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

FTfm on AV

Some highlights from Monday’s FTfm.

Funds gear up to build bridges
European pension funds are preparing to unleash a wave of investment into infrastructure. But governments’ hopes that this will spur economic growth could face disappointment as most pension funds are looking for global and not domestic investments. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Large groups score lower on efficiency
Research shows that contrary to accepted wisdom, large groups do not provide economies of scale and that smaller and independent houses scored higher on a measure of the effectiveness with which an organisation uses a given set of inputs to produce outputs. Henderson Global Investors, BlackRock, Ashmore and Aberdeen scored highest for cost efficiency while a number of the least efficient were owned by banks or insurers, including Old Mutual, Investec and MFS International. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

New rules will decimate profits
A tightening of the International Accounting Standards Board’s IAS 19 directive from 2013 will bar companies from using the so-called ‘corridor rule’ which allows them to keep actuarial losses suffered by the final salary pension schemes off their balance sheets. The rule change is expected to slash hundreds of millions from the profits of many European companies next year Read more

FTfm on AV

Some highlights from Monday’s FTfm.

High yield bonds draw in billions
First quarter net inflows were close to the record for a full year, according to EPFR Global, as investors chase attractive yields buoyed by hopes that default rates will remain near their historic lows Read more

FTfm on AV

Some highlights from Monday’s FTfm.

EU rule may drive out hedge funds
New regulations could force hedge funds out of the EU. A revised version of the AIFMD directive could push up the cost of custody services to the point where some hedge funds could not afford it, and make it so onerous that some custodians might simply leave the market. Read more

FTfm on AV

Some highlights from Monday’s FTfm.

EU ‘shadow banking’ plan rapped
The Institutional Money Market Funds Association is consulting its members on alternative measures that could limit investors’ ability to withdraw all their money overnight, or force them to take a loss, in the event of another financial crisis Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Windfall ahead from outsourcing
Persistent low yields are driving insurers out of their traditional investment grade bond portfolios and forcing them to invest in areas in which they have less expertise, creating $1tn of assets in opportunities for asset managers Read more

FTfm on AV

Some highlights from Monday’s FTfm.

Warning on high-yield ETF returns
Industry figures blame the poor performance on high turnover and transaction costs that may be particularly problematic for ETFs which need to trade more because bonds go in and out of high-yield benchmarks far more often than, for example, stocks go in and out of the S&P 500 Read more

FTfm on AV

Some highlights from Monday’s FTfm.

ECB loans could harm debt market
There are fears among some that banks may reduce bond issuance after securing €1tn three-year funding boost from the ECB in the form of the LTRO. The knock on effects could be severe for pension funds and insurance companies. Banks constitute 46% of the European corporate debt market. Read more