Archive » 2004 » Issue 20 (May)
Merrill aims products at Europe’s ultra rich
03 May, 2004
The closure of some European operations is part of Merrill Lynch’s
emphasis on cost reduction and product sales, but clients also require
long-term commitment.
Merrill Lynch, which recently pulled out of the German onshore private
banking market, recently announced record quarterly earnings.
Crucially, it is these cuts and efficiency measures, part of an ongoing
reorganisation, which are driving the bank’s performance.
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Finding top talent will be banks’ biggest challenge
03 May, 2004
Fund selectors for hedge funds must develop superior skills, says Pictet.
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GSAM bets on financial sector
03 May, 2004
Credit Suisse and Crédit Agricole top Goldman’s specialist fund holdings.
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Company briefs
03 May, 2004
RMB names managers for multi-manager Sicav fund
Axa, UBS and JPMorgan Fleming have been selected for a new
multi-manager Luxembourg-based fund launched by RMB International. The
open-ended Sicav fund will encompass five equity compartments, one
fixed income and five hedge funds. Other managers include Gartmore, T
Rowe Price, State Street, BGI and Vontobel.
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Police investigation examines role of Italy’s ‘promotori finanziari’
03 May, 2004
The activities of more than 80 Italian bankers selling the products of
Banca Fideuram have been brought to the attention of Italy’s financial police. Henry Smith investigates the relationship that the all-powerful promotori have with some of Italy’s best-known product manufacturers.
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Size matters and matters of size
03 May, 2004
Retail funds with under E50m are generally seen as unprofitable, but
Rodney Williams discovers a surprisingly high number of them in Europe.
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‘Retail banks in Europe are not very open and they are not going to open up very quickly’ Thomas Rostron, Fortis |
Fortis builds assets outside Benelux haven
03 May, 2004
Confident that its product range can win over cross-border investors, Fortis gets to work on distribution agreements, writes Paula Garrido.
Having consolidated its position as one of the largest fund players in
the Benelux countries, Fortis Investments is expanding its
international exposure, establishing new agreements with a wide range
of distribution partners across Europe.
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‘The entry cost to this business is very high, because if you don’t have the right systems, you are in trouble’ Alan Tooker, DPM |
DPM tackles the problem of pricing
03 May, 2004
Hedge fund assets have risen fast enough for administrators to build up
business, but they must keep up with innovations, writes Paula Garrido.
The hedge funds industry has received several positive boosts of late.
The Man Group raised over $800m (e675m) , predominantly from wealthy
individuals, for its multi-strategy product. Gartmore, an equity funds
specialist, broached the $4bn mark in alternatives. And ratings house
S&P has added an equity long/short funds index to its existing
hedge funds family, which itself commenced in October 2002.
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Banks back on their toes
03 May, 2004
Service is gaining the edge over performance in terms of what private clients want, writes Yuri Bender, and wealth managers are eager to take whatever steps are necessary to achieve the perfect combination.
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‘It is important for exchanges to demonstrate that their functionality is integral to the wealth management industry’
Raffaele Jerusalmi, Borsa Italiana |
Bourses break across borders
03 May, 2004
The future of European stock exchanges lies in consolidation
and cooperation.
The European exchange industry is developing at breakneck
speed.International orientation and transparency are the key drivers,
as well as value added services for both domestic and international
clients.
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‘The ETF market is similar in many ways to the traditional European mutual fund market, where large numbers of products are needed to provide locally tailored solutions’
Markus Hübscher, Credit Suisse Asset Management |
The benefits of trading ETFs
03 May, 2004
After significant initial interest followed by rapid progress in
Europe, exchange-traded fund products are now being fine-tuned to fit
the needs of a more sophisticated market.
In recent years, exchange-traded funds (ETFs) have been one of the
fastest growing areas in the European asset management industry. While
these products have been available in the US since 1993, their
introduction in Europe only started from 2000.
Since then, assets under management in this new and innovative
investment vehicle have risen to almost US$20bn. (See Chart 1.) The
largest ETFs in terms of assets are those concentrated on either the DJ
Euro Stoxx 50 or local indices (FTSE100, DAX, SMI and CAC40), together
accounting for approximately 60 per cent of the European ETF industry.
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‘As a speculative tool, derivatives offer a cheap,
efficient way to enter markets, and to get out
of them again’
Jonathan Seymour, Euronext.liffe |
One product, so many uses for the wealthy investor
03 May, 2004
Whichever way they are put to work, and at whatever level, derivatives
have an important role to play in any investment portfolio.
Equity derivatives are the multi-purpose tool for the high net worth
investor. They can be used speculatively, for risk management or to
provide an extra boost to income. They are cheaper to trade than stocks.
And they just got better. Thanks to changes at the exchange level, end
users can reap the benefits of more efficient trading – bringing with
it more cost effective products – as well as a standardisation and
simplification that inevitably reduces risk.
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‘Emerging markets is the place to be invested’
Mark Madden, Pioneer |
Russia and Brazil lead managers’ picks
03 May, 2004
There is still value to be had in Russia but fund managers are finding good deals in Venezuela and Brazil as well as China. Simon Hildrey reports:
Emerging markets are once more grabbing investors’ attention. While
China has been the focus of most analysis, the broader asset class
gained 55 per cent over the past year. And despite their inherent risk,
one school of thought believes they offer more attractive valuations
than developed countries.
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Panel Investment
03 May, 2004
Each month in PWM, six top European asset allocators reveal how
they would spend E100,000 in a fund supermarket for a fairly
conservative client with a balanced strategy.
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Portfolio planning
03 May, 2004
In this section of PWM we test the performance and
volatility of two investment strategies using model portfolios. Each
month we look at two distinct approaches – one global and one European.
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