03/03/2010
Maurice Wren dies
BNY Mellon Asset Management has announced that Maurice Wren, group head of investment solutions, died on Saturday. He suffered a stroke in the office last week.
03/03/2010
Economic intelligence placed in the service of sustainable development
The Université de Versailles Saint-Quentin-en Yvelines (UVSQ) and the Ecole Européenne d’Intelligence Economique (EEIE) on 2 March announced that they have merged to create a new professional Master’s qualification in economic intelligence and sustainable development. The double diploma will be launched in September 2010.
03/03/2010
Merrill Lynch WM sets up a fund management firm
Funds People reports that Merrill Lynch Wealth Management is about to register a fund management firm in Spain. The objective will be to make the management entity responsible for management of mandates obtained by the private banking division, an activity which is currently provided by the group’s banking subsidiary. The move is part of a strategic initiative at Merrill Lynch Wealth Management begun in 2007. The firm is seeking to increase its presence in Spain by offering an all-in-one service which combines management and consulting, adaptation to the profile of the client and their inheritance planning needs.
03/03/2010
Foreign asset managers gain large-scale market share
Between the end of 2008 and the end of February 2010, foreign asset management firms have increased their share of the Spanish market by 2.3%, to 15.8%, according to the Inverco association. Assets at these firms now total EUR30bn, down from about EUR50bn at the end of 2007, but in 2009 these firms saw net subscriptions of EUR2.54bn, while Spanish management firms suffered net redemptions of EUR11.64bn. JPM remains by far the largest foreign asset management firm in Spain, with EUR4.81bn, in assets, even after the merger of CAAM and SGAM, which puts Amundi in second place, with EUR3.28bn. BNP Paribas and Schroders are neck-and-neck with EUR2.77bn each, while Pioneer (UniCredit) has EUR1.51bn.
03/03/2010
SPGB Hambros recruits two private bankers and opens an office
Société Générale Private Banking Hambros (SGPB Hambros) on 2 March announced the recruitment of two senior private bankers, Rebecca Constable and Andrew Wimble, who will be based in the new Newbury regional office, and will provide wealth management services to high net worth clients. QAGPB Hambros will continue its policy of regional development in the United Kingdom, following the opening last year of offices in Manchester and Yorkshire. Constable and Wimble were previously at Kleinwort Benson.
03/03/2010
Another Brevan Howard recruitment from Morgan Stanley
Brevan Howard Asset Management LLP is continuing to recruit from Morgan Stanley. According to Bloomberg, the mortgage trader Ahsim Khan is expected to join the London-based hedge fund giant next month. Since September of last year, Brevan Howard has recruited at least four people from the US bank.
03/03/2010
Warburg Pincus buys a 25% stake in Primerica
The private equity investor Warburg Pincus has announced that it will invest USD230m in a stake of about 23% in Primerica Inc, a life insurance and mutual fund distribution affiliate of Citigroup, the Wall Street Journal reports. Warburg Pincus has also obtained an option to invest a further USD100m at the price of the IPO. Citigroup is planning to retain a 50% stake in Primerica.
03/03/2010
Barings recruits a head for Latin American equity management
Roberto Lampl, senior investment manager at ING Investment Management, has been recruited by Baring Asset Mangement as head of Latin America equity (a newly-created position) from 1 March. He will be based in London, and will report to Tim Scholefield, head of equities. Currently (as of 31 January), Barings has assets of GBP11.6bn on emerging markets, of which GBP1.1bn are in Latin American equities. With his team, Lampl with be in charge of managing Latin American allocations for all segregated and pooled products from the British group, including the Baring Latin America Fund (USD836m).
03/03/2010
Record net inflows for M&G in 2009
The earliest initial estimates had already suggested that 2009 would be a very strong year for the management firm M&G. Inflows last year are estimated to have totalled EUR15bn, a 296% increase year on year. For retail activities, net sales totalled EUR8.3bn, a new record, and 259% higher than the previous year. Activities were particularly dynamic on the British market, with net inflows of EUR6.7bn. Bond funds accounted for the lion’s share of inflows throughout the year. For institutional products, net sales totalled EUR6.7bn, a 354% increase year on year, including a fixed income mandate totalling EUR4.4bn. Gross sales also set a new record, at EUR27.7bn, of which EUR15.1bn were for retail products. M&G points out in a statement that the exceptional performance observed last year will not be reproducible in 2010. Inflows are expected to return to their previous usual levels. For 2009 overall, assets under management are up 23% to EUR193bn, thanks to exceptional inflows but also to positive market effects. Assets for external clients totalled EUR77.8bn as of the end of 2009, 40% of total assets. Operating profits totalled EUR197m, 22% down year on year. But excluding exceptional elements, underlying profits are up 14% to EUR202m.
