Money managers under the microscope
from Global Investing:
The headline news from our Reuters asset allocation polls this month was that not much has changed from December in terms of overall investment positioning, but that there was a decided shift from emerging markets and European stocks to North America.
But buried in the numbers were a couple of other things:
-- Bonds are decidedly unpopular among fund managers. The overall global allocation was the lowest since February.
-- Bond underweights have also been getting heavier and heavier since summer and now reflect significant bearishness.
-- Within bond portfolios, however. U.S. debt was on the up, at levels not seen for at least 12 months. This contradicts the widely held view that Treasuries are losing their appeal.
By Ed Moisson, Head of UK & Cross-Border Research at Lipper
Do independent asset managers perform better than bank-run funds?
Lipper was recently approached to analyse the difference in performance between funds operated by broader financial services companies (banks and insurers) and those managed by ‘pure play’ asset managers.
This research came in the wake of comments made by Peter Hargreaves, founder of IFA Hargreaves Lansdown, who said in September that many funds in the UK run by banks were “seriously crap”.
News and views on the asset management industry from Reuters and elsewhere:
Liverpool Victoria Asset Management managing director Ann Roughead is a woman on a mission.
She is trying to sell her “no frills, back to basics” investment style to UK investors and as she prepares to take her business to UK institutions next year, she insists the existing UK investment model of churning out products and ideas is a broken one.
News and views on the fund industry from Reuters and elsewhere:
Lands of the rising sun – Reuters
Bonds. Bubble? – Telegraph
Chasing the dream – Reuters
Don’t take it personally.. – Belfast Telegraph
New bid to solve hedge fund rules row – Reuters
Correlation swaps.. – FT Alphaville
from Emily Chasan:
Famously secretive hedge funds may have to stop being so secretive if they are to continue attracting all that money from their wealthy clients.
Chief executive of Fortress Investment Group, the $41.7 billion hedge fund and private equity group, said investors are demanding a lot more transparency these days.
Not the words ringing in my ears as I leave for work every morning, but City of London Investment CEO Barry Olliff’s take on the UK financial sector.
Olliff is taking his company from AIM and onto the main market next month and the new governance guidelines which will apply to the firm as a result have sparked a frank assessment. Take it away, Barry: