The European Securities and Markets Authority (ESMA) on March 27 published an opinion on structured retail products, setting out good practices for firms when manufacturing and distributing these products.These good practices that product providers could put in place to improve their ability to deliver on investor protection in particular focus on: the complexity of the structured retail products they manufacture and distribute; the nature and range of investment services and activities undertaken in the course of business; and the type of investors they target.

The European Commission on March 27 adopted a package of measures to stimulate new and different ways of unlocking long-term financing and support Europe’s return to sustainable economic growth. Significant long-term investment will be needed under the Europe 2020 strategy and the 2030 climate and energy package, in infrastructure, new technologies and innovation, R&D and human capital. Investment needs for transport, energy and telecom infrastructure networks of EU importance alone are estimated at EUR1 trillion for the period up to 2020 as identified by the Connecting Europe Facility.The economic and financial crisis has affected the ability of the financial sector to channel funds to the real economy, in particular to long-term investment. Europe has always relied heavily on banks financing the real economy (two-thirds of funding comes from banks, compared to one-third in the US). As banks are deleveraging, there is less funding available to all sectors of the economy – for example less than one-third of Dutch and Greek SMEs and only around half of Spanish and Italian SMEs got the full amount of credit they applied for in 2013. It is essential to act to restore the conditions for sustainable growth and investment and in part that means finding new ways to channel funds to long-term investment. The Commission’s Green Paper consultation on the long-term financing of the European economy of March 2013 initiated a broad debate and lead to replies from all segments of the economy. The package of measures adopted today includes a communication on the long-term financing of the economy, a legislative proposal for new rules for occupational pension funds and a communication on crowdfunding. The actions can be grouped around six main areas:1. Mobilising private sources of long term financing: the actions include finalising the details of the prudential framework for banks and insurance companies in a way that supports long-term investments in the real economy, mobilising more personal pension savings and exploring ways to foster more cross-border flows of savings and the merits of a possible EU savings account.In this context, today’s legislative proposal for new rules on occupational pension funds (IORP 2) should contribute to more long-term investment. The proposal has three main objectives: to ensure that pension scheme members are properly protected against risks; to fully reap the benefits of the single market for occupational pensions by removing obstacles to cross-border provision of services; to reinforce the capacity of occupational pension funds to invest in financial assets with a long-term economic profile and thereby support the financing of growth in the real economy.2. Making better use of public funding: fostering the activity of national promotional banks (financial institutions, created by governments, that provide financing for the purposes of economic development) and promoting better cooperation among existing national export credit schemes (institutions that act as an intermediary between national governments and exporters to issue export financing). Both of these play an important role in long-term financing.3. Developing European capital markets: facilitating SMEs’ access to capital markets and to larger investment pools by creating a liquid and transparent secondary market for corporate bonds, reviving securitisation markets with due consideration to the risks as well as to the differentiated nature of such products, and improving the EU environment for covered bonds and private placement.4. Improving SMEs’ access to financing: the actions set out in the communication on long-term financing include improving credit information on SMEs, reviving the dialogue between banks and SMEs and assessing best practices on helping SMEs access capital markets. Raising awareness and providing information on projects are also among the key elements of the actions put forward in the communication on crowdfunding adopted today, in which the Commission proposes to: promote industry best practices, raise awareness and facilitate the development of a quality label closely monitor the development of crowdfunding markets and national legal frameworks and regularly assess whether any form of further EU action – including legislative action – is necessary. The goal is to identify the issues that may need to be addressed in order to support the growth of crowdfunding.5. Attracting private finance to infrastructure to deliver on Europe 2020: increasing availability of information on infrastructure investment plans and improving the credit statistics on infrastructure loans.6. Enhancing the wider framework for sustainable finance: improving the corporate governance regime for long-term financing, for example regarding shareholder engagement (by revising the Shareholders’ Rights Directive – proposal due to be adopted shortly), employee ownership, corporate governance reporting, and environmental, social and governance (ESG) issues.

