The pension fund for California teachers, CalSTRS, on 29 November announced the launch of a joint venture with the Sarofim Realty Advisors company, which will be dedicated to urban real estate. Engagements to the joint venture may total as much as USD250m. The website IP Real Estate reports that CalSTRS in third quarter realised USD400m in investments in real estate strategies and student residences. CalSTRS has invested USD100m in the Invesco Core Real estate USA fund, an open-ended fund with USD3.8bn in assets, managed by Invesco Real Estate. Assets under management at CalSTRS as of the end of October totalled USD154.8bn.

Virtu Financial has submitted a bid for the ETF market maker Knight Capital Group, which rivals the one launched by Getco. Virtu is offering an entirely cash transaction which values Knight at USD3 per share, while Getco is offering USD3.50 in case for about half of the shares in Knight, plus shares in the new entity emerging from the merger, according to Indexuniverse, citing the Wall Street Journal.

WestLB Mellon Asset Management, founded in 2006 as a 50/50 joint venture of the German public sector bank WestLB (which has become Portigon AG) and BNY Mellon, has recently become BNY Mellon Investment Management Holdings (Germany) Limited, since the US group acquired the 50% controlled by Portigon. At the beginning of December, the asset management firm, which employs about 170 people and whose assets total EUR26bn, has adopted the name Meriten Investment Management GmbH.Werner Taiber, chairman of the board at Meriten, states that the name of the business was selected following intensive research and analysis work. In German, it means “merits,” and is intended to mean that Meriten focuses on the creation of value for clients, bringing in many prizes for the quality of its products.

Andreas Schmid, director of wholesale for Germany at Fidelity Investments, has joined Pimco as vice president in charge of clients in the global wealth management Germany and Austria team, led by Marco Grzesik.Erik Crawford, for his part, is leaving his position as head of multi-asset management at HQ Trust to become vice president in charge of clients in the institutional account management team at Pimco, also for Germany and Austria.

East Capital Baltic Property Fund II has acquired Gedimino 9, the most well-known high street shopping centre in the heart of Vilnius. The shopping centre has an excellent location on Gedimino Avenue featuring an area of close to 17 000 sqm. It is the largest real estate deal in Vilnius to date this year. Earlier this year East Capital Baltic Property Fund II acquired a newly built logistics property of 40 000 sqm in Tallinn. East Capital Explorer, the Swedish investment company, is the anchor investor in the fund.

Bild am Sonntag reports that a verdict has recently been published by a court in Düsseldorf, by which Credit Suisse, which was sentenced in late 2011 to pay a penalty of EUR148m plus a fine of EUR1m for providing active support for tax evasion to German clients.The settlement ends the legal action. The amount is exceptionally high since a member of the extended management at the bank was involved in the case.

Bond issues denominated in Chinese yuan on the Hong Kong market, or “dim sum bonds,” currently appear to be becoming popular with investors again, Les Echos reports. In November, these bonds hit a four-month high. International groups in particular appear to be won over by the bonds once again, as they have raised CNY5.4bn for this class in November, compared with CHF1.2bn in October. This rebound in interest owes much to conjuncture, as China publishes statistics nearly every week which point to a stabilisation, or a real rebound in its economy this autumn.

A spokesperson for the Cantonal Bank of Zurich (ZKB) has confirmed to finews that on 1 January 2013 it will create a “key clients” department for its high net worth clients within its private banking division.The new service will be aimed at indivisuals seeking to invest at least CHF10m. The key clients department will be led by Bruno Ammann, who is currently regional director of private banking for the banks of lake Zurich.

The HSBC bank in Geneva has seen several departures of personnel by mutual agreement following a simultaneous dismantling in Paris and Geneva of a money-laundering network operating between France and Switzerland, according to the 30 November issue of the newspaper La Tribune of Geneva. Two Swiss citizens of Moroccan origin have been detained in Geneva, on suspicion of involvement in a drug money laundering network. They are charged with professional and gang money laundering, violation of narcotics law, and securities fraud, the prosecutor says. Meyer Elmaleh, who is being held by Swiss authorities, had been deputy director of the Swiss wealth management firm GPF SA, which dismissed him following his arrest. One of his brothers, a manager at the HSBC bank in Geneva, has also been arrested. Another brother living in France is being held in Paris.

