Fitch Ratings has affirmed Frankfurt-based SEB Investment GmbH’s (SEB AM) Asset Manager Rating at ‘M2', for its real estate investment operations."The rating affirmation reflects the company’s operational high quality and the depth of its disciplined due diligence and property management procedures», says the rating agency. However Fitch sees currently «an increased level of business risks resulting from the situation of SEB AM’s flagship investment vehicle, SEB ImmoInvest (largely retail-oriented; EUR6.3bn in net Assets Under Management (AUM), which had to suspend share redemptions for a second time in May 2010". The rating also factors in the continued uncertainty facing the entire open-ended real estate funds (OEREFs) industry in Germany. A new regulatory framework is currently proposed through the legislative process, to be enforced in early-2012, which could dampen investors’ interest for these investment vehicles - in effect increasing the risk on SEB AM’s business model and growth strategy, adds Fitch.

p { margin-bottom: 0.08in; } In November, money market funds on sale in Sweden saw net outflows of SEK2.6bn, according to statistics from the Swedish investment fund association Fondbolagens Förening. The outflows were just barely offset by net subscriptions of SEK1.6bn to diversified funds, SEK485m for equities funds, SEK151m for bond funds, and SEK232m for hedge funds. For equities funds, investor interest was largely concentrated on North America and Asia. As of the end of November, the Swedish fund sector represented SEK1.869trn, of which SEK1.103trn were in equities funds.

p { margin-bottom: 0.08in; } The Chinese management firm Da Cheng International is planning to launch two ETFs on the Hong Kong stick exchange by Christmas. They will be the Da Cheng CSI Hong Kong Private-owned Mainland Enterprises Tracker and Da Cheng CSI Hong Kong State-Owned Mainland Enterprises Tracker. Asian Investor reports that the funds may be launched on 20 December. They will offer investors extended exposure to firms listed in Hong Kong.

p { margin-bottom: 0.08in; } Financial News reports that Jeremy Lang and Bill Pattison, UK equities managers at Liontrust until January of this year, will launch three Irish UCITS-compliant funds in first quarter 2011. The products, including a global long/short equities product, will be created through their new firm Ardevora.

p { margin-bottom: 0.08in; } On 10 December, HSBC launched the HSBC MSCI World ETF on the London Stock Exchange. It is an Irish-registered product which uses optimised replication, investing in some of the approximately 1,600 underlying securities. Characteristics Name: HSBC MSCI World ETF ISIN code: IE00B4X9L533 Total TER: 0.35%

p { margin-bottom: 0.08in; } The Basel Committee on 10 December published a guide dedicated to backtesting internal valuations of exposure to counterparty risks, entitled “ Sound Practices for backtesting counterparty credit risk models.” The document reviews regulatory requirements and lays out recommendations to strengthen validation of internal models for counterparty risk evaluation. This will eventually make it possible to improve the financial solidity of banking establishments and the financial system as a whole.

p { margin-bottom: 0.08in; } The Swiss group EFG International on 10 December announced two appointments to its management. Alain Diriberry becomes CEO of EFG Bank in Switzerland, effective from 1 January 2011. Lukas Ruflin has held this position since January 2010. After setting up an ambitious new organic growth strategy for the bank, he will concentrate wholly on his mission as deputy CEO of EFG International. Diriberry will dedicate his time and energy to the management and growth of EFG Bank. Since July 2008, Diriberry had been chief operating officer of EFG International, and will remain a member of its executive board. Mark Bagnall will on 1 January succeed Diriberry as chief operating officer of EFG International, and will take a place on the executive board of EFG International. Bagnall has since December 2008 been chief technology officer for EFG International worldwide. He was previously head of private client technologies and global wealth management at Merrill Lynch (London and Geneva).

p { margin-bottom: 0.08in; } Ahorro Corporación Financiera (ACF), a financial group consisting of 42 small and mid-sized savings banks, will lay off about 200 people out of total staff of 752, equivalent to 26.5% of its personnel, Cotizalia reports. The operation will take place through a general services outsourcing plan, according to sources familiar with the matter. It will not result in cold layoffs, as the staff concerned will be transferred to the outsourcing companies. In reality, total staff is already lower than the 752 recorded at the beginning of 2010, as there have been assisted departures, but no definite figure is available at present. ACF currently manages EUR6.4bn, 50% less than at the end of 2007.

