Daily News

REGULATORY
Dechert partner Monica Gogna has collaborated with the Investment Association to produce important industry guidance around the new obligations which come into force on 3 January 2018 for the acquisition of investment research by EU MiFID firms. The new guidance, the Intragroup Research Checklist, serves to assist firms in their understanding and implementation of the new research requirements across global firms with multiple legal entities and... Read more
FUNDS
Prestige has announced a new series of mandates from institutional investors outside the UK for its private lending credit funds. The mandates are the latest to be received from non-UK institutions that are allocating to the UK-based private lending specialist. The investors include: A Swiss-based industrial corporate pension fund A South Korean-based financial group A Spanish-based university endowment Despite last year’s Brexit... Read more
FUNDS
Value Partners’ equity investment team expects Hong Kong stocks to continue its upward trend in 2018 as China’s pledge to deliver quality and sustainable growth, together with Hong Kong’s recent initiatives to bring in additional market liquidity are expected to shore up investor sentiment for Chinese stocks. Chung Man Wing, Investment Director of Value Partners said, “2017 is a year of recovery for Hong Kong and... Read more
FUNDS
In reaction to comments around Brexit at the Autumn Budget, Michael Metcalfe, global head of macro strategy for at State Street Global Markets has offered his views. Metcalfe commented: “The government has committed funds to help with the preparation for Brexit contingency planning, but the real challenge for UK markets revealed in the budget came from the Office for Budget Responsibility (OBR) and the significant downgrades to the UK... Read more
CORPORATE
Mediobanca SpA and RAM Active Investments SA have announced that they have agreed the terms of a strategic partnership in which Mediobanca will acquire a 69% interest in RAM AI. Founded in 2007, based in Geneva, RAM AI is a systematic investment manager offering a range of actively managed and alternative systematic fundamental equity and tactical fixed-income funds. As of 31 October 2017, RAM AI had AUM of CHF4.9bn across 14 funds. RAM AI will... Read more
REGULATORY
FIX Trading Community, the non-profit, industry-driven standards body at the heart of global financial trading, has released Recommended Practices for Commission Unbundling as required by MiFID II. MiFID II has introduced the requirement to explicitly separate commissions into their component parts (e.g. execution, research) with a focus on the specific identification of the research component of the commission. In addition, MiFID II has... Read more
FUNDS
J.P. Morgan Asset Management (JPMAM) is pleased to announce that its first two European ETFs have listed on the London Stock Exchange (LSE) today: JPMorgan ETFs (Ireland) ICAV - Managed Futures UCITS ETF (JPMF) and JPMorgan ETFs (Ireland) ICAV - Equity Long-Short UCITS ETF (JELS). The ETFs will seek to provide returns similar to hedge fund strategies by using advanced factor based investing techniques. Both strategies will be built using a... Read more
REGULATORY
FIA today released a statement from Walt Lukken, president and chief executive officer of FIA, regarding an announcement by the China State Council that the ownership restrictions on certain segments of the financial services industry will be phased out over the next several years. "FIA welcomes China’s decision to ease restrictions on foreign ownership of securities brokers and futures companies, which will enable many institutions... Read more
FUNDS
Systematica Investments has extended its portfolio offering to a broader investor base through the launch of a new UCITS fund based on the Systematica Alternative Risk Premia (SARP) strategy. Since its launch on 1 March 2017, SARP has seen strong investor interest, growing assets under management to $120 million. A UCITS version of the SARP strategy will be made available to UK and European investors and their advisers on 8 November 2017,... Read more
PEOPLE
The Chartered Alternative Investment Analyst (CAIA) Association held its annual Leadership Awards event on 8th November to honor and celebrate individuals and organizations that have demonstrated remarkable commitment in fostering the pursuit of education in the alternative investment industry. The 2017 CAIA Award for Academic Excellence in Alternative Investment Research was presented to Steven N. Kaplan, the Neubauer Family Distinguished... Read more
