LONDON (Reuters) – Investors wooed by 2013′s strong British stock market listings forget the risks of backing debut share sales at their peril, as data from the past decade shows their support is rarely rewarded within a year of companies going public.
Figures from private bank Kleinwort Benson show that on average UK listings underperformed the FTSE All Share index .FTAS in the 12 months after debut in 7 of the last 10 years.
LONDON, Oct 28 (Reuters) – Moves to revolutionise the way
global fund managers pay banks for company research could slash
the profitability of their equity funds business by up to 50
percent, research has showed.
Most fund firms pass on the cost of equity research, valued
in the region of $5 billion a year, to their own clients, who
pick up the bill as part of commissions paid to brokers for
buying and selling stocks on behalf of the fund.
LONDON, Oct 22 (Reuters) – Neil Woodford’s surprise
announcement last week of his planned departure from fund
manager Invesco Perpetual neatly encapsulates the risks to fund
firms who employ such star managers and the investors who back
They can leave.
Woodford, widely feted for a defensive stock-picking style
that made money throughout the financial crisis, is responsible
for running around 30 billion pounds ($48.5 billion) of assets,
out of the firm’s 70 billion total.
LONDON (Reuters) – When Sanjeev Shah quit his job last month, eyebrows were raised. This wasn’t another burned-out banker: The 43-year-old was a successful fund manager running 2.8 billion pounds ($4.5 billion) for Fidelity Worldwide Investment, reaping big returns.
His reasons for leaving – “This is a role that demands 110 percent effort, focus and intensity. I don’t want that level of intensity” – shed rare light on an industry often dismissed as the easy option in the world of finance.
LONDON, Oct 15 (Reuters) – Fund managers are trading more
assets on private exchanges known as dark pools, a growing trend
that clashes with regulators’ mission to improve financial
Dark pools are electronic trading networks that allow
investors to buy and sell stocks anonymously, in private deals
so other shareholders are not aware of the trades. Some of the
details are made public but only after the market has closed.
LONDON, Oct 15 (Reuters) – Neil Woodford, one of the
investment industry’s most closely watched fund managers, will
leave Invesco Perpetual to start his own business after a
25-year career that has given him an almost cult following among
Invesco Perpetual said on Tuesday the high-profile money
manager is to leave on April 29. He will be replaced by Mark
Barnett as the firm’s head of UK equities, and take over
management of Woodford’s two funds.
LONDON (Reuters) – A UK watchdog has unveiled proposals to shake up the 275 billion-pound ($439 billion) defined-contribution pensions market, parts of which offers poor value for money for up to 5 million savers.
The Office of Fair Trading OFT.UL (OFT) has stepped in to increase confidence in workplace pension schemes and bolster efforts by the British government to get more people to save for retirement, relieving pressure on taxpayers.
LONDON (Reuters) – Some investors trying to protect themselves from any market gyrations provoked by a deepening Syrian crisis are looking to oil as an alternative to top-rated government bonds, a traditional but currently unappealing haven in uncertain times.
With U.S. Treasuries and German bunds on course for their biggest annual losses since the mid-1990s, oil is being touted as a better bet – although many investors remain ready to endure some short-term pain in return for the liquidity that the huge government bond markets offer.
LONDON (Reuters) – Shares in other telecoms companies, stocks with high dividends and firms eyeing share sales may all get a boost when UK-focused fund managers redeploy cash from Vodafone’s sale of Verizon Wireless.
Barclays (BARC.L: Quote, Profile, Research, Stock Buzz), Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz), BT Group (BT.L: Quote, Profile, Research, Stock Buzz) could be among the London-listed beneficiaries when Vodafone (VOD.L: Quote, Profile, Research, Stock Buzz) shareholders get $84 billion from the sale of its stake in Verizon Wireless to Verizon Communications.
LONDON (Reuters) – Top investors in Vodafone Group (VOD.L: Quote, Profile, Research, Stock Buzz) are set to clash over what the company should do with perhaps as much as $130 billion in proceeds from the sale of its stake in Verizon Wireless, which is expected to be announced imminently.
Vodafone shareholders contacted by Reuters as talks continued between the British firm and Verizon Communications (VZ.N: Quote, Profile, Research, Stock Buzz) were split between those wanting to see the cash returned as dividends and those wanting the firm to invest it.