The regional bank Valiant is reportedly not the only party in talks with the Cantonal Bank of Bern over a potential merger, but Credit Suisse and UBS also are, according to an article which appeared in the Berner Zeitung on 7 December, citing a reliable source. The article also cites other institutions, such as the Cantonal Bank of Zurich and Raiffeisen.

The Swiss SIX Swiss Exchange has announced that it admitted three iShares ETFs to trading on 3 December. As usual, these are Irish-registered funds for which the market maker is Susquehanna.The iShares MSCI Japan Monthly CHF Hedged replicates the MSCI Japan 100% Hedged to CHF Net TR Index and charges fees of 0.64%; the second fund is the iShares MSCI World Monthly CHF Hedged, which tracks the MSCI World 100% Hedged to CHF Net TR Index, with a TER of 0.55%, and lastly, the Shares S&P 500 Monthly CHF Hedged replicates the S&P 500 CHF Hedged Index, with a TER of 0.45%.

Major French businesses are making increasingly large commitments to reduce CO2 emissions, but they are proving slow to adapt to new markets related to sustainable development, according to a study released on 7 December. According to the study, undertaken by the Carbon Disclosure Project (CDP) and the agency Accenture, and covering the 250 largest French businesses by market capitalisation, 72% of respondents have set CO2 emissions reduction objectives, compared with 66% in 2010 and 69% in 2011. CAC businesses are highly sensitive to these challenges: 97% responded to the survey, while the overall response rate stagnated at 32%, compared with an average of 49% for neighbouring countries. Investment in emissions reduction increased by 20% in 2012, to a total of EUR23bn at the 70 businesses which participated in the study. Among the other findings, CDP and Accenture emphasise that major French businesses are proving late to adapt their economic models to potential growth related to climate change: 395 are betting on an increase in demand for sustainable products and services, but only 26% see it as an opportunity to develop such products and services.

The financial ratings agency Standard & Poor’s (S&P) on 7 December confirmed the long-term BB- credit rating, and its associated negative outlook, for the mutual insurance firm Groupama, which will no longer be engaging its services. The agency states that the various ratings assigned to the insurer and its affiliates at the time that its evaluation was discontinued “reflecting the poor balance of capital to risk and weak risk management practices.” It also identifies “negative consequences of financial and operational decisions taken in the past.” The “good competitive position of Groupama on the French damage insurance market and its good liquidity profile … partially offset these weaknesses.” Thierry Martel, CEO of Groupama, on 5 December announced that the insurer had decided to discontinue ratings by Stanrd & Poor’s, but to continue to be rated by Fitch Ratings. “Previously, the group had used two agencies, since we were coming up to our IPO,” the director explains. “In that context, it was indispensable to be rated. We also had brokerage firms which considered it important to have a rating,” he added. But IPO plans were officially abandoned, and the two brokerage firms were sold as part of a restructuring plan at Groupama starting in late 2011. “We no longer need to be rated,” he concludes.

The asset management boutique Four Capital Partners is launching a long/short fund for Michael Pinggera, manager of Insight and Credit Suisse, who joined the firm in October this year, Investment Week reports. The strategy is expected to be launched next month. The fund may hold up to 60% of its assets in equities.

The pension fund for Transport for London has announced plans to increase its exposure to hedge funds, the news agency Reuters reports.The pension fund is reportedly preparing to invest in the US firm Och-Ziff Capital Management, as well as Arrowgrass Capital Partners. The pension fund is also planning to increase its investment in Bridgewater Associates. Investment in alternative asset may total 25%, compared with 12% for the year to the end of March, and 10.1% one year previously.

The head of ETF Europe and global head of business development ETF & indexing at Lyxor Asset Management (Société Générale), Simon Klein, in January joined the new asset & wealth management (AWM) division of Deutsche Bank, in the newly-created position of head of ETF & ETC sales for Europe, the Middle East, Africa and Asia, the Börsen-Zeitung reports.Klein, who served as head of ETF distribution at Deutsche Bank before joining Lyxor two years ago, will report to Thorsten Michalik, head of db x-trackers, who has been promoted to global head of the AWM global client group.The Financial Times also reports that Nizam Hamid, who joined Lyxor from iShares in late November 2010, has also left the firm, where he had been head of ETF strategy and deputy head of Europe.

