p { margin-bottom: 0.08in; } TrimTabs Investment Research and BarclaysHedge announced on 7 February that inflows to hedge funds totalled USD6.6bn in December 2010. Assets in the sector now total USD1.7trn, their highest level since October 2008. Inflows in December were particularly significant, TrimTabs says, as redemptions at the end of the year generally result in a net outflow. TrimTabs also points out that about 50% of hedge fund managers will receive performance commissions in 2010, compared with only 32% in 2009. In December, hedge fund investors’ appetite for risk boomed. Inflows to funds specialised in emerging markets totalled USD5.8bn in December, a level not seen since July 2008. Macro funds, for their part, attracted USD3bn, and bond funds USD2.5bn. For the year as a whole, macro funds attracted Usd13.9bn, which makes it the most popular strategy in 2010, even though these funds underperformed the S&P 500 index by about 650 basis points. However, funds of hedge funds finished the year with outflows of USD1.3bn in December. These funds underperformed hedge funds by about 600 basis points.

p { margin-bottom: 0.08in; } State Street on 7 February announced the appointment of Phil McGowan as senior vice president, in charge of real estate and private equity services for Europe, the Middle East and Africa. McGowan joined State Street after serving as chief operating officer at HFX Capital, in charge of distribution and sales of alternative products. He was previously in charge of the European onshore and offshore fund administration unit for the Investors Bank and Trust Company, which was acquired by State Street in 2007.

According to a survey undertaken by Deutsche Bank on 184 clients managing more than USD2,000bn, 55 per cent of hedge fund investors would now prefer to allocate money in Ucits funds compared with just 21.7 per cent in Cayman Island funds. The survey cited by the Financial Times shows that investors expect more than USD400bn to flow into hedge fund Ucits III products during the next two years.

p { margin-bottom: 0.08in; } The coverage rate for US pension funds rose 3 percentage points in January to 87.6%,, according to the most recent statistics from State Street. The ratio has thus seen its fifth consecutive month of increases, and now stands at its highest level since October 2008. Assets in a standard pension plan increased 1.4% in the month under review, due to increases of 2.2% for US equities and 2.4% for international equities. Meanwhile, liabilities fell 2.4% due to an increase of 21 basis points in the corporate reference rate to 5.64%.

p { margin-bottom: 0.08in; } On 3 February, the New York firm Global X Funds (USD1bn in assets as of the end of December) announced the launch of Global X FTSE Andean 40 ETF (acronym: AND), which replicates the FTSE Andean 40 index of the 40 most liquid shares of Chile, Colombia and Peru.

Le 3 février, la Securities and Exchange Commission (SEC) a indiqué que Axa Rosenberg Group, Axa Rosenberg Investment Management et Barr Rosenberg Research Center ont accepté pour obtenir l’arrêt des poursuites de verser 217 millions de dollars aux clients pénalisés par une erreur de codification dans le modèle informatique de gestion quantitative ainsi qu’une pénalité de 25 millions de dollars. Ces sociétés s’engagent à recruter un consultant indépendant spécialiste des techniques d’investissement quantitatif qui sera chargé de superviser les communications. D’autre part, elles acceptent de renforcer le rôle des personnels chargés de la conformité.La SEC reproche aux dirigeants de Barr Research et d’Axa Rosenberg Group d’avoir découvert en juin 2009 l’erreur qui s'était glissée dans les programmes en avril 2007 et d’avoir donné l’ordre de faire le silence sur cette affaire au lieu de la dévoiler et de résoudre le problème immédiatement.

p { margin-bottom: 0.08in; } On 7 February, RCM (Allianz Global Investors group) announced plans to launch an open-ended fund in second quarter, which will be dedicated to emerging markets, and which may invest in several asset classes (equities, bonds, commodities), and which offers limited volatility, due to diversification. The fund will be managed by the multi-asset team at RCM, and may also make tactical allocation between various asset classes.

p { margin-bottom: 0.08in; } In early March, pending approval from the FSA, Axa Investment Managers (Axa IM) is planning to launch a British midcaps fund in the United Kingdom. The product will come as an addition to the British equities range at Axa Framlington (GBP4bn), and will be managed by Chris St John. The portfolio will be constructed with a qualitative approach and adapted risk control.

