Funds Hub
Money managers under the microscope
Envy, desire and basis points
I would like to tell you a story. It’s one about the tempestuous relationship between fund managers and their investors, a tale of envy, desire and basis point negotiations. You may have spotted by now that this is not the plot for this season’s latest blockbuster.
My story has recently gained a little extra spice with two old-fashioned heroes riding into view. One from the West – Omaha - and the other from the East - well, his father hailed from Russia – with both willing to make a little less money in order to help their fellow citizens. Warren Buffett and Stuart Rose are not alone; others in France and Germany are also saddling up. These horsemen seem to be heading in the opposite direction from those in the European funds industry.
There is one aspect that I’d like to look at to explore this: the fees generated by funds in relation to their assets. And in this case Europe and the US look pretty different.
One of the implicit benefits of investing in a mutual fund is that investors enjoy lower annual charges as a result of a fund’s success in increasing assets, in other words that costs fall as more investors join – economies of scale.
Luke Ellis: 2011 volatility is no repeat of hedge funds’ tough 2008
Guest blogger Luke Ellis is head of the multi-manager business at Man Group, the world’s largest listed hedge fund manager.
The views expressed here are entirely the author’s own and do not constitute Reuters’ point of view.
Rude health, and a changing of the guard?
By Detlef Glow, Head of EMEA Research at Lipper. The views expressed are his own.
The European exchange-traded-fund (ETF) industry has shown some resilience in the face of questions about management practices raised by market observers like the Financial Stability Board (FSB) and regulatory bodies like the FSA in the UK.
from Jeremy Gaunt:
Getting there from here
Depending on how you look at it, August may not have been as bad a month for stocks as advertised. For the month as a whole, the MSCI all-country world stock index lost more than 7.5 percent. This was the worst performance since May last year, and the worst August since 1998.
But if you had bought in at the low on August 9, you would have gained healthy 8.5 percent or so.
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.
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
