Funds Hub

Money managers under the microscope

Don’t overpay for Enel renewables arm

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Enel’s IPO of its renewable energy arm is only attractive if it’s priced at the lower end of the price range, says Edward Guinness, co-manager of Guinness Asset Management’s Alternative Energy Fund.

All Aboard the Good Ship QEII

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QE II ship smallWhere will the fickle finger of the Fed point next? It’s a dilemma taxing asset managers trying to anticipate where the Federal Reserve will be spending its pennies once it starts its second round of quantitative easing. The Bank of Japan recently hinted that it might buy commercial paper, exchange traded funds and real estate investment trusts as part of its asset purchase scheme, so the Fed may not stick to T-bills and mortage backed-securities.

“Investors will need to look out for signals from central banks,” said Andrew Milligan, head of global strategy at Standard Life Investments, speaking at a briefing in London today.  Milligan describes QE as “crossing the Rubicon” and pointed out that US government bond yields are grinding lower because hedge funds have jumped in to the T-bill market on the expectation that the Fed will start a second round of bond buying. If the yield for the 10-year T-bill dips below 2 percent, Milligan said, this would be getting close to bubble territory.

Shocking.. Toxic.. Nasties.. Devastating.. Leeches..

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.. Some select phrases from this morning’s Daily Mail pop at greedy fund managers who rake in fees whether or not they’re beating the market. It might read a bit like an advertiorial for passive managers like Vanguard (which gets an unusually high number of prominent name checks) but it won’t be comfortable reading for other asset management execs.

The paper’s salvo gives a kicking to firms like Axa and Henderson and makes much of the secretive pay packages earned by the fundies and the marketeers. It also, somewhat bizarrely reckons the grey-suited long-only managers looking after your ISA are responsible for most of the yachts bobbing gently in the Marina at Monte Carlo.

The chart that bounced…

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Our graphics team have been busy producing some wonderful interactive contraptions and this is one of the best I’ve seen, a clear and useful look at the top equity fund sectors over the last three years.

No great surprise to see Thailand ruling the roost but interesting to see Italian funds faring so poorly, and who would have picked Israeli small cap managers to make the top 10?.

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