Currently, BNY Mellon has about 150 employees in Hong Kong, where the headquarters of its Asia-Pacific operations are located (in the region, the business has 16 offices in 12 countries). The US group is planning to recruit a further 50 people in the Chinese special economic zone by the end of 2010, to strengthen its asset management activities and services in the areas of securities and treasury. Additional office space has been rented on the 14th floor of Three Pacific Place, which will put asset management personnel in a single location.

Veritas Asset Management has appointed Farouk Abillama as senior sales manager; he will aim to develop the group’s client base and strengthen ties with traditional investors such as funds of hedge funds, endowments, and family offices. Abbilama was previously at Dresdner Kleinwort, where he was vice president and raised capital in the Middle East and Europe for hedge funds based in the United States or Europe.

Les Echos reports that the financial information group born of the merger of Thomson and Reuters yesterday received the necessary legal permission to withdraw its shares from trading on the London Stock Exchange (LSE) and the NASDAQ. From 10 September, shares in Thomson Reuters will be traded only on the New York Stock Exchange (NYSE), in the United States, and on the Toronto Stock Exchange (TSE) in Canada.

Skandia International has announced the launch of a range of portfolio and fund planning instruments, provided by Morningstar, on onshore platforms. The tools will be available through the extranets of Royal Skandia and Skandia Ireland, and will aim to assist advisors in making judicious investment decisions in the shortest time possible.

With the increasing number of complex products available, the average commission charged by ETFs in the United States, according to Citi, stands at 0.56%, compared with 0.40% as of the end of 2005. Currently, ETFs from State Street have average initial assets of USD5-10m, compared with USD20m a few years ago, the Wall Street Journal reports. As of the end of July, total assets in ETF funds totalled USD640bn, but 13 products had assets under management of over USD10bn each, and their spreads are under 0.09%. However, there are more than 200 ETFs whose spreads are over 0.5%, which is not acceptable, says Matt Hougan, director of ETF analysis at IndexUniverse.com. This would mean that an investor who buys and sells shares in the fund will lose 1% of his or her investment due to differences between the buy and sell price of the shares, which adds up to more than the commissions charged by most ETFs.

In January-June, only two fund management firms have posted net subscriptions in Germany of over EUR2bn: db x-trackers, with nearly EUR2.97bn, and Pimco Europe, with nearly EUR2.27bn, Kommalpha reports, adding that the two firms are both domiciled in Luxembourg. The next three promoters in the rankings are all German: ETFlab (Deka group) has more than EUR1.85bn, ahead of its parent company, which comes in with EUR1.6bn, and Union Investment Privatfonds (EUR1.41bn).The worst results were for five Luxembourg firms, four of which have undergone net outflows of over EUR2bn. They are Deka SA (EUR2.33bn), Union Investment Luxembourg (EUR2.24bn), IFM (EUR2.12bn), and Allianz GI Luxembourg (EUR2.11bn). For its part, cominvest SA has seen net redemptions of EUR1.12bn.

Statistics from the BVI association of asset management firms reveal that in first half, nearly all the major players suffered net redemptions, some of which were significant in size. The only two exceptions were producers of ETFs, such as db x-trackers (Deutsche Bank group), which attracted EUR2.97bn in assets in six months, and had assets of EUR21.37bn as of the end of June, and ETFlab (Deka group), which attracted EUR1.85bn. The DWS/DB ensemble as a whole (EUR127.25bn in AUM as of the end of June) has been the only group to post net subscriptions in the first six months of the year, with EUR2.8bn. However, Barclays Global Investors (BGI), historically a specialist in ETFs (it took over Indexchange) has posted net redemptions of EUR455.9m in January-June, bringing assets to EUR16.6bn at the end of first half.The heaviest net outflows were from Allianz Global Investors (EUR72.2bn), with EUR2.43bn (despite net subscriptions of EUR2.27bn for Pimco Europe) and Deka (EUR102.23bn in assets as of the end of June), with EUR2.89bn (ETFlab is not counted as a part of the asset management provider for the German savings banks).Pioneer (UniCredit), which as of the end of June had EUR10.3bn in assets under management, posted net redemptions of EUR876.6m in January-June. Lastly, Union Investment (co-operative banks) has posted net outflows of EUR820.7m, and assets as of the end of June totalled EUR77.26bn.

