Fidelity gets first dip in China fund shark tank 5 Jan 2017 Fidelity International is the first foreign asset manager allowed to create onshore funds and sell them to select mainland buyers. It enters a brutally competitive sector hobbled by capital account controls, and it can't sell to retail investors. This is still a strategic win.
U.S. asset managers in China trade firing line 25 Nov 2016 Officials emphasized the positive after the two countries' last meeting of Obama's tenure. But the coming Trump era hung over the talks. If the trade relationship deteriorates, one of Beijing's options is to close a door only recently opened into Chinese capital markets.
UK watchdog turns screw on besieged fund managers 18 Nov 2016 The Financial Conduct Authority has criticised weak competition among asset managers. Proposed remedies including better transparency and governance could squeeze earnings and pay. It’s a knock the industry, under pressure from passive investments, didn’t want but probably needs.
Bill Gross’s firm finds investor-pleasing trade 3 Oct 2016 Janus, home of the famed bond manager, is merging with the larger UK-based Henderson to create a $6 billion group. Even friendly M&A is risky for asset managers, but industry growth is weak and scale benefits massive. The rapturous market reaction won't be lost on other groups.
Fund managers take long view by scrapping bonuses 23 Aug 2016 Star investor Neil Woodford is paying his staff fixed salaries, while former trade body head Daniel Godfrey is launching a trust on the same principle. Fund costs won't necessarily fall. But a bonus system can prompt unhelpful short-termism while ratcheting up overheads.
Brexit pops investors’ fund liquidity illusion 5 Jul 2016 Asset managers' shares were pummeled after Standard Life and Aviva halted redemptions on property funds that mix short-term funding and illiquid assets. Bond and equity funds are less vulnerable, but not immune. In dangerous times, stable long-term funding deserves a premium.