fund has not been specified yet. Currency reserves in Thailand total about USD172bn.

In January-June 2013, operating profits at BHF Bank, which is on the verge of being acquired by RHJ International from Deutsche Bank, totalled EUR6.8m, compared with EUR5.4m, confirming the success of the firm’s recovery plan.Meanwhile, the total assets have been reduced to EUR7.5bn, from EUR8.4bn one year earlier.Assets under management have remained stable at EUR37bn.

Economic profits (pre-tax profits according to IFRS accounting standards, plus the results of valuation of financial instruments) at Deka in first half were up 3.2%, to EUR323.8m, compared with EUR313.8m, and in particular, the central asset management firm for the German savings banks has posted net subscriptions in January-June of EUR4.768bn, compared with net redemptions of EUR1.876bn in the corresponding period of 2012.The net subscriptions to real estate funds totalled EUR1.2bn, compared with EUR1.1bn in the first half of last year, while assets as of 30 June totalled EUR26bn, compared with EUR25.2bn. At end-June, total AUM reached EUR177bn, vs 158,3bn six months earlier.

Zurich Insurance Group on 29 August announced that the chairman of the board of directors, Josef Ackermann, has informed it of his decision to step down from all of his responsibilities as a member and chairman of the board of directors, effective immediately. Ackermann will be replaced as chairman of the board of directors by the vice-chairman, Tom de Swaan. The board says that it respects his decision, which it has accepted with “profound regret,” and thanks Ackermann for his contribution to the success of the group. Ackermann explains that his decision is due to the recent death of the CFO of Zurich, Pierre Wauthier. “The sudden decease of Pierre Wauthier has profoundly shocked me,” says Ackermann, cited in a statement.

The Zurich-based private bank Rothschild Bank is seeking to develop its international wealth management activities in Asia. To this end, Alois Müller has been recruited from early September as Managing Director, responsible for the Rothschild Wealth Management arm in Northern Asia, with headquarters in Hong Kong, a statement released on Wednesday states. Asia is a central axis in the growth strategy for wealth management, the bank notes. Müller joins from UBS, where he served in various management rols for 35 years, in Zurich, London, New York, and most recently, Hong Kong.

The British firm Legal & General Investments has launched an inflation-linked fund, the Global Inflation Linked Bond Index Fund, at the request of independent financial adivsers (IFA), Fund Web reports. The fund, which will charge 0.2% per year, will be based on the Barclays World Government ex UK Inflation Linked Bond fund, composed of inflation-linked bonds issued by governments not including the United Kingdom. The bonds included in the index must be rated at least A- for G7 countries and the euro zone, and AA- for other issuers.

M&G has been required to adjust the income paid to clients for the second consecutive month after accounting errors which led it to overpay investors in its High Yield Corporate Bond Fund (GBP1.3bn), Fund Web reports. About 32,000 subscribers received an excessive sum in May. In July, payments were reduced to take that error into account, but an M&G investigation has found that the firm had excessively reduced the payments. As a result, the next payments, on 31 August, will be more than normal.

The alternative asset management group Man Group has decided to close some products which had aimed to protect the capital of their clients against potential losses, which did not meet their performance objectives, Bloomberg reports. The Man Vision fund, whose assets under management total USD40m, and which aims for returns of over 10% per year, has been closed, according to a letter sent on 12 August to clients, which was obtained by Bloomberg. Man Group has also closed other similar products whose performance was related to that of AHL Diversified, the largest hedge fund from the firm, whose assets under management total about USD14bn, and which has been affected by the announcement by the US Federal Reserve that it is gradually phasing out its quantitative easing. Man Vision, whose assets under management totalled USD160m one year ago, has lost about 5.6% in first half 2013, according to statistics from Bloomberg. The fund also shows a loss of 12% since its launch in July 2008. Assets under management by the guaranteed products unit have fallen 64% in the past two yearsa, to a total of USD4.7bn.

The investment office of the Canada Pension Plan (CPP) would like to increase its exposure to Asia by a factor of seven in the next few years, Asian Investor reports. The Office currently has nine investment professionals in Hong Kong, and is already planning to increase its investment capacity in private equity and consequently to increase its personnel by at least 30% by the end of the year. The only problem is that it is currently difficult to find private equity specialists in the region, Asian Investor observes. Assets under management by the investment office of the CPP total about CAD189m.

The CAC 40 is calculated not including dividends, unlike the German DAX. The Paris stock exchange would now light to emphasize profitability on the index, which includes dividends, Les Echos reports. The various indices of the Paris stock exchange are price indices which do not take into account dividend payments to shareholders. The CAC 40 price index has risen 8.77% since the beginning of the year, while the profitability index, for its part, is up by 11.95%.

