With 10 years of experience in the area of corporate trusts at BNP Paribas Securities Services, Christopher Meitzner is joining BNY Mellon as senior relationship manager for corporate trust activities in Germany, Austria and Switzerland. He will report to Thomas Brand, head of investment services at BNY Mellon for Germany.Chris Strakosh remains as sales manager for corporate trusts.

With the S&P Smit 40, S&P Dow Jones Indices is launching a new index which will cover equities in four emerging markets: South Korea, Mexico, Indonesia and Turkey, Das Investment reports. It will include only companies whose market capitalisation is over USD1bn, and for which the daily trading volume is at least equal to USD5m over the past three months. The index will include the ten largest companies from each country.UniCredit has already acquired the license for the index.

As of 30 September, assets under management in hedge funds totalled a new record of USD2.19trn, beating the previous record set in March. Assets increased by USD80bn in third quarter, and USD183bn since the beginning of the year, according to statistics from Hedge Fund Research (HFR).Net subscriptions totalled USD10.6bn in July-September, and USd31bn in the first nine months of the year.However, despite these results, HFR estimates that if subscriptions continue at the same pace in fourth quarter, 2012 will have the lowest net inflows since 2009, a year when investors actually pulled out a net USD131bn from hedge funds.The HFRI Weighted Composite Index in third quarter posted an increase of 3%, meaning that performance effects generated an increase of about USD70bn in asset volumes.In detail, HFR states that the relative value arbitrage strategy posted a net inflow of USD12.6bn in third quarter, bringing total net inflows to USD35bn in the first three quarters of the year, and assets to USD586bn as of the end of September. This is the same total as for the equity hedge strategy, which has seen net outflows of USD5.2bn in July-September.

The Securities and Exchange Commission has announced that there are now 11,002 investment advisers, 37% of whom are hedge fund specialists, registered with the agency.The regulator states that 1,504 hedge fund and private fund advisers have registered since the Dodd-Frank Wall Street Reform and Consumer Protection Act came into effect, in addition to the 2,557 who were already registered, bringing the total to 4,061.Assets under management by advisers registered with the SEC have increased by USD5.7trn, or 13%, even though the number of advisers has fallen by 15%, since the Dodd-Frank law required 2,300 mid-sized advisers (who manage less than USD100m) to register with regional regulators rather than the Federal agency.

ETP provider Source has announced that it accounted for 24% of net inflows in Europe in the month of September, the highest rate among European actors in this market, according to Investment Europe.Investors allocated more than USD5bn to ETPs in September, an increase of 5% month on month.

Berlin-based agency Scope has found that managers of German open-ended real estate funds in the process of liquidation are generally not in a hurry to pay out redemptions to their shareholders, with the possible exception of KanAm: the decision to liquidate the KanAm US grundinvest fund was announced in September 2010, and since then, the entire portfolio has been sold off. Meanwhile, KanAm has already paid out EUR463m to shareholders, equivalent to 84.5% of assets. However, Scope notes, the DEGI Europa and Morgan Stanley P2 Value funds have so far paid out only EUR421m and EUR300m, respectively, which represents only one third of their assets, while two of the three years of the redemption period have already expired.For the SEB ImmoInvest, which had about EUR6bn in assets, redemptions paid since the announcement of the liquidation in May 2012 have been equivalent to only 20% (EUR1.2bn).Scope reports that for several funds, the redemption quotient stands at 0 to 10%. The TMW Immobilien Weltfonds and Axa Immoselect funds, for example, have not begun to pay out their shareholders, since they need to begin by paying off lenders who provided leverage for their acquisitions. In addition, they have not sold enough properties to begin to pay back subscribers.

A group representing investors including British charities and pension funds is planning to target 350 FTSE companies identified as slow to enact measures to reduce their greenhouse gas emissions, Financial Times Fund Management reports. The investors are focusing on companies in the utilities and mining industries.

The wealth management unit at Deutsche Bank in London has recruited two client advisers, Matthew Garnham and Corin George, Investment Europe reports.Both will be responsible for developing high net worth banking clients in the City.Garnham previously worked at Lombard Odier, while George joins from Coutts.

