George Soros, the billionaire hedge fund manager, has lost his appeal before the European Court of Human Rights, the Financial Times reports. He had sought to have his criminal conviction in France for insider trading overturned.

The Hamburg-based asset management firm Hansainvest on 5 October released the European equity fund HANSAsmart Select E, managed by Philipp van Hove and aimed at risk-averse investors, for sale in Germany. The German-registered quantitative product aims to minimise risks, and focuses on minimum value at risk, through a selection of shares from the DJ Euro Stoxx index.The selection is subject to a mathematical optimisation which takes into account the risks for each share, uses correlations, and aims to minimise portfolio risks as far as possible on the basis of value at risk (VaR). No position may exceed 4.9% of the portfolio.The active management process aims to allow the fund to distance itself considerably from the index, and “has already been convincingly put to use” since March 2010 for an institutional fund. 10-year backtesting reveals that the VaR for such a portfolio would be an average of 50% lower than the market, with opportunities to participate in 60% of rising movements while sustaining only 30% of losses. CharacteristicsName: HANSAsmart Select EISIN code: DE000A1H44U9Front-end fee: maximum 5%Management commission: 1.84%

At a presentation to investors in London at the Merrill Lynch Conference, Michael Diekmann, chairman of the managing board at Allianz, has pointed out the highly conservative character of asset allocation at the German insurance group, with a portfolio of EUR448.4bn as of the end of June. “Debt instruments” represented EUR399.6bn of this total, or 89%, compared with EUR33.4bn, or 7% for equities, EUR8.6bn, or 2% for real estate, and the remaining EUR6.8bn in cash and other assets.The bond portfolio includes 45% AAA-rated, 14%, AA-rated, 25% A-rated and 10% BBB-rated bondfs, with unrated bonds representing 3.4%. The group states that in absolute terms, its exposure to government debt from peripheral European countries (PIGS) represents EUR7.285bn, or 1.6% of the portfolio, and a gross unrealised loss of EUR726m. Counting Italy (EUR29.16bn), unrealised losses would total a gross EUR1.44bn.Allianz also stresses that operating profit for its asset management unit in second half totalled EUR1.1bn, with an objective of EUR1.8bn-EUR2.2bn for the year as a whole. Asset management has posted net inflows of EUR34bn in January-June, and its cost/income ratio came out to 59%.

The fate of the IPO market for the entire year 2011 will be decided in the next few weeks, PwC finds. The quarterly study “IPO Watch Europe – T3 2011” finds that in third quarter, 121 IPOs were carried out in Europe, worth EUR9.4bn in funds raised. Of this total, EUR5bn were privatisations of assets held by the Spanish and Polish governments, and EUR2.4bn were for the IPO of Dia, the Spanish discount supermarket chain, present in emerging markets. In the past few weeks, the IPO market has collapsed due to political and market uncertainty, with only EUR23bn in funds raised in September from European markets. The disturbed mood of the markets led to the delay of an IPO for the Spanish national lottery last week. In a more favourable period, this type of IPO would have been considered a sure bet, but it was called off due to the fragility of the market. Philippe Kubisa, partner in the capital markets activity at PwC, says “the outlooks for 2011 are sombre, with the worst Ipo conditions of recent times, due to a radical downturn in market sentiment. The next month generally represents the peak of IPO activities, as companies raise funds on the markets following the summer. The recent cancellation of an IPO for the Spanish national lottery is an eloquent indicator of the current conditions on European markets. The next few weeks will determine the issue for 2011.” There has been a series of delays and cancellations of IPOs throughout the year, but the IPO calendar has remained relatively stable despite the agitation of the markets. Some major businesses are preparing to launch their activities on the London Stock Exchange in first quarter 2012, PwC reports. This trend is also apparent in the United States, where the number of IPOs is down 38%, from 32 to 20, and funds raised fave fallen 42%, from EUR3.8bn to EUR2.2bn, compared with the previous year. However, the number of businesses which have begun the process to submit IPO documents has increased from 67 in the same period last year to 75 this year.

