p { margin-bottom: 0.08in; } On 26 November, Deutsche Börse announced that it has added its 753rd ETF to trading on the XTF segment of its Xetra electronic platform. It is the German-registered bond fund iShares Markit iBoxx Euro High Yield (DE000A1C8QT0), which replicates the Markit iBoxx Euro Liquid High Yield Index, an index of high yield bonds issued by businesses and denominated in euros, although the issuers are domiciled outside the Euro zone. Ratings are below investment grade. Each issue must have a volume of at least EUR250m, and the weight of each issuer is limited to 5% of the index. Management commission is 0.50%.

p { margin-bottom: 0.08in; } Deutsche Börse has announced with a slight delay that it has admitted the Goldman Sachs Absolute Return Tracker Index ETF Portfolio fund to trading on the XTF segment of its Xetra electronic platform. The Luxembourg-registered product (LU0529341090) charges 1.215%, and replicates the Goldman Sachs Absolute Return Tracker Index. The index reflects the evolution of a basket of long and short investible market factors. An algorithm determines the composition of the basket, in order to replicate potential evolution of a wide range of hedge funds as faithfully as possible. This is the first ETF which Goldman Sachs Structured Investments Sicav II has listed in Germany.

p { margin-bottom: 0.08in; } Les Echos reports that the Green party MEP Pascal Canfin on Monday, 29 November published a report on proposals made by the Commission in mid-September to better regulate short-selling and transactions on credit default swaps (CDS). He would like to require investors in sovereign debt CDS to hold the underlying government debt as well. The economic and monetary affairs commission of the European parliament will finalise its position in a vote scheduled for 7 February. The planned regulations will then be subject to an agreement with the Council before being definitively passed.

p { margin-bottom: 0.08in; } On 26 November, Arcano announced the launch of the Arcano Emerging Markets Funds, which claims to be the first private equity fund of funds in the world to focus on emerging markets. The gross annual performance objective is 20%, says Funds People. Arcano is planning to raise USD150m to USD200m for the new product.The fund will invest in Latin American, African and Middle Eastern private equity funds, with a specialisation in Brazil, Mexico, Colombia, Peru, South Africa, Egypt, Turkey, and Nigeria.The fund, managed by Lorenzo Nogales and Sven Soderblom, is largely aimed at pension funds, family offices, and endowments.The first closing is slated for 2011.

p { margin-bottom: 0.08in; } Standard Life Investments announced on Thursday, 26 November that Henderson Global Investors and Aviva Investors have invested a total of EUR60m on behalf of their clients in its European Property Growth Fund. The product, launched in 2001, is invested in 38 real estate properties in ten continental European countries, a statement says.

p { margin-bottom: 0.08in; } Schroders has announced the launch of a fund dedicated to global real estate, the Schroder Global Property Income Maximiser. The product offers investors a way to participate in growth in the sector through exposure to equities in the real estate sector. The fund, which will be available from February 2011 (as it is awaiting a license from the FSA), aims for gross initial returns of 7%, via active management of REITs and high yield equities with an overlay (a hedged call option) on shares, in order to improve returns. The Global Property Income Maximiser will be co-managed by Thomas See, Jim Rehlaender and Al Otero.

BlackRock has launched a frontier market investment trust, according to the Financial Times. The BlackRock Frontiers Investment Trust, managed by Sam Vech, aims to raise between GBP80m-GBP100m from institutional investors.

p { margin-bottom: 0.08in; } Cotizalia reports that Manuel San Salvador, deputy CEO of Banco Urquijo (private banking, business banking, asset management), has left the business after being gradually relieved of various responsibilities, as Urquijo also lost its independent status within the Sabadell group (which acquired Urquijo in 2006). Officially, it is a divorce by mutual consent. In practice, it is more a consequence of the rise to power of Ramón de la Riva, who was appointed deputy CEO of Sabadell and executive vice president of Urquijo on 25 November.