03/03/2010
Major hedge funds close out bets against sovereign debt
Many of the world’s biggest hedge funds have become increasingly concerned about fierce criticism by European politicians that their country bets have heightened the crisis of confidence in some markets, says the Financial Times. Brevan Howard – Europe’s largest hedge fund – said that it currently had no net short position against Greek debt. Paulson & Co has also closed out its positions against Greece.However, an estimated USD12.1bn of short positions are outstanding against the euro, according to the Commodity Futures Trading Commission.
03/03/2010
MEAG replaces local CIO
Franki Chung, who was deputy head of Asian equities at Baring Asset Management, was recruited on 25 February as chief investment officer (CIO) at the Hong Kong office of the German firm MEAG Munich Ergo, which manages USD1.1bn in assets and has ten employees in total. Chung replaces John Koh, who has left the firm.
03/03/2010
Schroders to launch a fund themed on demographic change
As a complement to its climate change fund (SISF Global Cimate Change Equity) and a fund focused on increasing demand for energy in emerging countries (SISF Global Energy), Schroders is planning to launch the Global Wealth Dynamics fund, which will focus on demographic change, in the next few months, Funds People reports. Gavin Marriot, international equities manager, will concentrate on businesses which respond to the needs of developing countries, such as the Mexican firm Homex, or which are in a position to profit from the new demographic configurations taking shape there. In the area of health, the manager prefers technologies which aim to identify and prevent illness, which will boost the growth of emerging countries, to investments in businesses in developed countries.
03/03/2010
Government Pension Fund Global signs new directives
Sigbjørn Johnsen, Norwegian finance minister, has announced that the Government Pension Fund Global (GPFG), formerly known as the Oil Fund, has signed up to two new directives for responsible investment. The ethical standards defined in 2004 are now replaced by two sets of directives, one of which is based on exclusionary criteria and the observation of businesses, while the other involves responsible management and the exercise of shareholder rights by Norges Bank. The minister points out that in some cases, it may be more useful to put a firm under surveillance rather than to exclude it, particularly if there is still uncertainty about how the situation will evolve. The GPFG will closely monitor businesses which are placed on the watch list to ensure that they take measures to remedy the situation before a final decision on exclusion is taken. The finance minister has also signed the United Nations Principles for Responsible Investment (UN PRI).
03/03/2010
Aladdin Credit Partners closes two opportunity-driven funds
Aladdin Credit Partners, a joint venture born of the partnership of co-founders Luke Gosselin and Victor Russo, and Aladdin Capital Holdings, on 1 March announced the closure of its two opportunity-driven funds, Aladdin Credit Partners and Aladdin Credit Offshore Fund, with USD573m in assets.
03/03/2010
CAAM and CAAM Funds product ranges change names
Amundi announced on 2 March that the French-registered CAAM mutual fund range and the Luxembourg-registered Sicav CAAM Funds will be renamed as Amundi nd Amundi Funds, respectively. For French-registered OPCVM mutual funds whose names begin with CAAM, only products which are aimed at all Amundi clients will adopt the Amundi prefix instead of CAAM. Other French-registered mutual funds bearing the CAAM name specially designed for the Crédit Agricole network will also be changing names, and will now be known simply as CA. The name changes took effect on 2 March 2010, and are already reflected on the websites amundi.com and amundi-funds.com, as well as in the legal and sales documentation (prospectus, reporting, product summary, etc), where the group’s visual identity is also deployed. The management process for the funds will remain unchanged, as will their ISIN codes, says Amundi.
03/03/2010
Natixis Global Associates launches an Asia fund
Natixis Global Associates has announced the forthcoming launch, in partnership with Absolute Asia Asset Management, of a multi-cap equities fund. The new vehicle, Absolute Asia Dynamic Equity Fund, will invest in Asian markets outside Japan through a US mutual fund. The product will be the first fund distributed in the United States by the management team which has been based in Singapore for ten years. The fund will invest at least 80% of its assets in 30 to 40 businesses which are based in or operate in Asia. The minimal initial investment in the product has been set at USD2,500 for A and C share classes, and USD100,000 for Y shares.
