Daily News

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
FUNDS
Societe Generale Prime Services has released the August 2017 performance data for its SG CTA indices, which reveal that following a challenging first half of the year, CTAs continued their upwards trajectory, with their second positive month, up +2.07% in August. The developments in H2 are taking CTAs almost back into positive territory. The SG CTA Mutual Index was also up +0.83% in August and back to flat year to date. The returns were... Read more
FUNDS
KeyQuant, the Paris-based systematic asset management firm, has announced a $30 million allocation from the Colorado Fire and Police Pension Association (FPPA). The allocation was made directly from the association’s $4.6 billion Fire and Police Members' Benefit Investment Fund. “This substantial new investment from FPPA represents another important step for our firm as a wide range of institutional caliber clients continue to... Read more
PEOPLE
The Securities and Exchange Commission has named Dalia Blass as Director of the agency's Division of Investment Management. The SEC's Division of Investment Management works to protect investors and to promote capital formation and innovation in investment products and services through oversight and regulation of the nation’s multi-trillion dollar investment management industry. The division is responsible for the Commission's... Read more
FUNDS
Recently, an investor asked if investing in CTAs was investing in a crowded trade. We think not!, comments Dr. Tillmann Sachs, Chief Investment Officer and Head of Research of J8 Capital Management LLP in a recent blog post. A) According to the Bank of International Settlement (BIS), the total notional outstanding in derivatives in 2016 was $444 trillion. CTAs manage approximately $350 billion assets under management (BarclayHedge). Assuming an... Read more
FUNDS
RWC Partners has completed the acquisition of Pensato Capital. Established by Graham Clapp in 2008, Pensato Capital managed approximately $280m on behalf of its clients across long-only and long/short European equity strategies as at the end of August 2017. A seven-strong investment team joins RWC from Pensato, including co-portfolio managers Edward Rumble and Russell Champion who both worked alongside Clapp at Fidelity. Clapp spent 22... Read more
FUNDS
The August 2017 State Street Investor Confidence Index decreased to 106.8, down 2.1 points from July’s revised reading of 108.9. The decline in sentiment was driven by a 4.9 point drop in the European ICI to 89.3 along with the 0.3 point decrease in the North American ICI to 111.8.  By contrast, the Asian ICI rose by 3.3 points to 99.3. “After a boost in risk appetite in July, global investors appear to be 'on hold' in... Read more
REGULATORY
On 24 August 2017, President Trump issued an Executive Order, Imposing Additional Sanctions with Respect to the Situation in Venezuela, in reaction to recent actions and policies of the Government of Venezuela, including human rights abuses, a deepening humanitarian crisis, the establishment of an illegitimate government body, rampant public corruption, and persecution of the political opposition, report Schulte Roth & Zabel. The new... Read more
REGULATORY
Last week, a divided panel of the US Court of Appeals for the Second Circuit issued another in a series of important insider trading decisions regarding the personal benefit requirement in the context of gifting confidential information, sustaining the conviction of Mathew Martoma, a former portfolio manager, report Schulte Roth & Zabel. In doing so, the panel expressly overruled a significant aspect of the Court’s 2014 decision in... Read more
FUNDS
The Central Bank of Bahrain (CBB) has announced two entrants into its regulatory sandbox. Tramonex, a London-based forex cash management solution for businesses; and NOW Money, the Dubai-based account and remittance service for low-income workers in the GCC. Launched in June, the Bahrain regulatory sandbox provides a virtual space for companies to test their financial technology based solutions, and is open to existing CBB licensees and... Read more
FUNDS
Total capital managed by Emerging Markets hedge funds increased to a record level for the fourth consecutive quarter through mid-year 2017, as a synchronized improvement in global growth and increased investor risk tolerance continued to drive gains across regional equity markets. Emerging Markets (EM) hedge fund capital increased to $213.3 billion (1.42 trillion RMB, 672 billion Brazilian Real, 13.6 trillion Indian Rupee, 11.3 trillion Russian... Read more
FUNDS
Old Mutual Global Investors (OMGI), part of Old Mutual Wealth, has announced the launch of its first ‘CoCos’ strategy, the Old Mutual Financials Contingent Capital Fund. The fund, which will be managed by experts from OMGI’s equity and credit desks, aims to generate a total return through a combination of income and capital growth from a portfolio of fixed and variable rate debt securities issued by financial institutions... Read more
FUNDS
The A&P Emerging Manager Index posted a positive performance for July of 1.10% with YTD performance of 6.26%. July, in general, produced another positive month for hedge funds, once again driven by the continued underlying strength of equity markets. The S&P 500 in July recorded all time highs now up 10% YTD and the Eurekahedge Hedge Fund Index posting an estimated positive performance in July of 0.97% Advisors & Partners LLP... Read more
REGULATORY
The Securities and Exchange Commission has issued two releases and the SEC staff released a Staff Accounting Bulletin to update interpretive guidance regarding revenue recognition. Consistent with developments in private-sector accounting standard setting, the SEC issued a release to update its guidance for bill-and-hold arrangements by stating that registrants should no longer refer to the criteria in Accounting and Auditing Enforcement Release... Read more
FUNDS
S&P Global Market Intelligence has released its review of Q2 2017 13F filings by pure play hedge funds. The quarterly S&P Global Market Intelligence Hedge Fund Tracker is an aggregate analysis of hedge fund equity ownership that highlights hedge fund investments in specific stocks and sectors. The latest analysis shows the top funds managed approximately $154 billion in equity holdings, down slightly from the $157 billion under... Read more