p { margin-bottom: 0.08in; } In the past, hedge funds have had the decisive advantage over ETFs of being more maneuverable and being better able to anticipate rebalancing or adjustments of indices, which often lead to market movements that negatively impact ETFs. At the beginning of next year, the Wall Street Journal reports, the Center for Research in Security Prices (CSRP) at the University of Chicago will launch investible indices which will prevent funds which replicate them from having to make mandatory transactions when changes are made to traditional indices. The distinctions between small, mid and large caps will be expressed as a percentage of the value of the total market, rather than as fixed amounts in dollars or an unchanging number of companies. Equities will be “partially weighted” via various cap size indices. If a company grows or shrinks, its shares will no longer be required to be added or removed all at once. Additions and removals will be made gradually, adn the date on which the changes are finalised will be randomized.

p { margin-bottom: 0.08in; } Asian Investor reports that HFT Investment Management, a joint venture of BNP Paribas and Haitong Securities, has opened a branch office in Hong Kong, becoming the most recent Chinese asset management actor to use Hong Kong as a base to launch international activities.

p { margin-bottom: 0.08in; } The Singapore hedge fund Whitefield Capital Management has decided to cease charging performance commissions until it has doubled its assets under management. Whitefield last year faced redemptions that reduced its assets under management to USD100m. The Asian Opportunities Fund, with about USD30m in assets under management, will not charge fees until it has assets of USD50m to USD100m. The fund has also earned returns of 33% this year, after results of about 80% last year.

p { margin-bottom: 0.08in; } In absolute terms, French funds have sustained net redemptinos fo EUR52bn in the first nine months of the year, which is the largest outflow in all countries covered by Efama, Expansión reports. However, these outflows represent only 4.15% of assets in French funds. Spanish funds may have seen outflows of only EUR16.34bn in January-September, but this total represents 10.4% of total assets under management, and thus the heaviest outflows in relative terms. The third country on the list is Italy, with net redemptions of EUR14.2bn, or 7.3% of the total. At the other extreme, Luxembourg funds have attracted a net EUR88.89bn, or 5.6% of their initial assets. But British funds have done better: their inflows of EUR38.5bn represent 7.3% of the amount observed at the end of 2009.

In the UCITS fund market, hedge fund strategies are growing at a faster pace than expected. In the first nine months of the year, inflows to UCITS-compliant hedge funds, or Newcits, totalled EUR25bn, according to a study by Strategic Insight on behalf of ALFI (the Luxembourg investment fund association), with the assistance of the Luxembourg for Finance (LFF) association.Inflows for the year as a whole may total about EUR33bn, compared with EUR19.2bn in 2009. Assets under management in over 1,000 Newcits as of the end of September totalled EUR114bn.The study finds that products domiciled in Luxembourg this year represented more than half of all inflows and Newcits account for 45% of all funds. Excluding funds domiciled in the UK, Luxembourg funds account for two thirds of all flows.Most funds use hedge fund strategies adapted for the increasing need for absolute return solutions, with lower volatility and lower correlations, in order to diversify portfolios.Gains remain concentrated in a few products: only 50 funds account for 90% of net inflows for the year. Some funds have shown spectacular inflows. The Global Absolute Return Strategies fund from Standard Life Investments has posted net inflows of EUR3.5bn, and the Julius Baer BF Absolute Return has attracted a net EUR2.1bn. Three other funds have collected over EUR1bn this year.The fundamentals which have supported the development of Newcits remain solid, say the authors of the study. Liquidity, a rigorous regulatory framework, transparency and the UCITS brand are all factors which support the development of UCITS hedge funds. And the study points out that these are all factors which on balance outweigh access to investors, the AIFM directive and its impact, or the need for absolute returns and diversification.The estimate of net inflows of EUR33bn for the year cited above represents 15% of all net inflows to long-term UCITS funds. If this percentage increases to 25% by the end of the next decade, and inflows increase by only 5% per year – two relatively conservative estimates, the study says – then Newcits will accumulate net assets of EUR600bn in the next decade.

