Hedge fund administration company, G&S Fund Services has expanded with the hire of Kairey Chen as hedge fund accountant.
Kairey Chen will be a valued addition to help support the rapid growth that G&S is experiencing. "Joe Goldstein, Executive Vice President of G&S Services, said.
Chen came to G&S after serving as an auditor with Ernst & Young and has 7 years experience. Her education includes a Bachelor of Science from Fordham University, where she majored in accounting.
US domiciled, G&S Fund Services is a leader in hedge fund administration, accounting and tax services. Catering to firms of all sizes, both on and off-shore, G&S provides professional fund servicing, designed to fit the specific and growing needs of the hedge fund industry.
25 Sept 2009
Man Research Laboratory and Oxford-Man Institute of Quantitative Finance Expansion
Man Research Laboratory (MRL) and the Oxford-Man Institute of Quantitative Finance (OMI) opened new, larger premises in Jericho, Oxford, on 24 September, demonstrating that the two groups’ unique collaboration is flourishing as it moves into its third year.
In a ceremony held in Oxford, The Chancellor of Oxford University, Lord Patten of Barnes announced the official opening of new offices for the MRL and the OMI. At the new offices, AHL’s researchers and the Oxford University academics of the OMI will continue to share purpose designed premises, creating a stimulating environment that fosters day-to-day interactions between the two groups.
AHL is one of world’s largest managed futures managers and a wholly owned subsidiary of Man Group. Its two decade track record of consistent double digit gains for investors is based on an unstinting dedication to research.
The University of Oxford and Man Group were brought together in 2007 when Man provided the cornerstone funding for the first academic institute dedicated to quantitative finance and co-located it with its own commercial researchers. AHL’s research in Oxford is a commercial undertaking while the OMI pursues academic excellence, independent of Man. This arrangement remains the first and only co-location of its kind between Oxford University and a commercial entity.
“AHL is already trading billions of dollars using advanced trading concepts developed at AHL in Oxford,” said Dr Anthony Ledford, Chief Scientist of the MRL. “The collaboration benefits us enormously and allows us to hear about OMI’s academic theories first and share ideas with some of the world’s best quantitative finance academics; promote our name as an exciting and innovative employer within Oxford’s academic community and research our own ideas in a stimulating environment,” he added.
In a ceremony held in Oxford, The Chancellor of Oxford University, Lord Patten of Barnes announced the official opening of new offices for the MRL and the OMI. At the new offices, AHL’s researchers and the Oxford University academics of the OMI will continue to share purpose designed premises, creating a stimulating environment that fosters day-to-day interactions between the two groups.
AHL is one of world’s largest managed futures managers and a wholly owned subsidiary of Man Group. Its two decade track record of consistent double digit gains for investors is based on an unstinting dedication to research.
The University of Oxford and Man Group were brought together in 2007 when Man provided the cornerstone funding for the first academic institute dedicated to quantitative finance and co-located it with its own commercial researchers. AHL’s research in Oxford is a commercial undertaking while the OMI pursues academic excellence, independent of Man. This arrangement remains the first and only co-location of its kind between Oxford University and a commercial entity.
“AHL is already trading billions of dollars using advanced trading concepts developed at AHL in Oxford,” said Dr Anthony Ledford, Chief Scientist of the MRL. “The collaboration benefits us enormously and allows us to hear about OMI’s academic theories first and share ideas with some of the world’s best quantitative finance academics; promote our name as an exciting and innovative employer within Oxford’s academic community and research our own ideas in a stimulating environment,” he added.
24 Sept 2009
Prime Brokerage Services Division Launch For Hedge Funds and Investment Advisers
TradeStation Securities, Inc., has launched the TradeStation Prime Services division to fill the growing need of start-up to mid-sized hedge funds, the company said today.
TradeStation Prime Services will be co-headed by Lance Baraker and William Katts, as senior managing directors, from a new TradeStation office in mid-town Manhattan, TradeStation will also now have a full membership and direct access operation on the floor of the New York Stock Exchange to accommodate clients who make some of their trades on the NYSE floor.
"We believe that our award-winning trading platform technology, ability to provide custody and clearing, and the strength of our balance sheet will give us a strong offering to the small- to mid-sized hedge funds and investment advisers who need services no longer being provided by the larger firms," said Salomon Sredni, CEO of TradeStation Group. "This is a market opportunity for TradeStation that did not really exist until recently, and we look forward to maximizing the value we believe we can create by entering this segment of the institutional trader space."
"We are extremely excited about joining TradeStation," added Baraker. "The downfall of many financial firms in 2008 has created a rare opportunity for another custodian to enter and succeed in the prime brokerage market. William and I look forward to combining our experience and relationships built over the years with TradeStation's industry-leading technology to create a leading, powerful prime brokerage platform for the buy-side institutional trader."
TradeStation Prime Services will be co-headed by Lance Baraker and William Katts, as senior managing directors, from a new TradeStation office in mid-town Manhattan, TradeStation will also now have a full membership and direct access operation on the floor of the New York Stock Exchange to accommodate clients who make some of their trades on the NYSE floor.
"We believe that our award-winning trading platform technology, ability to provide custody and clearing, and the strength of our balance sheet will give us a strong offering to the small- to mid-sized hedge funds and investment advisers who need services no longer being provided by the larger firms," said Salomon Sredni, CEO of TradeStation Group. "This is a market opportunity for TradeStation that did not really exist until recently, and we look forward to maximizing the value we believe we can create by entering this segment of the institutional trader space."
"We are extremely excited about joining TradeStation," added Baraker. "The downfall of many financial firms in 2008 has created a rare opportunity for another custodian to enter and succeed in the prime brokerage market. William and I look forward to combining our experience and relationships built over the years with TradeStation's industry-leading technology to create a leading, powerful prime brokerage platform for the buy-side institutional trader."
Equity Market Neutral Strategy May Act as a Diversifier Across Market Cycles
Credit Suisse’s Quantitative Equities Group released a new whitepaper, “Equity Market Neutral: Diversifier Across Market Cycles,” outlining the potential benefits of an Equity Market Neutral strategy. The paper details the various types of Equity Market Neutral funds as well as the traits which have historically helped the best managers stand out.
