Funds Hub

Money managers under the microscope

Morning Line-up: U.S. probes wider and takeover by stealth



 News and views on the asset management industry from Reuters and elsewhere

Barai Capital under U.S. govt scanner - Wall Street Journal

Man Group launches ETF using broker tips – Financial Times

RBS pushes into retail funds – Independent

Reclusive rebel investor closes in on F&C – Reuters

from Reuters Money:

Actively managed ETFs and other wrinkles

David Gaffen is pictured in this undated handout photo. REUTERS/HandoutThe following is an edited excerpt from Never Buy Another Stock Again: The Investing Portfolio that Will Preserve Your Wealth and Your Sanity, written by David Gaffen, who is the Reuters markets editor. It was printed with permission of FT Press, an imprint of Pearson.

One of the biggest growth industries in finance right now is in exchange-traded funds, and further growth in ETFs appears likely to come from several places.

UK universities eye and keep an eye on new hedge fund punts


Pension schemes are moving away from the usual equity/bond/real estate mix to put their eggs in as many baskets as possible. No wonder then that the USS — the 31.6 billion pounds UK universities pension fund — is putting an extra 1.5 percent of its assets, or about 474 million pounds, into hedge funds, as its CIO Roger Gray tells Reuters.

If you are rushing to the phone to pitch business with Mr Gray, however, STOP a minute fund manager: be prepared, the USS is not only eyeing alpha, it is going to ask a few questions about how alpha is distributed and how investors are protected.

Steer clear of the free lunch, says Noster


Diversification is meant to be the only free lunch in investing.

But according to hedge fund Noster Capital, with most markets looking toppy and with problems ahead, it’s not necessarily one that investors would be wise to tuck into.

“This is not the time to be invested in broad ETFs or in very diversified funds, because the indexes will likely not do much in aggregate,” it says in its end of year letter.

Utilities vs banks: The evidence


Alpesh Patel caused quite a stir on Britain’s Radio 4 this morning. The CEO of boutique investment house Praefinium Partners argued that Bob Diamond was on “a suicide mission to bring down capitalism”. No word yet from the Barclays CEO on that one.

Maybe that was just the line his PRs had promised to the BBC producers to get him on air, though, and there is more logic to Patel’s more substantial point about value creation in the banking sector in relation to bonuses and pay.

Morning Line-up: FandC’s errant investor and SEC muscle flexing


RTR1SGF8 News and views on the asset management industry from Reuters and elsewhere:

SEC sues ex Trivium fund manager – Reuters

F&C hit by rebel shareholder concerns - Independent

Hedge funds kept taking in money at end 2010 – Reuters

from Reuters Money:

Lazy portfolios win again in 2010

A Chinese investor looks at share prices at a securities exchange in Shanghai March 28, 2005. REUTERS/Claro Cortes IVThose of you who diligently invest from reclining chairs with passive portfolios, rejoice! You had another good year without doing much of anything.

Not only did you get more out of life by not watching business TV channels, stock prices on your smartphone or fretting over the latest blip on Wall Street, you built up your retirement portfolio without much effort.