FTfm on AV

Some highlights from Monday’s FTfm.

Uncertain future for custodians
Three of custodian banks’ main businesses – foreign exchange, cash management and securities lending – are not the profit centres they were, which means a complete overhaul of how they operate might be required

Possibility of float for specialist funds
Investment funds specialising in leasing shipping containers and lending money to UK farmers could be floated in London next year, according to Dexion Capital Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Backroom dealing exposed
Large asset management groups appear to be routinely co-ordinating internal trades in order to protect funds that are suffering heavy redemptions from being forced to sell stock at fire-sale prices.

Man Group chief under pressure
The odds that Peter Clarke will step down soon as chief executive of Man Group have shortened as reports from insiders suggest that Emmanuel ‘Manny’ Roman is gaining more power at the troubled hedge fund manager. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Market for locked hedge funds opens
Brokers such as Tullett Prebon are launching platforms to let investors trade hedge fund investments to circumvent the often lengthy lock-up periods

Church faces huge pension deficit
The future Archbishop of Canterbury, Justin Welby, will have to manage an immediate cash crisis as soon as he takes charge. An independent pensions consultant has warned the Church’s pension deficit could reach £500m by the end of the year, putting a huge financial burden on congregations. Read more

FTfm on AV

Some highlights from Monday’s FTfm

Deutsche and Lyxor in surprise physical move
Two of Europe’s largest players in the exchange traded funds market are changing their business models in an effort to revive flagging fortunes

Rivalry and tougher rules fuel change
Growing competition is driving down costs but also spawning a rash of alternative indices that can help investors target their investment needs Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Delistings worry for managers
Delistings from exchanges in Greece, Ireland and other peripheral eurozone states could deter fund managers from buying into companies in those countries, equity investors have warned.

Impact investing forecast to double
Take up of “impact investing” among UK pensions funds is set to double within two years, with nearly half of schemes planning to put money behind socially beneficial initiatives such as green energy, social housing or microfinance. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Small hedge funds hit by closures
A rising number of small hedge funds, especially those run by former investment bank proprietary traders, are shutting their doors as they face rising costs and inability to attract sufficient assets

Death rate linked to bright moonlight
Research by longevity specialists has revealed there are more deaths during gibbous moon phases than during the darker phases of the moon Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Plan to ban money fund bailouts
European regulators are believed to be exploring controversial plans to ban managers of money market funds from bailing out investors if their funds suffer a loss. Although such bailouts has proved crucial for the industry, the fact that sponsors are not required to do so is thought to be destabilising in itself

‘Securities watchdogs need more powers’
The head of Iosco says rules are of little use if there are no powers of enforcement especially as the number of global financial markets is growing all the time. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Fund selling is a rip off – consumers
European fund distributors are “ripping off” retail investors by offering expensive products even when cheaper alternatives are available, consumer groups have warned

Mifid II set for an early arrival
New European-wide market conduct rules, including measures to limit financial sector involvement in commodity markets, could be in place by 2014, earlier than expected Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Dutch funds cutting pensions
More than 80 Dutch pension funds will have to cut payments to pensioners for the first time ever from April next year, unless they can improve their financial situation. De Nederlandsche Bank, the Dutch central bank, has mandated that pension fund assets must equal at least 105 per cent of liabilities by the end of 2013. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Value of Nobles Crus wine fund questioned
The wine fund, which is one of the world’s biggest wine investment funds, values its holdings at much higher prices than those used by 10 of its rivals Read more

FTfm on AV

Some highlights from Monday’s FTfm

Investors force radical reshaping
The proportion of funds owned by retail investors has almost halved in the past decade which has also seen a jump in institutional fund ownership Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Politics a big risk, warns Hermes
Political risk in the developed world is higher than it has been for at least two generations and investors need to factor in the risk of government appropriation of assets, civil unrest and even war, according to a large investment house. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