Equity Market Neutral (EMN) funds have been generally successful in profiting from a variety of environments and have provided an effective counterbalance in diversified portfolios during periods of market volatility, such as following the Lehman Brothers bankruptcy in September 2008. The findings of the paper suggest that:
EMN is a potential diversifier given the low beta it showed to the 2008 equity markets in what was a historically volatile year
EMN has lower annualized volatility than other hedge fund strategies over the long term and has provided generally positive risk-adjusted returns over the last ten years
After the significant market dislocation experienced by quantitatively managed funds in August 2007, many managers increased the range of data used, including building proprietary data and risk models, in an effort to try to mitigate the effects of a future mass deleveraging event
In order to achieve diversification within the strategy, investors should seek managers who work with a range of uncorrelated factors and proprietary models in order to avoid crowded trades. This diversification of factors and models was a key element in the strategy’s ability to weather market volatility in 2008 and will likely remain the cornerstone of alpha generation for the strategy going forward in the near term
EMN managers see the post-Lehman landscape as opportunity-rich for the strategy because there is less capital being deployed as well as less competition in program and high-frequency trading.
Equity Market Neutral (EMN) funds have been generally successful in profiting from a variety of environments and have provided an effective counterbalance in diversified portfolios during periods of market volatility, such as following the Lehman Brothers bankruptcy in September 2008. The findings of the paper suggest that:
EMN is a potential diversifier given the low beta it showed to the 2008 equity markets in what was a historically volatile year
EMN has lower annualized volatility than other hedge fund strategies over the long term and has provided generally positive risk-adjusted returns over the last ten years
After the significant market dislocation experienced by quantitatively managed funds in August 2007, many managers increased the range of data used, including building proprietary data and risk models, in an effort to try to mitigate the effects of a future mass deleveraging event
In order to achieve diversification within the strategy, investors should seek managers who work with a range of uncorrelated factors and proprietary models in order to avoid crowded trades. This diversification of factors and models was a key element in the strategy’s ability to weather market volatility in 2008 and will likely remain the cornerstone of alpha generation for the strategy going forward in the near term
EMN managers see the post-Lehman landscape as opportunity-rich for the strategy because there is less capital being deployed as well as less competition in program and high-frequency trading.
23 Sept 2009
New Jersey Nets to Join Charity Event
The First Annual Capstone Global Markets Charity Day will support research focused on finding a cure to Batten Disease, a rare but fatal neurodegenerative disorder affecting children, October 1st, 2009.
The boutique derivatives broker dealer has committed to donating 100% of its net commissions that day to The Jasper Against Batten Fund. Jasper Duinstra is a 4-year old boy who was diagnosed with Batten Disease in March 2009, and has subsequently been experiencing seizures, deteriorating vision, limited vocabulary and paralysis in his legs.
After the urgency of finding a cure for Batten Disease was brought to the attention of representatives of The New Jersey Nets, the basketball team committed to joining Capstone Global Markets on October 1st to raise money for the cause.
The New Jersey Nets’ involvement at the fundraiser will be highlighted by the participation of Nets president Rod Thorn, general manager (and former New York Knicks player) Kiki Vandeweghe, the Nets dance team and the Nets mascot. Each will be involved in thanking clients for their business and discussing the importance of the cause.
“We created this event to bring public awareness of this devastating disease and the urgency of Jasper’s need for support,” said Paul Britton, CEO of Capstone Holdings Group, LLC. “We are pleased with the enthusiasm from our clients to join us in this mission to help Jasper and other children affected by Batten Disease. Capstone Global Markets is committed to helping charities dedicated to helping children.”
The newly created annual event is part of Capstone’s commitment to giving back to the global community regardless of the macro financial environment. Every year the hedge fund will select specific charities to donate to, each with the common goal of helping children.
Capstone Global Markets, LLC is an affiliate of Capstone Holdings Group, LLC. Capstone Global Markets is a boutique broker dealer specializing in volatility trading strategies.
The boutique derivatives broker dealer has committed to donating 100% of its net commissions that day to The Jasper Against Batten Fund. Jasper Duinstra is a 4-year old boy who was diagnosed with Batten Disease in March 2009, and has subsequently been experiencing seizures, deteriorating vision, limited vocabulary and paralysis in his legs.
After the urgency of finding a cure for Batten Disease was brought to the attention of representatives of The New Jersey Nets, the basketball team committed to joining Capstone Global Markets on October 1st to raise money for the cause.
The New Jersey Nets’ involvement at the fundraiser will be highlighted by the participation of Nets president Rod Thorn, general manager (and former New York Knicks player) Kiki Vandeweghe, the Nets dance team and the Nets mascot. Each will be involved in thanking clients for their business and discussing the importance of the cause.
“We created this event to bring public awareness of this devastating disease and the urgency of Jasper’s need for support,” said Paul Britton, CEO of Capstone Holdings Group, LLC. “We are pleased with the enthusiasm from our clients to join us in this mission to help Jasper and other children affected by Batten Disease. Capstone Global Markets is committed to helping charities dedicated to helping children.”
The newly created annual event is part of Capstone’s commitment to giving back to the global community regardless of the macro financial environment. Every year the hedge fund will select specific charities to donate to, each with the common goal of helping children.
Capstone Global Markets, LLC is an affiliate of Capstone Holdings Group, LLC. Capstone Global Markets is a boutique broker dealer specializing in volatility trading strategies.
22 Sept 2009
Hedge Fund Performance for August - Morningstar
Hedge funds' good fortunes persisted in August according to a preliminary hedge fund performance report from Morninstar.
"Hedge fund returns in August were driven by strong equity markets throughout the developed world," said Nadia Papagiannis, Morningstar hedge fund analyst. “Many hedge funds claim to be uncorrelated to the markets, but it appears that the rising tide of the market has lifted all boats, including hedge funds.”
The Morningstar 1000 Hedge Fund Index and the currency-hedged Morningstar MSCI Composite Hedge Fund Index rose 1.6% and 1.5%, respectively in August. For the year to date through August, these indexes increased 13.7% and 9.5%, respectively.
Developed countries' stock markets rallied for the sixth straight month on positive news in areas such as manufacturing. The Morningstar MSCI Developed Markets Hedge Fund Index appreciated in August by 1.9%, with the Morningstar MSCI Europe Equity Hedge Fund Index outperforming with an increase of 2.9%, as European stock markets hit 11-month highs on better-than-expected economic data in France and Germany. In the United States, continuing the year-long trend, smaller-company equities outperformed larger-cap stocks. The Morningstar US Small Cap Equity Hedge Fund Index rose 1.9% versus the Morningstar US Equity Hedge Fund Index's 1.4% rise.
Emerging market equities stagnated in August, with gains in Eastern Europe and certain other countries offset by steep losses in China. The Shanghai Composite Index experienced a severe sell-off, dropping nearly 7% on the last day of the month to its lowest level since May. The sell-off was fueled by fears that the Chinese government may curb stimulus measures. The Morningstar Emerging Markets Equity Hedge Fund Index rose 1.6%, as many funds in this index had lighter weightings in China than did the index.