Schroders has launched two absolute return currency funds; Schroder ISF Absolute Return Currency EUR and Schroder ISF Absolute Return Currency USD. The funds, which are UCITS III compliant with daily liquidity, aim to offer both institutional and retail investors vehicles that will deliver low-risk cash plus returns from actively managed currency portfolios. Clive Dennis, head of currencies at Schroders, and Hardeep Dogra are the fund managers and will use a range of global cash instruments and currencies to generate absolute returns. The Schroders currency team will use both long and short exposures and their investment universe includes over 30 different currencies.

p { margin-bottom: 0.08in; } Oppenheim VAM has joined the German professional asset management association (BVI). The firm, created in late November 1999 as GeneralCologne Re Capital, is now owned by Deutsche Insurance Asset Management, one of the four asset management units of Deutsche Bank. Assets under management at the management firm total about EUR9bn, form institutional investors in the insurance sector. The association has 82 permanent members, with total assets of about EUR1.8trn.

p { margin-bottom: 0.08in; } As of the end of 2010, the tier 1 ratio at Julius Baer totalled 23.8%, according to Basel II. In pro forma figures to reflect the tougher Basel standards which are in effect from 1 January 2011, the tier 1 ratio totalled about 22.6%.Given the increase in net profits (see Newsmanagers of 7 February), and the significant excess capital, the board of directors will propose at a general shareholders’ meeting on 7 April to pay a 50% increased dividend of 60 Swiss centimes per share.Julius Baer is also preparing an equity buyback program to extend to up to 5% of the publicly traded capitalisation, up to a maximum of CHF500m. This program will continue until the 2012 general shareholders’ meeting.

p { margin-bottom: 0.08in; } The UBS group on 8 February announced net profits of CHF7.2bn for the fiscal year 2010, compared with losses of Chf2.7bn the previous year. In fourth quarter 2010, net profits totalled CHF1.29bn, compared with CHF1.66bn in third quarter. For the year as a whole, the group has seen net outflows of over CHF14bn, but after a net improvement in fourth quarter, UBS is predicting a “noticeable” increase in net assets. The Wealth Management division has posted pre-tax profits in fourth quarter of CHF488m, compared with CHF492m the previous quarter. The Wealth Management Americas division has seen a pre-tax loss of CHF33m, compared with a loss of CHF47m in third quarter. Pre-tax profits for the Global Asset Management division totalled CHF135m, an increase of 18% compared with third quarter. Assets invested totalled CHF2.152bn as of 31 December 2010, compared with CHF2.18trn as of 30 September 2010. The depreciation of the US dollar and the euro against the Swiss franc more than offset positive market movements and net capital inflows. Of assets invested, CHF904bn were imputable to the Wealth Management & Swiss Bank division (of which CHF768bn were in Wealth Management), while CHF689bn belonged to Wealth Management Americas and CHF559bn to Global Asset Management.

The Swiss asset management firmUnigestion has recruited Tom Leavitt to the newly-created position ofhead of institutional clients. He also becomes a member of theexecutive board. Leavitt previously directed institutional activitiesat Fortis Investments, where he was also a member of the executiveboard. He previously served as CEO of ABN Amro Asset Management(North America).With the arrival of Leavitt, who willbe based in Geneva, Unigestion “is hoping to make all of itsinvestment solutions better known at institutional investors, and toposition itself more than ever as a partner that can offer solutionsadapted to the current concerns of each of its clients,” the firmsays.Unigestion, a specialist inalternative multi-management, manages EUR8.5bn in assets, largely forinstitutional clients (88%). The firm is commercially present inseveral countries of Europe, particularly France (24% of assets), theUnited Kingdom (20%), Germany (13%), Scandinavia (6%), and Benelux(2%).p { margin-bottom: 0.08in; }

p { margin-bottom: 0.08in; } Banque Privée Edmond de Rothschild is opening the Swiss real estate market to institutional investors, with the forthcoming launch on 16 March of the first Swiss real estate Sicav, born of a partnership between the private bank and CB Richard Ellia-Pl Performance. The new fund, Edmond de Rothschild Real Estate Sicav-Swiss, will offer diversified exposure to residential and commercial real estate in the most dynamic regions of Switzerland. The fund aims to offer stable rental income from the majority of the portfolio. An added value approach with a value creation outlook will be applied selectively. The fund will be listed on the Swiss stock exchange (SIX). The subscription period will be open from 28 February to 10 March 2011, with a fundraising objective of CHF250m. TER has been set at 1% of total assets per year.

Tokyo Marine Asset Management, a Japanese asset manager with USD60bn of assets under management, and Governance for Owners, a UK-based shareholder advocacy group, are together launching the Japan Engagement Fund, according to the Financial Times.The fund aims to invest in 10 to 30 small to mid-cap Japanese companies, which are believed to have potential for value enhancement through better governance.

p { margin-bottom: 0.08in; } Rumours of an acquisition of the Actelion group were quashed on Monday, following an offensive last week by the British investment fund Elliott Advisors, which holds a stake of about 6% in the group. The activist fund on Friday demanded that Actelion’s CEO, Jean-Paul Clozel, and its chairman, Robert Cawthorn, immediately resign from the board of directors, and that the firm create a strategy committee. Elliott Advisors clearly estimated that the business could achieve better value in a sale operation. In its public rebuttal the same day, Actelion rejected the fund’s request, and revealed that it had a pipeline of promising products, with more than 10 products in an active examination stage. “The product range under development is one of the richest in the sector,” says Actelion.