P { margin-bottom: 0.08in; } Thirteen funds from seven asset management firms in Italy have in the first two months of the year posted net subscriptions of over EUR100m, according to data from Morningstar Direct, cited by Funds People Italia. The target date fund Gestielle Cedola Multi Asset of Gestielle takes top spot for inflows, with a record EUR2.3bn. In second place are two other target date funds: Anima Traguardo 2019 Multiasset, with EUR659m, and Eurizon Gestione Attiva Class Apr 2019, with EUR542m.

P { margin-bottom: 0.08in; } Syz & Co Asset Management has launched its Oyster fund on the Raymond James Investment Services platform, Fund Web reports. The Swiss bank says this is the first partnership with a British distribution platform for its range of 15 sub-funds. The news follows the recruitment of a sales team for the United Kingdom and the launch of several dedicated funds for local investors.

P { margin-bottom: 0.08in; } Millennium Management, the hedge fund founded by Izzy Englander, has recruited Nick Xanders as a fund manager for its Millennium Capital Partners structure, eFinancial News reports, citing a source familiar with the matter. Xanders had for two years worked at the broker BTIG, and joined Millennium on 14 March this year, according to the British Financial Services Register.

P { margin-bottom: 0.08in; } Invesco Perpetual has reshuffled its equity team. The asset management firm has recruited John Richards, formerly of Mercury Asset Management and Société Générale Asset Management UK, to the position of UK equities product director, while Hilary Cook, who has been present in the company since 2011, is promoted to the same position, Fundweb reports. The changes come at a time when the firm has recently seen several departures from the British equity team. William Deer and Mitchell Fraser-Jones, formerly director for equities products, left the business last November. Meanwhile, Frederick Bouverat, a former employee at Numis Securities, has been recruited as UK equities investment analyst.

P { margin-bottom: 0.08in; } The Swedish asset management firm Tundra Fonder, a specialist in emerging and frontier markets, has appointed Jon Scheiber as its new CEO. Scheiber joined the firm in January 2013 as manager and partner, after working at HQ Fonder and BankInvest. Scheiber succeeds Chris Liljefors, who will be serving in a new role at the Swedish asset management firm. Tundra Fonder has SEK1bn in assets under management and seven employees. The firm most recently opened an office in Karachi, Pakistan.

P { margin-bottom: 0.08in; } The bank Pictet on 27 March announced the opening of an office in Munich. The expansion is related to the development of the bank in Southern Germany. “We feel that the opening of an office in Munich is a logical decision, after the satisfactory development of our relationships with clients in Munich and Southern Germany in the past few years,” says Marc Pictet, partner at the Geneva bank. The new site is legally a branch of the bank based in Frankfurt, which is in turn owned by the umbrella firm Pictet & Cie (Europe), the parent company responsible for all banking activities of the Pictet group in Europe, with headquarters in Luxembourg.

AXA Real Estate Investment Managers has led, on behalf of a SPC (Special Purpose Company) fully invested by AXA Life Insurance Co., Ltd in Japan, the acquisition of Nakano Central Park East, a core office building in Tokyo from a vehicle in which Tokyo Tatemono Co. Limited, a leading Japanese developer, is a majority shareholder. The acquisition is one of the largest real estate transactions in Japan in the last twelve months. Nakano Central Park East is a 39,025 sqm (GFA), prime office building situated beside Nakano Shikinomori Park. The property, which was built in March 2012 as part of an extensive redevelopment project, is one of two tower buildings on the site and comprises 12 floors, including 2 basements levels, of 2,800 sqm standard floor plates. The building also incorporates approximately 700 sqm of commercial space providing restaurants, cafes and convenience stores.