FUNDS
At its 5th Annual UK Symposium in London today, Irish Funds, the representative body for the cross-border investment funds industry in Ireland, has announced that net sales for the eight months to end August 2017 of €207bn have reached record levels, according to the latest figures from the Central Bank of Ireland. 2016 net sales across all fund types stood at €139bn, which was the previous record figure in the seven years since... Read more
PEOPLE
GAM has appointed Owen Job as investment manager to work on its absolute return fixed income team, with particular focus on macro themes. Job has spent over 12 years in investment management, mainly within the macro strategy space. He joined on 6 November 2017 from Soros Fund Management and is based in London. Tim Haywood, investment director and business unit head fixed income, said: “Owen joins with considerable macro strategy experience... Read more
PEOPLE
State Street Corporation today announced that Jay Hooley will retire as CEO by the end of 2018 after more than 30 years with the company but will remain as chairman throughout 2019. State Street’s board of directors has appointed Ron O’Hanley, previously vice chairman of State Street and president and CEO of State Street Global Advisors, to president and chief operating officer.  O’Hanley will succeed Hooley as CEO. Since... Read more
PEOPLE
Beachhead Capital Management, LLC  an investment advisory firm that specializes in liquid alternative investments, has announced that Dr. Pankaj Ghemawat, an expert on competition and strategy, has joined to oversee the firm’s Research Advisory Board, which focuses on structural changes within the asset management industry. Dr. Ghemawat currently serves as a full professor at both the NYU Stern School of Business and IESE Business... Read more
PEOPLE
Lodbrok Capital, a specialised investment manager focused on the European credit market, has appointed Adam Sorab as Partner. This follows a period of growth and the launch of the Lodbrok European Credit Opportunities Fund in May 2017. Sorab joins from hedge fund CQS, where he spent the last 13 years and where he held various senior roles including Head of Investor Relations. Lodbrok Capital has hired Sorab to lead the company’s investor... Read more
FUNDS
H2O Asset Management, an affiliate of the Natixis Global Asset Management Group, has announced its acquisition of a strategic stake in Poincaré Capital Management, a Hong-Kong-based asset manager focusing on global equities driven by Asian growth. This move followed H2O’s recent communication on the limited management capacity left in its high-risk global macro products. After launching a global emerging debt, then a global aggregate fund... Read more
FUNDS
The Bank of England may find itself behind the curve on inflation, says Mark Nash, head of fixed income at Old Mutual Global Investors, after the first UK interest-rate increase in a decade. 'The pace of growth in the UK economy has been supported for years by the increase in labour supply into the country. With fewer people now coming to the UK from the EU, and unemployment rates on the floor, it’s left to productivity to take up... Read more
FUNDS
Mercer’s Pensions Risk Survey data shows that the accounting deficit of defined benefit (DB) pension schemes for the UK’s 350 largest listed companies decreased slightly from £68bn at the end of September to £67bn on 31 October 2017. At 31 October 2017, liability values increased by £7bn to £832bn compared to £825bn at the end of September driven by a modest increase in market expectations of inflation.... Read more
FUNDS
Aspect Capital, the $7 billion systematic investment manager, today launched the Aspect Alternative Markets Fund, a managed futures trend following strategy which invests in a range of non-traditional, and harder to access markets. From credit indices and emerging markets currency forwards to European electricity futures, the Cayman-domiciled Fund provides investors with a new diversified and diversifying source of returns which is expected to... Read more
FUNDS
At the twice-a-decade Party congress under way in Beijing, China’s leadership is making plans for the next 30 years. To achieve his grand ambition, Xi Jinping will need to provide for “the people’s ever-growing needs for a better life”. It is a tall order for an economy which has seen “unbalanced and inadequate development”, as Xi put it in his opening three-and-a-half-hour speech on Wednesday, writes Diana... Read more
FUNDS