p { margin-bottom: 0.08in; } Asian Investor reports that Andrew Hudson has left his job as manager at GAM in Hong Kong. The alternative multi-management firm has confirmed the departure of Hudson, but offered no reasons for it. Assets under management at GAM totalled CHF53.8bn as of 30 September 2010.

p { margin-bottom: 0.08in; } Following the acquisition of BB&T Asset Management by Sterling Capital Management, the range of funds from BB&T Funds is changing names. As of 1 February, the range will become known as Sterling Capital Funds.

p { margin-bottom: 0.08in; } As it enters its tenth year, Sycomore Asset Management has launched an emerging markets equities fund, which will be managed by specialists based throughout the world. With this fund, the French independent asset management firm replicates the concept used for its Synergy Smaller Cities fund, a European product co-managed by six different management teams. The new fund, known as the UIS Synergy Emerging Markets, is divided into four mandates, each of which will be managed by an independent partner management firm, with the same investment philosophy as the French management firm: conviction-based value management. To invest in Brazil, Sycomore has selected Jardim Botânico, an asset manager based in Rio de Janeiro, which is 100% controlled by its founding partners, with USD200m in assets. For the Indian market, Quantum, an independent management firm based in Mumbai with assets under management of USD1.1bn, has been selected. To cover Asia, Sycomore has selected the Allard company, which is owned by its employees, and manages USD700m in Hong Kong. For Eastern Europe and Russia, the French management firm has engaged Avaron, a firm which already manages a portion of the Synergy Smaller Companies fund. The structure is based in Estonia, and manages EUR92m in assets. For this project, Sycomore will undertake the asset allocation and will handle all administative aspects. The fund, launched with EUR30m in assets, will be a sub-fund of the Sycomore Luxembourg Sicav, United Investors. Additions to the Sycomore range, which includes 11 funds, will not stop there. The asset management firm is also planning to launch a socially responsible fund focused on Europe, which will be managed by a former SRI analyst from Oddo & Cie, who was recruited in May 2010, and Cyril Charlot, one of its founding partners. In addition to stock-picking on the basis of environmental, social and governance criteria, the fund will offer a “sharing” share class. Sycomore now manages about EUR2bn, after two years in which net redemptions and subscriptions balanced out. Its client base remains largely institutional, with these investors representing 90% of the client base despite the recruitment of a specialist dedicated to IFAs and the launch of an asset allocation fund. The crisis has affected this business, explains Laurent Deltour, a partner at Sycomore, who hopes that these activities will pick up again in 2011. The international presence in Sycomore’s assets will remain limited, at 10%. The management firm has signed new partnerships, largely in Spain. But it also hopes to be able to increase assets in its United Investors Sicav, which is now composed of 6 sub-funds. This structure was founded in 2007, with the objective of bringing together independent value managers and distributors in Europe.

p { margin-bottom: 0.08in; } The British investment management association (IMA) on 7 February announced in a statement that it would like to see the establishment of consistent regulations for markets in Europe as well as improved market data. In response to a consultation by the European Community about the MiFID directive, the wholesale director at the professional association, Guy Sears, says it is fundamental to take into account the particularities of various instruments. “The rules applicable to markets other than equities markets should be adapted to each instrument, and should not be based on equities markets,” Sears says. “We are in favour of proposals by the Commission to improve the quality of post-trade information on equities markets. The Commission should ensure that it has the power to introduce a general system of market data collection, even if the sector is still able to set up a solution of its own,” Sears also remarks. In the chapter on distribution and sales, the IMA says it is not in favour of the distinction between complex and simple products applicable to UCITS funds. According to the professional association, UCITS products are aimed at retail clients, and are subject to prudent risk management, with a separation of the roles of parties responsible for supervision and management of activities and assets, and as a result are non-complex vehicles by definition.

p { margin-bottom: 0.08in; } Patricia de Arriaga, who joined Pictet Spain as director of sales in 2006, has been appointed as deputy CEO of Pictet for the Spanish market, Funds People reports. She will be in charge of institutional activities and Pictet Asset Management funds on the Spanish market.

p { margin-bottom: 0.08in; } Cotizalia has not yet obtained direct confirmation of various rumours that the private banking division of Deutsche Bank is in negotiations to acqure a controlling participation in Altamar, a Spanish real estate and LBO fund management firm, with assets of about EUR1bn.Altamar, an independent firm, is directed by the private bankers Claudio Aguirre, Mariano Olaso, and José Luis Molina.