p { margin-bottom: 0.08in; } Credit Suisse Private Banking has announced the opening of its first family office in Singapore. The group says in a statement that it has appointed Bernard Fung as head of family office services in Singapore. Fung, who will begin in the position on 3 January, will be in charge of development of family office activities for ultra-high net worth (UHNW) clients and their families. Before joining Credit Suisse, Fung was chief executive of Innotech Advisers, the investment firm and family office of Lord Sainsbury of Turville.

p { margin-bottom: 0.08in; } On 9 December, ProShares announced the launch of what it says is the first long/short ETF fund based on the RAFI index (Research Associates, Fundamental Index), the ProShares RAFI long/short, or RALS, which was admitted to trading on the NYSE Arca platform. The ETF replicates the performance of the RAFI US Equity Long/Short index before fees and commissions. TER is set at 0.95%.For the launch of the product, ProShares has borught in a new marketing slogan: “ProShares, the Alternative ETF Company.” The firm explains that ProShares was the first provider of leveraged ETF funds (reverse or not), and is a global leader in this area. Last year, ProShares launched a 130/30 ETF with Credit Suisse.As of 9 December, assets at ProShares totalled USD25bn in 112 ETF funds.

p { margin-bottom: 0.08in; } On Friday, Irving Picard, the court-appointed trustee for Bernard L. Madoff Securities, filed a civil suit in the Manhattan bankruptcy court to recuperate USD19.6bn from Sonja Kohn, head of the Medici bank in Vienna, who was a central personality in the fraud, the Wall Street Journal reports. According to Picard, the complicity between Kohn and Madoff lasted 23 years, during which time the banker channeled more than USD9.1bn into the Ponzi scheme.

p { margin-bottom: 0.08in; } Mark, one of the sons of Bernard Madoff, was found hanged in his apartment in Soho in New York on Saturday, the Frankfurter Allgemeine Zeitung reports. The lawyer for the deceased has confirmed that it was a suicide, on the second anniversary of the arrest of Bernard Madoff.

p { margin-bottom: 0.08in; } The British M&G group on 13 December announced the launch of the M&G European Inflation-Linked Corporate Bond fund in France, which it describes as “the first European inflation-linked corporate bond fund available to retail and institutional investors.” Unlike the inflation-linked government bond market, the inflation-linked corporate bond market is quite small. Investors may buy bonds protected against inflation risks from companies such as Veolia, but the choice is very limited, says M&G, which predicts that eh market will grow, particularly if inflation rises again. The fund, launched in the UK on 16 September this year, offers access to a selection of bonds which are expected to perform well in times of high or rising inflation. It aims to protect the capital and income of investors against rising prices by generating performance exceeding inflation over the long term. Major characteristics Name: EUROPEAN INFL LKD CORP BD EUR A NET ACC ISIN code (A class shares): GB00B3VQKJ6 Minimal subscription: EUR1000 Front-end fee: 3.25% Annual management fee: 1%

p { margin-bottom: 0.08in; } The German chancellor Angela Merkel and the French president Nicolas Sarkozy on 10 December in Fribourg, at a meeting of French and German ministers, rejected the idea of creating joint bonds for Euro zone countries, with the French president adding that it was not impossible to consider the possibility again in the future if European integration progresses. The idea of issuing European bonds is defended by the president for finance ministers in the Eurogroup, Luxembourg’s Jean-Claude Juncker, and supported by several Mediterranean countries. “On the question of Euro-bonds, I have said that the mutualisation of rates … would not help us much,” said Merkel. The coherence of economic policy has to be increased. “This does not mean mutualising risks,” she added. Sarkozy stated that “if this means creating debt for all of Europe, it would have the effect of making each government less responsible, when what we want is precisely the reverse.” “If one day there is more integration and a much more harmonised economic policy, could we talk about it again? Maybe. But in the current state of affairs, the position of France is precisely the same as the position of Germany,” he added.

p { margin-bottom: 0.08in; } According to reports in the Börsen-Zeitung, European commissioner Michel Barnier will soon present the main lines of the future UCITS V directive, with the ambitious objective of passing it in the second half of 2011.The bill will stipulate that bonuses should be based on long-term performance, and not incentivate the generation of short-term results.In addition, management and custody of assets will in the future be strictly separated betweem the manager on one hand, and the depository bank on the other.

