p { margin-bottom: 0.08in; } In the future, no business will be able to get by without a good and healthy sustainable development strategy, according to the findings of a global survey by Accenture of heads of businesses that have signed up to the United Nations Global Compact. Despite economic turbulence on a scale not seen for a century, the engagement of businesses in sustainable development remains very high: 93% of CEOs estimate that sustainable development will represent an essential ingredient in the success of their business in the next few years. The financial crisis has further increased the importance of sustainable development for 80% of business leaders. 81% of heads already say that sustainable development is an integral part of their strategy, compared with only 50% in 2007. As reasons for their engagement in sustainable development, nearly three quarters of heads point to brand reputation and trust. Then come potential for growth, cost reduction, employee motivation, and client expectations. In the next five years, new technologies will play a central role in the deployment of new sustainable objectives, more than 90% of business heads say.
The Swiss banking group Syz & Co announced on Wednesday, 20 October that it has integrated its institutional management offerings within the new single division Syz Asset Management. Syz AM, led by Patrick Bédat, will include management of all institutional mandates from the group, including both traditional and alternative management, as well as investment funds. Syz Asset Management, created early this year, took off in spring, with the integration of the institutional bond management activities in Swiss francs from State Street Global Advisors (see Newsmanagers of 21/04/2010).“On the one hand, this is a recognition of the importance of activities dedicated to institutionals, and a response to demand from those clients, who still prefer to have a dedicated and independent entity to respond to its needs,” explains Ricardo Payro, director of communications and spokesman for Syz & Co. The bringing together of traditional and alternative management at Syz AM is a response to a need for polyvalency in management services to institutional investors. “We are currently seeing a convergence between the world of traditional management and that of alternative management, with strong demand from institutionals for absolute return products,” Payro addsSyz & Co will also continue its development in Europe. In France, Xavier Guillon, who has recently been appointed CEO of the Oyster Funds investment fund division (see Newsmanagers of 133/10/2010) is planning to strengthen the presence of the group in France, where the opening of an office is planned. “In one year, we are planning either to partner up with a local management firm as a first priority, as we did in Austria, Italy and Spain, or, if we find the right partner, to go it alone,” says the spokesman for Syz & Co.
p { margin-bottom: 0.08in; } On 6 October, Aviva Investors North America notified the SEC of the launch of the institutional funds Aviva Investors Core Aggregate Fixed Income and Aviva Investors High Yield Bond, for which management fees will total 0.30% and 0.50%, respectively. Total expense ratio (TER) is limited to 0.50% and 0.60%, respectively. Minimal subscription is set at USD1m for each fund. The former (150-250 positions) will invest at least 80% of its assets in bonds; the latter, at least 80% in high yield bonds.
p { margin-bottom: 0.08in; } The French asset management firm Seven Capital Management is launching Seven Fixed Income Fund, an absolute return bond fund that complies with UCITS III. The new fund may invest in all bond markets worldwide, in the context of a volatility risk centred on about 4%. The quantitative management process is derived from that of the Global Technical Asset Allocation (GTAA) and Global Risk Asset Allocation (GRAA), developed by Seven Capital Management. “The Seven Fixed Income Fund uses allocation techniques to ensure the optimal balance of risks between bond markets, as well as long and short positions, in order to maximise returns on a portfolio with a clear and transparent investment universe; dynamic rebalancing of the portfolio as a function of the evolution of market risk components; use of investment supports in each bond market with maximal liquidity, using primarily futures markets; seeking the best opportunities from a global universe,” says the product’s presentation document. The fund has daily adjustment of the strategic allocation by risk budget, per market. The fund has a volatility objective of 4%, max draw down of 4%, and a Sharpe ratio objective of about 1. The fund will develop in an average sensitivity range of 0 to +10. However, depending on the evolution of the bond markets, it may range from -25 to +25.
A new independent management firm has been born in France. Urban Premium, specialised in real estate in city centres, obtained a license from the French market supervisory authority, the Autorité des marchés financiers (AMF) in June. It has social capital of EUR1m, which is directly or indirectly controlled by its 4 partners, including Franck Temim, president.The management firm will operate in commercial real estate via OPCI funds. Two products have already applied for licenses in 2010. The range will be managed and directed by Lionel Nicholas and Nino Amor.Urban Premium also deals in residential properties via several SCPI funds (including Urban Patrimoine).