03/03/2010
Profits at Allianz Global Investors up by more than half
In 2009, assets at Allianz Global Investors (AGI) increased by 28% or EUR258bn, of which EUR91.2bn were in net subscriptions (a new record), to a total of EUR1.178trn as of the end of December. In 2008, assets under management were down by EUR50bn. Meanwhile, operating profits increased by 51% to a record total of slightly over EUR1.36bn, compared with EUR904m. The previous record, set in 2007, was EUR1.32bn. AGI states that its US affiliate Pimco (USD1,000.1bn as of the end of December) saw strong demand for bond products and excellent performance, allowing it to turn in “exceptionally good” results. Joachim Faber, CEO of AGI, says that the group has profited from a regain in demand for actively-managed products, particularly in the area of bonds.
03/03/2010
UBS Deutschland recruits an executive from Goldman Sachs
Axel Hörger, previously head of asset management for Germany and continental Europe at Goldman Sachs, has been recruited as CEO for wealth management by UBS Deutschland. He will take on his new responsibilities from 1 June, and will join the managing board, replacing Stephan Zimmermann, who will take charge of internal auditing at the UBS group in Zurich. Zimmermann is also chairman of the board, and his successor in this position will be appointed by 31 May at the latest.
03/03/2010
Credit Suisse to change branding of its Xmtch ETF funds
Due to poor sales of ETF products, with European market share vegetating at 4%, Credit Suisse is planning to abandon the Xmtch brand name in second quarter, in favour of a name which gives a clearer indication of the brand’s connection to the Swiss banking group, Das Investment reports, citing Ignites. The relaunch of ETF activities has already started, with the recent recruitment of Dan Draper (see Newsmanagers of 2 February).
03/03/2010
Assets under management stable at Bellevue AM
Assets under management at the management affiliate of the Bellevue group as of 31 December totalled CHF5.5bn, virtually unchanged from the previous year. The group has said in a statement that its efforts to enrich its product range did not have the full desired effect due to a persistent aversion to risk on the part of clients. The affiliate reduced its losses to CHF1.4m for 2009, from a negative bottom line of CHF6.1m the previous year.
03/03/2010
GAM profits down
In 2009, GAM Holding, the former asset management activities of Julius Baer, saw a 60% decline in net profits compared with 2008, to CHF149.6m. Pre-tax profits totalled CHF188.7m, a 58% decline. Assets under management at the Swiss management firm increased, however, by 15% over the year as a whole to CHF114bn, an increase of CHF14.8bn. This growth is primarily due to positive market effects (CHF10.9bn). Net subscriptions totalled CHF0.4bn, of which CHF2bn were in second half, and which compensated for CHF1.6bn in net redemptions in the first six months of the year.
03/03/2010
Sarasin aiming for CHF150bn in assets by 2015
In 2009, Banque Sarasin (Rabobank group) earned net profits of GBP51.5m, compared with CHF106.8m the previous year, following a one-time write-down of CHF70.2m for depreciation of its 40% stake in NZB Holding “due to a policy of precaution.” In adjusted terms, net profits increased 6% to CHF121.7m. Assets under management rose by CHF24bn last year to a total of CHF93.7bn, compared with CHF69.7bn. Of this total, net subscriptions represented CHF12.5bn (on an objective of CHF7bn), while market and currency effects corresponded to nearly CHF11.9bn. Joachim H. Straehle, CEO of Banque Sarasin & Cie SA, estimates that assets under management may reach CHF100bn in first half. The group has a target of CHF150bn by 2015. Assets invested according to sustainable criteria totalled CHF11.9bn, compared with CHF6bn in 2008. This increase is due both to the decision to manage mandates from private clients in Switzerland with a sustainable approach and by the acquisition of new mandates and subscriptions to sustainable fund shares from Sarasin. The annual statement says that the firm “has planned to develop its business on Asian growth markets in the next 18 months: the Hong Kong office has recently obtained a banking licence, and will become the first foreign arm of Banque Sarasin. The Avaloq IT system, which has been in successful use in Switzerland since July 2003, will be introduced at the Hong Kong and Singapore locations.”