The big winners in August were hedge funds that trade distressed securities. Credit markets, notably the more speculative ones, continued to rebound in August, though the pace of appreciation has slowed. Global corporate bond issuance broke 2007 levels in August, improving liquidity, and leveraged loan prices reached 12-month highs with some new issues. The Morningstar Distressed Securities Hedge Fund Index rallied 4.1%.
August returns and July asset flows for the Morningstar Hedge Fund Indexes are based on funds that reported as of Sept. 17, 2009. Returns for the Morningstar MSCI Hedge Fund Indexes are based on funds that reported August performance as of Sept. 14, 2009.
"Hedge fund returns in August were driven by strong equity markets throughout the developed world," said Nadia Papagiannis, Morningstar hedge fund analyst. “Many hedge funds claim to be uncorrelated to the markets, but it appears that the rising tide of the market has lifted all boats, including hedge funds.”
The Morningstar 1000 Hedge Fund Index and the currency-hedged Morningstar MSCI Composite Hedge Fund Index rose 1.6% and 1.5%, respectively in August. For the year to date through August, these indexes increased 13.7% and 9.5%, respectively.
Developed countries' stock markets rallied for the sixth straight month on positive news in areas such as manufacturing. The Morningstar MSCI Developed Markets Hedge Fund Index appreciated in August by 1.9%, with the Morningstar MSCI Europe Equity Hedge Fund Index outperforming with an increase of 2.9%, as European stock markets hit 11-month highs on better-than-expected economic data in France and Germany. In the United States, continuing the year-long trend, smaller-company equities outperformed larger-cap stocks. The Morningstar US Small Cap Equity Hedge Fund Index rose 1.9% versus the Morningstar US Equity Hedge Fund Index's 1.4% rise.
Emerging market equities stagnated in August, with gains in Eastern Europe and certain other countries offset by steep losses in China. The Shanghai Composite Index experienced a severe sell-off, dropping nearly 7% on the last day of the month to its lowest level since May. The sell-off was fueled by fears that the Chinese government may curb stimulus measures. The Morningstar Emerging Markets Equity Hedge Fund Index rose 1.6%, as many funds in this index had lighter weightings in China than did the index.
The big winners in August were hedge funds that trade distressed securities. Credit markets, notably the more speculative ones, continued to rebound in August, though the pace of appreciation has slowed. Global corporate bond issuance broke 2007 levels in August, improving liquidity, and leveraged loan prices reached 12-month highs with some new issues. The Morningstar Distressed Securities Hedge Fund Index rallied 4.1%.
August returns and July asset flows for the Morningstar Hedge Fund Indexes are based on funds that reported as of Sept. 17, 2009. Returns for the Morningstar MSCI Hedge Fund Indexes are based on funds that reported August performance as of Sept. 14, 2009.
Open Europe Hedge Fund Survey Findings
Based on two surveys of private equity managers and hedge fund managers, carried out during August 2009, Open Europe has published the most comprehensive study to date of the likely impact of the EU's proposed Alternative Investment Fund Managers (AIFM) Directive. Among the findings is that the hedge fund and private equity industries contribute €9 billion ($13.3 billion) in tax revenues to European Union (EU) governments.
Open Europe said that the €9 billion ($13.3 billion) tax contribution would be enough to fund the EU’s entire overseas aid budget for 12 years. The tax contribution also matches the value of the EU’s Cohesion and Aid Programmes for Poland and is just short of the subsidy that France receives each year under the EU’s Common Agricultural Policy.
“Alternative investment fund managers provide investments and create growth, jobs and more efficient markets across Europe,” the report said.
The survey also found that the UK hedge fund and private equity industries contribute about €6.1 billion ($9 billion) in tax revenues to HMRC. Open Europe said this would be enough to pay for more than 200,000 nurses, 45,000 hospital consultants or 165,000 teachers. In just two years, the tax revenues generated by alternative investment fund managers would be able to pay for the entire 2012 London Olympics, according to Open Europe. But if the tax revenues were to disappear, Open Europe said it would take a 20% increase in council tax in order to make up the shortfall.
The European Commission’s Alternative Investment Fund Managers (AIFM) directive would cost the hedge fund and private equity industries in the EU between €1.3 billion and €1.9 billion ($1.9 billion and $2.8 billion) in its first year, if implemented in its current form. The annual recurring cost would be between €689 million and €985 million ($1 billion and $1.4 billion). Respondents said their total compliance costs would increase by almost one-third on average.
The report commented: “Our surveys show that unless a range of amendments take place, the AIFM directive will impose substantial costs across the board, without offering sufficient benefits for the industry, investors and the wider economy… In a worst-case scenario, thousands of jobs and millions in tax revenues could be at stake.”
Open Europe received 121 responses from hedge fund managers and fund of fund managers representing $342 billion assets under management. Just over half of the respondents came from managers located in the UK, while over one-fifth came from the rest of the EU and around one-quarter from the rest of the world. Open Europe also received 41 responses from private equity managers primarily based in the UK, representing funds under management of over $204 billion.
The report can be downloaded from Open Europe’s website at http://www.openeurope.org.uk/research/aifmd.pdf.
Open Europe said that the €9 billion ($13.3 billion) tax contribution would be enough to fund the EU’s entire overseas aid budget for 12 years. The tax contribution also matches the value of the EU’s Cohesion and Aid Programmes for Poland and is just short of the subsidy that France receives each year under the EU’s Common Agricultural Policy.
“Alternative investment fund managers provide investments and create growth, jobs and more efficient markets across Europe,” the report said.
The survey also found that the UK hedge fund and private equity industries contribute about €6.1 billion ($9 billion) in tax revenues to HMRC. Open Europe said this would be enough to pay for more than 200,000 nurses, 45,000 hospital consultants or 165,000 teachers. In just two years, the tax revenues generated by alternative investment fund managers would be able to pay for the entire 2012 London Olympics, according to Open Europe. But if the tax revenues were to disappear, Open Europe said it would take a 20% increase in council tax in order to make up the shortfall.
The European Commission’s Alternative Investment Fund Managers (AIFM) directive would cost the hedge fund and private equity industries in the EU between €1.3 billion and €1.9 billion ($1.9 billion and $2.8 billion) in its first year, if implemented in its current form. The annual recurring cost would be between €689 million and €985 million ($1 billion and $1.4 billion). Respondents said their total compliance costs would increase by almost one-third on average.
The report commented: “Our surveys show that unless a range of amendments take place, the AIFM directive will impose substantial costs across the board, without offering sufficient benefits for the industry, investors and the wider economy… In a worst-case scenario, thousands of jobs and millions in tax revenues could be at stake.”
