New rules for venture capital?

Analysts see lower first financings as a sign that start-up valuations are peaking and the funding of new ones is tapering off. While some see the peak of the VC investment cycle, other just see new rules for the industry.

Is a stable period of recovery lying ahead?

After the past few years of turbulence for the European economy, 2016 can be the beginning of a stable period of economic recovery with growth being based on more than just consumer spending.

New opportunities for asset servicing

The asset servicing industry has growth by 16% on average during the last four years. EY looks at key issues for this critical but often unsung component of the global financial markets and how they invest to meet their client’s needs.

Bubble development in some cities

Inexpensive financing combined with bullish expectation has driven real estate prices. While many cities are overvalued by now, London and Hong Kong inherit the greatest risk of facing a real estate bubble, says UBS.

Outlook for alternatives

Scope Ratings expects 2016 an increasing competition among asset manager of alternative investment funds. Investors are likely to accept higher risks which, are to be managed adequately by the managers.

Hedge funds struggle with recruiting talents

According to a report from Barclays, hedge funds are increasingly finding it difficult to hire good people. This might affect performance as a stable talent base “is the main, if not the only, source of competitive advantage.”

Real Estate in 2016

Real estate investors find opportunities across the globe, fundraising is up and new sources of financing emerge. Ernst & Young expects the real estate industry to be innovative in providing investors and fund managers with liquidity.

Good governance is a key investment differentiator

According to a study pursued by Aberdeen Asset Management among institutional investors, governance is an integral and critical factors when selecting and analysing investments. Still “it is more an art than a science”.

Evolving technologies keep M&A activity high

In the third quarter, the number of global technology M&A transactions grew to its seventh consecutive record. Although the aggregate value decreased compared to the second quarter, EY expects dealmaking strength to continue.

Is future growth jeopardised by share buybacks?

Share buybacks alone have increased to about 47 percent of the market’s income since 2011. Some investors and regulators question, whether this reflects underinvestment and reduces future growth.

Personal development over Christmas

Keep yourself up to date about the latest capital market research and outlooks with the following events and webinars taking place in November, December and January providing you with a head start in the upcoming year.

Key drivers of change for asset managers

Ernst & Young expects years of change lying ahead for the global asset management industry at both, the institutional and retail, level. EY identifies the top nine drivers of change for this industry, which asset managers have to address.

Megatrends affecting real estate investing

Looking at the big picture, some key trends will affect the usage and demand for real estate globally and over the next decade: Urbanisation, a shift of economic power, the rise of the global middle class, ageing populations and global interconnectedness.

The most innovative fund concepts

For the FERI EuroRating Award 2016 in the special mentions category Fund Innovations, FERI has nominated five funds. The funds set up by Ampega, Apo Asset Management, Finreon, Pictet Funds and Robeco all tackle different mega trends.

The Berlin real estate market

Berlin is facing an increasing demand for housing and office buildings. Due to its function as Germany’s capital, this trend in further enforced. A lock at current trends at this special real estate market.

SEC opens start-ups to wider range of investors

The SEC has revised the rules for private investors taking equity stakes in start-ups raising capital via crowdfunding. Nearly everyone is now allowed to invest the greatest of $2,000 or 5% of annual income or net worth per year.

Demand for non-financials information

More institutional investors are relying on non-financial information to make better investment decisions and evaluate a company’s value creation. Integrated reports can help to fill information gaps.

Venture Capital drives US economy

Venture capital has become the dominant form of financing innovative American companies, says research form the Stanford Graduate School of Business. By now, VC-backed firms create employment and invest heavily in R&D.

ETF providers expect 18% growth p.a.

Despite volatile markets, exchange traded funds are continuing to expand. EY looks at the industry environment for ETF providers, who are confident that their assets will grow and profitability will increase.

Shares, no thanks?

Goldman Sachs Asset Management has analysed the investment behaviour of Germans in a representative survey. Although many recognise the low interest rate environment, they do not react accordingly.

On the search for infrastructure

Investors are not finding the attractive infrastructure investment opportunities they seek for. McKinsey says, they might be looking at the wrong places and gives them three principles to guide their search.

Tomorrow’s large-caps

Among the large number of small- and mid-caps, some companies offer enormous growth potential to investors. Still, only few investors are active in those market segments.

