Daily News

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
REGULATORY
Following the publication of the European Commission’s proposed amendment to the ESA Regulation to give more supervising authority to ESMA, EBA and EIOPA, ALFI expressed its surprise and concern about the new role for ESMA in the authorisation procedure of delegation arrangements Denise Voss, Chairman of ALFI, said: “We question this proposed additional layer in the authorisation procedure, required when a fund wants to delegate... Read more
REGULATORY
SEC Chairman Jay Clayton today provided an update on the status of the agency’s review and investigation of the 2016 intrusion into the EDGAR system. In addition to updating previous disclosures, today's announcement also includes additional information on the agency’s efforts to strengthen its cybersecurity risk profile going forward. The ongoing staff investigation of the 2016 intrusion has now determined that an EDGAR test... Read more
TECH
BNY Mellon and Hazeltree, a provider of treasury solutions, have joined forces to deliver an independent platform that streamlines cash management for buy-side and corporate firms. The initiative delivers BNY Mellon’s full suite of cash, treasury and custody services through Hazeltree’s treasury management technology. The relationship provides BNY Mellon clients with full transparency across their portfolio, regardless of where... Read more
REGULATORY
The European Securities and Markets Authority (ESMA) has issued today its final draft Regulatory Technical Standard (RTS) implementing the trading obligation for derivatives under the Markets in Financial Instruments Regulation (MiFIR). ESMA’s draft RTS provides the implementing details for on-venue trading of interest rate swaps (IRS) and credit default swaps (CDS). Steven Maijoor, ESMA Chair, stated: “This MiFIR standard marks the... Read more
REGULATORY
FIA responded to the CFTC’s call for suggestions on simplifying and modernizing CFTC rules via Project KISS today. FIA’s Project KISS response is a single comprehensive letter addressing priority areas where the CFTC can make its regulatory regime more effective and efficient without requiring significant agency resources or resulting in significant costs for market participants. “FIA and our members appreciate that Chairman... Read more
CORPORATE
SANNE, a provider of alternative asset and corporate administration services, has entered into an agreement to acquire Luxembourg Investment Solutions S.A. and Compliance Partners S.A., (the “acquired companies”). LIS is a third-party AIFM headquartered in Luxembourg with a branch in Dublin. Clients are spread across private equity, real estate, private debt and infrastructure funds. LIS is regulated under the supervision of... Read more
REGULATORY
On 20 September 2017, in response to North Korea’s recent military actions and public statements made by North Korean leader Kim Jong-un, President Trump issued Executive Order 13810 (“E.O. 13810”), which authorizes the US Secretary of the Treasury to impose sanctions against persons, including foreign financial institutions, that knowingly engage in transactions and activity involving North Korea. As Secretary Mnuchin stated... Read more
PEOPLE
Aquila Capital has strengthened its quantitative investment proposition with the appointment of Fabian Dori as Quantitative Strategist and Portfolio Manager within its Systematic Trading Group. This team oversees Aquila Capital’s quantitative strategies investing in liquid financial markets. Dori joins Aquila Capital from Notenstein La Roche Privatbank, where he was Chief Investment Officer. He will be reunited at Aquila Capital with the... Read more
PEOPLE
KNEIP, the data management provider, has appointed Jean-Baptiste Douville de Franssu and Michael Jackson as new board members. As former President of the European Fund and Asset Management Association (EFAMA) and previously Chief Executive Officer of Invesco Europe, Douville de Franssu brings a wealth of experience and expertise in the asset management field. Jackson is the former Chief Operations Officer of Skype and is a Non-Executive... Read more
FUNDS
State Street Global Exchange has released the results of the State Street Investor Confidence Index (ICI) for September 2017. The index decreased to 104.4, down 2.4 points from August’s revised reading of 106.8. The decline in sentiment was driven by a 6.3 point drop in the North American ICI to 105.6. By contrast, the European ICI rose by 4.7 points to 93.7 along with the 3.7 increase in the Asian ICI to 102.8. The Investor... Read more
REGULATORY
The signing of Memoranda of Understanding (MoU) with Chinese regulators and industry associations has provided the foundation for Guernsey to develop business and build relationships with Chinese service providers and their clients. China-based panellists presented evidence of this at an event marking 10 years of Guernsey’s presence in Shanghai and all cited the importance of the MoUs in facilitating business with the island. ... Read more
PEOPLE
A survey of senior professionals working in Malta’s financial services sector carried out by Managing Partners Group (MPG), the international asset management group, reveals that 81% of respondents expect the number of people employed by their companies to increase over the next five years – with 19% anticipating a dramatic rise. However, nearly one in three of those interviewed (32%) expect to see a dramatic increase in people being... Read more
FUNDS
According to research published by the AIMA and Societe Generale, portfolios that include managed futures funds perform better and reduce more risk than those without them. The paper, which is about commodity trading advisers (CTAs) and managed futures funds and titled Riding the Wave, explains the roles that managed futures funds typically play in investor portfolios and the diverse strategies on offer. The paper also highlights the... Read more