Open Europe received 121 responses from hedge fund managers and fund of fund managers representing $342 billion assets under management. Just over half of the respondents came from managers located in the UK, while over one-fifth came from the rest of the EU and around one-quarter from the rest of the world. Open Europe also received 41 responses from private equity managers primarily based in the UK, representing funds under management of over $204 billion.
The report can be downloaded from Open Europe’s website at http://www.openeurope.org.uk/research/aifmd.pdf.
21 Sept 2009
CME Partners With Hedge Funds in Restructuring Clearing Services
CME Group is restructuring its credit default swap (CDS) with hedge fund Citadel Investment Group as a strategic program targeted at providing clearing-only services for the nearly $27 trillion CDS market.
Key features developed as part of the joint effort with Citadel, which was known as CMDX, will be carried forward in the clearing-only service, including state-of-the-art trade booking and legacy trade migration facilities.
"We remain committed to bringing stability and transparency to the CDS market, while further enhancing confidence in the financial marketplace," said Terry Duffy, Executive Chairman, CME Group. "Over the past several months, we have been working closely with all market participants. Both buy-side and sell-side participants have expressed an interest in continuing to execute their CDS transactions the same as they do today, but with the added benefit of central counterparty clearing."
Citadel remains a founding member of the newly restructured CDS initiative. The other buy-side founding members are: AllianceBernstein, BlackRock, BlueMountain Capital Management, the D. E. Shaw group and PIMCO. A number of leading sell-side participants are in the process of becoming founding members. CME Group plans to announce the launch of the clearing initiative's pilot program in the weeks ahead. CME's clearing solution builds on the existing over-the-counter (OTC) market.
Key features developed as part of the joint effort with Citadel, which was known as CMDX, will be carried forward in the clearing-only service, including state-of-the-art trade booking and legacy trade migration facilities.
"We remain committed to bringing stability and transparency to the CDS market, while further enhancing confidence in the financial marketplace," said Terry Duffy, Executive Chairman, CME Group. "Over the past several months, we have been working closely with all market participants. Both buy-side and sell-side participants have expressed an interest in continuing to execute their CDS transactions the same as they do today, but with the added benefit of central counterparty clearing."
Citadel remains a founding member of the newly restructured CDS initiative. The other buy-side founding members are: AllianceBernstein, BlackRock, BlueMountain Capital Management, the D. E. Shaw group and PIMCO. A number of leading sell-side participants are in the process of becoming founding members. CME Group plans to announce the launch of the clearing initiative's pilot program in the weeks ahead. CME's clearing solution builds on the existing over-the-counter (OTC) market.
10-Year Mark for Mooring's Flagship Hedge Fund
The second quarter of 2009 marked the 10th year of operation for Washington, DC-based hedge fund, Mooring Capital Fund, which delivered a quarterly compounded return of 12.40% per year.
“Our flagship Mooring Capital Fund has provided a consistent record of performance to investors since inception 10 years ago." John Jacquemin, founder and President of Mooring Financial Corporation, commented,"We are very pleased with the fund’s sound long-term performance, demonstrated by a total return of 242.51 percent over the last decade.”
For the same period, the S&P 500 posted an annual compounded return of -1.70% and the Credit Suisse/Tremont Hedge Fund Index reported a quarterly compounded annual return of 6.89 %.
Mooring Capital Fund acquires and manages distressed, sub-performing and performing commercial loans. The portfolio is diversified by both asset type and geography. Mooring Capital Fund also takes long and short equity positions in the financial and real estate markets for up to 20% of its assets. As of June 30, 2009 Mooring Capital Fund had over $62 million in total gross assets.
“Our flagship Mooring Capital Fund has provided a consistent record of performance to investors since inception 10 years ago." John Jacquemin, founder and President of Mooring Financial Corporation, commented,"We are very pleased with the fund’s sound long-term performance, demonstrated by a total return of 242.51 percent over the last decade.”
For the same period, the S&P 500 posted an annual compounded return of -1.70% and the Credit Suisse/Tremont Hedge Fund Index reported a quarterly compounded annual return of 6.89 %.
Mooring Capital Fund acquires and manages distressed, sub-performing and performing commercial loans. The portfolio is diversified by both asset type and geography. Mooring Capital Fund also takes long and short equity positions in the financial and real estate markets for up to 20% of its assets. As of June 30, 2009 Mooring Capital Fund had over $62 million in total gross assets.
18 Sept 2009
Investment in Precious Metals Surge as Investors Buy Gold
In a Sunday Times article this weekend, Bryan Collings, who manages the Investment Fund for Ingnis International Hexam Global Emerging Markets, predicted an increase in the price of precious metals of 25% over the next 18 months. He forecasts that the price of gold will rise 20% to $1,200 an ounce by 2010. Remarkably, other commentators are predicting an even more significant rise to $1,500 an ounce within the next two years.
Gold was pushed to its highest level in the last six months because investors are keen to buy gold as a hedge against inflation. Gold has always been seen as a good investment in times of economic uncertainty. With continued concerns about inflation, the gold markets show no signs of cooling unlike the currency markets which continue to fluctuate.
Jason Cozens, Managing Director of Au, the online gold exchange said, "This is consistent with our predictions for the price of gold as investors are undoubtedly keen to buy gold at the moment. We are seeing an increase in enquiries from all kinds of investors. Media reports, like the Sunday Times article, are encouraging investors and we believe that it is prudent for individuals to invest up to 40% of their total portfolio in gold".
Similarly, the price of other precious metals has soared since the beginning of the year. Silver has also strengthened with figures from the S&P GSCI Silver index showing a gain of 46.4% since the start of 2009. Copper has risen 102% since the beginning of the year and experts are predicting that with a shortage in supply and growing demand the price will continue to go up. Uranium prices are also expected to rise with an increase in demand for the metal, which is used in the production of nuclear energy.
Gold was pushed to its highest level in the last six months because investors are keen to buy gold as a hedge against inflation. Gold has always been seen as a good investment in times of economic uncertainty. With continued concerns about inflation, the gold markets show no signs of cooling unlike the currency markets which continue to fluctuate.
Jason Cozens, Managing Director of Au, the online gold exchange said, "This is consistent with our predictions for the price of gold as investors are undoubtedly keen to buy gold at the moment. We are seeing an increase in enquiries from all kinds of investors. Media reports, like the Sunday Times article, are encouraging investors and we believe that it is prudent for individuals to invest up to 40% of their total portfolio in gold".