Barings Asset Management has appointed Roberto Lampl as head of global emerging market equities with immediate effect. In the meantime, James Syme and Paul Wimborne will be leaving the firm. They are reported to join JO Hambro Capital Management (JOHCM).Roberto joined Baring Asset Management in March 2010 as head of Latin America equities. He joined from ING Investment Management where he managed the ING L Invest Latin America Equity Fund and co-managed the ING L Invest Emerging Market Equity Fund, for over five years.Mark Julio will continue to work with Roberto on the Global Emerging Market equity portfolios and Barings AM will be appointing a further portfolio manager to this team.

p { margin-bottom: 0.08in; } The US activist hedge fund Elliott Associates (USD17bn in assets) has increased its stake in the British road and rail transport firm National Express, in which the Spanish Cosmen family (founders of Alsa) control 17%, to 16.3%, Expansión reports. The market is now expecting a capital deal at National Express in the next few months, the newspaper adds. Elliott Associates entered the firm with a 5% stake in December 2009; its 16.3% stake is worth about GBP200m at current share prices.According to some investors, the Cosmen family and Elliott may join forces to split National Express. The family would retain the Spanish assets, while the British assets would be sold to a rival in the transport sector.

p { margin-bottom: 0.08in; } Agefi Switzerland reports that the management firm BBGI is extending its range of performance comparison instruments to private banking, with the creation of two indices, in euros and US dollars. In addition to these, the firm already has an index in Swiss francs, which has been operating for three years. “These new tools make it possible to cover virtually all client profiles, whether they be Swiss or international,” says Marjorie Théry of BBGI Group. “With more than half of assets under management coming from foreign clients, indices in the three benchmark currencies were indispensable in order to create a full picture of market reality.”

TrimTabs Investment Research et BarclaysHedge ont annoncé le 7 février que la collecte des hedge funds s’est élevée en décembre 2010 à 6,6 milliards de dollars. L’encours des actifs du secteur s’inscrit désormais à 1.700 milliards de dollars, son plus haut niveau depuis octobre 2008.La collecte du mois décembre est particulièrement significative, souligne TrimTabs, dans la mesure où les rachats de fin d’année débouchent généralement sur une décollecte. En outre, relève TrimTabs, environ 50% des gérants de hedge funds vont recevoir des commissions de performance au titre de 2010, contre seulement 32% en 2009. En décembre, l’appétit pour le risque des investisseurs dans les hedge funds a explosé. La collecte des fonds spécialisés sur les marchés émergents s’est ainsi établie à 5,8 milliards de dollars en décembre, un montant jamais vu depuis juillet 2008. Les fonds macro ont de leur côté drainé 3 milliards de dollars, les fonds obligataires 2,5 milliards de dollars. Sur l’ensemble de l’année, les fonds macro ont attiré 13,9 milliards de dollars, -ce qui en fait la stratégie la plus populaires de l’année 2010-, alors même qu’ils ont sous-performé l’indice S&P 500 d’environ 650 points de base. En revanche, les fonds de hedge funds ont terminé l’année sur une décollecte de 1,3 milliard de dollars en décembre. Ils ont sous-performé les hedge funds d’environ 600 points de base.

L’américain Morningstar a annoncé le 7 février l’introduction de nouvelles données sur les ETF qui permettront aux investisseurs de mesurer de façon plus précise les coûts et les risques associés à l’investissement dans des ETF.Trois sur quatre des nouvelles données concernent la quantification du coût total d’un ETF par le biais de la mesure des contributions d’un gérant de portefeuille d’ETF à la performance et de la liquidité sur le marché secondaire. Les quatrièmes données concernent la mesure de la concentration d’un portefeuille dans des secteurs donnés ou des valeurs spécifiques.

Pardus Capital Management lève actuellement un fonds dédié à des investissements liquides de court terme, rapporte L’Agefi. Le hedge fund américain entend prendre de petites positions, représentant moins de 5% du capital, dans des sociétés en «situation spéciale», telle que des opérations de restructuration ou de fusion et acquisition.

Selon Asian Investor, Andrew Hudson a quitté ses fonctions de gérant au sein de GAM à Hong Kong. La société de multigestion alternative a confirmé le départ d’Andrew Hudson, sans en préciser toutefois les raisons.Les actifs sous gestion de GAM s'élevaient à 53,8 milliards de francs suisses au 30 septembre 2010.

Oppenheim VAM vient de rejoindre l’association professionnelle allemande de la gestion d’actifs (BVI). Créée fin novembre 1999 sous l’appellation GeneralCologne Re Capital, la société appartient désormais à Deutsche Insurance Asset Management, l’un des quatre pôles de gestion d’actifs de la Deutsche Bank.Les actifs sous gestion de la société s'élèvent à environ 9 milliards d’euros issus d’investisseurs institutionnels du secteur de l’assurance. L’association compte ainsi 82 membres permanents à la tête d’un encours agrégé de quelque 1.800 milliards d’euros.