p { margin-bottom: 0.08in; } The monthly statistics from BlackRock confirm each month that iShares remains not only the largest provider of ETFs in Europe, with assets as of the end of November of USD94.2bn, compared with USD98.2bn as of the end of October, but also that it has the largest net subscriptions, with USD12bn in January-November, out of a total of USD41.2bn for all ETFs listed in Europe.db x-trackers (Deutsche Bank), for its part, continues to have larger inflows than Lyxor Asset Management (Société Générale), with USD8.4bn compared with USD5bn, but remains in third place in terms of assets, with USD45.1bn, compared with USD47bn as of the end of October. As of the end of November, Lyxor had USD47.3bn in assets, compared with USD49.9bn one month earlier.In total, assets in European ETFs as of 30 November (1,052 products listed 3,577 times, compared with 1,048 funds listed 3,512 times) totalled USD261.8bn, compared with USD274.1bn one month earlier. Since the beginning of the year, assets under management have increased 15.4%, compared with 20.8% as of the end of October.BlackRock also states that since the beginning of 2010, six providers have launched their first ETFs, while one management withdrew from the sector, and four others are planning to launch their first products soon.

p { margin-bottom: 0.08in; } Schroders announced on Friday, 10 December that it has recruited Nicolaas Marais as Head of Multi-Asset Solutions from March 2011. He is currently Global Head of Active Portfolio Management at BlackROck in the Multi-asset client solutions group. He will become a member of the management committee group at Schroders, and will report to Michael Dobson, Chief Executive.

p { margin-bottom: 0.08in; } Due to prevailing uncertainty which makes overly set convictions impossible, Aberdeen Asset Management now has a positioning which is both voluntaristic and prudent. Such, at least, is the opinion of Michael C. Turner, head of global strategy and asset allocation, who spoke in Paris on 10 December.“We think 2011 will be dominated for us by two issues: the budgetary situation, both outside and inside the Euro zone, and potential tightening of monetary policies in Asia, which will be more of a risk for second half,” the specialist says.In this environment, Turner is preferring total return instruments, which combine revenue and capital appreciation while offering higher performance than cash and government bonds. For the first half, he favours high-quality credit and real estate markets. However, he has not ruled out the possibility that equities may see a slowdown in their growth (where there is growth), but he remains long on equities, as he has been since September of this year. Currently, multi-asset class portfolios are 65-70% oriented to equities and 15% to bonds. In these two asset classes, Aberdeen assigns an important allocation to emerging markets, which are the engine of global economic activity.The portfolio also includes 5-6% funds of hedge funds, with a particular interest in fixed income arbitrage, while infrastructure receives an allocation of 1-2%, a proportion which is “on the rise.” For commodities, exposure is about 2% to 3%, of which 1% is for gold, where the head of asset allocation has not ruled out the possibility of a price of USD2,000 per ounce, but predicts a consolidation phase in the meantime.Outside mandates, Aberdeen manages a UK-registered multi-asset class fund, the Aberdeen Multi-Asset Fund (GB0031682171), which had GBP609m as of the end of October, and the Aberdeen Global III Multi Asset Asia Pacific (LU0513837459), with USD205.4m. The Scottish management firm is planning to register a Luxembourg version of its OEIC fund.Aberdeen Asset Management will also soon announce the launch of an emerging markets corporate bond fund on 16 December in the UK, for which a sales license will later be sought in France.

p { margin-bottom: 0.08in; } In India, the wealth management sector is in a phase of rapid growth, according to a study published recently byt the research and advising agency Celent (“Key Trends in the Indian Wealth Management Market: Market Dynamics at Work.”) The study reveals that the organised wealth management sector has grown swiftly, as opposed to the informal sector, which now accounts for a market share of about 60%, compared with 40% in 2007. The informal sector may shrink to 20% by 2014, Celent estimates. The Indian wealth management market, which had USD780bn in 2010 in terms of assets under management, will top UDS1trn in 2012, and then expand to USD1.2trn by 2014. In terms of segmentation, the UHNW (ultra-high net worth) segment of clients with assets of over USD10m, will fall from 28% of total assets as of 2007 to 22% in 2014, while the HNW (high net worth) segment (USD1m-USD10m), will increase to 28% from 20% in 2007. While the mass market segment (USD5,000 to USD25,000) will reach 25% in 2014, up from 17% in 2007, the mass affluent segment (USD25,000 to USD1m) will fall to 25% from 35% seven years earlier. Family offices, including those dedicated to the UHNW segment, are undergoing unprecedented growth: there are now 450, up from about 300 in 2007.