Payments of dividends in the United Kingdom totalled GBP23.2bn in third quarter, up 10.4% compared with last year, according to statistics from Capita Registrars, Money Marketing reports.For the year as a whole, dividends may total a record GBP78.6bn, while the previous pre-crisis record was GBP77bn.

Nearly two thirds of independent financial advisers estimate that one of the consequences of RDR regulations which will come into force in early 2013 in the UK will be that it will eliminate some retail clients, Fund Web reports. With the introduction of the new rules, portfolios of less than GBP50,000 will no longer be profitable, advisers claim, according to a survey undertaken by Allianz Global Investors of 166 IFAs.The survey also finds that 60% of advisers consider it inevitable that their product range will change, while 36% predict that their services to more modest clients will decline, 16% predict that they will no longer serve clients of this type, and 6% are unsure.About 14% of participants in the survey say that they have raised their prices for the most modest clients, while 13% say they will maintain their level of service to these clients, even if that decision entails losses.

Alberto Espelosín, director of research at Ibercaja Gestión and manager of the multi-asset class fund Ibercaja Alpha since its launch, is joining Abante Asesores, where he will manage a similar fund which will be launched in the next few weeks, Funds People has announced.

APG, a Netherlands-based asset management firm with EUR314bn in assets under management, is planning to lay off 800 employees in the next four years, IPE.com reports. Of the 200 jobs to be eliminated each year, 120 will be through “natural turnover,” while the remaining 80 will be layoffs. APG has 4,155 employees, of whom 3,850 are full-time.

Pictet & Cie Europe S.A. has announced that it has been granted a full banking license by the Hong Kong Monetary Authority (HKMA), and on 24 September announced the official opening of its local branch office. The Swiss group has been serving Hong Kong clients since 1986.Claude Haberer, head of Asia-Pacific at Pictet Wealth Management, tells the South China Morning Post that the branch will not practice any retail or corporate banking activities: it was opened to serve the growing base of millionaire clients in continental China. The Pictet private bank accepts Asian clients only with USD3m in assets or above. It will recruit private bankers with at least 15 years of experience, “who have a long-term vision.”

On the Paris platform from NYSE Euronext, Lyxor Asset Management has listed two French-registered “risk balanced” ETFs, replicating MTS indices of French and Italian sovereign debt for one to three years.The funds are the LYXOR ETF MTS 1-3Y France Government Bond C-EUR (FR0011313733) and LYXOR ETF MTS BTP 1-3y Italy Government Bond C-EUR (FR0011313741), which each charge 0.165%.

As announced by Newsmanagers last week, the asset management firm Ossiam has made an addition to its smart beta product range, with the launch of a new ETF yesterday, based on a minumum variance strategy for international equities from developed markets.The ETF replicates the performance of the strategy index Ossiam World Minimum Variance Index NR (Net dividends reinvested), whose objective is to deliver the performance of a selection of the most liquid equities of the S&P Global 1200® Index NR2, weighted so as to minimise the volatility of the portfolio.The fund, Ossiam ETF World Minimum Variance NR (acronym WOMV; ISIN code LU0799656698), is listed on NYSE Euronext Paris, Borsa Italiana in Milan, and Deutsche Börse in Frankfurt, where it becomes the 1,005th fund on the XTF segment of the Xetra electronic platform. It will be listed in London on 29 October.The ETF has a TER of 0.65% per year, with total assets under management of EUR15.7m as of 18 October 2012.

Guy Phillips, who had previously been head of global consumer & retail at the UBS investment bank, will now work in wealth management at the Swiss banking group. He will be responsible for the family offices team in emerging markets, Finews reports. Phillips’ former position will be taken over by Nick Hassall.

Swiss-based Partners Group has announced that it has led a financing operation for an acquisition of the Douglas group. Partners Group acted as the mandated lead arranger for mezzanine financing for a takeover bid presented by Beauty Holding Three (a subsidiary of Advent Capital) to shareholders in Germany’s Douglas Holding, the private investment group announced on 22 October.