FUNDS
Optima Fund Management is making available its Optima STAR Long Strategy in Europe. STAR Long Strategy offers investors the opportunity to benefit from the highest-conviction stock positions held by Optima’s pick of leading American hedge funds without facing the high-charges and low liquidity that direct participation in such funds inevitably involves. Focusing on managers working with US equities and American Depositary Receipts (... Read more
FUNDS
After a tough run with performance and investor redemptions in the past few years, investors have come back to hedge funds in a big way, adding $13.4 billion to global hedge funds in August. Those new investments coupled with performance increases bring hedge fund industry assets under management (AUM) to a record $3.209 trillion, according to the just-released eVestment August 2017 Hedge Fund Asset Flows Report. One area investors seem to... Read more
TECH
Investment professionals can be inundated with research reports from the sell side, the buy side and academia. Top financial research teams can produce enough content to consume 24 reams or 12,000 sheets of paper per day. To help address this information overload, State Street has launched QuantextualSM Idea Lab, which combines the power of machine learning with the knowledge of human experts in order to help investment professionals efficiently... Read more
FUNDS
SS&C’s Forward Redemption Indicator for September 2017 fell to 3.72% as compared to the 4.22% reported for the same period a year ago in September 2016. This decline marks the eighth consecutive month of year-over-year improvement in redemption notices,” said Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies. “It’s noteworthy that these gains in asset retention have been made in a year of... Read more
FUNDS
EY Luxembourg has just released its 2017 edition of Investment Funds in Luxembourg – A technical guide, designed to answer many questions on setting up and operating investment funds in Luxembourg. The 2017 publication has been updated to cover recent legislative and regulatory changes.  The investment funds industry continues to be presented with both significant opportunities and challenges. The industry is expected to generate a... Read more
FUNDS
In response to recent political and macro-economic developments, the Association of the Luxembourg Fund Industry (ALFI) has announced a series of initiatives to support asset managers and investment funds in fulfilling their role of serving investors and fostering economic growth. The main focus of these actions will be the potentially disruptive consequences of Brexit, technology, investor education, operational efficiency and cost management.... Read more
REGULATORY
Man Group has announced that it has become a signatory to the United Nations-supported Principles for Responsible Investment (PRI). Two of Man Group’s investment businesses, discretionary manager Man GLG and systematic equity manager Man Numeric, have been signatories to the PRI since 2012 and 2014, respectively. The firm is now elevating its commitment to the Man Group level, implementing the Principles across its five investment... Read more
REGULATORY
Stone Harbor Investment Partners LP, the global fixed-income investment firm focused on credit and asset allocation strategies, has announced its commitment to comply with the £217 billion Local Government Pension Scheme’s (LGPS) Code of Transparency. The voluntary code, launched by the LGPS Advisory Board in June 2017, is aimed at helping LGPS funds access detailed information surrounding costs and fees in order to help to... Read more
PEOPLE
Lorna Smith, Interim Executive Director of BVI Finance, has made a statement on Hurricane Maria and the impact on BVI’s international business and finance centre. “The full impact of Hurricane Maria is still emerging, but thankfully we were spared the brunt of it as the eye passed south of our islands. Reconstruction efforts have therefore continued along with ongoing humanitarian support. For the international business and... Read more
FUNDS
The hedge fund industry has produced its tenth consecutive month of aggregate gains in August, though leading strategies shifted a bit during the month, according to the latest Hedge Fund Performance Report [PDF] from eVestment. A welcome sight for investors is an accelerating rebound from the largest managed futures products, and macro funds are also improving on what was a dismal Q2. Quantitative equity strategies outperformed in a generally... Read more
FUNDS
Markets have been little moved by the escalation of the North Korean conflict, claims Diana Choyleva in the latest Enodo Weekly from Enodo Economics. They may well be right that short of a nuclear war, in which case all bets are off, Kim Jong-un’s provocations are unlikely to have an immediate material impact. But, together with China’s relentless rise, these are tectonic shifts in the global political order. They argue for an... Read more
FUNDS
Geopolitics has now become the number one concern of global institutional investors, eclipsing their fear of rising interest rates or economic slowdown, according to a recent study conducted by Allianz Global Investors (AllianzGI). For the first time since the AllianzGI RiskMonitor study was launched globally in 2013, geopolitical concerns top the list of risk factors for the 755 institutional investors surveyed, who represent $34.2... Read more
FUNDS
Nicholas Wall, portfolio manager, Old Mutual Strategic Absolute Return Bond Fund, Old Mutual Global Investors, has commented after the Bank of Canada (BoC), bucking the cautious trend prevalent among other major developed-market central banks, hiked interest rates from 0.75% to 1.00% on Wednesday. "Canada has been experiencing a period of above-trend growth, underlined by 4.5% annualised GDP expansion in the second quarter, with more... Read more