Transatlantic Alliance Conference 2015

For the first time, the "Transatlantic Alliance" conference will be hosted. In panel discussions and keynotes, speakers from around the world debate about technology and finance. Attend the conference for entrepreneurs and investors on November 24 in Berlin.

Global growth questioned, Eurozone recovers

While a positive international economic development is questioned by more executives, consultants see positive impacts on the Eurozone’s economics development. Results from McKinsey and E&Y surveys and studies.

Asset Management recognises potential of digitalisation

The asset management industry is recognising the importance of digitalisation in regards to their processes (Big Data) and sales (Social Media) but tackles the topic unsystematically. Results of a study pursued by Endava and Kommalpha.

Hedge funds with negative performance

Hedge funds are struggling with the worst year since the financial crisis. With a loss of just three percent, their performance is still better than the one of the global share markets.

How firms secure their profits

Due to changes in their operating environment and the limit of costs savings being reached, firms must prepare for the “next phase of corporate competition” as the McKinsey Global Institute puts it.

Sustainable investing gains momentum in ETFs

MSCI reports a high demand in ESG data and indexes. ETFs tracking the MSCI ESG indexes grew nearly 30% and eleven new ETFs were launched within 2015. Still, the UN sees room for improvements - especially in the US.

Preparing retirement systems for the future

Demographic changes put retirement systems under pressure. With no easy solution to secure the aged population’s financial well-being, E&Y identifies seven findings needed to develop customer-centric pension and retirement markets.

Lower oil price and more renewables?

Although the oil price has been declining for more than a year now, investors and countries keep building up renewables energies. The link between both disappears due to several good reasons.

Webinar: Personal Robots in the Home & Office

On October 13, ETF Securities invites you to join their webinar “Personal Robots in the Home & Office - How a New Age of Robotics is Now Emerging” about investment opportunities in automation apart from industrial robots.

Smart beta not always the more intelligent solution

While the number of products has threefold within the last five year, the AuM of smart beta products grew to 73 billion Euro. An analysis shows that the performance depends massively on the concept, time frame and region.

12. Kapitalmarktforum Schweiz

With the motto “Competition and Partnership among Financial Centres”, the 12. Kapitalmarktforum Schweiz takes place on October 29 in Zurich. Presentations will either be in German or English.

The Automation of Asset Management

Algorithms can be used to allocate investor’s money. Just recently, BlackRock has announced to buy FutureAdvisor. It is one of the firms that offers automated financial advisory with distinct advantageous and disadvantageous.

Financing remains main concern for start-ups

Venture capital investments of the first half of 2015 have already reached the size of investments in the full year 2014, says the “Start-up-Barometer Deutschland” from Ernst & Young. Financing is still a major concern for founders.

Other Alternatives than Hedge Funds in favour

Many institutional investors want to reduce their allocation to hedge funds and increase it to other alternatives, says a Prequin survey. Return expectations and reasons for investments differ among different alternatives.

The key concepts of trend-following and momentum strategies

Trend following strategies attempt to identify price patterns and deliver signals for trading positions to take advantage from the ongoing developments. Historically the concept was mainly used for commodities and in the markets for future contracts. 

Event Update: Family Office Forum London

Prestel & Partner invites to the Family Office Forum on 15th and 16th September in London. On the event for English based family offices, more than 100 family offices, principals and CIOs meet.

Saudi Arabien after Market Opening

With Saudi Arabia, the largest share market in the Middle East is open at least for institutional investors. An engagement on it bears chances and risks while market entry remains difficult.

Housing construction badly distributed

Germany should construct housing space more intelligent, claims the Institut der deutschen Wirtschaft. In large cities, 50% more flats should be build while some rural areas have already too much housing space.

Activist hedge funds beating the market

So far in 2015, activist hedge funds are up 6.8% and are performing about three times as good as the overall market. Reasons could include psychological effects and more M&A transactions.

VC’s Confidence lowers again

The confidence level of Silicon Valley venture capitals has declined for the second quarter in a row and reduced to the lowest in two years. While long-term value creation remains strong, short to medium term projects are more uncertain.

Alternative Asset Management in 2020

In a base case, PwC expects that alternative assets increase to 13.6 trillion US-Dollar in 2020. To benefit from this growth in assets, alternatives manager must fulfil some key capabilities to fit in with the changing conditions in the industry.