Leen Meijaard, director of institutional sales for continental Europe, has become director of sales at iShares for Europe, the Middle East and Africa (EMEA), replacing David Gardner, who is leaving the business after 12 years, Cinco Días reports, relaying reports in Investment Week. Meijaard will also remain as direct head for the Benelux region.The position of director of institutional activities in continental Europe left vacant by Meijaard will be occupied by Peter Nielsen, who since 2009 has contributed to the establishment of the iShares organisation in Scandinavia. Nielsen also remains as direct head for Scandinavia.

This year’s Johannesburg Stock Exchange (JSE) SRI Index review finds that 76 out of 108 South African companies assessed by EIRIS for the JSE meet the sustainability criteria for inclusion in the JSE SRI Index. Now in its ninth year, the JSE SRI Index is based on sustainability criteria developed by the JSE and global responsible investment research firm EIRIS. Research for the index is undertaken by EIRIS’ global platform partner the University of Stellenbosch Business School’s Centre for Corporate Governance in Africa. The JSE is supported by the Government Employees Pension Fund - Africa’s largest pension fund - which has been actively involved in the JSE SRI index. The SRI Index comprises of listed companies which meet criteria related to their environmental, social and governance (ESG) policies, management practices and reporting. The intention of the index is two-fold: to encourage companies to operate responsibly and transparently and to prompt institutions to consider ESG factors when evaluating investments. The SRI Index is a key benchmark for broad-based environmental, social and governance practice amongst listed companies.

Assets in fixed income hedge funds are expected to overtake assets in equity strategies for the first time in the history of the industry, the Financial Times reports. At the end of third quarter, equity and relative value arbitrage hedge funds (which include various bond strategies) represented USD586bn each. “It is highly likely that by the end of the year equities will no longer be the main strategy, and that has never happened before,” predicts Ken Heinz, chairman of HFR.

Ireland announced on 7 December that it has signed an agreement with the United States over application of the US Fatca tax law.The US tax law will allow the US government to tax all accounts held internationally by parties subject to US tax. The Foreign Account Tax Compliance Axt (FATCA) requires banks and insurers to sign an agreement with the US tax authorities, by which they agree to disclose all accounts held by US nationals. If this is not done, the firms will be required to pay a 30% withholding tax, or not accept US clients.Assets under administration by the Irish fund sector recently reached a record USD2.2trn, while funds domiciled in Ireland for the first time topped EUR1trn.

Sales of bond funds in Europe hit their highest one month total on record since Lipper’s regular sales monitoring began in 2002 reaching EUR30bn. While high yield bonds and emerging market debt were again much in demand (EUR5bn and EUR4.8bn respectively, across different sub-sectors), the inflows to bond funds as a whole were the result of interest expanding across a wider range of sectors, according to Lipper.Bond fund assets now stand at EUR1.7trn, making up 28.5% of the European industry. Five years ago this proportion was 20.2% (October 2007). For equity funds, the proportion has shrunk from 41.1% to 34.0% over the same period, with assets now at EUR2.0trn.After the encouragement for asset managers last month of a revival in equity fund flows, this dropped back this month to EUR1.3bn, from EUR4.7bn.Inflows to long-term funds (i.e. excluding money market activity) nudged up again this month to EUR31.6bn, meaning sales have reached a 24-month high. Including money market funds, the figures look even better at EUR38.3bn, the largest monthly total since August 2010.Four groups attracted net sales of more than EUR1bn this month. Pimco led the way with EUR4.2bn, ahead of BlackRock (EUR3.3bn; EUR2.2bn of which relates to ETFs), AXA (EUR2.9bn) and JPMorgan (EUR1.3bn).

Luis Aguilar, the SEC commissioner who put an end to plans to introduce floating net asset value this summer, announced that, on the basis of an SEC study published on Wednesday, he may now consider discontinuing a requirement to maintain a constant net asset value of one US dollar per share in 2013, the Wall Street Journal reports.