p { margin-bottom: 0.08in; } For third quarter 2010, BlackRock on 20 October reported net profits of USD551m, compared with USD317m in April-June, and USD697m in the corresponding period of last year, with an operating margin of 33.8%. For the first nine months of the year, net profits have risen 127% to USD1.406trn, compared with USD619m.Total assets as of 30 Seoptember came to USD3.446trn, comapred with USD3.1506trn as of the end of June, and USD1.4348trn twelve months previously. BlackRock states that the total as of the end of September includes USD1.756trn in net assets related to acquisitions and active quantitative performance. In third quarter, net inflows totalled USD50.1bn, despite USD4.3bn in net distribution for assets advised. Long-term products attracted USD52.6bn, and cash management brought in USD1.8bn. As of 15 October, the pipeline of new contracts already financed or in the course of being financed came to USD46.1bn, of which USD40.7bn was for long-term products, and USD5.4bn for cash management.BlackRock states that AUM increased over the quarter by USD87.5bn for bonds, to USD1.168trn, while for equities assets rose by USD180.2bn, to USD1.563trn. Multi-asset class assets gained USD22.4bn, to USD170.6bn, while alternative management products rose by USD4.2bn to a total of USD105.7bn.
p { margin-bottom: 0.08in; } The State Street group has announced the launch of a new ETF transaction processing service. With the system, participants vouched for by market makers may invest in ETFs and identify the operations in the open market environment which interest them. The transactions will then be segregated and processed directly by State Street.
p { margin-bottom: 0.08in; } Genworth Financial Inc has acquired the Californian alternative management firm Altegris for about 1.75% of assets under management, or USD35m on assets of USD2bn. The acquisition price will be confirmed at the time of the acquisition, by the end of the year, and may be increased in an amount tied to performance. Genworth Financial Wealth Management (GFWM) and Altegris will together have assets of USD23bn.
p { margin-bottom: 0.08in; } The new German UCITS-compliant fund Estlander & Partners Freedom Fund UI, launched by Universal-Investment with the Finnish trading specialist Estlander & Partners, replicates the concept used for the Estlander & Partners Freedom Fund in a UCITS-compliant format. The fund invests in four asset classes (equities indices, interest rates, currencies and commodities indices). Assets at Estlander total about USD600m.The managed futures management technique developed by the Finnish firm on the basis of a quantitative analysis of market prices and fundamental information will result in the purchase or sale of futures and options which allow the investor to profit from rising as well as falling markets through total return swaps which replicate the evolution of the Global Systematic index from Estlander & Partners, which uses the services of the New Edge platform. The strategy has generated average annual performance of 14% over the past 19 years, with a fluctuation margin of 16%.CharacteristicsName: Estlander & Partners Freedom Fund UIISIN code: DE000A1CSUT2 (retail A shares)DE000A1CSUV8 (institutional C shares)DE000A1CSUW6 (institutional D shares)Front-end fee: 5% maximum (A)1% maximum (C)0% currently (D)Management commission: 2.25% (A)1.5% (C)1.25% (D)Performance commission: 20% with high watermarkMinimal initial subscription: 1 share (A)EUR1m (C)EUR5m (D)
Guernsey’s fund servicing industry fell by less than 4% to reach USD278.7 billion at the end of June 2010, with the total number of funds and subfunds standing at 1,949, says Lipper.Encouragingly non-domiciled funds serviced in Guernsey rose again to reach US$42.3 billion. For fund administration services of both domiciled and non-domiciled funds, Northern Trust is the largest administrator by total net assets (USD47.7 billion).Private equity/venture capital funds now account for 47% of assets domiciled on the Island, with USD110.9 billion.
p { margin-bottom: 0.08in; } David Staton, former absolute return specialist at Goldman Sachs and Merrill Lynch, has launched his own asset management firm in London, Zedd Capital, Citywire reports. It will invest in shares of European companies, using a long/short strategy.
Credit Suisse Group (CS) has seen a decline in its net profits to CHF609m in third quarter, compared with CHF1.59bn in second quarter, and CHF2.35bn in third quarter 2009.Net inflows for the quarter totalled CHF14.6bn, compared with CHF14.5bn in second quarter. Assets under management at the end of September totalled CHF1.251trn, compared with CHF1.243trn as of the end of June.The private banking unit earned pre-tax profits of CHF836m, compared with CHF874m in second quarter, while asset management earned pre-tax profits of CHF135m, compared with CHF22m previously.Over nine months, net profits totalled CHF4.3bn, while net inflows totalled CHF55.1bn.
p { margin-bottom: 0.08in; } Agefi Switzerland reports that the most recent conjunctural study by the Fondation Genève Place Financière reveals that in first half 2010, funds managed in Geneva grew by 3% to 7% for the majority of the 152 financial intermediaries surveyed (44 banks and 108 independent managers). Financial actors of all sizes report positive inflows to funds, particularly from European clients, who represent a proportion ranging from 42% to 79% of total net inflows, according to respondents. Though the increase in deposits is not as marked for institutionals, the weight of European clients is as large for private funds, or higher, with 60% to 80% of net new institutional money coming from Europe. Financial intermediaries in Geneva are now looking at the future with serenity: they are expecting a slight increase or slight decrease in net profits for 2010, but a net increase for 2011 of between 3% and 7%.
p { margin-bottom: 0.08in; } With the Global ETF Fund (Euro), Adepa Asset Management, a Spanish management firm based in Luxembourg (EUR500m in assets), has launched a product which invests exclusively and tactically worldwide in a balanced portfolio of 15 to 20 ETFs, with the goal of earning absolute and stable returns over 3 to 5 years, Funds People reports. The fund is a sub-fund of the UCITS III-compliant FCP fund Incometric Fund, registered in Luxembourg. It is advised by Triple A Investment Advisors, a Luxembourg firm led by David Gonzalvo.