The International Alternative Management Association (AIMA) has announced that it favours a depository passport for UCITS-compliant funds, in its response to a consultation on the UCITS V directive. It approves of the majority of the contents of the proposals.In a statement released on 22 October, the association observes that the development assumes a harmonisation fo requirements related to the depository function, and lays out a series of recommendations, including requirements for depository establishments.The association also invites European institutions to bring its requirements for remuneration and depository regimes into line with the requirements laid out in the AIFM directive, which will come into force in July 2013.Andew Baker, CEO of AIMA, says “we feel that the time has come to have a frank discussion about the introduction of a depository passport. Such a passport would provide more competition and choice for managers and investors, and would eliminate a significant barrier to the single market. Without this passport, there is a risk of a lack of competition in the depository sphere, and as a result, an increase in systemic risk.”

Thomas Steyer, one of the top hedge fund managers, has announced that he is leaving Farallon, the USD20bn firm which has led for 27 years, the Financial Times reports. In a letter to investors, the 55-year-old man says that Andrew Spokes, co-managing partner, will succeed him at the end of the year. Since its launch, the flagship fund from Farallon has earned average annual returns of 13.4% for investors, after fees.

For the first time in 17 years, US equities have outperformed most major asset classes, at a time when growth is slowing and profits are at their lowest levels since 2009.The Standard & Poor’s 500 index has gained 14% since the beginning of the year, outpacing US Treasury bonds, corporate bonds, commodities, the US dollar and Asian and European equities, according to statistics from the news agency Bloomberg.Treasuries have gained only 3.3% since the beginning of the year, compared with 9.9% for US investment grade corporate bonds, and 14% for high yield debt, according to figures from Barclays. The S&P GSCI commodity index has gained 1.7%, while the dollar index (DXY), which measures the US currency against six major trading partners, is down 0.7%.The last time US equities ranked on top, in 1995, the S&P 500 posted the strongest annual growth in the past 50 years. With a price to earnings ratio similar to the one currently observed, the index gained 93% in the two and a half years that followed.

US group Prudential Financial has announced that it has signed an agreement with Verizon Communications to transfer a pension scheme with a total of USD7.5bn in assets.The transfer, which will affect about 41,000 Verizon employees, is expected to take place in December this year.

Activities in the United States of the Lausanne-based Gottex Brokers Alternative will now be operated by Gottex Brokers Alternative USA, which has opened an office in Los Angeles, Investment Europe reports. The US affiliate will be led by Bruno Bardavid. It will offer services to hedge funds, funds of funds, family offices, third-party managers, public institutions, sovereign wealth funds, private and investment banks, investment advisers and pension funds.

Marie-Jeanne Missoffe is joining Mandarine Gestion as an addition to its “growth equities” management team. The former European equity manager at SPGP joins a team that includes Joëlle Morlet-Selmer and Diane Bruno, who are manager and co-manager, respectively, of the growth equity fund Mandarine Opportunités and Mandarine Unique - European Small & Mid cap funds. Missoffe left SPGP early this year. She was manager of the Cap Grande Europe fund. She had previously served as co-head of European small & midcap management at Ixis AM and European equity manager at CDC Gestion. “The arrival of Marie-Jeanne Missoffee at Mandarine Gestion will allow us to strengthen our management product range in growth equities, to respond to growing demand on the part of our investors, who are now showing a real appetite for this type of management,” says Rémi Leservoisier, CEO of Mandarine Gestion.

Institutional investors in the Asia-Pacific region are increasingly taking an interest in ETFs, but the market is still very far from the sophistication to be found in the United States, according to a survey undertaken by Greenwich Associates on behalf of State Street Global Advisors (SSgA).Asian institutionals make most of their ETF investments offshore, generally in ETFs listed in the United States: four institutionals out of ten say that they acquire ETFs on foreign markets. This is unsurprising, since in this market segment, liquidity and products are more abundant in North America, and especially on the New York stock exchange. Assets in ETFs on the Tokyo Stock Exchange total USD44.5bn, a fraction of those in ETFs listed in New York, which represent about USD1.2trn. However, the Korean Stock Exchange is the most liquid in terms of annual trading volumes. But the US market is clearly much deeper than the Asian market, with the 10 largest ETPs representing 38% of ETP assets on the New York stock exchange, and the 10 largest ETPs in Tokyo accounting for 97% of assets.When asked about their ETF selection criteria, 85% of Asian institutional investors cite liquidity and trading volumes, followed by tracking error (61%) and total expense ratio (53%). This is followed by track record (44%), diversity of products (43%), and far behind, the company and team responsible for products (13%). Investment in ETFs is still an anonymous activity in Asia, and clients are not particularly interested in the issuer, the survey finds.The use of ETFs in Asia ex Japan is also much less sophisticated than in the United States. The major objectives sought are, firstly, core/satellite portfolio allocation (66% of respondents), followed far behind by risk management and hedging (38%). For US users, ETFs are used largely for tactical adjustments, portfolio rebalancing and transition management.According to Kevin Quigg, global head of the SPDR ETF strategy and advisory at SSgA, a large portion of the use of ETFs in the United States “is less about ‘F’ and more about ‘ET,’ and that influences the market, since ETFs have shown that they are effective for resolving market difficulties.”But Asian institutional investors are expected to gradually follow in the footsteps of their American counterparts. 40% of them want to increase their use of ETPs in the next few years, while 46% say they want to maintain their current allocations.