BlackRock invests in Refracking

Refracking, the practice of fracking existing wells, can be a cost saving investment for oil producers. Halliburton is now partnering up with BlackRock, which invest $500 million in refracking projects during the next three years.

Mandelbrot starts first Fund

Mandelbrot Asset Management start their first fund. Based on the market model of Benoît Mandelbrot, the market neutral fund invests in a selection of German equities trying to generate returns of eight percent.

“Top talents are scarce”

Remunerations increase in the asset management industry, the demand for talents is high and diversity is becoming more important, analyse personnel consultants and headhunters on altii.

Asset Management in 2020

Capital markets will face crucial changes until 2020. Global wealth will grow to $222 trillion. An outlook for ETFs in Europe, the US and Asia as well as imperatives to be successful as an alternatives manager.

Smart Factory!Startup Industry 4.0!

The Transatlantic Alliance invites you to their next MeetUp in Hamburg. On the evening of 28. August, the opportunities for StartUps in the Industry 4.0 will be discussed by three interesting speakers.

ETFs with higher AuM than Hedge Funds

The wealth invested in Exchange Traded Funds surpasses the assets under management of hedge funds. At the end of this year’s second quarter, 2,971 trillion US-Dollar were invested in ETFs, says data from ETFGI.

Key Success Factors for Wealth Managers

In their study “Wining the Growth Game: Global Wealth 2015”, the Boston Consulting Group has identified five factors that are crucial for the success and future participation of global wealth growth for asset managers.

Record Year for Asset Management Industry

Globally, asset management firms are managing record sums and earn profits rarely seen. In Germany, assets under management have grown strong while profit margins of managers were falling.

Fewer businesses started in Germany

The number of newly started businesses in Germany decreases despite programs and support for start-ups and entrepreneurs. Regarding internationally growing venture capital investments, Germany lacks behind.

How insurance companies invest in real estate

At the beginning of the year, German insurance companies are holding 7,6% of their assets in real estate and plan to enlarge this number to 8.2% until the end of the year. Especially German and European markets in form of office property are attractive.

Chances for Asset Managers due to Wealth Growth

Regional differences in the growth of wealth, its sources as well as changing distributions of wealth are providing asset managers with opportunities to growth their business. Entrepreneurs become more interesting clients as well.

MYRA fund three years on market

The MYRA Dynamic Turkey Fund celebrates its third birthday and keeps his performance promises towards investors despite a high volatility of Turkey investments. altii wishes MYRA Capital all the best and further successes with their funds.

Arabesque with new chairman

Robert Eccles, Professor at the Harvard Business School with a research focus on reporting, has been appointed the first chairman of the sustainability focusses asset manager Arabesque.

Sustainability en vogue among institutional Investors

More institutional investors use responsible investment approaches. A recently published study from Union Investment points out that 58% of them invest sustainable. This enhances fund performance, says a study from Arabesque Asset Management.

Number of hedge funds hits new record

Industry data shows that hundreds of new hedge funds launched within the first months of this year but nearly as many fund closings. Still, the number of funds hits a new record number on this very difficult market.

Emerging Markets Fund from S4A

Due to inherit interest from investors, Source for Alpha wants to launch an emerging markets fund. The fund provides investors with the opportunity to invest in emerging markets without being exposed to high risks.

ETFs with inflows of 18.3 billion USD

During May, ETFs have faced inflows of 18.3 billion USD. Goldman Sachs expects that the AuM of passive Products will double to 6 trillion until 2020. A development not fully uncriticised.

Governments estimate their own CoC too low

According to a McKinsey publication, the false estimation of government’s cost of capital hinders private investors to participate in public-private partnerships. This effectively reduces private infrastructure investments.

Further Rebuff for Argentina

In their dispute with hedge funds, Argentina faces additional requirements assigned by court. Before the majority of debt holders can be served, additional 500 preferred bond holders must be served despite the hedge funds.

BVI: Funds not systematically relevant

The FSB and IOSCO have published criteria to evaluate the systematic relevance of market participants including asset managers and investment funds. The BVI has responded with criticism on the paper.