Similarly, the price of other precious metals has soared since the beginning of the year. Silver has also strengthened with figures from the S&P GSCI Silver index showing a gain of 46.4% since the start of 2009. Copper has risen 102% since the beginning of the year and experts are predicting that with a shortage in supply and growing demand the price will continue to go up. Uranium prices are also expected to rise with an increase in demand for the metal, which is used in the production of nuclear energy.
17 Sept 2009
Hedgeable's Search for America's Worst Investor
On a humorous note, Hedgeable.com launched today with the "Search for America's Worst Investor," a nationwide contest to find three people with the portfolios hit hardest by the financial crisis.
"As the crisis revealed, retail investors are lost when it comes to implementing strategies to protect their wealth," said Hedgeable CEO and co-founder Michael Kane, formerly an analyst at Spruce Private Investors, a $2 billion ultra-high net worth money manager. "We want to guide investors on how to decide when to sell, eliminate major losses, and realize portfolio growth in up or down markets."
Americans are still trying to recover from the unprecedented loss of wealth of 2007-2009. Hedgeable.com, which is offering a free trial of its service, advocates the need for investors to make periodic trades to help protect and grow their portfolios.
The Search for "America's Worst Investor"
The contest, which runs from September 16 to September 30, 2009, is open to anyone who registers free of charge on the Hedgeable.com site. The top three individuals whose portfolio performance earns them the distinction of "Worst Investor in America" will receive the following prizes:
-- First Prize: An all-expenses-paid vacation for two to Rome, Italy,
where they will find similarities between the U.S.'s current economic
situation and the Roman Empire's collapse due to leverage, taxes, a
de-valued currency, and massive debt.
-- Second Prize: A trip for two to picturesque Iceland, a country that
has seen its stock market lose 97% of its value due to leveraged bets
and excessive debt.
-- Third Prize: A trip for two to Las Vegas, the "foreclosure and
gambling capital of America."
"The anniversary of Lehman's demise should remind us of the huge risk in not managing a hedged portfolio," Kane concluded. "If the U.S. continues on its current path, it's the everyday investor who will be affected the most, by a second collapse that could make the Roman Empire seem like small potatoes."
Hedgeable Inc. is registered as an investment advisor with the SEC.
"As the crisis revealed, retail investors are lost when it comes to implementing strategies to protect their wealth," said Hedgeable CEO and co-founder Michael Kane, formerly an analyst at Spruce Private Investors, a $2 billion ultra-high net worth money manager. "We want to guide investors on how to decide when to sell, eliminate major losses, and realize portfolio growth in up or down markets."
Americans are still trying to recover from the unprecedented loss of wealth of 2007-2009. Hedgeable.com, which is offering a free trial of its service, advocates the need for investors to make periodic trades to help protect and grow their portfolios.
The Search for "America's Worst Investor"
The contest, which runs from September 16 to September 30, 2009, is open to anyone who registers free of charge on the Hedgeable.com site. The top three individuals whose portfolio performance earns them the distinction of "Worst Investor in America" will receive the following prizes:
-- First Prize: An all-expenses-paid vacation for two to Rome, Italy,
where they will find similarities between the U.S.'s current economic
situation and the Roman Empire's collapse due to leverage, taxes, a
de-valued currency, and massive debt.
-- Second Prize: A trip for two to picturesque Iceland, a country that
has seen its stock market lose 97% of its value due to leveraged bets
and excessive debt.
-- Third Prize: A trip for two to Las Vegas, the "foreclosure and
gambling capital of America."
"The anniversary of Lehman's demise should remind us of the huge risk in not managing a hedged portfolio," Kane concluded. "If the U.S. continues on its current path, it's the everyday investor who will be affected the most, by a second collapse that could make the Roman Empire seem like small potatoes."
Hedgeable Inc. is registered as an investment advisor with the SEC.
Bankers Open $12 Billion CaymanToxic Asset Hedge Fund
A group of 45 bankers have plans to avoid new strict rules on pay and bonuses, making more than £240 million ($400 million) between them, according to TimesOnline.
Led by British bankers Michael Keely and Stephen King, sources say they will quit Barclays to take on a contract managing £7.5 billion ($12.3 billion) of Barclays’ most toxic debt in a fund registered in the Cayman Islands. Barclays will lend $12.6 billion to Protium, a newly created Cayman Islands-registered hedge fund, to buy the toxic assets.
Barclays said in a press release that the shift of assets did not remove any risk from its balance sheet, but guaranteed it a more steady stream of income from them.
London analysts admitted they were puzzled by the scheme and could not see any great immediate benefit in it for Barclays, according to the London Evening Standard. Traders in other investment banks are quitting to avoid likely curbs on bonuses. About 20 from Société Générale left this week to set up a hedge fund called Nexar Capital to escape the bonus crackdown being threatened by Nicolas Sarkozy, the UK paper said.
Led by British bankers Michael Keely and Stephen King, sources say they will quit Barclays to take on a contract managing £7.5 billion ($12.3 billion) of Barclays’ most toxic debt in a fund registered in the Cayman Islands. Barclays will lend $12.6 billion to Protium, a newly created Cayman Islands-registered hedge fund, to buy the toxic assets.
Barclays said in a press release that the shift of assets did not remove any risk from its balance sheet, but guaranteed it a more steady stream of income from them.
London analysts admitted they were puzzled by the scheme and could not see any great immediate benefit in it for Barclays, according to the London Evening Standard. Traders in other investment banks are quitting to avoid likely curbs on bonuses. About 20 from Société Générale left this week to set up a hedge fund called Nexar Capital to escape the bonus crackdown being threatened by Nicolas Sarkozy, the UK paper said.
Deloitte Adds Hedge Fund Heavyweights Schubert and Iler
Hedge fund pioneers Ellen C. Schubert and Ray J. Iler have joined the hedge fund team of Deloitte LLP's Asset Management Services practice.
Schubert joined Deloitte in the newly-created role of Chief Advisor to the Asset Management Services practice and is based in New York. Prior to joining Deloitte, Schubert was a managing director and global head of the Fixed Income Hedge Fund Business for UBS Investment Bank from 2006 until 2008.
Iler rejoined Deloitte as the Northwest Pacific hedge fund leader and is based in San Francisco. From 2001 to 2006, he founded the tax practice and served as Audit Partner for Deloitte’s Grand Cayman practice.
The new hires are the latest in a series of strategic growth initiatives executed over the last 18 months by Cary Stier, Deloitte’s U.S. Head of Asset Management Services.
"Challenging times call for new ideas. The breadth of our practice offers us the perspective vital to designing new solutions that help clients prepare for the unforeseen. There has been too much surprise in the market, a trend that cannot continue," Stier added.
