Senior Funds Correspondent
Raji's Feed
May 21, 2010

Banks resilient as fund managers seek to cut fees

LONDON, May 21 (Reuters) – What if fund managers handled new
share sales and cut out the middleman — the investment banks –
to avoid the hefty fees charged on the offer price?

Better for the owners of the company, no? Well, maybe.

But after a year of trying, UK investors and their advisors
in London — Europe’s capital markets hub — have yet to secure
a single deal.

May 18, 2010

Schroders profit jumps on institutional flows

LONDON (Reuters) – Fund firm Schroders Plc reported a sharp rise in first-quarter pretax profit on the back of strong inflows from institutional clients, underlining a recovery in the fund management sector.

Pretax profit reached 93.2 million pounds, compared with 36.1 million before exceptionals last year.

May 17, 2010

HSBC investors urged to vote down pay plans – Pirc

LONDON, May 17 (Reuters) – HSBC <HSBA.L> investors have been
urged to oppose the bank’s pay plans by a governance body which
objects to a 9 million pound ($13 million) bonus for the bank’s
investment banking chief.

Pirc, which advises institutional investors with assets of
over 1.5 trillion pounds, said Stuart Gulliver, head of HSBC’s
global banking and markets division, received a bonus of over 11
times his base salary. “This award is excessive,” it said.

May 13, 2010

Major Xstrata investor wary of Glencore merger

LONDON (Reuters) – A major investor in miner Xstrata Plc is wary of a potential merger with European commodity trader Glencore International due to the difficulty in valuing the privately-held firm.

“Glencore are keen to do a deal, but Xstrata shareholders aren’t and I would back the board on having enough independence to back the shareholders,” said a fund manager with an institutional shareholder, one of the 10 biggest in Xstrata.

May 7, 2010

UK’s Pru holds regulator talks as clock ticks

LONDON (Reuters) – Prudential Plc bosses were holding high-level talks with British regulators on Friday, sources said, stepping up negotiations as time begins to run out for its planned $35.5 billion acquisition of AIG’s Asia arm.

Britain’s largest insurer — forced to delay details of a $21 billion cash call this week after an embarrassing last-minute regulatory snag — faces a tough weekend of negotiations, sources familiar with the matter said.

May 7, 2010

Pru bosses hold regulator talks as clock ticks

LONDON (Reuters) – Prudential <PRU.L> bosses will hold high-level talks with British regulators on Friday, sources said, stepping up negotiations as time begins to run out for its planned $35.5 billion acquisition of AIG’s Asia arm.

Insurer Prudential — forced to delay details of a $21 billion cash call on Wednesday after an embarrassing last-minute regulatory snag — will step up contacts with the regulator before the weekend, people familiar with the matter said.

May 6, 2010

Jupiter’s De Blonay plans U.S., Asia shift

LONDON (Reuters) – Fund firm Jupiter’s Guy de Blonay, who will co-manage one of Britain’s most successful financial funds, plans to swap out of European banks into Asian and U.S. stocks he says will enjoy the biggest growth opportunities.

De Blonay, who will co-run the 1.4 billion pound Financial Opportunities Fund alongside star fund manager Philip Gibbs from June 1, said allocations in the long-only fund could rise above 50 percent for the two regions combined.

May 6, 2010

Schroders profit jumps on institutional flows

LONDON, May 6 (Reuters) – British fund firm Schroders Plc
<SDR.L> reported a sharp rise in first-quarter pretax profit on
the back of strong inflows from institutional clients,
underlining a recovery in the fund management sector.

Pretax profit reached 93.2 million pounds ($141.4 million),
compared with 36.1 million before exceptionals last year.

May 4, 2010

Aberdeen profits spike

LONDON (Reuters) – British fund firm Aberdeen <ADN.L> said its clients moved their funds into higher margin products in the first half, resulting in a forecast-beating tripling in pretax profit, which sent its shares to a seven-month high.

Fund houses have been struggling to recapture pre-crisis profits as clients have proved reluctant to exit the cheap products they had gravitated towards as markets rode the shocks of 2007 and 2008.

May 4, 2010

Aberdeen profits spike as high-fee funds return

LONDON, May 4 (Reuters) – British fund firm Aberdeen <ADN.L>
said its clients moved their funds into higher margin products
in the first half, resulting in a forecast-beating tripling in
pretax profit, which sent its shares to a seven-month high.

Fund houses have been struggling to recapture pre-crisis
profits as clients have proved reluctant to exit the cheap
products they had gravitated towards as markets rode the shocks
of 2007 and 2008.