LONDON, Jan 13 (Reuters) – More British companies will bridge pension deficits by pledging their own assets to the funds, according to advisers Deloitte which expects to do 2 billion pounds ($3.1 billion) such deals for 2011.

Last year Diageo (DGE.L: Quote, Profile, Research, Stock Buzz) made headlines when it formed a 15-year partnership with its underfunded UK pension fund using maturing whisky as an asset, which the scheme will sell back to Diageo when the partnership ends for an amount reflecting the deficit at that time. [ID:nLDE6600UO]

The aggregate pension deficit of Britain’s 200 largest final salary pension funds amounted to 52 billion pounds at the end of 2010, according to consultant Aon Hewitt.

Confronted with this gap, longer lifespans of retirees and lower investment returns, many more of Britain’s top companies are eyeing similar deals to give their pension schemes income-bearing assets as security. [ID:nLDE6BU09W]

Deloitte advised Diageo and advised transactions involving 2 billion pounds last year. The Diageo deal was unusual, and asset pledges mostly involve real estate.

But the breadth of assets involved, also known as ‘contingent assets’, is also growing and, while last year’s deals focused on the UK, Bullock said some of the ones in the works may involve continental European pension schemes.

“Now that the concept has become more of a market standard, people know how they work … and got comfortable about the mechanics,” said Gavin Bullock, pensions partner at Deloitte [DLTE.UL].

LONDON (Reuters) – The United States is losing its appeal as leading global center for stock market flotations, hit by restrictive regulations and competition from other financial centres, a survey of American lawyers showed on Thursday.

Just over 70 percent of a 50-strong sample of transaction attorneys, whose firms advised on three-quarters of initial public offerings (IPO) listed on major U.S. exchanges this year, said the country is losing its attraction as IPO venue of choice.

“The simple fact is that as the U.S. regulatory environment has become more restrictive, other global exchanges have become more sophisticated and liquid and therefore have gained market share,” said Joshua Ford Bonnie, a partner at Simpson Thacher & Bartlett.

Companies considering an IPO in the United States will have to come to terms with the so-called Dodd-Frank financial reform, which affects among other things the governance and disclosure landscape.

The new environment aims at reducing systemic risks by establishing claw-back policies and the exposure of corporate fraud through whistleblower protection and incentives.

However, the regulatory regime will not deter Chinese companies, which all the respondents to the KCSA Strategic Communications poll saw as strong drivers of U.S.-based IPO activity in 2011.

“We expect that Chinese companies will, at least in the near term, continue to list on U.S. exchanges due to the more clearly defined listing rules and regulations and the perceived stability and prestige of the U.S. markets,” said Colin Diamond, partner at law firm White & Case.

LONDON (Reuters) – Investing in emerging market companies run by their founders can net reliable and sustainable returns for investors who are willing to trust these entrepreneurs over the long term, an Axa fund manager said.

Guillaume De Corbiac, manager and an investor in the 300 million euro (255.4 million pounds) AXA WF Framlington Emerging Markets Talents Fund, targets the personal drive and track record of entrepreneurs rather than the companies they set up, selling if the founder departs.

To prove his point, De Corbiac said he sold out of Egyptian appliance maker Olympic Group OLGR.CA just after Electrolux (ELUXb.ST: Quote, Profile, Research) announced it would take it over.

“We select entrepreneurs able to transform one idea into business. Once we trust an entrepreneur we will keep our trust, we are quite loyal,” said De Corbiac.

Apart form the practical issue of alignment of interest between the entrepreneur and investors, he cites sustainability as a reason to buy into companies run by their founders.

“When your money and reputation are at stake, you think before acting; you will think twice about making an acquisition and think twice before over-paying for that acquisition. This could lead to potentially good returns,” De Corbiac said.

His strategy has paid off. The fund returned 14.7 prevent in the six months to end-Nov, more than 2 percentage points above peers, according to Lipper Global.

