Depuis le début de l’année 2011, le FRR a décidé d’augmenter ses investissements sur les actions émergentes au sein de sa poche de performance, en passant de 2.4% à 5.1% des actifs. Une part significative de l’exposition économique aux marchés émergents est recherchée en utilisant comme supports d’investissement des entreprises des pays développés exposées à la croissance de ces marchés. A ce titre, de même que pour les obligations émergentes, le FRR préfère investir dans des fonds ouverts gérés par des sociétés de gestion, sans conditionner son choix au respect de critères ISR dans la gestion. En effet, il est apparu au FRR que l’univers de ces fonds émergents ISR était trop réduit pour permettre une mise en concurrence des gérants. Après une phase de due diligence s’accompagnant de la rencontre systématique avec les gérants des fonds pré sélectionnés, le FRR s’attache seulement à ce que les sociétés de gestion respectent la philosophie de l’investissement responsable de manière globale.

Cette année, la CPEV, Caisse de Pensions de l’Etat du Vaud (7,4 milliards de Francs Suisses d’actifs) étudie la possibilité d’investir dans l’infrastructure en Suisse et investira pour la première fois dans l’immobilier international. L’allocation en matières premières avait déjà augmenté en Mars 2010, suivi d’une hausse de l’exposition aux obligations convertibles deux mois plus tard puis un premier investissement en microfinance au mois de Novembre. En 2011, le régime prévoit, pour l’investissement en microfinance, d’accroitre le nombre de gérants pour obtenir une diversification du portefeuille plus optimale. Les placements alternatifs, en 2010, ont atteint des performances et des apports en capitaux nets positifs. Les placements alternatifs ont ainsi retrouvé une place plus importante dans les portefeuilles des investisseurs par rapport aux années précédentes. La CPEV maintiendra parmi ses priorités une politique d’investissements socialement responsables, restant ainsi dans la continuité de ces dernières années. Concernant les classes d’actifs traditionnelles, la Caisse de Pensions débat des problèmes de devises affectant les obligations en devises étrangères face au Franc Suisse. Dans le sillage de l’année 2009, la Caisse a continué à privilégier les obligations d’entreprises ainsi que la dette des pays émergents en monnaies locales. L’exercice 2010, pour les obligations en Francs Suisses, a été marqué d’une part par la mise en place d’investissements visant à protéger le portefeuille contre l’inflation et les hausses de taux. Fin Mars 2011, l’allocation d’actifs se structurait ainsi : 2,63% de liquidités, 0,06 % de créances diverses à court et moyen terme, 12,08% d’obligations en Francs Suisses, 15,51% en obligations étrangères, 12,44% en actions de sociétés Suisses, 11,79% en actions internationales, 10,47% en titres de gages immobiliers, 24.77% en immobilier Suisse, 6.63% en alternatifs, 2.65% en private equity et 0.97% en actifs diversifiés.

Ce fonds d’incubation rassemblera les principaux investisseurs de la Place pour apporter des capitaux à gérer aux jeunes sociétés de gestion basées en France, ou souhaitant s’y implanter, et accélérer leur développement dans leurs premières années d’existence. Emergence fournira entre 25 millions et 50 millions à chaque gestionnaire retenu pour trois ans, le partenariat devant durer entre 7 et 10 ans. L’objectif d’Emergence est d’offrir aux investisseurs la performance des fonds incubés et une participation aux revenus futurs des sociétés de gestion. Le fonds leur permettra d’identifier les équipes de gestion les plus prometteuses et de contribuer à leur croissance en leur confiant des capitaux à gérer. La priorité a en outre été donnée à l’attrait du fonds pour les investisseurs, en les plaçant au c??ur de la gouvernance (participation au conseil d’administration, définition des objectifs, désignation d’un comité d’investissement), en choisissant le partage de revenus (sans prise de participation au capital), et en optimisant les contraintes de Solvabilité II (« transparisation » du portefeuille). Emergence prendra la forme d’une SICAV contractuelle à compartiments, permettant d’envisager différentes thématiques (performance absolue, actions long-only, ISR, obligations d’entreprises, etc.), avec des gérants délégataires appropriés, un par compartiment, a indiqué Alain Leclair, membre du comité de direction de Finance Innovation et président d’honneur de l’AFG. Le fonds mettra en oeuvre de nombreuses innovations réglementaires (gouvernance partagée avec les investisseurs, partage de revenu des sociétés de gestion incubées, statuts de SAS pour constituer la SICAV), qui sont soumises à l’approbation de l’AMF et de la Direction Générale du Trésor.

