Archive » 2004 » Issue 19 (April)
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Private banks must go back to basics
05 April, 2004
There’s more to investment than profit, as managers reeling from
single-digit returns concentrate on asset structure and supplementary
portfolio features.
“It takes a great deal of boldness and a great deal of caution to make
a great fortune,” said Nathan Mayer Rothschild of the famous banking
dynasty back in 1834. “And when you have got it, it requires 10 times
as much wit to keep it.”
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Kassin: sees potential in Venezuela |
Broader channels to sell ABN Amro hedge fund
05 April, 2004
Single-manager product to build on success of institutional forerunner.
ABN Amro Asset Management, currently in the throes of a wide-ranging
business review, has launched its first single manager hedge fund
product.
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SGAM loses a day’s delay
05 April, 2004
Modifications not related to market timing abuses and late trading, says SGAM.
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Company briefs
05 April, 2004
BGL selling off stake in EFA after Fortis funds merger
Luxembourg-based transfer agent European Fund Administration (EFA)
increased the number of sub-funds it services by 6.48 per cent in 2003,
while the total number of sub-funds domiciled in Luxembourg fell by 3.8
per cent during the same period.
Last year EFA was awarded administration mandates worth €4.7bn, coming
from international promoters and one hedge fund. EFA now services 1150
sub-funds with total assets of €69bn.
Banque Générale du Luxembourg (BGL), one of EFA’s shareholders, has
announced the sale of its 26 per cent share in the company following
the integration of BGL’s in-house funds into the Fortis fund family.
“EFA no longer administer our own products and we have now aligned our
shareholding with this situation,” said Robert Scharfe, member of the
board at BGL.
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Citigroup breaks final private banking taboo
05 April, 2004
At long last, the disclosure standards for the global private banking industry appear to have been raised. The trendsetter this time is Citigroup Private Bank. Indeed, the bank’s latest presentation on business performance last month should set a new standard for all global private banking operators.
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Crédit Agricole and Fidelity take European fund plaudits
05 April, 2004
With 2003 data now to hand, Rodney Williams says it is time to roll out the ‘fund industry academy awards’ red carpet.
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Braden: advises families on
how to work well together |
JPMorgan makes it a family affair
05 April, 2004
Part of a family enterprise herself, Amy Braden is well qualified to
head JPMorgan’s innovative Family Wealth Centre. She explains to Yuri Bender how the US giant may have started a new private banking trend in Europe.
JPMorgan, one of the best-known US wealth management institutions, has
identified Europe as its new battleground. And, along with competitors
such as Pictet, UBS and Credit Suisse, it sees Germany as a key area of
focus. Earlier this year, it recruited former UBS German private
banking chief Andreas Muth to run its Teutonic operation. The bank
chose Dr Muth for several reasons – his experience in working with not
just rich, but “ultra high net worth clients”, his familiarity with
“innovative and institutional-quality solutions” and last but not
least, his passion for working with families.
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State Street prioritises mutual funds
05 April, 2004
Paula Garrido examines how State Street’s acquisition policy has led to significant growth in the key European distribution market.
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Planning the perfect product
05 April, 2004
Whether it’s chopping and changing, remoulding or building something new from scratch, designers of products for the wealth management industry have their work cut out for them. Paula Garrido and Yuri Bender report.
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‘Although the media often paints quite a different
picture, nepotism and
corruption have had their roots fundamentally
weakened’
Dr Andreas Gummich, DWS |
Politics won’t spoil the hidden treasure of the russian market
05 April, 2004
As a country, Russia is worthy not only of headlines on the front page
but also on the investment pages. With increased transparency and
structural reforms comes real growth and a better business environment.
The arrest of Mikhail Khodorkovsky in autumn last year and the recent
dissolution of the cabinet highlight the greatest risk in Russia: its
lack of legal and political transparency. This is, however, not unusual
in a developing economy.
We therefore class such a case as a typical “event risk” to which even
positive markets tend to resort to swift overreaction, normally
recovering within a very few days when there are no other negative
repercussions. For example, when Mr Khodorkovsky’s “right hand man” and
head of Menatep Bank, Platon Lebedev, was arrested in July 2003, the
markets initially lost 15 per cent, but within three weeks they added
25 per cent to stand ahead of where they had been prior to the incident.
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Strategies that toggle between value and growth
05 April, 2004
In uncertain market conditions, fund managers may go for a product that produces gains from two
completely different investment styles.
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‘Those managers seeking
to control equity risk more organically and add
flexibility to equity portfolios are now looking at these products as a viable tool’
Max Butti, Euronext.liffe |
Products providing flexibility
05 April, 2004
Private wealth managers may be shying away from putting USFs to use
because the concept takes some figuring out. But the results are worth
the effort.
Launched by Euronext.Liffe in January 2001, universal stock futures
(USFs) were initially utilised predominantly by institutional players.
Although some private wealth managers have been using the product
selectively since its inception, USFs are starting only now to find
their way into private portfolios, despite limitations imposed by
management mandates and regulators. In particular, those managers
seeking to control equity risk more organically and add flexibility to
equity portfolios are now looking at these products as a viable tool.
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A disciplined, risk controlled framework
05 April, 2004
Quantitative analysis provides a powerful tool for identifying investment opportunities and for suggesting how to best structure a global portfolio: it’s all about picking the winners across countries and across industries.
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Tighter spreads force serious selections
05 April, 2004
Managers are now promoting high yield as a stable asset class with good income favoured over capital appreciation possibilities, writes Simon Hildrey.
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Panel Investment
05 April, 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
05 April, 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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