MSCI announces new ESG ratings product

MSCI has announced the launch of MSCI ESG Research’s next product, MSCI ESG Ratings, designed to provide an in-depth, integrated look at each of the three ESG components.

Family Office Forum London

Prestel & Partner invites to the Family Office Forum on 15th and 16th September in London. On the event for English based family offices, more than 100 family offices, principals and CIOs meet.

Economic sentiment worse than expected

Investors have stopped being overly optimistic about Germany’s economic prospects. Investor sentiment pointed downward for the second month in a row, says ZWE. The purchasing manager index is falling as well.

Webinar: "Energy Wars - Has OPEC Won?"

ETF Securities is inviting you to the webinar “Energy Wars: Has OPEC Won?” on June 8. The event will deal with the OPEC meeting on June 5 and it’s effect on the global oil production and price.

US governments warns hedge funds pose cyber risks

The Obama administrations warns that hedge funds are a weak link of the US financial system’s defence against hackers and terrorists. The Department of Justice pressures hedge funds to improve cyber security.

ETF-Flows exceed 100 Billion USD

Within just four months, ETFs have received net inflows of over 100 billion USD. This benchmark has been exceed at the end of April, says FundResearch based on Deutsche Bank statistics.

ETFs overtaking Hedge Funds

According to ETF GI, ETFs have reached assets under management of 2.926 trillion USD at the end of the first quarter and thus nearly as much as managed in hedge funds. They expect that ETFs will soon overtake hedge funds in terms of AuM.

Saudi Arabia opens Stock Market

Saudi Arabia is giving foreign investors access to their stock markets and allows foreign direct investments starting from June 15. This could trigger inflows of $40 billion.

VC is booming

According to PwC’s MoneyTree Report, venture capital grew by 61% from 2013 to 2014. The software industry received most of the money invested by VC funds in start-ups in 2014.

5th New Energy Investor Summit 2015 in Zurich

Speed Dating: Projects, Power Plants and Investments 4&5 May 2015, Zurich – Half-hour meetings between top management from financially-strong investors, utility, project developers and providers of investment opportunities. Focus are European wind-, solar-, and hydro power projects and plants.

Private Investors optimistic for 2015

The majority of private investors is optimistic that the performance of their portfolios in 2015 is even better than in 2014. Still, secure investments are preferred by most of them, says a Natixis Global Asset Management survey.

Fund Industry gains 20 Billion Euro in February

German retail funds received net inflows of 9.4 billion Euro in February and face the strongest inflows within eight years. Overall, the German fund industry received 20.5 billion Euro from investors.

VC Deals with Record High in Q1

Investments of venture capital firms have reached a new high in the first quarter. While the number of firms receiving money from VC funds declined, average deal size increased.

IMF sees Funds as a Risk

The IMF claims that even simple investment funds as mutual funds and ETFs pose risks to the financial systems and regulators need to supervise the asset management industry more.

Is the SEC ruining VC funds?

At the end of March, the SEC has announced the rules that legalise and regulate crowdfunding and allow start-ups to raise massive amounts form everybody. Does this make early stage VC-funds redundant?

Family Office Forum Wiesbaden

Join the Prestel & Partner Family Office Forum in Wiesbaden on April 27th to 29th. More than 160 Family Offices, UHNWI and experts meet to network and learn from each other.

FSB wants to regulate Asset Managers and Funds

The FSB and IOSCO want to regulate shadow banks. In order to enhance the regulation of non-banks including asset management companies and investment funds, a proposal of both institutions is discussed now.

New Funds on altii

During this month, a couple of new funds joined the altii Fundsportal: A new ETF on the robotics industry from ETF Securities, three new funds from veNova and a ACATIS fund.

Asset Managers prepare for rising Interest Rates

According to Bloomberg, hedge funds are exiting gold on the large scale. This is due to the Federal Open Market Committee Meeting and the report on that meeting published today. Investors speculate on rising interest rates in the near future.

Strong ETP-Inflows in February

According to Deutsche Bank Research’s “Europe Monthly ETF Market Review”, 48.1 Billion USD were invested globally in ETPs during February. Equity-ETFs saw especially high inflows; the US-market was very strong.

All Major Strategies with Positive Returns

According to eVestment, all major hedge funds strategies achieved positive returns in February. Activist hedge funds lead performance charts while managed futures lagged behind.