P { margin-bottom: 0.08in; } Lyxor Asset Management on 27 March announced the appointment of Alexandre Werno as executive vice general manager of Fortune SG Fund Management Co. Werno will be based in Shanghai, and will be specifically responsible for overseeing sales to institutionals and mandates, both to the Chinese and international markets and risk management. Werno was senior adviser to the general manager Fortune SG since May 2013, prior to this appointment. Fortune SG, a joint venture founded in 2003, combining Fortune Investment (Groupe Baosteel) and Lyxor Asset Management, is present in the areas of alternative and quantitative management. “In 2014, Fortune SG will diversify and extend its product range, particularly in new sector equity funds and index-based solutions,” a statement says. Fortune SG will also offer innovative cross-border solutions and alternative management strategies to its clients, both for hedge funds and hedge fund managed accounts.

P { margin-bottom: 0.08in; } The bank J. Safra Sarasin has appointed Karsten Junius as chief economist, from 1 April 2014. He will become director of the Economic Research division, according to a statement released on 27 March. Kunius had previously been principal economist at the International Monetary Fund (IMF). He succeeds Jan A. Poser, who will now dedicate himself entirely to his position as director of asset management at the Basel-based bank.

P { margin-bottom: 0.08in; } For a new breed of activist investors, letting other investors in on it is part of the game, the Wall Street Journal reports. Activists, whose objective is to achieve changes at businesses or to make prices move, sometimes inform a small group of investors in their campaign a few days or weeks before the announcement of a large operation which may move prices. In this way, they build allies for their campaign. On the other hand, those who have received the information take advantage by positioning their portfolios the right way. A number of lawyers claim that there is no insider trading risk involved in the practice, since it does not involve confidential information.

P { margin-bottom: 0.08in; } For the CEO of Swiss Life Banque Privée in France, Tanguy Polet, growth is one of the priorities of the coming years. In the short term, the affiliate of the Swiss Life group in France is expected to complete its acquisition of Prigest by the end of June 2014. But Polet does not rule out other potential external growth deals. When asked about this possibility, he says the preferred targets are, firstly, private banks, followed by Prigest type asset management firms, which are sometimes burdened by the current added regulatory costs. And, Polet adds, why not IFA firms, which often act like a private banker. In terms of new products, Polet shows a measured interest in small cap PEA funds. Meanwhile, the firm last year hired five private bankers, and this year plans to recruit five or six more, which would put the equity team at about 25. Swiss Life Banque Privée in 2014 predicts growth of 50% in its net profits, which last year totalled EUR3.8m.

Amundi will acquire a 12.8% stake in the French asset management company Tikehau IM, in line with long standing partner Arkéa, and become a shareholder of Tikehau Capital Advisors, the head structure of the Tikehau group, with 7.3% of the capital, alongside its Partners and Unicredit. This double acquisition is part of a “strategic asset management partnership”, more specifically on private debt management, Tikehau’s specialty. The boutique has assets under management of EUR3bn.Amundi will provide its clients with access to Tikehau IM’s product range. Together, the two companies will also be able to launch new products marketed under the Amundi / Tikehau dual brand. Finally, “both companies will jointly explore future avenues of cooperation in all their areas of expertise,” according to a press statement. “This partnership is perfectly in line with Amundi’s product policy, offering its clients a broad range of high-quality expertise tailored to the needs of each client segment. In addition to its in-house asset management, Amundi will be able to offer products from external partnerships,” said Yves Perrier, chief executive officer of Amundi. As a reminder, Amundi already owns a stake in French boutique Tobam. “Thanks to this agreement, Amundi, the European leader in Fixed Income with more than EUR400 billion assets under management [out of almost EUR780bn as at end of 2013], reinforces its private debt funds offering, which already represents EUR4 billion. This operation also confirms Amundi’s commitment to develop Paris’ asset management industry together with its most innovative entrepreneurial players,” he adds. Last week, Crédit Agricole, Amundi’s parent company, announced that it was seeking “medium size” acquisitions in the asset management industry. Its aim is to reach EUR1.000bn in assets under management by 2016.