Au 30 novembre, le total mondial des actifs gérés dans les ETF ressortait d’après BlackRock à 1.231 milliards de dollars soit 8 milliards de moins que fin octobre. Il reste néanmoins supérieur de 18,8 % à son niveau de fin 2009 (1.036,1 milliards de dollars).En revanche, le nombre d’ETF s’est accru de 13 unités en un mois, à 2.422 fonds, cotés 5.413 fois (contre 5.335 fin octobre), ce qui correspond à une hausse de 24,7 % depuis le début de l’année, avec 530 lancements et 51 radiations (lire notre article du 10 novembre). Depuis janvier, 28 nouveaux promoteurs d’ETF ont lancé leur premier produit tandis que trois autres se sont retirés du secteur et que 41 envisagent de lancer leur premier ETF.Il existe actuellement des projets de lancement pour 1.046 ETF.BlackRock estime que les souscriptions nettes des ETF et des ETP aux Etats-Unis et en Europe ont représenté 14 milliards de dollars en novembre et 145,5 milliards pour les onze premiers mois de 2010.Concernant le trio de tête, iShares (BlackRock) conserve une confortable avance avec 549,8 milliards de dollars d’encours et 468 ETF, pour une part de marché de 44,7 % (contre 556,1 milliards et 44,9 % fin octobre). State Street Global Advisors (SSgA) reste en deuxième position avec 171,1 milliards et 13,9 % du marché (170,7 milliards et 13,8 %), devant Vanguard, avec 141,2 milliards de dollars et 11,5 % du marché (135,2 milliards et 10,9 %).

La Société Générale a nommé Christoph Roos au poste nouvellement créé de Head of Swiss Insurance & Pension Funds Clients, département Cross Asset Solutions avec effet au 1er décembre. Christoph Roos s’occupera dans ses nouvelles fonctions du suivi et des conseils stratégiques aux clients institutionnels, en particulier assurances et caisses de pension en Suisse, a précisé la société vendredi dans un communiqué.Christoph Roos est passé de BNP Paribas à la Société Générale, où il s’occupait depuis 2000 de la direction du team Fixed Income Derivatives Sales. Il travaillera à Zurich et sera rattaché à Benoît Petit Head of Global Markets Suisse, et à Eric Viet, Head of Sales for Pension Funds & Insurance.

Le groupe suisse EFG International a annoncé le 10 décembre deux nominations au sein de sa direction. Alain Diriberry deviendra directeur général d’EFG Bank en Suisse, avec effet au 1er janvier 2011. Lukas Ruflin a assumé cette fonction depuis janvier 2010. Après avoir mis en oeuvre une nouvelle stratégie ambitieuse de croissance organique pour la banque, il se concentrera entièrement sur sa mission de directeur général adjoint d’EFG International. Quant à Alain Diriberry, il se consacrera à la gestion et à la croissance d’EFG Bank. Alain Diriberry était, depuis juillet 2008, directeur opérationnel d’EFG International et restera membre de son comité exécutif. Mark Bagnall succédera, le 1er janvier 2011, à Alain Diriberry en tant que directeur opérationnel d’EFG International, et prendra place au Comité exécutif d’EFG International. Mark Bagnall occupe, depuis décembre 2008, la fonction de directeur technologique d’EFG International à l’échelle mondiale. Il a été précédemment responsable de la technologie Clientèle privée et Gestion de fortune sur le plan mondial à Merrill Lynch (Londres et Genève).

Selon l’Agefi qui reprend les chiffres d’Eurekahedge, l’encours des fonds de fonds alternatifs basés à Genève a chuté de 60% à fin octobre par rapport à la semaine précédant l’arrestation de Bernard Madoff le 11 décembre 2008, il y a tout juste deux ans, pour s'élever à 14,8 milliards de dollars. Pour Drago Indjic, responsable de projet auprès du centre de recherche sur les hedge funds de la London Business School, interrogé par Bloomberg, «les fonds de fonds ne vont ni exploser ni imploser, mais lentement perdre de leur substance, mis à mort par des milliers de coups successifs», rapporte le quotidien.

Comme celle de toutes les maisons, la gestion d'actifs de Lombard Odier n'a pu être entièrement à la hauteur des attentes de ses clients pendant la secousse sismique qui a désorienté les marchés financiers. Mais, apparemment, la maison genevoise a su tirer les enseignements de cette expérience, surtout en adaptant son approche tactique.