Norm Champ, director of the investment management division of the Securities & Exchange Commission (SEC) has announced at a press conference in New York that the US regulator is no longer planning to oppose the use of derivatives by actively-managed ETFs, Index Universe reports. However, the SEC has not yet lifted its moratorium on inverse or leveraged ETFs.The end of the ban on derivatives may have a rapid effect on some highly popular ETFs, such as the Pimco Total Return ETF by Bill Gross (USD3.83bn in assets).

The US authorities are investigating transactions undertaken by SAC Capital, the hedge fund led by Steven Cohen, on shares in Weight Watchers last year, according to a source familiar with the matter cited by the Financial Times. The news comes two weeks after a former manager of an SAC affiliate, Matthew Martoma, was arrested on suspicion of insider trading.

The asset management firm Oddo AM is preparing to extend its product range while not sacrificing its nature as a specialist with a restricted number of investment funds. In the next few weeks, it will offer a high yield bond fund. This is a new step for the firm, which is seeking to increase the proportion of its assets in fixed income, and which, in order to achieve that, has recently recruited Alain Kreif as head of fixed income and convertible investment. “We have decided to deploy the strategy at a time when institutional investors still have a very low level of equities in their allocations, and as we enter a period of low interest rates, which make the search for returns more difficult,” Lorenzo Gazzoleti, deputy CEO of the firm, explains to Newsmanagers.The opening of an office in Singapore, which, pending the approval of the supervisory authorities, will be led by Roy Diao, formerly of BNP Paribas IP, will be one of the two major events for the firm in the first half of 2013. It will not be the only one next year. A joint venture with the Chinese firm Guosen Securites, announced in April, will bear fruit with the launch of a renminbi-denominated bond fund managed and distributed by the French firm. The future office in Singapore will be a centre both for distribution and for asset management, with a possible launch of an emerging market fund during the year. This would be a first for Oddo AM, whose management is completed exclusively in Paris.Meanwhile, the asset management firm is preparing to conclude a year 2012 which Gazzoleti calls highy satisfactory. The head says net inflows will approximate EUR600m by the end of the year. Assets at the firm, excluding money markets, will then total EUR12.3bn, with assets under management up by EUR1bn, of which about EUR400m are due to market effects.

The alternative asset management firm Diamondback Capital Management, which is facing an insider trading investigation, has announced plans to close its doors following redemption demands from several major clients, the news agency Reuters reports. The two co-heads of the firm, Richard Schimel and Larry Sapanski, announced their plans to close in a letter sent to clients on 6 December following redemption demands totalling USD520m, five times the amount expected by directors. Assets under management by Diamondback have fallen to about USD1.45bn, after peaking at about USD5bn two years ago. Diamondback is planning to part with its 133 employees, while a small team will remain to liquidate funds.

The Canadian bank Toronto-Dominion Bank Group (TD) is going to take over the US asset manager Epoch Investment Partners for approximately USD668 million, in an all-cash transaction. Epoch Holding Corporation shareholders will receive USD28.00 in cash per share, representing a premium of approximately 28 per cent to Epoch’s closing price on December 5, 2012.With this transaction, TD expects to add approximately USD24 billion in assets under management at closing to the USD207 billion already under management by TD Asset Management."We’ve been looking for an opportunity to acquire a U.S. asset manager to build our North American Wealth business, which is a key growth area for TD,» explains Mike Pedersen, group head, Wealth Management, Insurance and Corporate Shared Services, TD. «This acquisition makes strategic sense for TD. It will broaden our offer for institutional and retail clients in Canada and will immediately and significantly strengthen our U.S. Wealth business.» «Epoch will enable TD Asset Management to substantially broaden our expertise in U.S. and global equities,» also said Brian Murdock, Chairman & CEO, TD Asset Management.Epoch, which has 65 employees, will nevertheless continue to operate and serve clients under its current brand name and operating structure.Epoch Holding Corporation’s board of directors has unanimously recommended this transaction to their shareholders for approval. Members of Epoch Holding Corporation’s management team and board of directors currently hold approximately 28 per cent of the company’s outstanding shares.

Tony Lanning, head of multi-asset at Henderson, is leaving the firm at the end of January to join JPMorgan Asset Management and manage portfolios built by the investment team at J.P. Morgan Adviser Solutions, Money Marketing reports. Bill McQuaker will take over management of the multi-manager absolute return fund as lead manager at Henderson.

