Volcker-Rule Requirements

The Federal Reserve has a Christmas present for banks: Wall Street banks have more time for the divestment of hedge fund and private equity investments.

UN vote for Insolvency-law

The General Assembly of the United Nations has voted for the development of supranational rules regulating the restructuring of external sovereign debt.

Hedge funds lack Performance in November

Within the group of hedge funds, which made just 0.3 percent last month, global macro funds have been the best performing strategy with 1.7 percent performance. This is still below the average market performance.

Investors again interested in India

The financial markets seem to be interested in India again. More investments have been made in Indian stocks than in any other emerging market ones. India’s turnaround seems to have taken place.

New Infrastructure Index announced

MSCI announced a global index measuring the investment performance of infrastructure projects based on USD $49 billion of infrastructure investments.

Regulators concerned about Commodities

After a hearing of two experts in front of a Senate committee on Friday where banks’ activities in commodities where questioned, the Fed wants to review its regulatory policies regarding commodity trades.

Strategic Capital Management is taken over

The swiss investment firm Strategic Capital Management (SCM) is taken over by the Mercer Group. The whole investment team of SCM switches to Mercer to strengthen their position in alternative investments.

State Street sells Hedge Funds Business

State Street has sold it’s entire hedge funds business within a Management Buyout to their leading employees. At the end of 2013, the sold hedge funds were managing 1.4 Billion USD.

How do Bitcoin-ETFs work

The Winkelvoss brothers’ bitcoin ETF is still under review of the SEC. If it gets approval, a broad basis of investors could invest in bitcoins but how does the ETF work?

SEC allows non-transparent ETFs

On Thursday, Eaton Vance has announced that the SEC has approved its filling for a new type of ETF that does not disclose its holdings. This means, that non-transparent ETFs can be issued if they can be traded at net asset value.

US-Banks exit Hedgefonds and PE

Due to the Volcker-rule that forces US-Banks to reduce their investments in private equity and hege funds below three percent of their tier one capital, they need to exit such products.

Absolute Return gain more Capital

Absolute-return funds gain capital of about 20 billion Euro within the first six months of the year. A study of Lupus Alpha shows, that the majority of funds actually achieves positive returns.

Passive preferred over active

During the last years and especially within the last months, investors were pulling out money from actively managed funds and invested in index-linked funds and ETFs. Reasons are to high fees and a lack of performance.

Changing legal situation for Chinese hedge funds

After Chinese hedge funds are acting in a legal grey area, new laws are announced that will clear uncertainties. It is expected, that this changes will double assets under management within the next three years. 

Alternative ETFs gain popularity

Alternative exchange traded products gain more funds as investors seek to diversify their portfolios and reduce exposure to fixed income and equity markets.

SEC turns ETF-hybrids down

The Securities and Exchange Commission (SEC) is not allowing hybride forms of exchange traded fund (ETF) and standard mutual funds. Transparecy issues are not solved properly.

Hedge funds do not move in September

The Credit Suisse Hedge Fund Index lost just 0.01% in September while the S&P 500 fell by about 1.5%. Hedge funds did not make any profit but outperformed the stock market.

Emerging Markets: good or bad?

Since the Fed announcements about tapering, emerging markets stocks have under-performed the S&P500 and their currencies have devalued against the USD. Both are signs that investors exit those markets but is this really needed?

Regulators crack down on hedge funds

Regulators are now focussing on shadow banks. New rules are going to make it more expensive for hedge funds and insurance companies to raise money in refinancing transactions.

ETF manager awaiting SEC rulings

The SEC is making key decisions about ETFs during this and the next month. This could expand the marketplace and increase the number of firms offering exchange traded products.

EU reduces capital charges on Infrastructure

The European Commission is going to publish a new set of rules to make infrastructure investments more attractive, says Klaus Wiedner, the head of the insurance and pensions unit in the commission’s financial-service department, according to Bloomberg.

IMF cuts German growth forecast

The IMF has cut down the estimate for Germany’s economic growth to 1.4% this year and 1.5% nest year due to geopolitical aspects. In their revised economic outlook, they have cut growth estimates for the whole world.

ECB keeps interest rate unchanged

The European Central Bank (ECB) is not going to cut interest rates any further. Instead, the ECB will start to buy low quality assets in order to enhance Europe’s economic growth.

EM investors in “panic mode”

Societe General says in a report from Wednesday that emerging markets are in panic mode because the percentage of investors positively thinking about their development reduced continuously.

IMF urges infrastructure spending

The IMF advices countries, especially the US and Germany, to spend more on public infrastructure in order to enable long-term economic growth.