Aviva Investors, the asset management business of Aviva, today announces a definitive agreement to sell US equity manager River Road Asset Management to Affiliated Managers Group. The sale is subject to obtaining customary consents and approvals and completion is expected in the third quarter of 2014. “The transaction is in line with Aviva Investors’ strategy of simplifying its business and moving towards an integrated operating model and organisational structure,» said Jason Windsor, group chief strategy and development officer. «A simpler, more focused business will help Aviva Investors become a stronger third party manager and increase its contribution to the group. Aviva Investors is focused on becoming a fully-integrated asset manager offering products that deliver client outcomes with low volatility. A boutique US equity manager does not fit with this strategy. We look forward to a continued relationship with River Road,” he adds.River Road, based in Louisville, Kentucky was acquired in 2009. River Road (USD11bn as of the end of 2013) has a strong track record in managing US value equities and will remain the manager of Aviva Investors’ US Equity Income Funds.

P { margin-bottom: 0.08in; } Old Mutual is cutting back in Europe. The financial group on 27 March announced that it has sold Skandia’s activities in Germany and Austria, affiliates of Old Mutual Wealth, to an acquisition vehicle, Heidelberger Leben Group, which is controlled by the investment fund Cinven and the reinsurer Hannover Re, for EUR220m. The operation, which is subject to the approval of the regulatory authorities, may be finalised by the end of third quarter 2014. As of 31 December 2013, Skandia Germany and Skandia Austria had a total of EUR4.9bn in assets and funds under management and showed a pre-tax operating profit of EUR27m. The transaction comes as pat of a move initiated by Old Muual to “simplify operations in Europe and to concentrate on a restricted number of growth markets,” the financial group said in a statement.

P { margin-bottom: 0.08in; } Assets in sovereign funds took off in 2014, with growth of 17%, putting them over USD6trn (USD6.106trn), according to estimates from the Sovereign Wealth Fund Institute, reported by Les Echos. In detail, sovereign funds gained nearly USD1trn, while it took them nearly four years to get from USD4trn to USD5trn. The strong rise in these assets is due to three factors: growth on stock markets, net new money, and lastly, a multiplication in the number of sovereign funds. In 2013, direct investments and strategic stakes by sovereign funds reached a record USD175bn in 2013, according to data from the Sovereign Wealth Fund Institute, far over the USD65bn in 2012, and the USD106bn recorded in 2009. Funds were particularly active in their preferred sectors – real estate, finance, infrastructure, etc. - but their geographical orientation is increasingly broad and no longer concerns only developed markets. Lastly, the economic newspaper observes that most sovereign funds have earned double-digit returns, citing the example of the Norwegian sovereign fund, which in 2013 posted the best returns in its history (16%).

Les actifs des fonds souverains ont connu un véritable décollage en 2013, enregistrant une progression de 17 % pour dépasser le seuil des 6.000 milliards de dollars (6.106 milliards), selon les estimations du Sovereign Wealth Fund Institute dévoilées par Les Echos. Dans le détail, ces fonds souverains ont gagné près de 1.000 milliards de dollars en un an alors qu’il leur avait fallu quatre ans pour passer de 4.000 à 5.000 milliards de dollars.La forte hausse de leurs encours s’explique par trois facteurs : la progression des marchés boursiers, les rentrées d’argent frais et, enfin, la multiplication du nombre de fonds souverains. En 2013, les investissements directs et prises de participation stratégiques des fonds souverains ont atteint le niveau record de 175 milliards de dollars en 2013, selon les données du Sovereign Wealth Fund Institute, bien loin donc des 65 milliards de 2012 ou même des 106 de 2009. Les fonds ont été particulièrement actifs dans leurs secteurs de prédilection – immobilier, finance, infrastructures – mais leur orientation géographique est de plus en plus large et ne concerne plus seulement les marchés développés.Enfin, le quotidien économique observe que la plupart des fonds souverains ont renoué avec des performances à deux chiffres, citant l’exemple du fonds souverain norvégien qui, en 2013 a enregistré le deuxième meilleur rendement de son histoire (16 %).