Ten current Deloitte partners have been newly-dedicated to Deloitte's hedge fund team, joining the global bench of talent in accounting and tax, valuation, anti-fraud, governance and oversight, regulatory and compliance, risk management, technology and operations, structuring, and third party administrator/prime brokerage relationships.
Schubert joined Deloitte in the newly-created role of Chief Advisor to the Asset Management Services practice and is based in New York. Prior to joining Deloitte, Schubert was a managing director and global head of the Fixed Income Hedge Fund Business for UBS Investment Bank from 2006 until 2008.
Iler rejoined Deloitte as the Northwest Pacific hedge fund leader and is based in San Francisco. From 2001 to 2006, he founded the tax practice and served as Audit Partner for Deloitte’s Grand Cayman practice.
The new hires are the latest in a series of strategic growth initiatives executed over the last 18 months by Cary Stier, Deloitte’s U.S. Head of Asset Management Services.
"Challenging times call for new ideas. The breadth of our practice offers us the perspective vital to designing new solutions that help clients prepare for the unforeseen. There has been too much surprise in the market, a trend that cannot continue," Stier added.
Ten current Deloitte partners have been newly-dedicated to Deloitte's hedge fund team, joining the global bench of talent in accounting and tax, valuation, anti-fraud, governance and oversight, regulatory and compliance, risk management, technology and operations, structuring, and third party administrator/prime brokerage relationships.
16 Sept 2009
No country for stimulus packages - Silkinvest on MENA Hedge Funds
In an update from MENA hedge fund investor SilkInvest, CEO Baldwin Berges writes, "While the major economies are still fuelled on policy support level, there are several economies in our region of focus that benefit from authentic internal growth drivers that are not always in need of extra stimulus."
"During the month of August, in anticipation of a possible correction of the summer rally in the majors, we have been taking some profits across our holdings, thereby increasing our cash levels in both our Arab and African equity funds to levels of around 15% and 13% respectively." Berges says, "In hindsight, this decision seems to be paying off. Both funds arguably continue to be amongst the most diversified across markets and sectors within the fund peer groups. We retain the flexibility to invest in the right opportunities as they present themselves."
Regarding the MENA markets, he said, "a development, although not very influential to stock prices, caught our attention: Yahoo, the popular Internet search engine, agreed to buy Arabic-language Internet venture Maktoob.com as it seeks to enter the Middle East market. Yahoo did not disclose the terms of the agreement. The transaction is set to be completed in the fourth quarter of this year. This is interesting because Yahoo sees tremendous growth opportunities for Arabic content in the region and sees in excess of 30% annual growth in internet users in the region over the years to come."
"During the month of August, in anticipation of a possible correction of the summer rally in the majors, we have been taking some profits across our holdings, thereby increasing our cash levels in both our Arab and African equity funds to levels of around 15% and 13% respectively." Berges says, "In hindsight, this decision seems to be paying off. Both funds arguably continue to be amongst the most diversified across markets and sectors within the fund peer groups. We retain the flexibility to invest in the right opportunities as they present themselves."
Regarding the MENA markets, he said, "a development, although not very influential to stock prices, caught our attention: Yahoo, the popular Internet search engine, agreed to buy Arabic-language Internet venture Maktoob.com as it seeks to enter the Middle East market. Yahoo did not disclose the terms of the agreement. The transaction is set to be completed in the fourth quarter of this year. This is interesting because Yahoo sees tremendous growth opportunities for Arabic content in the region and sees in excess of 30% annual growth in internet users in the region over the years to come."
Nexar Capital Group Hedge Fund Launch
Global hedge fund group, Nexar Capital Group SCA, announced the launch of an investment from funds managed by Aquiline Capital Partners LLC, a New York-based private equity firm.
The hedge fund firm was founded by industry veterans who built a market-leading hedge fund business at Société Générale Asset Management Alternative Investments, led by Arié Assayag, Chief Executive Officer; Eric Attias, Chief Investment Officer; and Bernard Kalfon, Head of Volatility Strategies.
“As an independent company, Nexar has a long-term approach that aligns our interests with those of our clients and allows us to provide them with superior investment management,” said Mr. Assayag. “Aquiline’s depth of investment management experience immediately gives us the strength and stability of an institutional platform, thus making Aquiline an ideal partner as we build our business.”
“Nexar’s team built its strong reputation in the industry through its success in growing and managing a leading hedge fund business,” said Jeff Greenberg, Chief Executive of Aquiline. “Recent market turmoil has underscored the importance of transparency, liquidity and true alpha generation, which are core elements of Nexar’s approach.”
The hedge fund firm was founded by industry veterans who built a market-leading hedge fund business at Société Générale Asset Management Alternative Investments, led by Arié Assayag, Chief Executive Officer; Eric Attias, Chief Investment Officer; and Bernard Kalfon, Head of Volatility Strategies.
“As an independent company, Nexar has a long-term approach that aligns our interests with those of our clients and allows us to provide them with superior investment management,” said Mr. Assayag. “Aquiline’s depth of investment management experience immediately gives us the strength and stability of an institutional platform, thus making Aquiline an ideal partner as we build our business.”
“Nexar’s team built its strong reputation in the industry through its success in growing and managing a leading hedge fund business,” said Jeff Greenberg, Chief Executive of Aquiline. “Recent market turmoil has underscored the importance of transparency, liquidity and true alpha generation, which are core elements of Nexar’s approach.”
15 Sept 2009
Hedge Fund Rocktoberfest WildCard Play-Off
This year marks the sixth anniversary of A Leg To Stand On’s annual benefit, Hedge Fund Rocktoberfest, being held at B.B. King Blues Club in New York on Thursday, October 8. This event unites a rapidly growing number of A Leg To Stand On supporters for a unique night of rock-and-roll performances by members of the hedge fund and financial communities.
The Rocktoberfest Wildcard Play-Off is being held tomorrow, September 16 at Sullivan Hall in New York, where four bands made up of hedge fund and related industry professionals will battle it out to perform at Rocktoberfest.
Since 2004, Hedge Fund Rocktoberfest has proudly served as A Leg To Stand On’s signature fundraising benefit. Due in large part to the support received through this one night, A Leg To Stand On has been able to directly help over 3,000 children through the provision of free corrective surgeries and prosthetic and orthotic devices.
An estimated 10,000 children have been helped through A Leg To Stand On’s training workshops, aimed at teaching innovative best-practices in orthopedic care to in-country medical providers. In January of 2009, A Leg To Stand On committed to helping a total of 11 project partners in Haiti, Nigeria, India, Bangladesh, Nepal, Colombia, Ecuador and Peru.
