FURTHER FURTHER READING
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Glance at a Citi Prime Finance report that fees are starting to crumble, and a casual reader might conclude that something is wrong in the house of hedge funds. Perhaps investors have begun to notice well documented problems with performance?
Pressure to offer founders’ share classes or accept seed capital to launch with sufficient amounts of Assets Under Management have pressured management fees down from the industry’s standard benchmark of 2.0%. Our analysis shows average fees for managers with less than $1.0 billion AUM ranging from 1.58% to 1.63%. Read more
From Credit Suisse, do breathe in the romance:
The impact of the easing of the one child policy on birth rates may be overstated based on the experience of easing restrictions on parents who are both single children in their families (as shown in Exhibit 3). Guangzhou, a southern China city, had more than 14,000 couples, who were both single children in their families, hence eligible to have the second child, but only 360 couples had the second child in 2009.
Live markets commentary from FT.com
The generally excellent Spencer Jakab leaves his zombie repellent behind on Monday, when he speculates in the Wall Street Journal that the formerly decent returns of the hedge fund industry will return once central banks begin to retreat from markets.
The problem is mean reversion. It may be one of the most powerful forces in the investment universe but, as we have said before, it doesn’t apply when you try to compare the zombies of the 1990s and early 2000s to the lumbering, fee eating, industry as it exists today. Read more
Venezuela poll cements ruling of Hugo Chávez successor || Japanese Q3 growth revised down || Chinese inflation slowed in November due mainly to a drop in food prices || HSBC sounds out spin-off of UK unit || Kazakhmys sells $1.3bn power station stake || India markets hit new high after state elections || Markets Read more
Starting today we get what is basically the first formal step to a fully fledged market based deposit rate system from China (honourable mention of course to those more informal weapons of mass ponzi). It’s been coming and the move doesn’t effect corporates or individuals, but in the context of the Shibor spike, deposit pressure and the post-plenum reform blush it’s very worth noting.
From UBS’s Wang Tao:
[The PBOC] took the long-expected step toward liberalizing deposit rate on December 8, announcing that effective from December 9, depository financial institutions (banks) are allowed to issue large-denomination negotiable certificates of deposit, i.e., the so-called interbank CDs.
Markets: Markets across the Asia Pacific region are mixed as investors weigh a series of data releases against the implications of a stellar US jobs report. In Japan, Friday’s news that the US economy added 203,000 jobs in November outweighed disappointing gross domestic product revisions. Tokyo’s Nikkei 225 index is up 1.9 per cent, on pace for its best session in more than two weeks. (Financial Times) Read more