p { margin-bottom: 0.08in; } Hedgeweek reports that Frontier Capital Management has launched a second managed futures fund, the FrontEdge Managed Futures Fund. The defensive qualities of managed futures, one of the most liquid absolute return strategies, were once again demonstrated when the markets fell in 2008, and the segment saw positive returns of about 17%. The fund has initial capital of USD40m in investments, which will increase to USD60m by the end of the year. The lead portfolio manager on the fund, Alex Gaitan, while Marc-Philippe Davies, head of investments, is its co-manager.

p { margin-bottom: 0.08in; } Agefi Switzerland reports that the German private bank Hauck & Aufhaüser Privatbankiers KGaA has merged its two affiliates, based in Zurich, into a single entity, under its own name: Hauck & Aufhaüser (Suisse) SA. The firm is the result of a merger of Dr. Höller Vermögensverwaltung und Anlageberatung AG and the private bank’s original affiliate, Bastei Privatfinanz AG, which has been present in Zurich since 1994. The new entity has no banking license. It is dedicated exclusively to institutional asset management, family offices, financial consulting and management of investment funds, including ethical and sustainable funds.

p { margin-bottom: 0.08in; } The Treasury Select Committee, the Parliamentary financial surveillance committee, has called for written comments on the Retail Distribution Review (RDR), especially in relation to two questions: Will the RDR achieve the desired results? And may these results be achieved by other, potentially better means? Before the commission announced the initiative, the director of the FSA, Hector Sants, said in a hearing that the RDR has three major objectives: to install a more transparent and equitable remuneration system, better training of advisors, and lastly, a clarification of the various categories of advising offered to clients. The consultation will remain open until 17 January.

p { margin-bottom: 0.08in; } Asian Investor reports that Indonesian asset managers will soon be allowed to invest in foreign funds. Although the Indonesian government opposes capital flowing abroad, its position appears to have softened recently in relation to foreign investments by onshore management firms. The managers concerned will be allowed to invest up to 15% of each of their funds in offshore assets. They will not be allowed to buy shares in offshore funds, and will therefore be limited to buying offshore securities. The capital market regulator, Bapepam, is revising the new regulations in order to allow asset management firms to buy foreign funds by the end of 2010, says Abiprayadi Riyanyo, chairman of the Indonesian fund association. The change in regulations will allow businesses to increase their exposure to offshore products. However, many Indonesian asset management firms estimate that with a limit of 15%, this possibility will not be met with large demand, due to the level of research expertise needed, to say nothing of the costs related to custody for the fund, the administrative portion as a whole, and exposure to currency risks.

Marc Olivier, directeur général France de Nordea Investment Funds

Laurence Boone, chef économiste France chez Barclays Capital

David Deddouche, stratégiste change chez Société Générale

Les cours ont reculé vendredi dans le sillage de l’annonce par le marché chinois du relèvement de ses exigences en termes d’appels de marge

Dans cette opération, qui relance le marché de l’investissement immobilier de La Défense, la tour CB 21, louée aux deux tiers, est valorisée 588 millions d’euros. Le mode d’investissement de CNP dans cet actif rénové témoigne de la pénurie d’offre de qualité sur le marché.

Isabelle Rome, gérante crédit chez Dexia AM

L’assureur vient d’acquérir auprès de Foncière des Régions 25 % de la tour CB 21, valorisée 588 millions d'euros

La Commission européenne consulte les parties prenantes jusqu'au 31 janvier en attendant de légiférer dans le courant de l'année 2011

Le nouveau régime de résolution d'une crise bancaire, voté le 26 novembre, permettra aux autorités de faire payer les créanciers obligataires

Bank of Ireland, AIB, Irish Life et EBS devront porter leur ratio core Tier one à 12% d'ici fin février 2011

La banque centrale, qui se réunit jeudi, a dû apporter la semaine dernière aux banques de la zone euro plus de liquidités à 3 mois que prévu

La banque centrale, qui se réunit jeudi, pourrait devoir décaler sa stratégie de sortie en raison d’un nouveau regain de tensions sur la liquidité bancaire.

En place à compter de mi-2013, ce système au cas par cas fera appel aux clauses d'action collective en cas de restructuration de la dette