After a slight decline in 2011, the cumulative wealth of the 300 richest people in Switzerland has begun to increase again. It is estimated at CHF560bn, CHF16bn more than the previous year, according to the most recent rankings by Bilan. The increase in overall wealth is largely due to 13 of the 17 families which control wealth of over CHF6bn Bilan explains in its 30 November issue. The vast majority of the riches individuals saw their fortune stagnate in 2012. Billionaires once again do best (+CHF44.4bn). The Bilan rankings include 137, a number which has remained stable for several years. Together, they have over CHF480bn. Ingvar Kamprad, 96, remains by far the richest living man in Switzerland. The wealth of the Swedish citizen, who resides in Epalinges, in the mountains of Lausanne, is estimated at CHF38bn to CHF39bn, up CHF3bn since last year. In second place is Jorge Lemann, with wealth of CHF17bn to CHF18bn (+CHF9bn). The son of a cheese-maker from Emmental emigrated to Brazil, and there saw his fortune rise due to the 15% stake he owns in the world’s largest beer maker, Anheuser-Busch InBev. According to Bilan, he is the richest Swiss citizen in the world. The 73-year-old businessman, who spends a large part of the year on the banks of lake Zurich, is one of the largest buyers and resellers of businesses in the world. The Hoffmann and Oeir families, which control the Basel-based pharmaceutical giant Roche, are in third place, with CHF16bn to CHF17bn (+CHF2.8bn). Claude Dauphin has also joined the highly exclusive circle of billionaires based in Switzerland. The Frenchman is the co-founder of the trading business Trafigura, based in Geneva, which is one of the largest businesses in Switzerland in terms of revenues. His wealth is estimated at CHF1bn to CHF1.5bn. However, the Swiss largely dominate the rankings, with 168 people, followed by the French (43) and the Germans (37).

Avec le BBVA Ahorro Garantía, BBVA AM a “packagé” sous forme de fonds (pour des raisons fiscales et de possibilité de transferts à d’autres produits) un plan d’épargne permettant de faire face aux “contingences de la vie”, attendues ou non, comme les études des enfants, le chômage ou l’incapacité de travail, rapporte Funds People.Ce fonds sur une période initiale de sept ans est accessible à partir de 30 euros mensuels et garantit la rémunération des premiers versements à 3,25 %. Pour les versements ultérieurs, la rémunération sera fonction des conditions de marché prévalant au moment où il seront effectués.Ce produit offre une liquidité mensuelle.

NYSE Euronext has announced that it admitted two more ETFs from Lyxor Asset Management to trading on its Amsterdam market on 30 November.The funds are the Lyxor ETF VIX USD (LU0832435621), which replicates the S&P 500 VIX Futures Enhanced Roll index, and the Lyxor ETF VIX EUR (LU0832435464) fund, replicating the S&P 500 VIX Futures Enhanced Roll.The two funds each charge 0.60%.

Changes are happening now, but changes take time. This may be one of the conclusions of a European Solvency II survey by Ernst & Young on the state of progress at insurance companies in implementing the directive.The survey was undertaken in spring 2012 (in 19 European countries, covering 160 insurance companies, with Germany, France (18 companies) and Spain the best-represented), before the meeting of the European Parliament on 18 September this year, at which the European Council and the European Commission raised the possibility of a postponement in the implementation of Solvency II until 1 January 2015, or 2016.This postponement would be welcome insofar as insurance companies overall have made some progress, but are still far from completing the task. The Netherlands and the United Kingdom are the best-prepared, followed closely by Germany, Italy and France. The major players are the furthest along, including the process of validating the internal model, which most of them have already commenced.In terms of preparations for Pillar 1 (quantitative requirements), progress appears satisfactory, with French insurers within the European average, and progress on Pillars 2 (qualitative requirements and control requirements) and 3 (information for the supervisor and the public) lag behind.In terms of Pillar 2, the level of preparation of French insurers is “mitigated, slightly below the European average. French insurers in particular are less advanced then their European counterparts in the areas of risk strategy, remuneration, tolerance for Own Risk and Solvency Assessment (ORSA).Pillar 3 overall is less advanced throughout Europe overall, with French insurers this time slightly ahead of their European counterparts.More than one third of French companies surveyed are expecting to comply with the requirements of Solvency II within the year 2013, while the remainder expect to do so in 2014. Nearly 90% of European insurers are planning to be in compliance by 1 January 2015. “This vision appears to be a target rather than a realistic evaluation in light of the work remaining to be done,” Ernst & Young estimates.

Peter Schwicht has recently been promoted to CEO at JPMorgan Asset Management Europe/Middle East/Africa, following the departure of Jamie Broderick. The new head sums up the year 2012 as it nears its end for Newsmanagers, and discusses the major challenges asset managers are facing. Regulatory issue may be restrictive, but they open new prospects and put the investor back at the heart of the profession.

Irving Picard, who this year returned USD2.4bn to investors fleeced by Bernad Madoff, is asking a bankruptcy court to award a payment of USD61.7m to his firm Baker & Hostetler and to himself, the Wall Street Journal reports. The bill is supposedly to pay for 197,055 hours of labour between 1 February and 20 June 2012. Picard is also seeking USD1m in reimbursement for expenses.

Daniel Phillipson, senior vice president, product management, est venu récemment à Paris pour promouvoir l’Unconstrained Bond Fund, un produit de droit irlandais lancé par Pimco en décembre 2008 et qui affichait fin octobre un encours de 8,3 milliards de dollars, dont 2 milliards de souscriptions nettes depuis le début de cette année.Si le gestionnaire constate une «demande croissante» pour ce produit, «adopté déjà par des investisseurs institutionnels et des distributeurs», la France n’est manifestement pas encore le marché où ce fonds obligataire coordonné a connu le plus de succès alors qu’il affiche une performance de 7 % depuis le début de l’année, pour la part en euros couverte du risque de change (8 % pour celle en dollars). Le spécialiste produit a expliqué à Newsmanagers que la gestion très active du fonds (avec plusieurs centaines de lignes), dirigée par Chris Dialynas «se focalise sur le risque et sur résultat plutôt que sur un indice». Le fonds peut investir dans le monde entier sur toutes les classes obligataires et les devises. Le portefeuille peut être au maximum long de 8 ans et court de trois en duration et, historiquement, la volatilité du produit a été inférieure à 3 %. Comme argument supplémentaire, Daniel Phillipson souligne que ce portefeuille affiche une corrélation basse avec le haut rendement et négative avec les actions.

