Asset management

Blackstone $4.7 bln REIT deal houses market oddity

16 Sep 2019

Steve Schwarzman’s firm is paying an 18.5% premium to take Canadian property owner Dream Global private. The lack of daily pricing volatility helps explain why far more is invested in unlisted real estate. But REITs are liquid, have lower fees and tend to outperform.

UK building supplier adopts Peltz’s American dream

3 Sep 2019

Ferguson plans to spin off its British unit and focus on the United States, as suggested by the activist. Trading more in line with U.S. peers should boost shares in the 14 bln pound group. But UK-based holders could make moving the primary listing to New York a tough project.

Dutch insurer revisits ghosts of low yields past

15 Aug 2019

Despite hiking its dividend, Aegon’s shares dived after a sharp drop in solvency. That revives bad memories of the insurer’s volatile capital a few years back. Incoming CEO Lard Friese’s first job is to show investors he’s better at managing the group as low rates bite once more.

Asia sale can give Aviva revamp a timely boost

8 Aug 2019

The UK insurer is reviewing its future in the east. New boss Maurice Tulloch wants to cut costs and debt. Selling the subscale division, worth as much as $4 bln, is a step in the right direction. Local firms like FWD are keen to consolidate, which should guarantee a good price.

Blackstone shows BC who’s the junior partner

6 Aug 2019

The buyout firm run by Stephen Schwarzman is taking a stake in BC Partners. That will fuel the London-based outfit’s expansion into real estate and private credit, and avoid the need for a public listing. Blackstone already has all that. This deal will help keep it a step ahead.

Old Mutual row shows merit of the quiet CEO payoff

31 Jul 2019

The South African insurer’s shares lost 5% after sacked boss Peter Moyo convinced a court he should get his job back, at least temporarily. A public slanging match looks damaging for all concerned. There’s a reason why warring boards and bosses usually settle disputes quietly.

GAM truce marks start of long rehabilitation

30 Jul 2019

The Swiss asset manager is burying the hatchet with a former employee linked to a $11 bln fund scandal that knocked 60% off its market value. Shelving litigation will help new boss Peter Sanderson focus on rebuilding the franchise. New inflows are an early sign the worst is over.

New Julius Baer CEO will start on lean note

22 Jul 2019

The $10 billion Swiss wealth manager reported weak first-half net profit. Outgoing boss Bernhard Hodler has worked on fixing some of its problems by cutting costs and ditching potentially dodgy clients. Successor Philipp Rickenbacher’s main job will be to attract more new money.

Bill Ackman finds activist attention unappealing

18 Jul 2019

The hedge fund boss’s $4 bln London-listed fund has incurred investor wrath over its low price and a bond issue. The prescription is activism 101: buy back stock and shake up the board. Ackman, for once a target, may find new sympathy for the defence that he just needs more time.

GAM bond fund freeze gets partial vindication

16 Jul 2019

Investors in $11 bln of funds managed by the Swiss group, suspended last year, will get their money back. The recovery supports the idea that blocking withdrawals is a good way to sell illiquid assets, at least in benign markets. The damage to GAM’s business will last longer.

BoE raises tricky liquidity bar for asset managers

11 Jul 2019

Governor Mark Carney cited $30 trillion of easy-access funds which invest in longer-dated assets worldwide as a “medium-term” financial risk. Recent problems for UK stock-picker Neil Woodford and Natixis require a response. Savers could face a longer wait to get their money out.

UK climate disclosure needs more than a big stick

2 Jul 2019

The government may force companies and pension funds to say how global warming will affect them. That might catch out the few that currently don’t. But given information from those that do is often useless, setting clear rules may be better than a legal obligation to publish.

Natixis gives lesson in bond market fragility

24 Jun 2019

A fund unit owned by the French bank had to write down holdings of exotic bonds and penalise investors who pull money. It’s a prudent move that may stem outflows. But investors will be more nervous in future about funds that dabble in esoteric debt while promising easy liquidity.

Nelson Peltz snaps up $16 bln Brexit fixer-upper

13 Jun 2019

The activist investor has taken a 6% stake in London-listed construction group Ferguson. Selling the UK unit, which has been hit by dismal growth since the country voted to leave the EU, would boost profitability. Relisting in New York could help close a valuation gap with peers.

UK frozen fund exposes regulator’s limitations

10 Jun 2019

The week after a prominent money manager suspended withdrawals, the head of the UK financial watchdog said rules on illiquid assets in investment funds may need a rethink. Given EU laws limit his room for manoeuvre, Andrew Bailey may not be able to deliver major changes.

UK fund blowup leaves cheerleaders burned

6 Jun 2019

Shares in the $12 billion investment supermarket Hargreaves Lansdown have slid by 12% after a fund it promoted run by star manager Neil Woodford froze redemptions. The mess could cause clients to pull money. To keep them, Hargreaves may need to sacrifice its high fees.

SEC’s new conflict rule does investors few favors

5 Jun 2019

The U.S. securities watchdog is tightening conduct standards a bit for brokers while loosening them for investment advisers. The industry-friendly fudge leaves investors to fend for themselves. Sharp dissent within the commission underscores the weakness of that approach.

UK fund wreck shows risk of overactive management

4 Jun 2019

Stock-picker Neil Woodford had to halt redemptions after outflows. Contrarian bets on cheap stocks and unquoted companies were ill-suited to a $5 bln fund that allowed clients to withdraw money easily. Manager hubris is another reason for investors to use passive funds instead.

As impact investing grows, its purpose strays

30 May 2019

Investing for social or environmental good, once a niche for foundations and development banks, now attracts the likes of Blackstone and KKR. There’s plenty of demand for the sector’s $500 bln of capital. For the biggest players, though, it’s still all about market-rate returns.

Breakdown: ESG investing faces sustainability test

28 May 2019

Assessing environmental, social and governance risks is the hot topic in asset management. Support from politicians, millennials and fund houses, along with high-profile votes like those at Amazon and BP, should boost the $1 trln asset class. But success could create problems.