At a presentation in Paris on 6 October, Clinton J. Comeaux, senior portfolio manager and analyst at Muzinich, highlighted the fact that the house specialty, high yield (BBB/BB/B), in these troubled times on the markets remains an indispensable asset class in all strategic allocations, both for institutional and for retail investors. Muzinich’s short-duration products are continuing to attract inflows even in the difficult environment of recent weeks.Among the encouraging elements, Comeaux cites record issuance both in the United States (USD207bn in January-September) and in Europe, where anticipation of Basel III has led banks to be selective, which has driven businesses to tap the markets. A majority of new issues (60% in the United States) are being used to refinance old bonds, instead of being dedicated to taking on leverage or equity buybacks. In addition, the market has integrated a default rate of 8-9% into its prices, while Muzinich expects only a 2% default rate over 12 months. The market is pricing a recession which the US management firm is not altogether convinced will come; the markets are thus overpaying for the risks investors bear.Comeaux also notes that returns on bonds from the same business are 250 basis points higher in Europe than issues in the United States. The manager also observes that 95% of issuers of high yield bonds have repaid their debts in a timely manner. “It is thus enough not to take imprudent risks,” the manager says.Muzinich, 85% of whose assets of USD13bn (compared with USD10bn as of the end of December) are European in origin, now manages about 35% of assets in the five or six open-ended sub-funds of an Irish-registered UCITS-compliant unit trust, Muzinich Funds. About 15% of the assets in that trust are held by French investors, says Eric Pictet, director for France. Israel accounts for about EUR100m, and a US insurer has placed a mandate of USD600m in it. Latin America weighs in at USD200m to USD300m, due to Peruvian and Chilean pension funds. A small amount of assets come from Dubai.The group has recently won its first Japanese mandate. It may soon launch a new high yield product focused on emerging markets, and will soon be entering the private investments market.

Following the recent recruitments of Raquel Rodriguez and Victoria Caro (see Newsmangers of 5 October), Pimco (Allianz Asset Management group) now has a complete sales team in Spain, under the leadership of Gian Luca Giurlani. Funds People reports that the US management firm has recruited Juanma Jimenez from Robeco in Madrid; Jimenez will share responsibility for institutional clients with Victoria Caro in London. At Robeco, Jimenez was in charge of Spanish and Latin American clients.

More than half of all pension funds in Europe (56%) have set up a socially responsible investment (SRI) strategy, according to a survey by Eurosif, the European association to promote SRI. The survey covers 169 pension funds in 12 member countries, and was carried out with the support to HSBC Global Asset Managmeent and DB Advisors. The study is presented as the first pan-European study of the adoption of sustainable investment criteria by retirement planning establishments.At a time when the European regulatory authorities are in the process of creating new recommendations in this area, the study finds that one quarter of establishments which do not apply any specific approach in the area are planning to develop one in the coming year. Two factors appear decisive: firstly, the recommendations of the retirement planning institution, and secondly, the existence of a sustainable development strategy at the business the pension fund serves.The study also finds that 60% of respondents consider ESG (environmental, social and governance) factors to affect the long-term performance of pension funds. Similarly, 66% of the sample consider that the establishment of an SRI policy is an integral part of their fiduciary duty.Unsurprisingly, equities, bonds and real estate are the preferred asset classes for the deployment of SRI strategies by pension funds. However, commodities interest only 7% of the sample. The study finds that the three most often-used instruments are votes, exclusion and integration of ESG criteria into financial analysis. Votes are most common in Spain, the Netherlands, Switzerland and the United Kingdom, while exclusion is used in all countries covered by the study.

After appointing Alexander Classen, of Geneva, as its head in May this year, RBS Coutts Bank will now operate in private management under the Coutts brand name, from 1 November, Agefi Switzerland reports. With 700 employees in Switzerland, the private management division of the Royal Bank of Scotland group will focus on Asian, Russian and Middle Eastern markets in the future. It is recruiting specialists for these target regions and the onshore Swiss market at its Geneva offices, which have 150 staff already.

The US firm JP Morgan on 4 October announced that it has been selected by Vanguard to sponsor four more ETFs from its range on the Mexican stock exchange (Bolsa Mexicana de Valores or BMV), in addition to the 39 products which it already offers in Mexico. The products are listed on the BMV in pesos.The products are the Vanguard S&P 500 ETF (acronym: VOO), Vanguard Global ex-U.S. Real Estate ETF (VNQI), Vanguard Short-Term Government Bond ETF (VGSH) and Vanguard Short-Term Corporate Bond ETF (VCSH) funds.