Capintro Outlines Opportunities Available to Hedge Fund Investors in 2009/2010
A new study by Capintro Partners, analyzing the impact of the events of 2008 on the hedge fund industry, indicates that the crisis may have led to structural changes which could benefit hedge funds.
The report makes a compelling case for having hedge funds as a strategic long term investment within a diversified portfolio. Capintro Partners highlights five key changes in the industry:
1) Assets in the industry have substantially declined due to investor redemptions, weak performance and flight to quality. The reduction in assets allows for outsized positive performance due to reduced competition among hedge fund managers within the same strategy.
2) The number of managers in the industry has also decreased, further reducing competition leading to wider spreads and an opportunity for larger gains.
3) Hedge funds have historically outperformed post crises and have performed well preserving capital throughout historical crisis events.
4) Hedge fund returns have varied more widely causing dispersion among manager returns to increase and correlation among managers and hedge fund strategies to decrease. This allows for greater diversification benefits to investors and leads to higher risk adjusted returns.
5) In order to attract new assets, managers are offering investors various incentives that may include access to closed funds, higher levels of liquidity, greater transparency and/or reduced fees.
Strategies that trade liquid securities and are able to take advantage of the volatility in global markets will be better positioned to outperform. Capintro favors the following strategies for the remainder of 2009:
1) Global Macro
2) Arbitrage
3) Equity Hedge
“It’s important for investors to realize that the current environment presents substantial opportunities for hedge fund managers and in turn for them. Our objective is to help uncover these opportunities, specifically in the aftermath of the events of 2008 and the massive de-leveraging that took place within the financial system” said Mahmoud Al-Khawaja, CEO of Capintro Partners.
About Capintro Partners, Ltd.
Headquartered in the United Kingdom with a representative office in Dubai, Capintro undertakes a range of activities including, but not limited to, placement services of actively managed funds and direct investments in the alternative investment industry including hedge funds. Aiming to become a leader in the investment product placement business, Capintro will bridge a gap between global investment managers and institutional and high net worth clients throughout the MENA (Middle East and North Africa) region.
The report makes a compelling case for having hedge funds as a strategic long term investment within a diversified portfolio. Capintro Partners highlights five key changes in the industry:
1) Assets in the industry have substantially declined due to investor redemptions, weak performance and flight to quality. The reduction in assets allows for outsized positive performance due to reduced competition among hedge fund managers within the same strategy.
2) The number of managers in the industry has also decreased, further reducing competition leading to wider spreads and an opportunity for larger gains.
3) Hedge funds have historically outperformed post crises and have performed well preserving capital throughout historical crisis events.
4) Hedge fund returns have varied more widely causing dispersion among manager returns to increase and correlation among managers and hedge fund strategies to decrease. This allows for greater diversification benefits to investors and leads to higher risk adjusted returns.
5) In order to attract new assets, managers are offering investors various incentives that may include access to closed funds, higher levels of liquidity, greater transparency and/or reduced fees.
Strategies that trade liquid securities and are able to take advantage of the volatility in global markets will be better positioned to outperform. Capintro favors the following strategies for the remainder of 2009:
1) Global Macro
2) Arbitrage
3) Equity Hedge
“It’s important for investors to realize that the current environment presents substantial opportunities for hedge fund managers and in turn for them. Our objective is to help uncover these opportunities, specifically in the aftermath of the events of 2008 and the massive de-leveraging that took place within the financial system” said Mahmoud Al-Khawaja, CEO of Capintro Partners.
About Capintro Partners, Ltd.
Headquartered in the United Kingdom with a representative office in Dubai, Capintro undertakes a range of activities including, but not limited to, placement services of actively managed funds and direct investments in the alternative investment industry including hedge funds. Aiming to become a leader in the investment product placement business, Capintro will bridge a gap between global investment managers and institutional and high net worth clients throughout the MENA (Middle East and North Africa) region.
14 Sept 2009
Trinity Fund Administration expands into Cayman
Hedge fund manager, Trinity Fund Administration has expanded by opening an office in the Cayman Islands after receiving a full Fund Administrators license from the Cayman Islands Monetary Authority.
Brad Cowdroy has been appointed Head of the new Cayman office and will have overall responsibility for local service offerings and the principal management of all North American account business. Brad joins from Goldman Sachs, where he was a Vice President in Fund Administration Services. Prior to this, Brad held positions at CIBC and PricewaterhouseCoopers in the Cayman Islands, where both roles focused in the funds area. Brad qualified as a Chartered Accountant in Sydney, Australia whilst working at BDO and has a Bachelor of Commerce (Accounting) degree from the University of Western Sydney, Hawkesbury.
John McCann, Managing Director of Trinity commented, “We are absolutely delighted to have someone of Brad’s calibre and experience heading up our new Cayman office and joining the Trinity group. Brad brings a wealth of experience in alternative fund servicing, as well as a broad knowledge of administrative and regulatory issues affecting our clients. We have no doubt he will make a significant contribution to the organisation’s growth moving forward”.
Trinity provides the full range of hedge fund administration services to investment groups based around the globe, which operate fund structures domiciled in a range of jurisdictions, including Ireland, Cyprus, Cayman Islands, Bahamas, Bermuda, BVI, Malta and the Channel Islands. A significant portion of its business comes from Cayman registered funds.
The firm’s expansion into Cayman comes in response to strong client demand, particularly from emerging managers, and will provide a local point for firms to access Trinity’s broad suite of services. Equally this befits a natural expansion of the business which will give Trinity better access to managers in North America.
John McCann added, “This is a major step forward in terms of Trinity’s expansion plans. We have always offered a complete suite of services to Cayman-domiciled funds and this brings us that much closer to this important component of our business”.
Trinity was also recently nominated for two awards from International Custody and Fund Administration and was voted number one in its class, within the recent prestigious annual Global Custodial Survey.
Brad Cowdroy has been appointed Head of the new Cayman office and will have overall responsibility for local service offerings and the principal management of all North American account business. Brad joins from Goldman Sachs, where he was a Vice President in Fund Administration Services. Prior to this, Brad held positions at CIBC and PricewaterhouseCoopers in the Cayman Islands, where both roles focused in the funds area. Brad qualified as a Chartered Accountant in Sydney, Australia whilst working at BDO and has a Bachelor of Commerce (Accounting) degree from the University of Western Sydney, Hawkesbury.
John McCann, Managing Director of Trinity commented, “We are absolutely delighted to have someone of Brad’s calibre and experience heading up our new Cayman office and joining the Trinity group. Brad brings a wealth of experience in alternative fund servicing, as well as a broad knowledge of administrative and regulatory issues affecting our clients. We have no doubt he will make a significant contribution to the organisation’s growth moving forward”.