Since 15 December 2010, Joanna Shatney has been manager of the US Equity Alpha sub-fund of the Luxembourg Sicav Schroder ISF, which has recently received a sales license for Germany, Austria and Switzerland. The fund has a concentrated portfolio of 20-35 positions, dedicated to US equities with a market capitalisation of over USD1bn. There is no benchmark index, and in many ways it is a best ideas fund from the Schroders US equities team, which currently manages USD2.18bn in assets (as of 31 May). Since its launch, the fund shows performance, also as of 31 May, of 12.16%, 4.02 percentage points higher than the S&P 500 composite index. Characteristics Name: Schroder ISF US Equity AlphaISIN code: LU0562796101Front-end fee: 5%Management commission: 1.50%Minimal subscription: EUR1,000

The China Development Bank (CDB) is increasingly active internationally, the Financial Times reports. With its USD10bn investment fund, it is buying up stakes in private equity and hedge funds. It is now looking to Asian small and mid-sized businesses, the British newspaper reports.

John Paulson’s fund will get back more than half a billion US dollars under a new agreement under the Lehman Brothers liquidation plan, the Financial Times reports. The settlement, which was approved by 30 financial groups, will allow Paulson & Co. to recuperate USD550m due to its acquisition of bonds at a steep discount (about 7.3 cents on the dollar) at the time the bank went bankrupt. According to the final agreement, holders of Lehman bonds will receive 21.1 cents for each dollar in face value, compared with an initial offer of 17.1 cents. This is a welcome gain for Paulson’s fund (USD38bn in assets under management), which has seen several setbacks in recent months.

The German asset management firm Deka Immobilien on 5 July announced that it has acquired the “Vienne Rocher” construction project in Paris for a maximal price of EUR330m. The completion of construction of the 31,800 square metre structure in the 8th district of Paris is slated for the end of 2013, and two thirds of its area have already been leased to “a well-known French business.” The developer of the complex, which carries a Haute Qualité Environnementale (HQE) label, is Nexity. An LEED certification will also be applied for.The property will be added to the portfolio of the open-ended real estate fund Deka-ImmobilienEuropa.Meanwhile, Hochtief Projektenwicklung has sold the office property Lindely Carree (23,000 square metres in Hamburg) to Deka Immobilien for an undisclosed amount. The property will be added to the portfolio of the WestInvest ImmoValue fund, an open-ended real estate fund aimed exclusively at institutional investors.

As planned (see Newsmanagers of 1 July) the Finance Innovation competitiveness group on 5 July unveiled the first seed money fund for the Paris market, entitled Emergence. The incubation fund will bring together the top managers in the Paris market, to contribute seed money to young asset management firms based in France, or which are hoping to set up offices there, in order to accelerate their development in the first years of existence.Emergence will provide EUR25m to EUR50m to each management firm selected over a three year period; the partnership will last 7 to 10 years.The objective for Emergence is to offer investors a way to participate in the performance of incubated funds (without buying a stake in the capital of the firms), and a participation in future revenues from the asset management firms.Emergence will take the form of a contractual SICAV with sub-funds, which will allow for various investment themes (absolute return, long-only, SRI, corporate bonds, etc.), with appropriate managers contracted to manage them, one per sub-fund, says Alain Leclair, a member of the board of directors at Finance Innovation and honorary president of the French asset management association AFG.The first sub-fund of Emergence will be an absolute return product launched in September (while the second one is expected be launched in early 2012), with NewAlpha AM (an affiliate of OFI) as its contracted manager, due to its recognised experience in this area (incubation for third parties, profit sharing with funds, and OPCVM mutual fund products). About 30 initial incubation targets have been identified. At this stage, the level of capital aimed at for the first sub-fund is EUR150m to EUR250m. According to information obtained by Newsmanagers, commitments already total EUR150m.