F&C Asset Management announced on Thursday that Alain Grisay, the group’s chief executive officer, will retire at the end of the third quarter of 2012. He will step down from the board and as group CEO at the annual general meeting in May 2012 and will thereafter remain available to the group for consultation and advice until the end of September 2012, according to a press release.The board has appointed Edward Bramson as executive chairman for an interim period with immediate effect. Between now and the AGM in May next year there will be a gradual and orderly handover of responsibilities from Alain Grisay to Edward Bramson. Until completion of this handover Alain Grisay will retain responsibility for the day‐to‐day operational management of the group. Edward Bramson will assume responsibility for the group’s strategy with immediate effect.

Switzerland and the United Kingdom on 6 October finalised a tax agreement between the two countries, which allows for British assets held in Switzerland to be normalised as part of anti-tax evasion initatives. The Swiss finance minister, Eveline Widmer-Schlumpf, and the British minister of tax affairs, David Gauke, on Thursday signed a tax cooperation agreement in London, the Swiss federal finance department (DFF) announced in a statement. The agreement was hashed out by the two countries on 24 August (see Newsmanagers of 25 August), and allows persons domiciled in the Untied Kingdom to regularise their past fiscal situation. They will be required to pay a one-time tax on the assets ranging from 19% to 34%, or to declare their accounts to the British authorities. In the future, British account-holders will be required to pay a withholding tax on capital gains and returns on assets placed in Swiss banks, at a rate varying from 27% to 48%. The agreement, which has yet to be approved by the British and Swiss parliaments, will come into force at the beginning of 2013.

Russell Investments on 5 October announced the launch of four new strategy ETF funds dedicated to small caps. The new series of ETF funds includes Russell Small Cap Aggressive Growth ETF, Russell Small Cap Consistent Growth ETF, Russell Small Cap Low P/E ETF, and Russell Small Cap Contrarian ETF. With the addition of these new products, Russell now offers 21 ETF funds in the United States, and two in Australia.

According to an annual report from Harvard Management Company, the portfolio of the Harvard University endowment in the fiscal year to 30 June earned 21.4%, and its assets totalled USD32bn. This performance is 120 basis points higher than the 20.2% returns for the benchmark, and 190 basis points higher than a portfolio of 60% equities and 40% bonds. In the past five years, annualised performance has totalled 5.5%, compared with 4.3% for the benchmark. On 10 and 20 years, it totals 9.4% and 12.9%, compared with 6.7% and 9.8% for the benchmark, respectively. In other words, the strategy adopted for the portfolio has “added” about USD15bn in value over the past ten years, compared with a traditional portfolio of 60/40 equities and bonds. As of the end of June, the portfolio was composed 48% of equities and 13% of bonds, with the remainder divided between various alternative assets (including 14% in commodities).

ProShares on Thursday, 6 October announced the launch of two ETFs investing in futures on the Vix index in the United States. The ProShares Ultra VIX Short-Term Futures ETF brings investors 2 times the daily performance of the S&P 500 VIX Short-Term Futures Index, while the ProShares VIX Short-Term Futures ETF provides 1 time the daily performance of the index.

The coverage rate for US pension funds have fallen 7.9 percentage points in September, to 70.1%, its lowest level since 2006, when BNY Mellon Asset Management began to publish the indicator. In the month under review, assets fell 4.5%, while liabilities increased by 6.2%.

Spanish investors will be able to subscribe, with a minimum investment of EUR100,000, to the new absolute return fund Banif Inversión Flexible, which has recently been launched by Santander Asset Management. A sales license for the fund was issued by the CNMV on 29 September. The objective for the fund, which may invest in equities, bonds and money market assets without a predetermined distribution between these asset classes, will aim to outperform the Eonia by 300 basis points, with total volatility of 6% to 15%, and a VaR of 12 over 12 months. The recommended investment duration is three years. Characteristics Name: Banif Inversión Flexible, FI ISIN code: ES0114032008 Management commission: 1.3% Depository banking commission (Santander Investment): 0.1% Performance commission: 9% Minimal subscription: EUR100,000

Allfunds Bank has recruited Laurie Jacques as head of commercial development for the United Kingdom and Ireland. Jacques has served in several positions of this type, including as head of sales at Henderson and head of third-party sales at Baring Asset Management.