Collateralised loan obligations, the complex products at the core of the financial crisis, are making a comeback, as investors seeking returns are investing in the exotic instruments again, the Financial Times reports. The number of asset management firms creating CLOs has doubled in the United States, and total flows to these products now come to USD34.7bn, more than all of the past four years put together.

Selon bfinance, pour adapter son allocation d’actifs, le régime de rentes du mouvement Desjardins entend privilégier les stratégies d’investissement susceptibles de réduire la volatilité et d’assurer un meilleur appariement des flux. Une partie des titres de croissance a déjà été transférée au printemps vers un mandat action global géré selon un processus low volatility à l’issue d’un appel d’offres organisé par bfinance. Satisfait des premiers résultats, le régime a doublé son abondement initial pour porter la taille du mandat à 300 millions de dollars. Le placement répond également à une volonté d’orienter la stratégie d’investissement en actions vers l’international, alors que cette dernière favorisait jusque-là l’exposition à la zone Amérique à travers différents styles d’investissement.

Jean-Sébastien Lyonnaz, Directeur Trésorerie, Financement et Gestion d’actifs de l’assureur April Group, à la rédaction de www.institinvest.com : Nous recherchons du rendement sur les obligations tout en gérant le risque de taux à terme. Nous avons cédé tous les titres des Pays-Bas et allégé les positions sur l’Allemagne parce que le rendement n’est pas assez important. Notre allocation obligataire se compose de la manière suivante : 20% Obligations sécurisées 45% Etats et assimilés (très peu de titresfrançais) 35% Financier et corporate Nous regardons les prêts aux collectivités locales ainsi que les dettes émergentes et calculons le SCR dans les reportings mensuels, présentés ensuite en comité financier. D’ailleurs lors de la question d’un investissement, nous regardons l’impact qu’aurait ce dernier sous les normes Solvabilité II. Je trouve d’ailleurs, mais je ne suis pas le seul, que Solvabilité II est pro-cyclique. Or c’est dommage de ne pas pouvoir augmenter l’exposition à des classes pénalisées par ces normes.

Les plates-formes d’échange de dérivés auraient été dans l’incapacité de rivaliser avec la puissance combinée de Deutsche Börse et Nyse Euronext, ont estimé les régulateurs européens dans l’exposé des motifs du rejet du projet de fusion. Dans ce document de 447 pages, ils ont rejeté notamment l’argument des deux groupes selon lequel les dérivés de gré à gré entraient en concurrence avec ceux cotés sur les plates-formes.

Un fonds d’urgence de 170 millions d’euros sera mis en place début 2013 pour aider les départements à faire à leurs dépenses sociales, a déclaré lundi Jean-Marc Ayrault à l’issue d’une rencontre avec l’Assemblée des départements de France. Les départements français ont la charge de distribuer des aides sociales comme le revenu de solidarité active (RSA) mais n’ont pas toujours les ressources financières pour faire face à leurs augmentations en raison de l’envolée du chômage.

La plate-forme de négociation électronique a accordé à Lyxor une licence pour créer des ETF basés sur les indices obligataires souverains MTS France et MTS Italie. Ces indices répliquent la performance de l’ensemble des instruments de dette souveraine répertoriés par MTS et émis par les gouvernements français et italien (entre un et trois ans de maturité et plus de deux milliards de dollars en circulation).