Funds Hub
Money managers under the microscope
Risk Management: Did fund managers learn their lesson?
By Detlef Glow, Head of EMEA Research at Lipper. The views expressed are his own.
In the last decade investors and fund managers faced two major crises in the stock markets, the popping of the technology bubble in 2001 and financial crisis starting in 2006.
Portfolio managers suffered average losses of about 50 percent in the wake of both crises, leading investors to question what their fund managers learned.
A Lipper and Avana Invest study on the maximum drawdown of actively managed funds found that those fund managers must have introduced new risk management tools after the bust of the technology bubble. Still, they failed to meet investor expectations on managing risk.
A choice between risk and return?
By Dunny P. Moonesawmy. Head of Fund Research for Lipper in Western Europe/Middle East and Africa. The views expressed are his own.
Hedge funds have delivered decent risk-return results over the past ten years. And as transparency and liquidity increased post-credit crisis, they have regained their appeal as providers of absolute return opportunities for investors. In addition, an increasing lack of market visibility globally has played to hedge funds’ supposed strengths, with total industry assets under management now exceeding the $2 trillion, according to Hedge Fund Research.
Knowing me, knowing you..
For a fund company expanding out of its home market, a crucial question is whether a distribution strategy that works well locally will also work in other countries. You might call it the Abba Dilemma: Knowing me, knowing you?
The Swedish popsters’ 1977 hit single went on to suggest “there is nothing we can do”, but new research from Lipper hopes to shed some light on this issue.
KIIDs can help bridge the trust gap: Lipper
By Merieme Boutayeb. Research Analyst at Lipper. The views expressed are her own.
The European fund industry is getting a second chance this week to improve the way it communicates with investors when selling its products. While the first effort became mired in legalese and complexity, the Key Investor Information Document, or KIID, should offer a golden opportunity to recoup some more of the trust lost during and after the financial crisis. Firms would do well to look past their misgivings and not waste it.
Morning Line-Up: short sellers, China small caps, LSE/Nasdaq, hedge funds salary
News and views on the asset management industry from Reuters and elsewhere:
Chinese stock shortsellers eye Hong Kong- Reuters
Chinese small caps hit funds H1 performance – Reuters
LSE open to Nasdaq merger – FT
Hong Kong hedge funds, banks up salaries to avert exodus- South China Morning Post
Morning Line-Up: euro bets, launch, India
News and views on the asset management industry from Reuters and elsewhere:
Hedge funds ramp up extreme bets against euro – WSJ
Family offices look to add more hedge funds – NYT Dealbook
Ex-DKR Fischer aims to raise up to $1 bln in hedge fund -Reuters
Chelsea highlights 26 bln stg of underperforming funds – FT Adviser
Morning Line-Up: Goldman, clearing houses, Hargreaves
News and views on the asset management industry from Reuters and elsewhere:
Goldman and Clive Capital to launch commods index - FT
Clearing houses target direct links with fund managers – Financial News
Hargreaves resists revealing fund commission – ThisisMoney
Are marathon runners trying to sprint?
“The long is short. Investment choice, like other life choices, is being re-tuned to a shorter wave-length.” So stated Andy Haldane of the Bank of England in a speech last month.
If one of the key features of a mutual fund is that it is a long-term investment, then concerns that money is being managed over decreasing time horizons should be treated seriously.
Morning Line-Up: ETFs, awards
News and views on the asset management industry from Reuters and elsewhere:
Why natural disasters and inflation fears helped ETFs in Q1 – Forbes
Fund man declines royal chance to boast – Sydney Morning Herald
European hedge fund managers honoured at Hedge Funds Reviews awards – Hedge Funds Review
Hedge funds vs mutual funds
By Dunny P. Moonesawmy, Head of Fund Research for Lipper in western Europe, Middle East and Africa. The views expressed are his own.
Hedge funds took some heat from the credit crisis as liquidity and transparency became critical factors in investment decision-making. It’s fair to say hedge funds continued to deliver decent returns to investors, but how do they compare to mutual funds if we focus on performance and risk alone?