Inflows to money market funds on the Skandia platform have more than doubled in third quarter 2011 to 12.7% of total inflows, Money Marketing reports. Equity funds represented 18.7% of total inflows in third quarter, but subscriptions were down 10% compared with the previous quarter.

Philip Gibbs will be leaving his position as vice-manager of the Jupiter Financial Opportunities fund and manager of the Jupiter International Financials fund on 31 October. He will be replaced as manager of the International Financials fund by Robert Mumby, who also becomes vice-manager of the Financial Opportunities fund, managed by Guy de Blonay. Gibbs will concentrate on his high yield portfolios.

Le 19 octobre, une audience est prévue au tribunal de commerce de Paris opposant l’Union mutualiste retraite (UMR) et la succursale française de Barclays Capital. Le gestionnaire du Corem reproche à la banque d’investissement de lui avoir fait croire qu’elle investissait pour son compte dans des « notes » (des obligations subordonnées notées AAA) alors qu’en réalité, il s’agissait de « certificates », des obligations plus risquées. Ces dernières ayant subi de plein fouet la crise des subprimes (les crédits hypothécaires américains), l’UMR pourrait, au final, perdre jusqu'à 150 M€. D’où la plainte déposée pour « vice de consentement, fraude et manquements aux obligations professionnelles » à l’encontre de Barclays Capital. « Même si ces 150 M€ de pertes potentielles ne représentent pas grand chose au regard des 8 Md€ de nos actifs sous gestion, il s’agit de l’argent de nos adhérents, souligne Charles Vaquier, directeur général de l’UMR. Si nous avions voulu investir dans des subprimes, nous l’aurions fait. Au contraire, nous pensions avoir affaire à des produits sûrs, bénéficiant de la meilleure note de solvabilité. On a abusé de notre confiance. » Si, pour l’heure, l’UMR est incapable de chiffrer le montant de la perte potentielle subie, le mutualiste tient à souligner que la perte éventuelle de 150 M€ ne représente que 3% des rentes servies et donc en aucun cas une baisse des dites rentes, mais juste une absence de revalorisation future. Source: L’Argus de l’Assurance

Société Générale Securities Services (SGSS) on 6 October announced that it has won a call for offers from the asset management firm Edifice Cpaital to provide depository banking and valuation services for its first FCPR domiciled in France investing in infrastructure, with an objective of EUR300m in assets. SGSS has been mandated by Edifice Capital due to its recognised experience in services to funds investing in non-pu;blicly traded activities, via vehicles such as FCPR, FIP, FCPI and OPCI funds. SGSS assists nearly 60 firms in this area already. Edifice Cpaital is an asset management firm licensed by the AMF, dedicated to the structuring, placement, development and management of investment funds in the areas of infrastructure and agriculture. Edifice Cpaital develops its funds in the euro zone, Morocco, and West and Central Africa.

In the portion of its quarterly bulletin dedicated to “securities markets and their agents,” the CNMV reports that assets at management firms as of the end of June had fallen to EUR175.46bn, from EUR177.68bn as of the end of December (-1.24%). The most recent peak came at the end of 2006, at EUR308.48bn.Due to the decline in assets under management, the combined profits of Spanish asset management firms has fallen more sharply than assets in first quarter, down 3.82% to EUR282m.Average management commissions fell to 0.87%, from 0.91% in 2010 (they were 1.10% in 2008, and 1.18% in 2002). Commission revenues fell to EUR1.53bn from EUR1.62bn in comparable data.The regulator also states that as of the end of June 2011, there were 35 asset management firms that showed a loss, compared with 23 as of the end of December. However, total losses continued to fall, as in 2010, and were now at about half, or EUR10m in annualised terms. In addition, the CNMV reports that ROE has remained stable at about 20%.

The Norwegian sovereign fund, the Government Pension Fund Global, has oil assets of an estimated value higher than the total of all assets invested abroad by the sovereign fund. According to estimates from the Norwegian government, total assets in the oil industry total NOK4trn, about EUR510bn, while the Norwegian government’s share of this totals about NOK3.5trn. The value of the sovereign fund’s foreign investments, meanwhile, is expected to total NOK3.115trn as of the end of December 2011, and NOK3.543trn as of the end of 2012. The estimated value of oil assets does not take into account oil reserves discovered this summer, which will be taken into account in early 2012.