BlackRock has appointed Bart Geer as principal manager of its UCITS-compliant US large cap fund BGF US Basic Value, Citywire reports. Bart Geer, who joined BlackRock in summer, in this role replaces Kevin Rendino, who is retiring. The BGF US Basic Value fund, whose assets under management total USD1.1bn, in the past three years has earned returns of 44.34%, compared with 65.21% in the same period for the S&P 500 TR.

The German open-ended real estate fund CS Euroreal, whose liquidation by 30 April 2017 was decided in May by Credit Suisse Asset Management Immobilien KAG, will on 11 December distribute EUR4.40 per share to its shareholders, equivalent to about EUR455m, the asset management firm states. The distribution includes the proceeds of the sales of two properties which have already been completed, but which must still be finalised by 31 December.Including the first half-yearly payment in July 2012, the fund will have paid out a total of EUR900m to investors, and EUR214m in credit.As of 15 November, assets at CS Euroreal totalled about EUR5.3bn, with 97 properties on 50 sites in 11 countries. Further sales to supply distributions scheduled for the end of first half 2013 are in the process of being negotiated.

Invesco PowerShares Capital Management on 28 November announced that from 21 November it has cut the total expense ratio (TER) for six of its ETFs, four of which use fundamental weighting to replicate FTSE RAFI Indices, and two strategy products using S&P indices.They are the following funds:FTSE RAFI Developed Markets ex-U.S. Portfolio (acronym PXF) Former TER: 0.75%, now 0.45% FTSE RAFI Emerging Markets Portfolio (PXH) Former TER: 0.85%, now 0.49%FTSE RAFI Asia Pacific ex-Japan Portfolio (PÄF) Former TER: 0.80%, now 0.49%FTSE RAFI Developed Markets ex-U.S. Small-Mid Portfolio (PDN) Former TER: 0.75%, now 0.49%S&P International Developed High Quality Portfolio (IDHQ) Former TER: 0.75%, now 0.45%S&P 500 High Quality Portfolio (SPHQ) Former TER: 0.50%, now 0.29%.

The first UCITS-format funds managed by a Saudi asset management firm were created in Dublin this month, Financial Times Fund Management reveals. NCB Capital will launch two equity funds to invest in Saudi Arabia and the Gulf Co-operation Council region, managed according to the principles of Sharia law.

According to VDOS, as of 22 November, Spanish funds have posted total assets of EUR126.691bn, EUR646m less than as of 31 October, Funds People reports. Positive market effects of EUR187m were largely offset by EUR833m in net redemptions.

BNP Paribas Securities Services has launched an alternative asset administration service for Australian institutional investors, to provide more effective management of their investments in private equity, infrastructure and real estate. The new range responds to demand from regulators and investors (pension funds, insurers) for more transparency in alternative investments.

La Grèce a dévoilé les modalités d’un plan de rachat d’obligations d’Etat de 10 milliards d’euros destiné à réduire l’encours de sa dette publique en profitant de la baisse de la valeur des titres. L’opération se fera par le biais d’enchère "à la hollandaise», une procédure dans laquelle les investisseurs proposent un prix auquel ils sont disposés à vendre leurs titres, en réduisant ce prix jusqu'à ce que l’acheteur l’accepte. Concrètement, les autorités grecques fixeront une fourchette de prix de rachat pour chacune des 20 lignes d’obligations visées, d’un montant global de 63 milliards d’euros.

Le ministre des Finances a prévenu que tous les Britanniques seraient mis à contribution. Il doit faire mercredi sa «déclaration d'automne»

Le scénario d’un retournement à la baisse avec un premier objectif intermédiaire à 2.425 points reste valide

Les gestions gardent leurs objectifs quasiment inchangés et n’espèrent qu’un rebond de 3% du CAC 40 dans six mois et de 8% dans un an

Le gouverneur de la Banque de France fustige la singularité britannique au sein de l’Union européenne, en indiquant au journal que «l’activité européenne devrait être réalisée au sein de la zone euro. Cela est lié à la capacité de la banque centrale à apporter de la liquidité et d’assurer la supervision de sa propre devise». Et d’ajouter qu’«il s’agit de la conséquence de la décision du Royaume-Uni de rester en dehors de la zone euro».

Elles constituent maintenant la moitié des portefeuilles, un niveau qui n’a pas été atteint depuis mars 2011

New Delhi est attendu sur la libéralisation de l'économie qui relâcherait la pression sur les prix et donnerait des marges de manœuvre à la RBI

Une forte majorité des panélistes surpondère la dette d'entreprise mais la prudence se lit dans la hausse de leur part de liquidités