P { margin-bottom: 0.08in; } The Russian fund Russia Direct Investment Fund, which was founded by Vladimir Putin three years ago, has raised capital from Chinese and Middle Eastern sovereign funds, while US and European investors are turning away from the country, the Financial Times reports. The USD10bn fund is acquiring a USD200m stake in Sodrugestvo, alongside Chinese and Middle East funds including China Investment Corp.

Karel De Gucht, le commissaire européen au Commerce, a lancé hier une consultation sur la protection des investisseurs dans le cadre du TTIP (Transatlantic Trade and Investment Partnership), l’accord de libre-échange qui est en cours de négociation entre l’Union européenne et les Etats-Unis. La consultation porte plus spécifiquement sur le règlement des litiges opposant des investisseurs à un Etat devant les tribunaux d’arbitrage internationaux.

En troisième estimation, le produit intérieur brut (PIB) des Etats-Unis a progressé de 2,6% en rythme annualisé sur les trois derniers mois de 2013, montrent les statistiques publiées hier par le département du Commerce. La croissance avait été estimée le mois dernier à 2,4%. Cette révision à la hausse reflète notamment des dépenses de consommation plus importantes qu’estimé initialement.

Le Conseil constitutionnel a censuré hier une partie essentielle de l’article 1 de la loi visant à reconquérir l'économie réelle, dite aussi «loi Florange». L’article ouvrait notamment la voie à des pénalités pour les entreprises fermant un site rentable. Le Conseil explique que les dispositions sur le refus de cession d’un établissement en cas d’offre de reprise et la sanction de ce refus sont «contraires à la liberté d’entreprendre et au droit de propriété». Il censure aussi les dispositions prévoyant une pénalité en cas de non-respect de l’obligation de recherche d’un repreneur. Le Medef, qui juge ces dispositions «inapplicables et dangereuses», a salué la «décision réaliste» du Conseil. Les Sages ont par ailleurs jugé conformes à la Constitution les dispositions contestées de l’article 8 (information du comité d’entreprise en cas d’offre publique d’acquisition) et de l’article 9 (modalités de distribution d’actions gratuites).

La Commission européenne a ouvert une enquête approfondie sur des réductions fiscales accordées en France aux grands consommateurs d'énergie, qu’elle juge a priori contraires aux règles de concurrence de l’Union européenne. L’exécutif européen a toutefois validé le nouvel arrêté sur le tarif de rachat dans le secteur de l'éolien.

Parallèlement au soutien approuvé par le FMI (lire page 4), le Sénat américain et la Chambre des Représentants ont adopté hier à une large majorité des propositions de loi visant à fournir une aide à l’Ukraine et à autoriser des sanctions supplémentaires à l’encontre d’intérêts russes.

Selon Bloomberg, la Grèce pourrait recevoir dès la semaine prochaine un engagement des autorités de la zone euro sur le versement d’une tranche d’aide de 8,3 milliards d’euros. Le pays devra faire face en mai au remboursement de 12,5 milliards d’euros de dette gouvernementale, incluant du papier à court terme.

Le FMI et ses partenaires se sont engagés à débloquer 27 milliards de dollars de prêts au pays qui reste suspendu au résultat des élections de mai

Les chiffres de février ne sont guère encourageants même si les prêts aux ménages ont très légèrement progressé

L'IRS va taxer la monnaie virtuelle comme un actif et imposer un reporting des transactions, la réduisant à son rôle de technologie de paiement

Le mastodonte de la gestion d’actifs élargit son offre par le biais d’un partenariat stratégique tout en entrant au capital de son nouvel allié

Elles sont mal notées et mal connues de leurs clients et prospects, même si les banques à réseau ont plus de notoriété, selon OpinionWay