On 21 June, the CNMV issued a sales license for Spain to DWS Investments (Spain) for the German-registered fund DWS Covered Bond (DE0008476532, EUR503.8m in assets as of the end of May), formerly known as DWS Select-Rent. The fund invests at least 70% of its assets in European covered mortgage bonds. The fund may also adopt an exposure of up to 30% to government or corporate bonds, while asset-backed securities (ABS) may represent up to 10%, and emerging markets bonds up to 15%. The team actively managed duration within a range from 0 to 6.5 years for a portfolio of 50-70 mortage bonds, Pfandbriefe and cédulas hipotecarias. Currently, duration comes to about 3 years, compared with a benchmark which stands at 4.2 years.

Merchant House Group has launched the Russian Phoenix Ucits fund, which adopts long/short positions on Russian equities, Citywire reports. The fund, which was launched with USD40m in assets under management, replicates the Spectrum Russian Phoenix fund, a long/short strategy offered by Spectrum Partners Group. The fund, launched on the firm’s UCITS platform, offers weekly liquidity. It is available in US dollars, euros, and pounds Sterling, with a minimal investment of USD20,000, EUR20,000, or GBP20,000. The fund is the first in a series of five; the other four will be launched by October this year.

The Swedish private equity group EQT Partners, which is partly owned by the Wallenberg family, has successfully raised EUR3.5bn in less than six months, the Financial Times reports, a sign that investors are seeking to place their funds with the top performing managers. EQT Partners has achieved 83% of its objective of EUR4.25bn for its sixth fund.

The German firm Commerz Real has announced, without disclosing the purchase price, that it has acquired the third building in the Edison Park Center (12,000 square metres), located in the Sesto San Giovanni office district of Milan, from Nexity. The property will be added to the portfolio of the open-ended real estate fund hausInvest, 6% of whose assets are invested in Italy.Commerz Real states that it has already concluded in the past transactions with Nexity in Madrid, Brussels and Milan.

The US group Prudential Financial has announced that it has concluded the sale of its global commodities activities to Jefferies Group for USD419.5m. The sale, announced on 7 April this year, includes FCM, Prudential Bache Commodities LLC, Prudential Securities LLC, Bache Commodities Limited, and Bache Commodities (Hong Kong) Ltd.

Jasper Gilbey Mrics is joining the French office of Henderson Global Investors as a Fund Manager, an addition to the team at Henderson Property France, the firm announced in a statement on 5 July.He will be primarily in charge of strategy and management of the AUB French Logistics fund, launched in 2005, and dedicated to industrial and logistical real estate in the major French cities. He will make timely interventions in the real estate investment portions of some funds and the management of other real estate funds, and will also contribute to the development of Henderson Property in France.Gilbey, 30, was previously Director of Invista REIM France.

The ratings agency Fitch has awarded a rating of AA- to BNP Paribas Securities Services. The rating reflects a high probability that BNP Paribas will receive support if required, given the integration of BNP Paribas Securities Services into the group, and the strategic importance of the unit to BNP Paribas. The rating has a stable outlook.

According to the 2010 annual report from Rothschild & Cie, which has not been rendered public, the firm as a whole earned net earnings for the part of the group in fiscal year 2010 of EUR85m, up more than 21% year on year, Les Echos reports. Earnings also increased 21% to EUR301m. These figures include all consolidated activities in France, particularly advising, which belongs to Rothschild & Cie, management, and private banking, at Rothschild & Cie Gestion, and the group’s other participations. Asset management activities generated earnings up 9.3%, to about EUR105m for 2010. In a complex market environment, “our company has also succeeded in earning positive inflows for products overall,” the bank writes. Average assets under management have thus “returned to all-time highs, at nearly EUR19bn.”

According to the 2010 annual report from Rothschild & Cie, which has not been rendered public, the firm as a whole earned net earnings for the part of the group in fiscal year 2010 of EUR85m, up more than 21% year on year, Les Echos reports. Earnings also increased 21% to EUR301m. These figures include all consolidated activities in France, particularly advising, which belongs to Rothschild & Cie, management, and private banking, at Rothschild & Cie Gestion, and the group’s other participations. Asset management activities generated earnings up 9.3%, to about EUR105m for 2010. In a complex market environment, “our company has also succeeded in earning positive inflows for products overall,” the bank writes. Average assets under management have thus “returned to all-time highs, at nearly EUR19bn.”

According to sources familiar with the matter, the Wall Street Journal reports, Warren Buffett’s firm Berkshire Hathaway has joined a consortium put together by Centerbridge Partners and Leucadia National Corp to acquire CitiFinanial (consumer credit) from Citigroup. The transaction may total over USD8bn.