Monthly Dividend ETFs in favour

Investors are more interested in dividend ETFs. They have already invested additional $8 billion in those products during the year. Of special interest are products paying monthly dividends.

Event driven hedge funds earn highest returns

According to a Credit Suisse report published on Monday, event driven hedge funds are performing best in this year. On average, all hedge fund earned about 3.4% during this year. Only two strategies have negative returns.

UN works on country default rules

The United Nations decided to work on an framework setting rules for the default of countries. The UN framework will especially deal with the restructuring of sovereign debt. This is a reaction on the default of Argentina.

SEC preparing new fund oversight rules

The US Security and Exchange Commission prepares, according to the Wall Street Journal, new rules to boost oversight of mutual funds and hedge funds. This is part of a program investigating whether the asset management industry increases risks in the financial system.

Investor confidence rises in August

The State Street Investor Confidence Index rises in August by 7.2 points to 122.8 points. This shows the rising optimism of institutional investors.

ECB going to start ABS purchase

The ECB confirmed to begin the purchase of ABS in October. This is done to facilitate credit flows into the euro-zone economy. Furthermore, interest rates were decreased.

Asian infrastructure investments not attractive enough

According to an S&P report, infrastructure investments do not meet the expectations of investors regarding their risk-return profile. Political and economic risks as well as regulations and a weak credit culture are deterring investors.

Insurers may invest in German infrastructure

German insurance companies said that they may back a government call to invest about 7 billion Euro to cover the financing of German infrastructure investments in bridges and roads.

UBS hedge fund quits REIT

According to an regulatory statement, the UBS hedge fund O’Connor LLC was selling nearly all of it’s american real estate investment trusts in the last quarter.

Soy bear run extends

The improving conditions for soy bean growing and the upcoming record harvest in the US, worlds largest producer, made money managers go short in soy beans for five weeks in a row. This is the longest sequence since 2006.

German economy slows down in Q2

Germany’s economic growth fell in the second quarter of this year by 0.2% compared to the previous quarter. Experts say that this is the effect of geopolitical effects in the short term but also upcoming structural problems in the long term.

Hedge fund to make 40% of asset management revenues

According to a study from McKinsey & Co published last week, hedge funds, private equity firms and other alternative investments will receive up to 40% of the revenues made in the asset management industry by 2020.

Yields and risks of infrastructure investments

Infrastructure investments are popular due to many advantages as attractive returns, security against inflation, reliable cash flows and low correlation with other asset classes but increasing interest rates are a risk for their returns.

New infrastructure platform of Swiss pension funds

Five of Switzerland’s largest pension funds are behind a new infrastructure investment platform, structured as an evergreen, which had its first closing at CHF 300m (€ 247m) with a substantially higher target volume. 

Hedge fund without performance fee

Convoy Investment LLC, a global macro hedge fund, is going to apply another fee structure to their fund and differ from the established performance fee.

Current M&A deals bad for investors

Some experts say that the M&A market is overstretched. Due to the high share prices and the low interest rate, a lot of expensive M&A deals are pursued that do not enhance corporate growth.

Emerging market ETFs attract investors

Emerging market ETFs gained a capital inflow of $109 million during this year. While they lost $13.9 billion in the first two months of 2014, investors are returning to exchange traded products investing in emerging markets.

Hedge funds avoid billions of taxes

Deutsche Bank and Barclays helped 13 hedge funds to avoid paying billions of taxes during a 15 year period, says a US Senate’s subcommittee investigation.

How short ETFs work

Short ETFs, or inverse or bear ETFs, are exchange traded products that hold a short position in an underlying index. They profit if the index declines in price.

What institutional investors expect

Investors look for a more institutional business model of hedge funds. According to a Deutsche Bank study, hedge funds will face “challenges in regulatory, reputational, business and operational risks, in addition to delivering returns”.

Investors buying equity ETFs

Despite the bullish stock market in the last five years and concerns about the valuation of equity, ETFs investing in equities were the most popular ones among all ETFs.

US Economy shrinks by 3% in Q1

As the US Department for Commerce stated yesterday (June 25, 2014) the US GDP fell by three percent during the first quarter of 2014.

ETFs for investors who need bond income

A decade ago, investors were still trying to figure out how to use the first bond ETFs. Three iShares Treasury ETFs and one iShares investment-grade ETF launched in July 2002. Now there are more than 265 bond ETFs and assets exceed $275 billion.

US Economic Outlook

US Treasury Secretary Jack Lew said that he is expecting strong economic data for the second half of this year.