TECH
InfluxData, the open source platform for metrics and events, has updated InfluxCloud, its managed and hosted version of the InfluxData platform. “We are focused on delivering rapid time to value for developers through building monitoring and control applications, and with the inclusion of Chronograf and Kapacitor into InfluxCloud, developers can experience more of the entire platform without having to setup and manage any infrastructure,... Read more
FUNDS
The Trump administration is being thwarted from advancing its agenda while global growth remains solid, says John Peta, head of emerging market debt at Old Mutual Global Investors. While the allies and adversaries of the US have been watching the unfolding drama in the White House with mixed emotions, the response of emerging-market debt investors has been rather more straightforward: joyful relief. When Donald Trump ascended to the US... Read more
PEOPLE
MFA President and CEO Richard H. Baker has released the following statement on the US Senate’s confirmation of J. Christopher Giancarlo as Chairman of the Commodity Futures Trading Commission (CFTC) and Brian D. Quintenz and Rostin Behnam as Commissioners: “On behalf of MFA, I would like to congratulate Chairman Giancarlo and Commissioners Quintenz and Behnam on their successful confirmations. We share their commitment to the CFTC... Read more
FUNDS
Asian hedge funds extended 1Q gains through mid-year, led by funds investing in India and China, resulting in the first quarterly asset inflows since 2Q15 and increasing Asian hedge fund capital to the highest level since 4Q15. The HFRX India Index gained +6.4 percent in 2Q17, bringing YTD performance to +26.6 percent, topping the Sensex 30 Index by over 1000 basis points for 1H17.  Total capital invested in Asian hedge funds rose to $117.1... Read more
CORPORATE
Linedata has signed an agreement to acquire Quality Risk Management & Operations (QRMO), a provider of outsourced middle-office, shadow accounting and risk monitoring services to the asset management and securities industries. The acquisition of QRMO, a Hong Kong-based company with 30 employees, allows Linedata to expand its outsourcing business and enhance its presence across Asia. QRMO will expand its range of outsourced services by... Read more
FUNDS
Following a frustrating period in June, three of the SG CTA indices posted positive performance in July according to Societe Generale Prime Services. The SG CTA index was up +0.73%, but still remains down year to date at -2.74%. The SG CTA Mutual Index was up +1.61%, putting it down only -0.85% year to date, and is the best performing index so far this year. Short term trading strategies had a mixed July, flat -0.08%, and remain down -7.03... Read more
FUNDS
Comment from Nicholas Wall, portfolio manager, Old Mutual Global Strategic Bond Fund, Old Mutual Global Investors. Greece plans to issue a new benchmark five-year bond. We believe that changes in the European political landscape, together with recent strong economic data, mean the bond should perform well. When deciding whether to invest in Greece, or any other European country that has found itself in difficulty amid the debt crisis,... Read more
FUNDS
London Stock Exchange today welcomed Gabelli Merger Plus+ Trust PLC, a newly incorporated close-ended public limited company, to trading on the Specialist Fund Segment of the Main Market. Gabelli Merger Plus+ Trust PLC raised gross proceeds of $100,111,000. Robert Barnes, Global Head of Primary Markets and CEO Turquoise, London Stock Exchange Group said: “Welcoming the second Gabelli fund to our markets today is a milestone for the company... Read more
TECH
Quantifi, a provider of risk, analytics and trading solutions, today announced that Oesterreichische Kontrollbank Aktiengesellschaft (OeKB) has extended its usage of Quantifi for enterprise market risk. Established in 1946, OeKB is Austria’s main provider of financial and information services to the export industry and capital markets. In 2015, OeKB selected Quantifi as its front-to-middle office solution for counterparty risk and IFRS 13... Read more
FUNDS
Diverging market views on the euro-area outlook offer investment opportunities, says Paul Shanta, portfolio manager, Old Mutual Absolute Return Government Bond Fund, Old Mutual Global Investors: Mario Draghi rattled fixed-income markets last month when the European Central Bank (ECB) president hinted at the eventual unwinding of the stimulus programme underway in the euro area: bond yields spiked and the euro lurched higher. On Thursday, after... Read more
PEOPLE
Jersey Finance has appointed Tom Powell as Business Development Director for Funds. Powell, who is based in Jersey, will be focused on promoting Jersey’s funds sector. With the total net asset value of funds under administration in Jersey standing at its highest ever. Powell will be emphasising Jersey’s proactive environment for managers seeking to market into both mainland Europe and to the UK post-Brexit, through national private... Read more
FUNDS
Aspect Capital (Aspect), the US$6.3bn systematic investment manager, is extending its alternative risk premia funds available to investors through yesterday’s launch of the Aspect Absolute Return Fund and the Aspect Core Trend High Volatility Fund. The Aspect Absolute Return Programme is a systematic multi-risk premia strategy managed by Aspect’s managed futures research team. The Absolute Return Programme adopts a balanced set of... Read more
FUNDS
Most alternative investment management firms are able to turn a profit and expand with considerably less than $100m in assets, according to a survey of sub-$500m firms by the Alternative Investment Management Association (AIMA), the global representative of alternative asset managers, and GPP, the boutique prime broker. The joint AIMA/GPP survey of 135 alternative asset managers globally found that the average break-even point is around $86m,... Read more
PEOPLE
Man Group has announced a number of internal promotions within Man AHL, its diversified quantitative investment manager. These appointments aim to ensure continuity of leadership at Man AHL. Antoine Forterre and Matthew Sargaison have been appointed co-CEOs of Man AHL, reflecting their instrumental roles in the development and execution of Man AHL’s strategy over several years. Forterre and Sargaison will continue to report to Sandy... Read more