In keeping with an agreement signed two months ago, BNY Mellon has closed its acquisition of the wealth management activities of Talon Asset Management (see Newsmanagers of 2 May), and has appointed Michael DiMedia as regional president of its new location in Chicago.The transaction, whose financial details have not been disclosed, adds more than USD800m to assets at BNY Wealth Management, which now total USD171bn.The former Talon partners Terry Diamond, Alan Wilson and Edwin Ruthman are joining BNY Mellon Wealth Management in Chicago. They will be accompanied by Steven Appell, newly appointed as senior director, representing family offices in the region.

The Norwegian sovereign fund (Government Pension Fund - Global) on 5 July announced its first acquisition in France, with the acquisition from the Axa group of a 50% stake in seven large real estate properties in Paris and the inner suburbs, for a total of EUR702.5m.The seven properties, which had previously been 100% owned by Axa, and most of which are office properties, represent a total of 156,000 square metres, located at prestigious addresses near the Champs-Elysées, the major boulevards, and the business district at La Défense, the public fund says in a statement.It is the second investment in real estate for the fund, and its first in France, the Norwegian central bank says in a statement. The first real estate investment for the Norwegian fund was made in London in April, with the acquisition of 25% of the Crown Estate Regent Street portfolio.Assets in the Norwegian fund as of the end of March totalled NOK3.102trn, about EUR396bn, their highest level ever.

Lombard Odier Investment Managers (LOIM) has recruited two key employees as additions to its sales team in Europe, with the goal of developing its activities by forging closer ties to clients.Frédéric Cruzel has been appointed as head of sales for France at LOIM, based in Paris, and Donato Savatteri as head of sales in Italy, in a new office based in Milan, pending the approval of the relevant authorities. Cruzel, 49, was previously deputy director of sales for France at Amundi Asset Management. The most recent position occupied by Savatteri was that of head of sales at Franklin Templeton Investments in Italy.Both will report to Marius Wuergler, head of European sales. Géraud Dambrine will now focus on strategic clients of the management firm in Europe, and will remain as CEO of Lombard Odier Darier Hentsch & Cie Gestion France S.A.Cruzel will have the assistance in his new role of Patrick Lajoinie, who plays a strategic role in the development of LOIM’s activities in France. Savatteri will work with Alessandro Fonzi, who plays a determining role in the development of LOIM’s strategically important activities in Italy, and is based in the firm’s London offices.As of the end of March, LOIM, the institutional management unit of Lombard Odier Darier Hentsch & Cie, whose headquarters are in Geneva, managed over EUR28bn for its clients.

According to a cooperation agreement signed with sole Berlin’s asset management firm, Landesbank Berlin Investment GmbH (LBB-Invest), the Frankfurt-based asset management firm Acatis Investment will become the advisor to the LBB-Invest VermögensManagement program, a unit-linked wealth management formula. The head of advising activities for LBB-Invest will be Hendrick Leber, CEO and founder of Acatis.The product will be made available in two variants: a prudent version, with at least 50% invested in bonds, and a dynamic version, for which the percentage invested in bonds may not fall below 30%.

The Bavarian wealth management firm Wilhelm von Finck AG (based in Grasbrunn) on 5 July announced that it is merging its activities with immediate effect with those of the Frankfurt-based Deutsche Family Office GmbH. The move allows the firms to construct an independent actor which remains within the orbit of, and the powerful support of, the Deutsche Bank group. The product range from the new entity will be aimed primarily at high net worth retail investors with an entrepreneurial background, and to charities in the German-speaking countries.The new group, which manages over EUR4bn in assets, will be lead by the heads of the two entities it is being created from: Stefan Freytag, chairman of the board at WvF, and Laus Kluder, CEO of Deutsche Family Office.

According to a survey of 44 fund managers, German asset management firms have become increasingly critical of IPOs, and 90% of them are planning to analyse businesses which turn to the open markets more critically than in the past, the Frankfurter Allgemeine Zeitung reports, adding that foreign institutional investors will pick up the slack.German asset managers recommend to candidates for IPOs that they go on “pre-IPO roadshows,” in order to spread the word to investors. Three quarters of respondents also recommend that businesses get an independent valuation before turning to banks to set up IPOs.Fund managers estimate that the new introductions should total at least EUR150m and 40% float.Four fifths of respondents thing that failures of IPOs in the past can be blamed on an unconvincing equity story. Managers are particularly sceptical of companies launched on the markets by private equity firms.