Le fonds souverain singapourien a cédé l’intégralité de sa participation de 9,6% au capital du groupe de services financiers sud-coréen à raison de 33.400 wons (21,29 euros) par titre. Temasek aurait ainsi récolté 680,9 milliards de wons, l’équivalent de 434 millions d’euros.
Le président de la Banque centrale européenne ne soutiendrait pas l’ensemble du programme adopté par les ministres des finances de l’Union européenne concernant les sanctions à prévoir en cas de non-respect des règles de discipline budgétaire, indique le quotidien qui cite une note. Jean-Claude Trichet est partisan de sanctions plus dures pour les pays laxistes.
Carlyle, HarbourVest Partners ainsi que Grosvenor Capital Management sont à l’heure actuelle à la lutte pour le rachat de la société d’investissement néerlandaise AlpInvest Partners, selon deux sources proches des discussions. Cette dernière dispose de quelque 46 milliards d’euros d’actifs sous gestion.
«Branle-bas de combat» pour les gestionnaires d’actifs français selon le quotidien. En France, Amundi, Natixis et BNP Paribas planchent actuellement sur l’appel d’offres lancé par UniCredit pour l’adossement à un partenaire de Pioneer Investments, dont la valeur est estimée à 3 milliards d’euros. Allianz, Aberdeen et même le gestionnaire alternatif Man Group seraient également sur les rangs. La volonté de la banque italienne est connue, mais le processus s’est enclenché avec l’envoi d’un courrier de son conseil Merrill Lynch aux candidats éventuels. «La remise des offres non engageantes est prévue le 5 novembre» souligne le quotidien.
Le gestionnaire d’actifs, qui a racheté l’an dernier Barclays Global Investors pour 13,5 milliards de dollars, a chiffré à 50,1 milliards de dollars le volume net de nouvelles activités au troisième trimestre. Les capitaux ont afflué à hauteur de 52,6 milliards de dollars, tandis que les retraits ont totalisé 34,4 milliards. Le bénéfice net s’est élevé à 551 millions de dollars (2,83 dollars par titre) contre 317 millions de dollars (2,27 dollars par action) un an plus tôt.
Qatar Petroleum International et Qatar Electricity and Water, deux sociétés publiques, ont décidé de renoncer à participer au projet d’un complexe de production d’électricité évalué à 3,5 milliards d’euros. Les deux investisseurs détenaient en commun un intérêt de 34% dans le projet, aux côtés de Rosebud Energy et S&K Sal.
A l’invitation de LFPI, l’ancien fonds d’investissement de la banque Lazard, Barclays Private Equity France a fait part de son entrée au capital d’Aurénis, une société d’édition présente sur le marché des collections encyclopédiques. Il s’agit de la troisième opération en douze mois pour la branche française du fonds d’investissement européen éponyme, qui a été conseillée par Grant Thornton.
Banques, marchés, dettes privées : retour sur des solutions à choix multiple. L’Agefi a conçu cette conférence comme une réponse aux interrogations des professionnels de la finance d’entreprise face à l’évolution rapide des modes de financement à leur disposition, notamment sous l’impulsion de la puissance publique mais également des pratiques de marché, dans un contexte de retrait relatif des banques et d’irruption de nouveaux acteurs comme les assureurs et les fonds de prêts. L’environnement dans lequel les responsables du corporate finance doivent agir est d’autant plus remarquable que les conditions de crédit et de placement sont caractérisées par des taux exceptionnellement, mais sans doute aussi durablement, bas. Grâce à plusieurs tables rondes et interventions spécifiques au cours desquelles des professionnels de haut niveau apporteront leur éclairage et feront part de leurs expériences croisées, les équipes de L’Agefi se mobiliseront pour vous permettre, en une après-midi, de faire un tour d’horizon complet des problématiques-clés du financement aujourd’hui, et aussi de nouer les contacts qui vous seront les plus utiles avec les professionnels les mieux à même de répondre, le cas échéant, à vos problématiques particulières.
Le tribunal, dont la décision était attendue hier, se prononcera finalement lundi prochain sur le sort d’Eryma Services, société en redressement judiciaire contrôlée par LBO France. Alors que les syndicats réclament le paiement de primes supra-légales, le nom d’un potentiel repreneur pourrait être annoncé.