BlackRock hit by Vanguard price pressure
Ferocious price competition by Vanguard is helping its exchange traded funds business attract more cash this year on a global basis than BlackRock, putting pressure on the world’s largest ETF manager to fight back with fee cuts Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Sacking the manager not always wise
Pension funds may replace underperforming managers in charge of up to $100bn of equity mandates this year. However, evidence shows that retaining an underperforming manager can prove more profitable than finding a replacement. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Emerging markets face harder climb
John Plender asks whether the recent growth in emerging markets is the exception not the rule. Expectations, he says, have been pitched too high. The next period will likely be far more difficult for emerging markets. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Few curbs on ETPs despite food crisis
The largest providers of exchange traded products that invest in agricultural commodities have no plans to withdraw these instruments in spite of fears that soaring prices for corn, wheat and soyabeans will lead to a repetition of the 2007/08 global food crisis. Read more

FTfm on AV

Some highlights from Monday’s FTfm

Pensions turn back to stocks for income
Rock bottom government bond yields are pushing some pensions schemes to reverse the industry’s decades-long rush out of equities and into fixed income – 85 per cent of FTSE 100 companies now offer higher income than the 1.5 per cent available on 10-year gilts, meanwhile the S&P 500 trading on a yield of 2.6 per cent offers well above the 1.54 per cent on 10-year Treasuries Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Battle over protection for investors
The European parliament is trying to scale back the sum asset managers will have to pay into an investor compensation pot by €8.7bn, but they want it accrued in half the previously allotted time Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Offshore bank inflows post modest rise
Europe’s embattled offshore private banking industry reported fresh inflows of money for the first time in three years representing the first time in eight years that under-fire offshore banks have matched the performance of their onshore counterparts Read more

FTfm on AV

Some highlights from Monday’s FTfm.

SWFs go shopping for managers
Cash-rich sovereign wealth funds are believed to be exploring the possibility of buying asset managers in a drive to lower fees and ramp up their investment expertise. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Brussels targets big bonuses
Existing pay policies create incentives for fund managers to take excessive risks and must be revamped to protect investors, according to the European Commission. It says bonuses should be “considerably contracted” if a fund or fund manager underperforms, via both reductions in current pay and also through clawbacks of previous payouts. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Europe to reject IFA commission ban
EU politicians apparently think a UK-style rule on advisers’ commission goes too far and think it would limit choices for ordinary investors. They also fear that those most in need of advice would not be able to afford it. Instead they are thought likely to press for greater disclosure, even though at least on pressure group points out that no one reads so-called ‘boilerplate’ disclosures. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Managers’ share of assets slips
Although the level of financial assets in existence has risen to €169tn from €154tn in 2007, the asset management industry now manages just 22 per cent of that total, down from 25 per cent, according to McKinsey & Co’s annual global asset management survey. Read more

FTfm on AV

Some highlights from Monday’s FTfm

China fund industry to triple in size
China’s mutual fund industry will triple in size to Rmb6.8tn by 2015, reversing an industry slump that has seen assets under management tumble 30 per cent since 2007, according to Z-Ben Advisors, a Shanghai-based consultancy Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Top houses to take over in Europe
Mid-sized European asset managers are in ‘feeble’ financial health and will be increasingly squeezed by a handful of dominant houses, according to McKinsey & Co Read more

FTfm on AV

Some highlights from Monday’s FTfm.

RPI revamp risks ruining linker returns
Proposed changes to the calculation of UK inflation data could “ruin” the £338bn index-linked gilt market and leave investors nursing heavy losses. However, the proposals would also reduce the liabilities of the majority of private sector occupational pension schemes by eroding the retirement income of their members. Read more

FTfm on AV

Some highlights from Monday’s FTfm

Donors hit by lower returns
Companies that make political donations produce worse investment returns than their non-donating peers, with the reduction in shareholder value “far outstripping” the value of the donations, research into the US market has found Read more

FTfm on AV

Some highlights from Monday’s FTfm.

EU rules threat to pensions
The Association of British Insurers has said it fears pension products could be caught up in the EU’s packaged retail investment products (Prips) directive which is designed to create a single, coherent disclosure regime for all retail investment products but which could mean that pensions savers must seek advice before starting to save in work-based pensions Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Investors frustrated by banks
Institutional investors are lining up to buy the loan books of European banks but are struggling to put money to work as banks sit tight on their credit portfolios Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Most fund managers ‘inefficient’
An Investit report has found that a survey of managers representing £4tn in assets under management reported 38% spare capacity and that they needed more AUM to become efficient Read more