The Swiss private bank Wegelin on 5 July confirmed that it is going to part with its US clients as a result of new tax regulations in preparation in the United States, which it estimates will make it unprofitable to serve these clients, AGEFI Switzerland reports. “With the entry into force of the new rules, known as FATCA (Foreign Account Tax Compliance Act), in 2013, the question must be asked as to whether it is profitable to have US clients due to the considerable regulatory work involved,” Albena Björck, a board member at the firm, has told AFP. “If we can no longer conduct activities in a manner which is acceptable in terms of costs and revenues, we will need to part with them,” she adds, confirming reports that had appeared in the daily newspaper Tages-Anzeiger.

A year ago, the hedge fund management firm FrontPoint Partners had USD10bn in assets. Now, its assets have fallen to USD1.5bn, the Wall Street Journal reports. In the meanwhile, in November, there was an insider trading scandal related to a French doctor. The drop in assets shows that although FrontPoint was not itself charged with wrongdoing in the case, pension funds have absolutely no tolerance for insider trading. The flagship fund and nine other smaller funds have had to be liquidated.

In one of the first cases filed under the 2010 Dodd-Frank law, which forbids companies from engaging in retaliations against whistleblowers, the Wall Street Journal reports, Roseanne Ott, former manager of the Alger Health Sciences fund, has filed a lawsuit in New York against Fred Alger Management for authorising CEO Daniel Chung and other directors to make profits on their own behalf, in advance, on the same trades that the fund she managed was about to make (front-running). The directors had required that the manager declare her plans ahead of time, and passed them by other portfolio managers for approval before she was allowed to make the trades for the fund. The private trades damaged the performance of the fund, and profited the other portfolio managers, the case claims.

The Swiss group Lombard Odier is seeking to sign new partnerships with financial intermediaries in Japan, to double its assets under management in the country in five years to JPY200bn (CHF2bn), the news agency Bloomberg reports. The Geneva bank is already cooperating with four Japanese organisations, including Shizuoka Bank Ltd. and Yamaguchi Financial Group Inc, and has signed similar agreements with five other banks, Norbert Joue, chairman of the Tokyo office of Lombard Odier, explains.

Stoxx Limited on 5 July announced the launch of the iStoxx World Select index, a basket of indices which includes the Euro Stoxx 50, Stoxx USA 50, and Stoxx Japan 50, and which provides access to the world’s major markets in a single index. Within the basket of indices, exposure is distributed between the three underlying indices, which makes it possible to reduce the generally excessive influence of US companies in the weighted global indices by market capitalisation. The index is rebalanced on a quarterly basis, in March, June, September and December.

In second quarter 2011, the number of initial public offerings worldwide rose 29% compared with the previous quarter, to 378 offerings, according to the quarterly barometer published by Ernst & Young. Capital raised has also increased 39% quarter on quarter, to USD64.6bn, a level not seen since second quarter 2007 (USD94.6bn). In the first six months of the year, there were 672 offerings, which raised USD111.1bn, an increase of 10% compared with first quarter 2010. On European markets, capital raised between April and the end of June 2011 were up 534% compared with the previous quarter, to USD17.7bn, largely, it is true, fur to the initial public offering of Glencore in London (USD10bn). The number of operations has also increased, though more modestly, by 76% quarter on quarter, to 95. The US stock markets in second quarter raised USD13.8bn, in 46 offerings. There were 28 operations on the NYSE, totalling USD9.9bn, an increase of 177% compared with second quarter 2010. But emerging markets continued to drive the market in second quarter, with 67% of total transactions, and 55% of total capital raised. BRIC markets registered 125 offerings, totalling USD24.8bn, 34.8% of the total raised in second quarter. Asian issuers, for their part, raised USD25.3bn, 39% of the total, in 173 operations. 79% of initial public offerings worldwide in second quarter were within their initial price range, compared with an average over ten years of 74.3%. Only 13% of IPOs went ahead below their initial price range, and 8% above. In other words, nearly 9 out of 10 offerings took place within or above their initial price range.