03/03/2010
EDRAM has already registered nine funds
Since 12 February, Edmond de Rothschild Asset Mangement (EDRAM) has been intensely active setting up shop in Spain. The French management firm has already registered nine of its funds with the CNMV, Funds People reports. They are the Saint-Honoré Signatures, Global Convertibles and Vie-Santé, and then last Friday, the Asie Rendement, Commosphère Word, Ecosphère Europe and the LCF funds Croissance Globale, Monde Flexible and Patrimoine Flexible. EDRAM’s policy will clearly be to register all of its products, including about 35 funds, in Spain.
03/03/2010
DWS launches a local hedge fund
DWS Investments (Spain) on 26 February registered the Spanish hedge fund Arcano Credit Fund as an FIL product with the CNMV. The product has monthly liquidity, and will invest in two sub-funds of hte Luxembourg affiliate of Arcano, the Arcano Onshore Opportunities and Arcano Offshore Opportunities, funds which invest in loans to businesses to fund leveraged buyout (LBO) operations. Assets in the DWS fund will be 70% invested in the Arcano Onshore product, which focuses on the United Kingdom, Northern Ireland and Italy, and 30% in the Arcano Offshore, which is focused on western Europe outside Italy. Credit which is included in the portfolio will have an average of four years to maturity. DWS is planning a lock-up period of 33 months, a three-month advance notice policy for redemptions, and a minimal subscription of EUR150,000.
03/03/2010
Catella launches real estate fund focused on Munich
The Catella MAX fund, launched by Catella Real Estate AG KAG (an affiliate of the Swedish Catella group), will be the first German-registered open-ended real estate fund to be focused exclusively on a single city or region. The city will be Munich and its adjacent Landkreise or districts. The product will have a highly diversified sectoral portfolio, which will include a high proportion of residential properties, and will be aimed at retail as well as smaller institutional investors.
03/03/2010
Bedrock launches a fund of hedge funds dedicated to Brazil
The Geneva-based management firm Bedrock Group has launched a fund of hedge funds, Bedrock Brazil, which will be wholly dedicated to Brazil, Hedge Week reports. The vehicle is a multi-strategy fund of hedge funds (macro, equity long/short bias, equity long only and multi strategy), which will offer investors low-cost access to the major Brazilian funds, which are largely closed to new investors. The fund will be advised by Bedrock Advisors, in partnership with the Brazilian firm JGP.
03/03/2010
Swiss private banks losing momentum
Les Echos reports that British legal consulting firms are winning over a growing number of private clients by offering to transfer their money, currently held in Swiss numbered accounts, into trusts in offshore tax havens such as Delaware or the Channel Islands. Trusts are costly vehicles, as it costs USD25,000 to open one, but they are discreet, which is important to this population.
03/03/2010
United States investigating hedge funds' bets against Euro
The US Justice Department has launched an investigation into whether hedge funds might have banded together to drive down the value of the euro, people familiar with the matter say according to the Wall Street Journal. In a letter dated February 26, the department has asked hedge funds including SAC Capital Advisors LP, Greenlight Capital Inc., Soros Fund Management LLC and Paulson & Co. to retain trading records and emails relating to the euro, say people who have seen the letter.
03/03/2010
Market surveillance becomes a good thing
The enactment of the MiFID directive will make market surveillance a competitive advantage, though this activity has traditionally been regarded as a source of cost. According to a study undertaken by the consulting firm Tabb Group, spending by brokers and trading plartforms in Europe will increase 13% between 2009 and 2012, to a total of EUR185m by 2012. “Evolving needs in terms of market surveillance looks more like a revolution than an evolution,” says Miranda Mizen, principal at TABB and co-author of the study, along with analyst Will Rhode. Mizen says that a single share, which was previously traded on three markets, will now be eligible to be traded on 15 trading floors.
03/03/2010
Nuveen Investments adds to UCITS product range
The US-based provider of investment services to high net worth clients Nuveen Investments has announced that it has decided to extend its range to non-American investors. Nuveen will offer two new funds, Nuveen Tradewinds Emerging Markets and Nuveen Tradewinds Global Resources, within a UCITS structure. The two new strategies will come as an addition to the range of products currently available in the Nuveen Global Investors Fund. Nuveen Investments has also launched a new website ( http://www.nuveenglobal.com/ ).