LONDON (Reuters) – Investing in emerging market companies run by their founders can net reliable and sustainable returns for investors who are willing to trust these entrepreneurs over the long term, an Axa fund manager said.

Guillaume De Corbiac, manager and an investor in the 300 million euro ($394.8 million) AXA WF Framlington Emerging Markets Talents Fund , targets the personal drive and track record of entrepreneurs rather than the companies they set up, selling if the founder departs.

To prove his point, De Corbiac said he sold out of Egyptian appliance maker Olympic Group just after Electrolux announced it would take it over.

“We select entrepreneurs able to transform one idea into business. Once we trust an entrepreneur we will keep our trust, we are quite loyal,” said De Corbiac.

Apart form the practical issue of alignment of interest between the entrepreneur and investors, he cites sustainability as a reason to buy into companies run by their founders.

“When your money and reputation are at stake, you think before acting; you will think twice about making an acquisition and think twice before over-paying for that acquisition. This could lead to potentially good returns,” De Corbiac said.

His strategy has paid off. The fund returned 14.7 prevent in the six months to end-Nov, more than 2 percentage points above peers, according to Lipper Global.

LONDON (Reuters) – Holiday operators will weather the uncertainty over Western economies in 2011 as people turn to beaches and mini-breaks to escape crisis fears and bad weather, fund managers at Scottish Widows Investment Partnership said.

Luke Hickmore and Roger Webb, co-managers of the 63 million pound SWIP Strategic Bond fund, have invested in senior debt issued by TUI (TUIGn.DE: Quote, Profile, Research) and Thomas Cook (TCG.L: Quote, Profile, Research) with holiday habits seen unchanged in tough times.

“The standard approach people are taking towards holidays is the same in recessionary and expansionary times and when (the economy) goes sideways. They may change a bit but the basic pattern has been the same right through the crisis,” Hickmore told Reuters.

Insurance is another sector that did not waste a good crisis to emerge stronger, Webb said, as insurers improved their balance sheets, offering a relatively stable outlook.

The SWIP fund invests in RSA (RSA.L: Quote, Profile, Research) and Prudential (PRU.L: Quote, Profile, Research) “on the basis that (the sector) can weather volatility much better than banks potentially can”.

Launched on June 14, the fund also invests in sovereign bonds and includes high yields as well as investment grade debt.

It returned -2.5 percent in the month to Nov-end and -0.5 percent in the three months to end-Nov, outperforming peers by 2.13 and 0.47 percentage points respectively, according to Lipper Global.

LONDON, Dec 20 (Reuters) – Anglo-Australian fund management house Henderson Group (HGGH.L: Quote, Profile, Research, Stock Buzz) confirmed takeover talks with ailing rival Gartmore (GRTR.L: Quote, Profile, Research, Stock Buzz), fuelling fears another UK buy may slow its U.S. expansion plans and hitting shares.

Gartmore said late on Friday it had entered into talks with Henderson on the basis of a proposal priced at “a slight discount” to Gartmore’s closing share price of 98.75 pence on Dec. 16, valuing the company at 360 million pounds ($562.5 million). [ID:nLDE6BG20F].

“Henderson’s proposal is conditional. No terms have been agreed and there can be no certainty that a transaction would proceed on the basis set out in Gartmore’s announcement,” the fund manager said.

Gartmore’s shares fell 9.4 percent to 95 pence while Henderson’s shares were down 1.6 percent at 1000 GMT at 132.6 pence a share, amid concerns a transaction would deflect management focus from a long-established intention of expanding its business overseas.

Analysts at Numis Securities gave Henderson a ‘hold’ rating, saying the potential deal was “contradictory to (its) previous intentions of expanding in the United States and Asia and now may limit expansion plans there.”

“Much of the potential benefit of the transaction would depend on whether the combined company can stabilise the Gartmore business after its problems of the past year,” said JP Morgan Cazenove which kept a ‘neutral’ rating on Henderson’s shares.

Numis also said UK market regulator FSA may investigate Henderson’s holdings in Gartmore.