Funds
Hedge fund managers navigated intense volatility on Friday as the Brexit vote resulted in massive dislocations across global currency, equity, commodity and fixed income markets, most specifically reflected in Sterling’ steep decline against the Dollar and the Yen.
Hedge fund performance was mixed across strategies with wide dispersion and high turnover, as losses across directional beta strategies were partially offset by mixed performance in non-directional and trend following strategies. UK-based hedge funds manage an estimated USD426.4 billion (£ 323 billion British Pound Sterling), roughly 80 per cent of the USD527.6 billion managed by all European located hedge funds.
The HFRX
Larry Hatheway (pictured), Group Chief Economist and Head of Multi Asset Portfolio Solutions at GAM, looks at what happens next following the UK’s vote to leave the EU…
The UK’s historic referendum has, predictably, sent powerful shockwaves through global capital markets. Intra-day volatility in sterling, European equities and selected other asset classes has approached or even exceeded that seen during the most turbulent episodes of the global financial crisis. The market moves – particularly the sharp fall of sterling – are very much in line with the estimates made by most economists and strategists in their Brexit scenarios.
What
EDHEC-Risk Institute has released an overview and analysis of the forthcoming framework to be used by financial institutions to determine initial margin (IM) and variation margin (VM) payments when trading non-cleared over-the-counter (OTC) derivatives.
The new publication – Initial Margin for Non-Centrally Cleared OTC Derivatives – Overview, Modelling and Calibration – was produced by the research chair on “Innovations and Regulations in Investment Banking” which is supported by the Fédération Bancaire Française (FBF).
Coming into effect in September 2016, this new framework was set out in 2015 and is based on the recommendations of the BCBS/IOSCO Working Group on Margin
Baring Asset Management (Barings) has launched the Baring Dynamic Absolute Return Fund, which will use long and short strategies to target a market neutral return. It will be managed by James Ind, supported by a multi asset investment team.
The launch builds on Baring Asset Management’s 13 years’ experience of running successful multi asset strategies and complements the firm’s extensive multi asset product range. Barings was one of the first firms to offer a multi asset fund with its flagship Dynamic Asset Allocation Fund and has since broadened its portfolio with products such as the Multi Asset Fund, the Dynamic
Foreside Financial Group, a provider of distribution and compliance services for open- and closed-end funds, exchange traded products, commodity pools, private placements, investment advisers and registered broker-dealers, has acquired Beacon Hill Fund Services,
Financial terms of the transaction, which is expected to close on 31 July, have not been disclosed.
In operation since 2008, Beacon Hill provides a variety of business management services to both US and non-US investment managers. With a staff of 22 professionals, Beacon Hill provides services to 19 clients with 144 funds and USD28.6 billion in assets.
“The acquisition of Beacon Hill brings together some of
The vote to leave the EU is the start, not the end, of a process that could take up to a decade or more, says Marie Owens Thomsen (pictured), Chief Economist at Indosuez Wealth Management, Credit Agricole’s private banking arm.
“In addition to the detrimental effects of prolonged uncertainty and the opportunity cost of spending time and money on these negotiations instead of more pro-growth policies, one can expect the UK financial industry, car manufacturers, and farmers to be particularly hurt, at least until a new framework emerges for the UK, in 2019 at best,” she says. “The EU and all
“Amid the hyperbole and today’s vertiginous fall, Sterling’s one saving grace is that the Euro is likely to be hit almost as hard by a Brexit,” says David Lamb, head of dealing at FEXCO Corporate Payments.
“So the Pound’s collapse relative to the single currency has been mitigated as both race to the bottom.
“But against the Dollar, no quarter has been given. The Pound’s early plunge today was magnified by its late night rally – which saw it rise to USD1.50 as the global markets bet on a Remain win.
“The painful question now is how far, and for how
Keith Grindlay of Macro Thoughts comments that as if 1.27 million more UK voters voting to leave Europe than to stay wasn’t shock enough, David Cameron has proven that UK unemployment would go higher with a vote to leave, by increasing unemployment by one, announcing his resignation as Prime Minister by October.
This should send shock waves throughout Europe and European governments, further encouraging the growing movement in Europe for similar referenda. Over the next 18 months countries responsible for 90 per cent of Europe’s GDP will hold elections: Spain this weekend, Germany and France next year. Japan will hold elections
Advisors Asset Management (AAM) is to become the distributor for several Rothschild Asset Management separately managed accounts (SMAs), including Rothschild's US Large-Cap Core, US Large-Cap Value and US Balanced strategies.
This agreement expands the scope of the existing partnership between AAM and Rothschild. In March, AAM became the sub-advisor for the fixed-income component of Rothschild's US Balanced SMA strategies, and agreed to perform the administrative and back-office functions for these portfolios. The prior accord also enabled AAM to distribute Rothschild's US Balanced SMAs. The new agreement will expand AAM's distribution and operations functions to include Rothschild's US Large-Cap Core and
Irish Funds, the representative body for the cross-border investment funds industry in Ireland, kicked off its annual funds conference on Thursday, celebrating 25 years of the Association.
Having already put Ireland on the map as a global centre of excellence for funds, the conference’s programme was designed to look at the opportunities which the industry should be embracing in the next 25 years. Hundreds of global CEOs and industry executives are being joined in Dublin today by European policy makers and regulators to explore and debate the key issues of the industry.
This year’s conference was opened by the