Les Echos reports that Nicolas Sarkozy firmly called French bankers to order yesterday, calling for “more transparency, more control, more responsibility” in the matter of bonuses, so that “irresponsible behaviour may be sanctioned.” At least one third of variable pay will be required to be paid in equities, and two thirds in other forms. Bonuses for performance over periods of more than one year will be banned, and a system of maluses will be put in place. The banking commission will oversee the application of these rules in detail, and the former director of the IMF, Michel Camdessus, will be in charge of verifying the salaries of the 100 top-paid traders at each firm. “The government will not work with banks that do not respect these new rules,” said Sarkozy. The head of state claimed that these rules should be part of an international framework, and that he would therefore defend them up until the Pittsburgh summit. “I will not rest in my efforts to bring about a European approach,” he warned. Sarkozy is planning to ask all member states of the G20 to apply the same principle as the Paris financial centre.

The asset management unit at Natixis earned ongoing net results for the part of the group in second quarter up 20% compared with first quarter, to EUR55m, on net banking proceeds up 5% to EUR313m, largely due to rising management commissions.Natixis points out in a statement that the profitability of the activity has improved considerably, as the cost-income ratio has improved 3 points to 73%, largely due to the apparent stabilisation of charges.After three consecutive half-years of falling asset levels (as negative market effects offset inflows), assets have increased by EUR29bn (+6.5%) compared with first half 2009. In second quarter 2009, assets under management totalled EUR476bn (+6% compared with 31 March 2009). Net inflows in second quarter totalled EUR9bn. Market effects were positive to the tune of +EUR28bn, while currency effects were negative, at -EUR8bn.In Europe, assets under management totalled EUR311bn. Net inflows have progressed well, at EUR6.8bn, largely driven by money market products. Market effects are positive to the tune of +EUR9.2bn. In the United States, assets under management totalled USD230.9bn. Net inflows totalled USD2.4bn. Market effects are positive, at +USD25.9bn. The evolution of the product mix has continued, with an increase in the proportion of bonds, which now exceed 50% of assets under management.

The hedge fund firm Citadel Investment Group will drop the name Citadel Solutions for its fund administration division, which will instead become known as Omnium, the Wall Street Journal. The association with Citadel has kept some potential clients away.

Thames River Capital has announced the appointment of Trygve Tøraasen as manager of its European equities team. He will be in charge of the Thames River European Fund, which he will co-manage with Carlos Moreno. Tøraasen was previously a manager at Fidelity Investments of the FMR Europe Fund and the European Dynamic Growth Fund.

Selon Les Echos, la banque d’investissement Calyon réclame à IKB plus de 1,675 milliard de dollars (1,17 milliard d’euros) de dommages et intérêts. La filiale du Crédit Agricole a déposé une plainte devant la Haute Cour de justice de Londres, reprochant à IKB de lui avoir fourni des informations trompeuses. L'établissement de Düsseldorf a indiqué qu’il passait actuellement en revue les charges contre lui, avant de réagir à cette plainte. Cette action en justice est liée à une procédure antérieure, celle du rehausseur de crédit FGIC contre IKB et Calyon.

In first half, EFG International has posted net profits of CHF20m, a 54% decrease compared with second half 2008 and of 89% compared with the same period of last year. These results were dragged down by a one-time charge of CHF33m, of which CHF18.8m were for an accelerated amortization of intangibles at C.M. Advisors, the fund of hedge fund activity acquired in 2008. As of the end of June, assets totalled CHF80.4bn, 7% more than at the end of December (CHF75.4bn), and 17% less than as of 30 June 2008. Net inflows in January-June totalled CHF2.2bn, as institutional hedge fund clients withdrew CHF2.5bn and retail investors brought in CHF4.7bn. In second half 2008, EFG International saw net outflows of CHF0.8bn, compared with net inflows of CHF14bn in first half of that year. The number of customer relationship officers (CRO) at the firm fell at the end of June to 674, despite 75 new recruitments.

ING Groep has selected at least 6 financial institutions to enter the second round of bidding for its private banking assets in Switzerland and Asia, the Wall Street Journal reports, citing people familiar with the matter. Among them are Credit Suisse, DBS, Julius Baer, Standard Chartered and Bank of Australia, the newspaper reports.

