The Great Debate UK

Black box trading drives descent of Man


REUTERS– Margaret Doyle is a Reuters columnist. The opinions expressed are her own –

Apparently, investors in Man Group’s flagship fund value liquidity and safety above performance. At least Peter Clarke, the company’s chief executive, hopes so.

He needs them to do so because, over the last five months, the investors in AHL, Man’s “black box” quantitative fund, have been suffering. Unlike many rival funds, Man did not “gate” its funds during the market panic, and Clarke believes that investors will remember this and reward Man for it.

Clarke says that the punters, who account for the bulk of Man’s $44 billion of funds under management, bought $2.6 billion of Man’s funds since the end of March, but the institutions are still running for the exit.

from The Great Debate:

Time for fund managers to act

Alex Smith-GreatDebate-- Alexander Smith is a Reuters columnist. The opinions expressed are his own --

It is time for shareholders to start behaving like the owners of listed companies rather than appearing as hapless bystanders as corporate disasters unfold around them.

In the U.S., the SEC move to allow institutional investors to nominate directors is a small but welcome step in the right direction. To some degree it echoes existing arrangements in Sweden, where shareholders already play a greater role in nominating and approving directors.