A worldwide shift in the appetite for currency since the 2008 global financial crisis appears to have hurt the Eurozone and helped the United States, according to new research from the University of Chicago Booth School of Business. In the working paper, International Currencies and Capital Allocation, Chicago Booth Professor of Economics Brent Neiman, Harvard University’s Matteo Maggiori and Columbia University’s Jesse Schreger find... Read more
FUNDS
Hedge fund industry assets under management continue to hit record highs, driven in September by strong performance, according to eVestment's just-released September and 3Q 2017 Hedge Fund Asset Flows Report. Investor redemptions of $2.5 billion in September were offset by performance gains, bringing overall industry AUM to $3.205 trillion. For 3Q 2017, overall flows were still positive at $12.51 billion and year to date AUM is up $35.08... Read more
FUNDS
Both the A&P Emerging Manager Index (APEM Index) and the A&P Emerging Manager UCITS Index (A&P EMU Index) produced solid performances in September with the APEM Index returning 0.75% with YTD performance of 6.98% and the A&P EMU Index returning 1.21% with YTD performance of 7.32% In general, the hedge fund industry across all strategies had another very good month. On average, hedge fund returns were approximately 0.50% for... Read more
REGULATORY
The US Securities and Exchange Commission should consider ending the failed Tick-Size Pilot in small-cap stocks early to free up time and resources for other experiments in equity market regulation, such as the proposed Access Fee Pilot Program, stock exchange “speed-bumps” and reforms or even the removal of the Order Protection Rule (OPR). That is one key takeaway of a new report Investors’ Take on Market Structure Issues... Read more
CORPORATE
Red Deer, a financial technology company dedicated to enhancing the performance of active investment managers, has announced a strategic partnership with Instinet Europe Limited to provide an integrated solution to manage research inducement, consumption, valuation, payment and commission management under the MiFID II regime. Red Deer’s research valuation management solution will attribute, forecast, track and manage budgets for research... Read more
CORPORATE
SteelEye, the compliance technology and data analytics firm, has been invited to join EY’s Fast Growth Platform, which provides a suite of services and support to drive the development of fast-growing tech companies. Launched in July 2017, EY’s Fast Growth Platform provides a three-tiered, tailored programme that includes start-up, scale up and global support. It offers emerging tech companies a range of services at each stage... Read more
FUNDS
Advent Capital Management, LLC, ML Capital and Genesis Advisors have launched the Advent Global Partners UCITS Fund, a multi-strategy vehicle hosted on the MontLake UCITS Platform. The Advent Global Partners strategy was launched in 1996 and applies a relative value approach to investing in volatility and credit markets with an event-driven bias to capture compelling asymmetric opportunities. The strategy is agnostic to any single sub-... Read more
FUNDS
Man Group have released their trading statement for the quarter ended 30 September 2017. Among the key points: Funds under management (FUM) of $103.5 billion at 30 September 2017 (30 June 2017: $95.9 billion), up 28% year to date; Other movements of positive $0.6 billion; Positive FX movements of $0.9 billion in the quarter, primarily driven by the weakening of the US Dollar against the Euro and Sterling; Positive investment movement of $3.3... Read more
REGULATORY
The Alternative Investment Management Association (AIMA) has published a new edition of its flagship due diligence questionnaire (DDQ), 20 years after the first “AIMA DDQ” helped to standardise the due diligence process for alternative investment managers and investors. The new AIMA Illustrative Questionnaire for the Due Diligence of Investment Managers will be used by investors assessing hedge fund, private credit and private equity... Read more
CORPORATE
Hong Kong-based asset management firm Value Partners Group has set up its European headquarters, in Berkeley Street, in London’s West End. Value Partners Group was founded in 1993 and now manages around US$16.4 billion of assets. It has more than 200 employees and has offices in Beijing, Shanghai and Singapore in addition to its Hong Kong headquarters. “As the largest home-grown asset manager in Hong Kong bridging... Read more
FUNDS