Le groupe financier constitué par 42 caisses d'épargne de taille petite ou moyenne, Ahorro Corporación Financiera (ACF), va supprimer environ 200 emplois sur 752, soit 26,5 % de son effectif, rapporte Cotizalia.Cette opération s’effectuera au travers d’un plan d’externalisation des services généraux, selon les proches du dossier. Elle ne devrait pas se traduire par des licenciements secs, les personnels concernés devant être transférés chez les sous-traitants. A vrai dire, l’effectif total est dejà inférieur aux 752 personnes du début 2010, parce qu’il y a eu des départs aidés, mais aucun chiffre fiable n’est pour l’instant disponible.ACF gère actuellement 6,4 milliards d’euros, soit 50 % de moins que fin 2007.

Tim McCarthy, président-directeur général de la société japonaise Nikko Asset Management, indique au Financial Times que l’objectif de son groupe est d’augmenter ses actifs de 120 milliards de dollars à mi-novembre à 200 milliards dans les trois ans puis à 250 milliards dans les 5 à 7 ans qui viennent. Ces propos interviennent alors que Nikko AM vient de procéder à deux acquisitions, dont celle de la gestion d’actifs de DBS.

Au premier trimestre 2011, le Fonds européen de stabilisation financière (FESF) va emprunter 5 milliards d’euros sur les 8 milliards prévus pour la premier trimestre, ce qui servira à financer des crédits à l’Irlande pour 17,7 milliards d’euros, rapporte la Frankfurter Allgemeine Zeitung. De fait, compte tenu des exigences de sur-nantissement des agences, le FESF sera obligé de lever 25 milliards d’euros pour fournir les 17,7 milliards évoqués.

Selon La Tribune, Source, la plate-forme de distribution d’ETF, et Pimco ont signé un partenariat portant sur le lancement et la distribution d’ETF obligataires à destination du marché européen. Dès janvier 2011, les deux maisons distribueront les Pimco Source Fixed Income ETFs et l’offre comprendra des ETF de trésorerie de court terme et des produits de long terme sur différents sous-jacents.

Chaque mois, les statistiques de BlackRock confirment qu’iShares reste non seulement le plus important promoteur d’ETF en Europe, avec un encours à fin novembre de 94,2 milliards de dollars contre 98,2 milliards fin octobre. C’est également celui qui enregistre les plus fortes souscriptions nettes, avec 12 milliards de dollars pour janvier-novembre, sur un total de 41,2 milliards pour l’ensemble des ETF cotés en Europe.db x-trackers (Deutsche Bank) continue pour sa part à collecter davantage que Lyxor Asset Management (société Générale), avec 8,4 milliards contre 5 milliards, mais reste en troisième position pour les encours avec 45,1 milliards de dollars (contre 47 milliards fin octobre). A fin novembre, Lyxor AM affichait en effet 47,3 milliards de dollars d’actifs, contre 49,9 milliards un mois plus tôt.Au total, l’encours des ETF européens au 30 novembre (1.052 produits cotés 3.577 fois contre 1.048 cotés 3.512 fois) se situait à 261,8 milliards de dollars contre 274,1 milliards un mois plus tôt. Depuis le début de l’année, les actifs gérés affichent une augmentation de 15,4 % (contre 20,8 % à fin octobre).BlackRock précise aussi que, depuis le début de 2010, six promoteurs ont lancé leur premier ETF tandis qu’un gestionnaire s’est retiré du secteur et que quatre autres prévoient de lancer prochainement leur premier produit.

Le 9 décembre, ProShares, a annoncé le lancement de ce qu’il indique être le premier ETF long/short sur l’indice RAFI (Research Associates, Fundamental Index), le ProShares RAFI long/short ou RALS qui a été admis à la cotation sur la plate-forme NYSE Arca. Cet ETF réplique la performance de l’indice RAFI US Equity Long/Short avant frais et commissions. Le taux de frais sur encours est fixé à 0,95 %.A l’occasion du lancement de ce produit, ProShares a mis en place un nouveau slogan de marketing, «ProShares, the Alternative ETF Company». De fait, explique la société, ProShares a été le premier promoteur d’ETF à effet de levier (inversés ou non) , domaine dans lequel il est le leader mondial. L’an dernier, ProShares avec lancé avec Credit Suisse un ETF 130/30.Au 9 décembre, l’encours de ProShares se situait à 25 milliards de dollars répartis sur 112 ETF.