Trinity provides the full range of hedge fund administration services to investment groups based around the globe, which operate fund structures domiciled in a range of jurisdictions, including Ireland, Cyprus, Cayman Islands, Bahamas, Bermuda, BVI, Malta and the Channel Islands. A significant portion of its business comes from Cayman registered funds.
The firm’s expansion into Cayman comes in response to strong client demand, particularly from emerging managers, and will provide a local point for firms to access Trinity’s broad suite of services. Equally this befits a natural expansion of the business which will give Trinity better access to managers in North America.
John McCann added, “This is a major step forward in terms of Trinity’s expansion plans. We have always offered a complete suite of services to Cayman-domiciled funds and this brings us that much closer to this important component of our business”.
Trinity was also recently nominated for two awards from International Custody and Fund Administration and was voted number one in its class, within the recent prestigious annual Global Custodial Survey.
Man Investments & Dexion Launch Man AHL Diversity
Alternative asset manager, Man Investments, and UK hedge fund advisory and marketing firm, Dexion Capital Group, announced the launch of a new UCITS III trend following product, Man AHL Diversity.
“Historically, the performance of trend following managers has tended to be uncorrelated to traditional stock and bond markets." Tim Wong, Chief Executive Officer of AHL, said, "We saw that with AHL’s highly impressive performance last year when its best performing fund delivered 33% at the same time as some equity markets fell 40%.”
Investors will be able to access the sterling denominated product with a minimum initial investment of £100 from the product’s launch in October 2009.
Founded in 1987, AHL manages $20.4 billion (as at 31 March 2009) and has delivered a strong track record of performance. Based on past data and adjusted for structure, fees and costs, Man AHL Diversity would have delivered annualised returns of over 14% during the past 14 years. AHL managed funds have produced a positive return in every calendar year since inception.
AHL’s track record has been greatly reinforced through Man’s funding of the Oxford-Man Institute (OMI) and the creation of AHL Oxford, the compny says.
The Oxford University academics of the OMI and AHL’s researchers in AHL Oxford share purpose designed premises, where AHL’s researchers have already developed several valuable commercial applications. Now in its second year, this arrangement has created a stimulating environment that fosters day-to-day interactions between AHL and the university's academics and students, and has provided AHL with exposure to leading academic thinking from a worldwide network of experts and wide spectrum of disciplines.
Trend followers – often known as managed futures managers – seek to exploit persistent trends and other market inefficiencies in a systematic way using highly liquid futures markets. Their funds are designed to perform whether prices trend up or down with the result that returns tend to be uncorrelated with traditional stock or bond markets.
“Historically, the performance of trend following managers has tended to be uncorrelated to traditional stock and bond markets." Tim Wong, Chief Executive Officer of AHL, said, "We saw that with AHL’s highly impressive performance last year when its best performing fund delivered 33% at the same time as some equity markets fell 40%.”
Investors will be able to access the sterling denominated product with a minimum initial investment of £100 from the product’s launch in October 2009.
Founded in 1987, AHL manages $20.4 billion (as at 31 March 2009) and has delivered a strong track record of performance. Based on past data and adjusted for structure, fees and costs, Man AHL Diversity would have delivered annualised returns of over 14% during the past 14 years. AHL managed funds have produced a positive return in every calendar year since inception.
AHL’s track record has been greatly reinforced through Man’s funding of the Oxford-Man Institute (OMI) and the creation of AHL Oxford, the compny says.
The Oxford University academics of the OMI and AHL’s researchers in AHL Oxford share purpose designed premises, where AHL’s researchers have already developed several valuable commercial applications. Now in its second year, this arrangement has created a stimulating environment that fosters day-to-day interactions between AHL and the university's academics and students, and has provided AHL with exposure to leading academic thinking from a worldwide network of experts and wide spectrum of disciplines.
Trend followers – often known as managed futures managers – seek to exploit persistent trends and other market inefficiencies in a systematic way using highly liquid futures markets. Their funds are designed to perform whether prices trend up or down with the result that returns tend to be uncorrelated with traditional stock or bond markets.
11 Sept 2009
Swedbank Robur Reduces Fund of Hedge Fund Fees
Scandinavian fund of hedge fund manager, Swedbank Robur announced that it is lowering fees by .2% to .4% on its 5 funds, effective October 1st.
"These reductions are in line with our ambition to offer an attractive product range with competitive prices." Mats Lagerqvist, President of Swedbank Robur, said, "We are always looking for improvements and when it comes to these funds we have identified an opportunity to adjust the fees. It is our strong belief that this new fee structure will be more distinct for our customers since it is easier to understand the relationship between the fund fee and the risk level of the fund".
Swedbank Robur offers fund of funds under the product name Access. This product category is specifically developed for customers who do not have the time to change their fund portfolio from one day to the other.
"These products are highly appreciated by customers who want a well diversified portfolio. The customers also get access to markets which are otherwise rather inaccessible. The funds deliver not only diversification but also an active reallocation of the underlying funds. Altogether Swedbank Roburs Access funds are an attractive investment alternative for many of our customers and through the reduction of fees we will be even more competitive in terms of pricing", Lagerqvist said.
Swedbank Robur is a wholly owned subsidiary of Swedbank. Founded in 1967, Robur was one of the first fund managers in Sweden. Managing the capital of 3.1 million investors, in the Swedish mutual fund market, Swedbank Robur has approximately 27% of assets under management.
"These reductions are in line with our ambition to offer an attractive product range with competitive prices." Mats Lagerqvist, President of Swedbank Robur, said, "We are always looking for improvements and when it comes to these funds we have identified an opportunity to adjust the fees. It is our strong belief that this new fee structure will be more distinct for our customers since it is easier to understand the relationship between the fund fee and the risk level of the fund".
Swedbank Robur offers fund of funds under the product name Access. This product category is specifically developed for customers who do not have the time to change their fund portfolio from one day to the other.
"These products are highly appreciated by customers who want a well diversified portfolio. The customers also get access to markets which are otherwise rather inaccessible. The funds deliver not only diversification but also an active reallocation of the underlying funds. Altogether Swedbank Roburs Access funds are an attractive investment alternative for many of our customers and through the reduction of fees we will be even more competitive in terms of pricing", Lagerqvist said.
Swedbank Robur is a wholly owned subsidiary of Swedbank. Founded in 1967, Robur was one of the first fund managers in Sweden. Managing the capital of 3.1 million investors, in the Swedish mutual fund market, Swedbank Robur has approximately 27% of assets under management.
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