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.
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.
The General Assembly of the United Nations has voted for the development of supranational rules regulating the restructuring of external sovereign debt.
Hedge funds using automated trading systems have performed very well in November. Overall, they are more profitable than many human asset managers, says Bloomberg.
DeAWM has asked in a survey, what investors care about when investing in alternative investments and depending on which criteria they chose investments.
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.
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.
Investors are disappointed by hedge fund performances and reduce their investments in hedge funds. This has increased hedge fund closures to the highest number since the financial crisis.
Several members of the US-Investors-Organisation AOI demand that performance fees are only payable if hedge funds exceeds their benchmarks or minimum returns.
ETFs investing in equities have gained inflows within the last months. On the other hand gold and bond products faced outflows.
Singapore is going to surpass Switzerland as the global centre for wealth and asset management for high-net-worth individuals.
The alternative UK property investment market will grow to 20 billion GBP by 2019 according to property investment agents Jones Lang LaSalle.
The British insurance company Aviva shuts down its unit investing in external hedge funds, said the company on Wednesday.
MSCI announced a global index measuring the investment performance of infrastructure projects based on USD $49 billion of infrastructure investments.
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.
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 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.
The G20 decided on this weekends summit in Australia on additional investments of $2 trillion in infrastructure, trade and climate protection.
The G20 will discuss about the regulation of shadow banks like hedge funds and money market funds on their next summit this weekend.
The swiss fund association SFAMA advices investors to invest more in alternative investments like hedge funds and private equity.
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?
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.
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 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.
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.
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 exchange traded products gain more funds as investors seek to diversify their portfolios and reduce exposure to fixed income and equity markets.
Hedge funds have started to set up own reinsurance companies on a broader basis in order to use the premiums to invest them in high-yielding strategies.
According to a survey published by Fidelity, institutional investors are optimistic about the future and have trust in the markets.
Since the 15. October, private Investors from Germany and Austria are able to invest in the Franklin K2 Alternative Strategies Fund.
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.
At the beginning of the week, Germany and France announced after a meeting of their finance and economic ministers that they will develop a plan to boost their economies until Dezember.
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.
Smart-beta approaches promise to deliver above-market returns at an indexlike pricing. Despite some criticism, smart-beta products gain popularity among institutional investors.
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 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.
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.
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.
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.
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.
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.
Many German asset managers want to invest in infrastructure projects due to low returns on other investment opportunities. Still, investors are not finding good projects.
The IMF advices countries, especially the US and Germany, to spend more on public infrastructure in order to enable long-term economic growth.
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.
German economic minster, Sigmar Gabriel, said in an interview yesterday, that the German economy may not growth by the 1.8% government forecast.
In a paper published by Goldman Sachs, Andrew Wilson, CEO of the EMEA region at Goldman Sachs Asset Management, says, he would prefer interest rate increases sooner than later.
After the G20 finance minister summit, more details about their plans to increase infrastructure investments have been published.
According to a Northern Trust Asset Management survey, many institutional investors are lacking a clear understanding of risk factors across their equity portfolios.
New renewable energy projects may be stalled due to more competitive pricing and especially regulatory and policy uncertainty, says the International Energy Agency.
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.
According to Reuters, the biggest US pension fund Calpers will no longer invest in hedge funds. The investment of 4 billion dollar into hedge funds made by the pension fund will be reallocated.
The German government is working on new regulation regarding infrastructure investments in order to allow more partnerships of the government and private investors for the financing of infrastructure projects.
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.
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.
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.
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.
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.
The ICMA advices countries to use clauses in bonds that allow them to restructure their debt if a majority of investors agrees to this.
The 11th Global Alternatives Survey from Tower Waters was published. According to the study, assets under management in alternative assets grew by 6% to 5.7 trillion USD in 2013.
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.
iShares is going to close 18 ETFs due to a lack of investor interest. Pimco is going to do the same and will liquidate four funds.
According to Reuters, the twenty largest industrial and emerging economies are planning to allow regulators to control fund manager’s operations in crisis situations.
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.
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.
During this year emerging markets and frontier markets are performing well due to the following reasons.
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.
According to Agecroft Partners, inflows in hedge funds after the financial crisis in 2007/2008 concentrate at a small number of different funds with a high reputation.
According to a survey of Bank of America Merrill Lynch, geopolitical risks is the number one concern for about half of all investors.
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.
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.
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.
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.
Commodity ETFs (exchange traded funds) are an easy way to invest in commodities without physically purchasing the underlying.
Emerging markets are more afraid of interest rate policy changes by the FED than of any other thread due to possible pressure on their currencies and debt.
Investors divest from futures and invest that money into ETFs in order to save money and achieve comparable returns.
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.
While banks face issues as scandals, low margins and a sharp regulatory climate, most stop or sell their physical commodity trading departments.
Managed futures are delivering the worst performance of all alternative investment classes.
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.
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.
Beside returns close or even below market benchmarks, institutional investors are still willing to allocate money towards hedge funds.
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.
A timeline of the Argentina debt crisis including the most important dates as well as some background information and possible outcomes and their effects.
The SEC is investigating in 44 investment firms due to a possible violation of insider trading laws concerning the purchase of shares of health insurances before a government announcement in April 2013.
A short roundup of what institutional investors and asset managers have been investing in and divesting from during the last months.
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”.
After negative performance of hedge funds in March and April, average hedge fund performance in May was at 1.00%. Event driven strategies performed best with 2.66%.
Blackstone, today’s largest investor in hedge funds already, is going to manage an own hedge fund for the first time.
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.
As the US Department for Commerce stated yesterday (June 25, 2014) the US GDP fell by three percent during the first quarter of 2014.
After reaching an all time high in April already, the value of total assets managed by hedge funds increases in May again.
Hedge funds got more bullish on sugar before prices climbed to the highest since October as dry weather threatened supply from India to Brazil.
US hedge funds have been under stealthy attacks from cyber-criminals intent on intercepting trading strategies in order to profit from front-running and other illicit maneuvers.
Inflation is finally happening, and the Fed will end up being behind the curve.
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.
Investors increased requests to pull money out of hedge funds in June as they adjust positions before the end of the quarter, according to data released on Thursday.
US Treasury Secretary Jack Lew said that he is expecting strong economic data for the second half of this year.