Asset management

Greensill exposes perils of Credit Suisse strategy

10 Mar 2021

The supply-chain financier’s collapse affects almost every division of the Swiss bank. While the financial hit appears manageable, cooperation between its fund, wealth and lending arms increases risk. That’s worrying as CEO Thomas Gottstein’s growth plans hinge on collaboration.

Fund stragglers offer own post-crisis value punt

9 Mar 2021

UK asset managers Standard Life Aberdeen and M&G are shaking off the pandemic, helped by better stock picking. The challenge is to keep assets and profit growing in an industry shaken by passive funds, and find new businesses. Their low valuations at least provide a cushion.

Sustainable debt may be too popular for own good

2 Mar 2021

Investors are piling into bonds sold by companies such as H&M or Tesco which punish issuers for missing environmental targets. Demand has been such that the funding is now dirt-cheap. That could distort the price of the securities, and their intended effect.

Capital Calls: Exxon, Greensill, Research SPAC

2 Mar 2021

Concise views on global finance in the Covid-19 era: U.S. securities regulators take on the oil giant; Investors in even lower-risk funds get nervy about the supply chain finance provider; And a supplier of picks and shovels to the online trading boom gets a blank-check listing.

Capital Calls: CPPIB, Barclays, McPlant, DoorDash

26 Feb 2021

Concise views on global finance in the Covid-19 era: Canada Pension Plan Investment Board's CEO is booted for jab-line jumping; the UK bank wins a legal, if not ethical, victory over financier Amanda Staveley; Beyond Meat partners with McDonald’s and Yum; and DoorDash is too hot.

Lloyds’ wealth push could use an M&A shove

24 Feb 2021

The 28 bln pound bank has emerged from the crisis with a slow core business and mediocre valuation. A plan to manage more clients’ money could help, but the lender is starting from a low base. Luckily, incoming CEO Charlie Nunn has about 5 bln pounds of spare cash to play with.

Clayton’s new Apollo role is a non-spicy jalapeño

18 Feb 2021

The former SEC head is becoming lead independent director at the buyout firm, keeping an eye on sidelined founder Leon Black. In some companies, the role is used to avoid naming a separate board chair. In this case, it looks like a way of deferring the clean break Apollo needs.

Credit Suisse traders give CEO strategic quandary

18 Feb 2021

The Swiss bank trailed rivals in profiting from volatile markets in 2020. Boss Thomas Gottstein may hope for a better showing post Covid-19, but Credit Suisse’s trading strengths offer limited benefits to its main wealth division. Further shrinkage looks painful but sensible.

BlackRock can push harder on climate change

17 Feb 2021

The $9 trillion asset manager will require heavy polluters to disclose their full carbon dioxide footprints and set short-term targets to cut emissions. That’s an improvement. But until BlackRock leans on index providers to up their game too, it’s not deploying all its heft.

Private equity ESG hoops are too easy to navigate

16 Feb 2021

Lower-rated companies and those controlled by buyout groups are issuing debt with interest payments linked to environmental, social or governance targets. But they’re too mild to change behaviour much. To have real teeth, their conditions need toughening up.

Amundi governance cloud has M&A silver lining

10 Feb 2021

Europe’s biggest fund manager named Valérie Baudson CEO. The elevation of current boss Yves Perrier to chairman is an eyesore for a company that flaunts its ESG credentials. Yet given the $16 bln group’s need for acquisitions, keeping the seasoned dealmaker around makes sense.

Lazard bucks Aussie investment banking trend

5 Feb 2021

The $5 bln advisory shop is scaling back as financiers from UBS and elsewhere decamp to startups such as Barrenjoey and Jarden. Boss Ken Jacobs has struggled to gain traction Down Under. With an M&A boom potentially on the horizon, though, it’s an odd time to shrink.

Julius Baer can hit M&A trail after light penance

1 Feb 2021

The $13 bln Swiss private bank escaped serious penalties for money laundering sins and boosted net profit by 50%. That gives CEO Philipp Rickenbacher a strong foundation if regulators lift a ban on deals. Rivals EFG International or Edmond de Rothschild may be attractive targets.

Corona Capital: UK’s quarantine, U.S. prisons

27 Jan 2021

Concise views on the pandemic’s corporate and financial fallout: Britain’s new quarantine rules are weak, but will still hurt the travel industry; and for-profit prisons lose business to the U.S. government.

Larry Fink flexes what green muscles he has

26 Jan 2021

The BlackRock boss will require companies to show how they will eliminate carbon emissions by 2050. The $9 trillion asset management giant’s largely passive funds cannot dump climate laggards. But Fink’s latest letter makes clear his active managers will show more strength.

The Exchange: Too much stimulus stores up big risk

26 Jan 2021

That’s the view of Oliver Baete, CEO of Allianz. Markets are pricing in vaccination perfection, as they’ve grown dependent on central bank and government largesse, he tells Rob Cox. But for the $97 billion German insurer, there’s still opportunity to be had in the year ahead.

Naturgy offers cut-price route to green transition

26 Jan 2021

IFM is spending 5 bln euros on 23% of the Spanish utility. Naturgy’s depressed shares and the Australian fund’s use of debt will juice its returns. Moreover, it’s a cheaper way of surfing the renewable energy wave than boarding rivals like Iberdrola.

UBS strength risks stifling new CEO’s reform zeal

26 Jan 2021

Ralph Hamers inherits a bank with a respectable valuation, tons of capital and healthy returns. Such performance could make him less likely to effect major changes at the $54 bln lender. That could be a problem given long-term weaknesses like slow growth and high costs.

EQT puts runaway share price to good use

26 Jan 2021

The $28 bln Swedish private equity firm linked to the Wallenbergs is issuing $800 mln of equity to the founders of Exeter, an American property investor. The deal expands its U.S. presence and helps diversify away from lumpy buyouts. While risky and expensive, it may just work.

Hedge fund backers must pick winners twice over

25 Jan 2021

Equity-heavy hedge funds did well in 2020. Industry-wide, though, the top 20 managers made half the $127 bln of gains in the 8,000-strong industry. Stock pickers may thrive again this year, but there is no guarantee. Investors’ double bet is choosing both the game and the player.