Hedge funds were up 0.40% during the month of September, while underlying markets, as represented by the MSCI AC World Index (Local), gained 2.17% over the same period, according to the latest Eurekahedge Index Flash Update. Most regional mandates ended the month in the green, with Japan dedicated hedge funds in the lead as tensions on the Korean peninsula receded and the Japanese yen depreciated relative to major currency pairs. Across... Read more
REGULATORY
The European Securities and Markets Authority (ESMA) has published its 2018 Work Programme (the Programme), which sets out ESMA’s priorities and areas of focus for 2018. Supervisory convergence and the assessment of risks are the two headline areas identified by ESMA. In the area of Investment Management, ESMA has identified a key objective of achieving measurable improvements in the level of convergence regarding the application by... Read more
REGULATORY
The House of Lords today debated the EU Home Affairs Sub-Committee report published in July, Brexit: EU Data Protection Package. The debate was moved by Lord Jay of Ewelme, the Chair of the EU Home Affairs Sub-Committee, and debated together with the Data Protection Bill in its Second Reading. Among those to speak were Lord Paddick, Baroness Ludford, Lord Janvrin, Baroness Hamwee and Lord Patel. The report, Brexit: EU Data Protection... Read more
FUNDS
A rush to protect intellectual capital related to the blockchain does not signal the start of a potentially innovation-stifling patent war, but rather is a sign that the technology is moving into the corporate mainstream. According to companies in the financial services and technology industry, a recent avalanche of blockchain-related patent applications reflects both the technology’s immense potential and the huge investments... Read more
PEOPLE
The Securities and Exchange Commission has charged a Westchester, New York-based investment adviser with fraud stemming from lies to retail investors about the value of their investments in a Ponzi-like scheme. The SEC alleges that, starting in approximately 2010, Michael Scronic began to raise money from at least 42 friends and acquaintances, many of whom were from his suburban community, in order to invest in a risky options trading strategy.... Read more
FUNDS
Hedge funds posted performance gains in September to conclude the third quarter, extending a record streak of HFRI performance for the 11th consecutive month. The HFRI Fund Weighted Composite Index (FWC) advanced +0.5 percent for the month, led by gains in Equity Hedge and Event-Driven strategies, as reported today by HFR. Risk Parity strategies posted mixed performance in September, with the HFR Risk Parity Vol 10 Index gaining +0.11 percent,... Read more
REGULATORY
The European Securities and Markets Authority (ESMA) has published a briefing on the Legal Entity Identifier (LEI) as part of its efforts to raise industry awareness and facilitate compliance with the LEI requirements under MiFID II ahead of its 3 January 2018 launch. ESMA expects market participants to take all necessary steps to ensure full compliance with the LEI requirements under MiFID II. Based on its previous experience with EMIR... Read more
FUNDS
Fixed income investors should look to Corporate High Yield bonds, Emerging Market Debt (EMD) and Alternative Credit as potential solutions to counter rising interest rates when Western governments normalise their monetary policies, says Pieter Jansen, Senior Strategist at NN Investment Partners, who believe these assets offer investors attractive returns in either of the two economic scenarios going forwards. Scenario 1 entails global growth... Read more
FUNDS
Societe Generale Prime Services has announced the September 2017 performance data for its SG CTA indices. Following steady gains in July and August, CTAs faced difficult conditions in September as all the indices moved into negative territory. It has been a particularly challenging month for trend-followers as the SG Trend Index underperformed others, down -3.06%, compared to the Short-Term Traders Index (STTI) which was flat for the month -0.14... Read more
PEOPLE
Tolomeo Capital AG, the Swiss based systematic asset manager, has appointed Sonja Frech to the newly created position of Director of Finance & Compliance. Frech held senior Finance and Controlling positions in several financial and industrial firms and worked for a large German energy company in mergers & acquisitions, investment controlling and extrajudicial debt enforcement proceedings before co-founding a large Swiss family office and... Read more