Karina Litvack is leaving F&C Asset Management, where she has been working for ten years, and had been head of governance & sustainable investment. The news, which first appeared in the UK press, has been confirmed to Newsmanagers by a spokesperson for the asset management firm. Litvack, widely known in the sustainable investment industry, joined F&C in 1998. Her departure is reported by the British website Fund Web to be related to a restructuring of the governance and sustainable investment team.

Alcentra, a boutique from BNY Mellon, a specialist in speculative debt in Europe and the United States, will be participating in an initiative by the Bank of England to provide up to GBP200m in financing to British high-quality middle market businesses. Alcentra is expected to develop the strategy over the next twelve months, with average investments of GBP10m to GBP25m each.

Old Mutual Global Investors (OBGI) has announced that its Skandia Global Best Ideas fund (GBP275m) will be diversifying its portfolio to adopt an approach to strategic allocation moderated by GDP instead of the more traditional model which had previously exposed the half of the portfolio to British equities and half to global equities.The change will mean that the firm will be more highly diversified in terms of countries and currencies. In addition to geographical diversification, the changes will result in a reduction of about 6 basis points to TER.The new regional weightings will be as follows:Region/Former allocation/New allocationEurope including R-U 61.89%//26/66%United States 13/66%/26/29%Japan 4.91%/9.46%Asia-Pacific ex Japan 8.33%/23/93%Emerging markets ex Asia 11.21%/13.66%

Les tensions sur la dette italienne se sont ravivées lundi matin, après que Mario Monti a annoncé ce week-end sa démission prochaine de la présidence du Conseil, entraînant l’organisation d'élections anticipées, probablement en février, soit deux mois plus tôt que prévu. Cette instabilité politique fait craindre un abandon de la politique d’austérité mise en place depuis un an. Vers 13 heures, les taux à 10 ans progressaient de 34 points de base, à 4,85%, entraînant avec eux les taux espagnols et portugais. L'écart de rendement avec les taux allemands augmentait de 36 pb, à 358 pb. Une source italienne a indiqué à Reuters que ces tensions ne remettent pas en question les deux émissions prévues cette semaine par le pays mercredi et jeudi.

Les perspectives d'évolution de la croissance en zone euro, en Allemagne et en France restent faibles. L’indicateur avancé de l’OCDE pour la zone euro baisse de 0,1 point à 99,3. Celui de l’Allemagne recule de 0,1 point à 98,7, tandis que de la France baisse de 0,1 point à 99,4. Parallèlement, l’indicateur pour les Etats-Unis progresse de 0,1 point à 100,9 et celui pour le Royaume-Uni gagne 0,2 point à 100,5.

L’excédent commercial allemand s’est encore contracté en octobre, revenu à son plus bas niveau en plus de six mois, en raison d’une faible croissance des exportations, selon les chiffres de l’Office fédéral de la statistique. Les importations ont augmenté de 2,5% alors que les exportations n’ont progressé que de 0,3%.

L’agence de gestion de la dette publique grecque a prolongé jusqu'à mardi midi, heure de Londres, l’offre de rachat d’obligations du pays destinée aux créanciers privés. Selon la presse grecque, Athènes aurait reçu déjà pour près de 30 milliards d’euros de titres, le montant nécessaire au succès de l’offre.

La Banque de France a confirmé prévoir une contraction de 0,1% de l'économie française au quatrième trimestre, dans sa deuxième estimation fondée sur son enquête mensuelle de conjoncture. L’activité industrielle aurait très légèrement progressé, selon les chefs d’entreprises interrogés, avec des livraisons stabilisées après le repli d’octobre. Le taux d’utilisation des capacités de production est quasi stable et reste inférieur à la moyenne de longue période. Les carnets de commandes sont toujours à un niveau jugé insuffisant, les stocks de produits finis, proches du niveau désiré, n’ont pas évolué et les prix des produits finis ont légèrement augmenté.

Christian Parisot, responsable de la recherche économique chez Aurel BGC

Frederik Ducrozet, économiste senior zone euro chez Crédit Agricole CIB

La Reserve fédérale américaine doit préciser mercredi son plan pour 2013