In second quarter, hedge funds increased their ownership in financial stocks by 55% to USD70bn, compared with the previous quarter, the Wall Street Journal reports, citing a study by Goldman Sachs published on Monday (“Hedge Fund Trend Monitor.”) Funds now account for 3.7% of the sector’s market capitalisation, a level never before observed. Among the funds’ favorites are major banks such as Bank of America or JP Morgan Chase.

La volatilité des marchés au cours des douze derniers mois a incité les fonds de pension à remettre en question leurs processus de gestion et le niveau de responsabilité du modèle traditionnel de conseil en investissement, selon le dernier sondage SEI Global Quick Poll réalisé auprès de responsables de fonds de pension britanniques américains et canadiens.La plupart des fonds de pension ont recours à un conseil extérieur pour avoir des recommandations en matière de gérants tout en laissant aux trustees les décisions sur le choix effectif de ces gérants. Le sondage suggère que la volatilité des marchés a mis à rude épreuve la validité de ce modèle, notamment outre-Manche. Plus de 50% des responsables britanniques ( 58%), et un peu plus d’un tiers d’entre eux au niveau mondial (34%) estiment que l’accroissement du risque d’investissement a débouché sur une remise en question du modèle de conseil. Un quart des britanniques et 23% au niveau mondial ont dû insister auprès de leur conseil pour obtenir des recommandations pendant les périodes de turbulences.On observe aussi une évolution sur la problématique des ressources. Plus des trois quarts des participants britanniques et plus de 50% d’entre eux au niveau mondial indiquent que leurs fonds de pension manifestent un intérêt accru pour la gestion des risques et une approche par objectifs de la gestion des fonds de pension.Le sondage indique aussi que les thèmes d’investissement alternatifs les plus en vogue sont l’immobilier (46%) , suivi de près par les hedge funds (43%). Près d’un tiers des participants britanniques précisent qu’ils envisagent d’autres solutions alternatives, comme le bois de construction ou l'énergie.

Citywire reveals that Aviva Investors has launched a UK-focused absolute return Ucits III fund. The Aviva Investors UK Absolute Return fund is managed by Julius Lipner, who joined the firm from alternatives investment boutique Magnetar.

The WMP Electricity Value Chain Equity Fund, launched on 13 July by the Zurich-based management firm WM Partners, is a fund which provides investors with exposure to the electricity sector and to primary energies (uranium, natural gas, coal). Currently in the launch phase, the fund’s assets total CHF22m. For the moment, its largest position is on Alpiq (2.9%), born of the merger between EOS and Atel, Le Temps reports.

From Monday, DWS Investments has opened subscriptions to the Luxembourg-registered fund DWS StepInvest BRIC Plus, which will start out with a money market portfolio. In twelve stages, from September 2009, the management team, led by Thomas Gerhardt, will gradually increase the proportion of BRIC equities (Brazil, Russia, India and China) to achieve the same composition as the DWS Invest BRIC Plus portfolio by the end of August 2010. Characteristics Name DWS StepInvest BRIC Plus ISIN code LU0418702907 Front-end fee 5% maximum Charges 0.90%

The Global Top-Down Strategies Fund (EUR3.5bn in assets) has invested EUR150m since the end of May in 40 businesses in the renewable energies sector, including Areva, Westas Wind Systems, and ABB, Responsible Investor reports. The fund is managed by five people, including Frank Smudde, on behalf of APG Asset Management, an affiliate of the ABP pension fund for civil servants in the Netherlands (EUR180bn in assets).

Reserve Primary Fund and its independent trustees filed a court brief on Friday, supporting the distribution of the fund’s remaining assets as soon as possible, the Wall Street Journal reports. The document states that subscribers may receive slightly more than expected: USD0.9875 per share, and perhaps as much as 99 cents.

The Madoff scandal has halted the growth of funds of funds, provoking questions about the due diligence, transparency, and liquidity of these products, Financial Times Fund Management observes. In this environment, some asset management professionals think that investors and asset managers will take more interest in managers of managers. One of them is Joanna Munro, CEO of multi-management at HSBC Global Asset Management, who estimates that these vehicles are easier to control. For the moment, at any rate, data from Lipper FMI do not show any transfer of assets form funds of funds to managers of managers.