Les petites entreprises issues du secteur solidaire ont du mal aujourd’hui à trouver des financements. Ce contexte a amené le groupe de protection sociale AG2R-La Mondiale, la Banque Populaire Loire et Lyonnais, la société de gestion La Française AM, et le groupe de capital investissement Siparex à lancer le fonds SOLID, qui a vocation à investir dans des PME solidaires et présentes dans des secteurs dits « innovants » (logiciels, Internet...). Le fonds souhaite ainsi répondre aux besoins de financement des petites entreprises face à la raréfaction des capitaux. Sigefi Private Equity, filiale de Siparex, gérera le fonds doté d’environ 15 millions d’euros et les autres partenaires du projet assureront sa distribution via l'épargne salariale. Ils espèrent ainsi profiter du développement rapide de ce segment et en particulier de l'épargne salariale solidaire, notamment avec l’obligation depuis 2010 pour les entreprises de proposer un fonds solidaire dans leur offre d'épargne salariale. De son côté, Sigefi Private Equity intègre depuis 2002 des « clauses éthiques » dans les pactes d’actionnaires afin de s’assurer du respect des droits du travail dans les entreprises investies et chez leurs fournisseurs. Selon Michel Faure de Siparex, 15 à 20% des dossiers d’entreprises innovantes analysés chaque année répondent aux critères solidaires, mais la plupart d’entre elles n’en n’ont pas forcément connaissance. Les dossiers d’investissement d’une douzaine de sociétés sont actuellement à l'étude. Source: Novethic

La CAVP gère 4 régimes de retraites et de prévoyance pour les pharmaciens libéraux qui représentent 7.5 milliards d’euros d’actifs. Les obligations émergentes occupent une part de 2% des actifs du régime de capitalisation, soit environ 150 millions d’euros. La CAVP s’intéresse aux fonds globaux, pas de fonds sur des thématiques géographiques, pas d’absolute return, nous recherchons uniquement le bêta du marché, affirme Alain Pestre à l’occasion du Forum de la Gestion d’actifs de l’Agefi. La CAVP n’investit que sur des fonds d’obligations d’Etats émergents en refusant toute diversification sur les corporates. Nous considérons que le marché n’est pas mature pour l’instant poursuit Alain Pestre. L’investissement en dette émergente en devises locales restera une diversification pour la CAVP (pas plus de 3% des actifs). La CAVP, pour son régime de capitalisation, a décidé de concentrer son exposition aux pays émergents sur la dette émergente en devises locales au détriment des actions émergentes. Compte tenu de nos contraintes de passif sur le régime de capitalisation, l’investissement en actions émergentes consomme trop de risques. Nous avons besoin de coupons. Les rendements des emprunts des Etats émergents (6.5% actuellement) offrent une protection satisfaisante pour des fondamentaux de bonnes qualités. Nous sommes convaincus du potentiel d’amélioration des devises à long terme, moteur de performance sur cette classe d’actifs. Il n’y a pas non plus de corrélation entre croissance économique et performances des actifs boursiers. Depuis 3 ans, les fonds Growth investissent uniquement sur des sociétés exposées aux pays émergents, la croissance aux US et en Europe étant faible. Nous considérons que notre exposition aux pays émergents à travers nos fonds actions Euro et US est largement suffisante, conclut Alain Pestre.

Les poursuites engagées par le régulateur américain des marchés à terme ont bondi de 74% au cours de l’exercice budgétaire 2011 (clos le 30 septembre), avec 99 actions intentées contre 57 l’année précédente. La CFTC indique avoir accru ses efforts en matière de lutte contre la fraude et les abus de marché.

A l’exception du « mid-market » qui reste dynamique, le montant des transactions enregistre une baisse d’un quart en rythme annuel dans la région

La BoE espère redonner un coup de fouet à l’économie vacillante en rachetant 75 milliards de livres de titres

Jean-Claude Trichet lance des opérations exceptionnelles de refinancement à 12 et 13 mois. Le taux directeur de la BCE reste inchangé à 1,50 %

Si la croissance 2011 est estimée à 1,7 % par l’Insee, la montée des incertitudes pèse sur le comportement des agents économiques