The Australian fund management firm AMP Capital has already raised AUD305m for its second infrastructure fund, which it hopes to close with about AUD1bn in early 2014, Asian Investor reports. Most investors in the AMP Capital Infrastructure Debt Fund II are Japanese insurers and pension funds, but one of the largest South Korean insurers is also present, as well as Chinese insurers and pension funds. The fund will invest in subordinate debt on infrastructure assets for services including water, gas electricity, transport and communication in Europe, North America and Australia. An initial investment of GBP50m was made in late July in the form of a subordinate loan to Heathrow airport.

Renaissance Asset Management is planning to merge its Russian infrastructure fund and its Russian equity fund, Citywire reports. In a letter to shareholders, the asset management firm states that it feels the Renaissance Russian Infrastructure Equities fund will be more useful as part of a larger strategy.

According to statistics from the Luxembourg financial sector surveillance commission (CSSF), net assets at collective investment organisms totalled EUR2.523186trn as of 31 July. 3,884 OPC funds have been counted, of which 2,530 have multiple sub-funds. These number 12,215, in which net assets represent EUR2.287086trn, the CSSF states. As of 30 June, total assets in collective investment organisms in Luxembourg totalled EUR2.48658trn, which represents a decline of EUR97.51bn compared with the end of May.

La banque centrale indonésienne (BI) a relevé de 50 points de base ses principaux taux directeurs jeudi pour tenter de défendre la roupie, l’une des monnaies les plus touchées ces derniers mois par le désengagement massif des capitaux étrangers des marchés émergents. Le taux de référence atteint ainsi 7% et le taux de rémunération des dépôts bancaires au jour le jour (FASBI) 5,25%.

Thierry Brevet, directeur du fonds de dotation du Louvre à la rédaction de www.institinvest.com : Nous disposons d’un volant de liquidités de l’ordre de 15 % du portefeuille, en attente d’investissement. Même si le monétaire ne rapporte rien, il reste pour nous une alternative valable à un investissement obligataire qui peut enregistrer une perte en capital significative (pour mémoire, le fonds de dotation du Louvre ne peut pas comptabiliser ses obligations au prix de revient amorti à l’instar de ce que font les assureurs ou les mutuelles). Nous souhaitons continuer notre montée en charge sur les actions. Les produits de crédit à taux variable sont une piste de diversification potentielle, mais la réglementation actuelle nous limite dans nos possibilités d’investissement. Une autre possibilité que nous étudions serait de mettre en place des mandats obligataires dits « absolute return » comportant une très grande latitude de gestion. Mais certains de ces fonds ont enregistré des performances décevantes malgré leur profil diversifié et leur pilotage souple de la duration. A titre de curiosité, si l’on compare la structure du portefeuille du fonds de dotation à celle des grandes fondations américaines, on constate la différence suivante. Le fonds de dotation n’est investi ni en « hedge funds », ni en « private equity », alors que le poids de ces deux classes d’actifs est respectivement de 23 % et de 7 % pour les « endowments funds » américains, qui, en contrepartie, sont nettement moins exposés aux obligations. Les fondations américaines retirent pas mal d’avantages de leurs placements alternatifs en termes de rendement ajusté du risque. Nous n’envisageons pas d’investir dans des « hedge funds » pour un certain nombre de raisons. En revanche, nous pourrions nous poser la question d’investir en « private equity », une catégorie de placements en adéquation avec la philosophie d’investisseur à long terme du fonds de dotation.

La hausse des prix du pétrole menace d'aggraver leurs déficits courants et emporte leurs monnaies

Malgré la baisse annoncée des rachats de la Réserve fédérale, la liquidité mondiale continuera à affluer sur les marchés

La hausse des prix du pétrole menace d'aggraver leurs déficits courants et emporte leurs monnaies

Les économistes déplorent un manque d'ambition et attendent d'en savoir plus sur l'évolution du coût du travail

Le ministre des Transports, Frédéric Cuvillier, a fait part de ses réserves sur la mise en place de la taxe poids lourds initialement prévue le 1er octobre, indique le journal qui croit savoir que celle-ci sera repoussée au mois de janvier prochain, afin de laisser aux professionnels du transport le temps de s’enregistrer et de s’équiper de boîtiers de géolocalisation.

La hausse des impôts sera plus faible que prévu l’an prochain, déclare le ministre du Budget dans un entretien accordé au quotidien. Le gouvernement prévoyait jusqu’ici un effort de 20 milliards d’euros pour réduire le déficit, dont 14 milliards d'économies et 6 milliards de hausse des prélèvements. Cet effort reposait «aux deux tiers sur les économies et pour un tiers sur des recettes, soit une augmentation de 0,3 point de PIB en 2014. Nous ferons moins que prévu», affirme Bernard Cazeneuve. La réindexation du barème de l’impôt sur le revenu sur l’inflation sera également mise en œuvre, ce qui constituera «une restitution directe et substantielle de pouvoir d’achat».