Many Chances in Emerging Markets

Markets in developed economies have performed very well over the past years and outperformed their emerging counterparts. Due to high valuations in developed markets, some asset managers believe that investing in emerging markets is an attractive alternative.

Quo vadis Hedge Funds?

According to a Deutsche Bank survey, hedge funds failed to meet investors' exceptions during the last year. Still, investors keep investing money into hedge funds at the beginning of this year.

Activist Hedge Funds six-fold Assets

Assets managed in activist hedge funds have six-folded within the last ten years to $120 billion, shows data of the Alternative Investment Management Association from last week. Here more about their study.

Hedge Funds increase AuM in January

Due to performance gains and asset inflows, assets under management of hedge funds have increased by 0.22 percent in Januar increasing the industry’s total AuM to 3.033 trillion USD, says eVestment.

New Products on the ETF Market

A couple of new ETFs were published this week: A USD-hedged ETF on European equities and a multi-asset ETF from UBS as well as a smart-beta ETF from Ossiam.

Fund Industry demands Regulatory Pause

After the financial crisis, regulation gained momentum: The German Investment Funds Association BVI counts 98 regulatory changes within the last six years. The associations says most of them are positiv but demands not to implement further rules for some time.

BVI: “2014 record year for funds industry”

According to the latest BVI statistics, funds are well liked among German investors due to low interest rates. Assets under Management within the German funds industry have therefore reached 2382 billion Euro.

Securing Retirement Systems is getting more difficult

Natixis Global AM says in their study “Global Retirement Index 2015” that developed and emerging countries are getting more difficulties when securing their retirement systems. Asset managers should thus provide the right products.

Infrastructure: An opportunity for insurers?

The EU’s plan to invest 315 billion Euro in infrastructure may be a chance for insurance companies to participate in long-term projects and achieve substantial returns in times of low interest rates. A win-win-situation is possible.

Alternative UCITS expected to grow in 2015

Assets under Management in alternative UCITS have grow in the past year by 41 percent to 224.3 billion Euro, says Alceda. The grow in this market segment is expected to continue.

Moody’s concerned about German Life-Assurance

2015 is, according to a Moody’s paper, a year full of challenges for the German life insurance market. Low interest rates, the ECB’s QE-program as well as regulatory changes could drive small insurers out of business.

Hedge Funds are optimistic

The hedge fund industry is optimistic: Managers are expecting high inflows if they can communicate the usefulness of their asset class. More about the findings of a State Street survey here.

ETF Assets to pass $3 trillion in 2015

According to Deutsche Bank Research, assets invested in ETFs have reached $2.64 trillion in 2014 due to record inflows. According to their paper, ETF assets will surpass the $3 trillion milestone within this year.

Market for active ETFs grows by 16.5%

Investors switch from passive to active ETFs due to increasing volatility on the markets and the wish for a manager’s guidance. A total of $17 billion is now invested in active ETFs.

SEC: Private Equity Firms fixed major Issues

SEC officials say that private equity firms, which where subject to investigations three years ago, have fixed the most important deficiencies but their transparency could still be improved.

US Hedge Fund Industry hits $3 trillion

In 2014, US hedge funds have received net inflows not seen within the last seven years. The overall industry size is now close to $3 trillion, says hedge fund trackers HFR on Tuesday.

Hedge Fund closes after SNB Decision

Currency speculators, global macro hedge funds and banks with short position in the Swiss Franc face massive losses after the SNB announced to remove the cap on their currency against the Euro.

Venture Capital with massive Inflows in 2014

Due to increasing start-up valuations and a record of venture-backed IPOs, investors got attracted to venture capital investments. VC-funds have received outstanding sums last year.

904 Hedge Funds closed in 2014

For hedge funds, 2014 was not a good year: Regardless of the index you look at, hedge funds have not outperformed the market. Due to decreasing investments, 904 hedge funds had to close last year.

Bill Gross: “Good Times are Over”

Bill Gross, the former manager of the world’s largest bond fund, says that the prices for many assets will fall because low interest rates cannot lead to increasing economic growth.

Active Trading beneficial for Performance

Many investors believe that actively managed funds under-perform passive products that just replicate an index. A new study shows: A greater trading activity of a fund is increasing its performance.