Funds Hub

Money managers under the microscope

from Global Investing:

Survival of the fattest?

Is there room only for the biggest, most aggressively-marketed funds in crisis-hit Europe?

Europe's ten best-selling funds have attracted nearly a third of net sales across bonds, equity and mixed assets so far this year, as the grey bars show in the following chart from Thomson Reuters' fund research firm Lipper.

TEN MOST SUCCESSFUL FUNDS' NET SALES AS A PROPORTION OF ALL SALES

The numbers -- which exclude ETFs -- are even more staggering if looking at at the concentration of sales into groups/companies, rather than at fund level.

Then, data compiled by Fitch ratings using Lipper shows that over the past three years Europe's ten biggest firms have attracted around 80 percent of  flows into fixed income, equity and mixed assets.

from Global Investing:

GUEST BLOG: Is Your Global Bond Fund Riskier than You Thought?

This is a guest post from Douglas J. Peebles, Head of Fixed Income at AllianceBernstein. The piece reflects his own opinion and is not endorsed by Reuters. The views expressed  do not constitute research, investment advice or trade recommendations and do not necessarily represent the views of all AllianceBernstein portfolio-management teams.


Global bond funds continue to attract strong inflows as near-zero interest rates lead many investors to look abroad for assets with attractive yields. As we’ve argued before, global bonds provide many important benefits, but it’s crucial that investors select the right type of fund.

Morning Line-Up: Thoroughbred, fees, fixed-income funds

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

Investors in Thoroughbred fund granted early exit – NY Times

Yes, you can lose money in fixed-income funds – WSJ

Who’s who in the latest insider trading arrests – Reuters

The incredible shrinking fee – WSJ

Smaller hedge funds to enjoy inflows – Financial News

How to make money in 2011 – Daily Mail

from Global Investing:

Equities — an ‘even years’ curse?

Are global equity markets under an 'Even Years Curse' that sees them underperform bonds in even-numbered years but beat fixed-income returns in odd-numbered ones? After some number-crunching, Fidelity International's' director of asset allocation Trevor Greetham suspects so.

"It's not just hocus-pocus but to do with global inventory levels," he explained at a forum organised by the London-based investment house.

from DealZone:

R.I.P. Salomon Brothers

It's official: Salomon Brothers has been completely picked apart.

Citigroup's agreement to sell Phibro, its profitable but controversial commodity trading business, to Occidental Petroleum today puts the finishing touches on a slow erosion of a once-dominant bond trading and investment banking firm.

When Sandy Weill (pictured left) staged his 1998 coup -- combining Citicorp and Travelers, Salomon Brothers was a strong albeit humbled investment banking and trading force. Yet little by little, a succession of financial crises, Wall Street fashion and regulatory intervention has whittled away at the once-dominant firm.

Guard dog shows teeth

You’ve got to hand it to Cerberus.

While we dutifully write stories about a new beginning for the hedge fund industry, marked by transparency at levels never seen before and fund structures designed to satisfy those burned by the credit crisis, the firm named after the guard dog at the gates of Hades comes up with its own tactic — lock up investor money for three years.

You might think that this is the last thing investors want, but it has a curious logic.

Exporting Insight

Photo

bny-mellon-buys-insight1BNY Mellon Asset Management which today acquired Lloyd’s fund management unit- Insight Investment- for 235 million pounds is betting on a boom in liability driven investment (LDI) to boost its coffers over the coming years.

 

Vice chairman Jon Little told us that Insight’s fixed income and absolute return businesses were expected to grow rapidly, but it’s Insight’s LDI business that seems to have played the decisive role in the deal.

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