Assets in funds of hedge funds fell to USD530bn as of the end of June 2009, from a peak of USD825bn. Between September 2008 and June 2009, the decline in assets totalled about USD200bn, which represents a decrease of about 30%, according to the Telegraph, citing a study by the Hedge Fund Journal and Newedge Prime Brokerage of the 50 largest funds of funds. This is a major crisis for the sector, whose assets increased by an average of more than 20% per year between 2000 and 2008. Most funds have lost an average of 25% to 30% of their assets, but some have seen even more major decreases. Among the latter, the Alternative Investments division of HSBC has seen a decline of 51.9% in its assets, to USD22.3bn. Only two providers of funds of funds have posted gains: Blackstone, whose funds have gained 25%, to USD25bn, and Grosvenor Capital Management, which has gained 1% to USD21bn.

Certains professionnels craignent que les exigences du régulateur réduisent la base d'investisseurs sur les ABS et les CDO

Cette légère reprise est cependant fragile car les stocks de maisons et les saisies demeurent à des niveaux élevés

Graham Ashby, along with his colleagues at Credit Suisse, Michael Crawford, Marcus Chandler, and Mira Bhogaita, have been hired by LV=Asset Management to take over the UK Growth and UK Equity Income funds, currently managed by Chris Price, head of the equities team, Investment Week reports. LV=AM manages about GBP1.1bn in UK equities. The funds which were managed by Ashby at Credit Suisse have been outsourced by the asset management firm to Premier Asset Management.

The international association of the hedge fund industry, AIMA (Alternative Investment Management Authority), has welcomes a decision this past weekend by the FSA (Financial Services Authority) to commission a study of the impact the planned hedge fund directive would have on the United Kingdom. The British financial market authority has asked the research firm CRA International to study the costs and benefits of the legislation, focusing on the impact of the project on investment portfolios, costs to companies and investors, on the functioning of the market and on systemic risk, and finally, to study the effects of the legislation on financing for small businesses and European competitiveness. The findings of the study will be presented by the end of the year. The Association favours a revision of the draft directive in its current form. Though it approves of some planned measures such as systematic reporting of appropriate data to national supervisory authorities, the Association argues that some areas of the planned legislation, such as those concerning leverage, depositories, and marketing, need to be revised and corrected to avoid counter-productive effects. The AIMA, which has already called on the European Commission to order a pan-European impact study, hopes that the FSA’s initiative will inspire the Commission to take that step. “We hope that the European Commission will follow suit on the pan-European level. It would be extraordinary if there were not an appropriate evaluation on the European level of the impact of a directive which could have very serious consequences.” Like the AIMA, the FSA, whose annual conference for asset management, to be held on 17 September in London, will be dedicated to the subject of the planned European directive, is said to be favourable to a revision of the Commission’s draft directive, which it considers too constraining for the hedge fund industry. The British government is concerned about the impact of the draft directive on the competitiveness of an industry which in European terms is largely centred in London. The United Kingdom’s efforts to produce a revised version of the text will be likely to provoke some debate in Europe. France, among others, is widely known to favour increased surveillance of the activities of hedge funds.

Investment News magazine has run reports, relayed in Das Investment, that the law firms Stanley Mandel & Iola and Wolf Handelstein Freeman & Herz in New York are considering a possible lawsuit against promoters of leveraged ETFs, including Proshares and Direxion. The lawyers accuse these fund management firms of offering these products to retail investors who will retain them for more than one day, though they should be reserved for professional investors and for an investment period of less than one day. These are the same criticisms that the Financial Industry Regulatory Authority (FINRA) has also made. The two law firms are planning a class action lawsuit. Proshares is already facing a lawsuit for providing insufficient warning to investors about the risks involved in its Ultra-Short Real Estate Fund, a double-reverse leveraged fund which has lost 77.2% since the beginning of the year.

La Tribune reports, citing information in the United States press, that Bernard Madoff is suffering from terminal cancer and is reportedly dying in prison. The reports were denied by the prison administration.

Le néerlandais APG, qui gère les 180 milliards d’euros du fonds de pension éponyme, a nommé Angelien Kemna en tant que CIO et CEO d’APG Asset Management. Elle remplace Roderick Munsters, qui est parti chez Robeco. Angelien Kemna était précédemment professeur à l’Erasmus University de Rotterdam, après avoir passé plusieurs années chez ING Investment Management, en tant que CIO Global puis CEO d’ING IM Europe.