Friday 27th May 2016
NEWS TICKER: THURSDAY, MAY 26TH - Dan Carter has been appointed lead manager of the Jupiter Japan Income Fund, with immediate effect. Dan, who is currently deputy manager of the fund will take over from Simon Somerville, who will be leaving Jupiter after eleven years. Carter has 12 years’ experience of analysing and managing Japanese equities, and has worked alongside Somerville for eight years. He has also lead managed the Jupiter Japan Select Sicav fund, aimed at international clients, since 2013, having been deputy manager for two years. There will be no change to the investment philosophy of the fund says Jupiter and the funds will continue to be managed alongside each other, ensuring continuity for investors. There is a significant overlap between the two portfolios in terms of the companies they are invested in. The funds seek to own long-term positions in cash-generative, income-paying Japanese companies that are run for shareholders, have a genuine competitive advantage and offer real, identifiable growth opportunities that he believes are underappreciated by the market. Carter joined Jupiter in 2008 as an analyst on the Far Eastern Equities team. Before that he was a Fund Manager at Odey Asset Management on the Japanese equities team, and was previously at Baillie Gifford & Co, where he was an investment analyst for both the Japanese equities and UK large-cap equities teams - CME Group Executive Chairman and President Terry Duffy will appear before the Illinois House Revenue and Finance Committee today to discuss how imposing a proposed tax on financial transactions would harm Illinois consumers, agricultural producers, businesses and the state economy. "Imposing a financial transaction tax will not alleviate the state's budget crisis, and instead would have a negative impact on consumers because the cost of hedging their business risks would go up as much as 800 percent," said Duffy. "If enacted, every business that uses any risk management tools would face higher costs as bid/ask spreads widen. Farmers, ranchers and other businesses in Illinois and all over the country would be forced to pass along those costs to consumers, who would pay more for food, gas, airline tickets and other products. Additionally, a transaction tax would put the largest exchange in the US, which is headquartered in Illinois, at a competitive disadvantage in the global marketplace." The hearing is scheduled for 10:00 am CT in the Capitol Building in Springfield, Illinois. Duffy's testimony will be available on www.cmegroup.com at the same time as the hearing - Moody's has upgraded to A3 from Baa1 the senior unsecured debt ratings of Autoroutes du Sud de la France (ASF). Concurrently, Moody's has upgraded to (P)A3 from (P)Baa1 the rating on the company's €8bn medium-term note (EMTN) programme. The outlook on the ratings is stable. The upgrade reflects ASF's strengthening financial profile on the back of a strong traffic performance and expected future traffic growth, says the ratings agency. ASF is expected to exhibit funds from operation/debt metrics firmly in the mid-teens in percentage terms, which Moody's considers commensurate with the A3 rating level. In 2015, ASF reported traffic growth of 3.1% compared to the previous year. “We expect traffic growth to moderate during the year, although the 2016 annual traffic increase is anticipated to be at least 2%. The positive traffic trends, which offset the financial impact of the 2015 tolls freeze and the relatively limited toll increases in 2016(1.63% for ASF and 1.18% for Escota), are supportive of ASF's credit profile in the context of the group's increasing investments associated with the implementation of the so-called Plan de Reliance Autoroutier (a government stimulus plan),” says Moody’s. ASF is expected to implement capital expenditure worth €800m per annum over the next three years - The European Parliament has approved aid on Thursday worth €6,468,000 for 557 redundant workers from the “Larissa” supermarket in Greece and €5,146,800 for 2,132 former drivers for the road haulage and delivery firm MoryGlobal SAS in France. The European Globalisation Adjustment Fund (EGF) aid will still need to be approved by the Council of Ministers on June 6th. In Greece, Larissa’s 422 employees and 135 worker-owners were made redundant when the cooperative supermarket was declared bankrupt. In France, MoryGlobal’s 2,132 lorry drivers and their delivery colleagues lost their jobs due to its bankruptcy and closure. Both bankruptcies resulted from the prolonged global financial and economic crisis which has devastated the Greek economy and deeply affected the road haulage sector. The measures, co-financed by the EGF and the Greek and French governments, would help the workers to find new jobs by providing them with occupational guidance and other assistance schemes. The aid request from France was passed by 540 votes to 73, with 2 abstentions. The request from Greece was approved by 551 votes to 67, with two abstentions. The European Globalisation Adjustment Fund (EGF) was introduced in 2007 as a flexible instrument in the EU budget to provide support, under specific conditions, to workers who have lost their jobs as a result of mass redundancies caused by major changes in global trade (e.g. delocalisation to third countries). The EGF contributes to packages of tailor-made services to help redundant workers find new jobs. Its annual ceiling is €150m. Redundant workers are offered measures such as support for business start-ups, job-search assistance, occupational guidance and various kinds of training - Pirum Systems says Ben Challice will be joining as chief operating officer, responsible for strategic product and market development. Challice joins from Nomura, where he headed up Global Prime Services – which included Equity Finance, Prime Brokerage and Delta One at Nomura and previously held senior positions at Lehman Brothers and Goldman Sachs - Catella has appointed Antti Louko to head its Finnish operations and to establish a new corporate finance unit in Helsinki. Louko will join Catella as managing director of Catella Property Oy and head of the new corporate finance unit, from November. Louko joins Catella from a role as head of real estate at Advium Corporate Finance Oy where he headed the real estate team. He previously worked as the director responsible for transactions at SRV Group, and at Aberdeen Property Investors - Advanced payments tech firm SafeCharge says Umberto Corridori has been appoint vice president of sales for Europe. Corridori has held senior roles in large companies such as Dell Italy and joins after a long tenure at PayPal where he served as head of sales Italy & iGaming CEMEA - AIM-listed Xtract Resources PLC says it has entered into an agreement to sell the Manica Gold project in Mozambique to Nexus Capital and Mineral Technologies International Ltd for $17.5m in cash. The firm says some of the proceeds will be used to settle outstanding payments owed to Auroch over the acquisition of the Manica licence. Xtract adds that it expects to have remaining cash proceeds of approximately $12m. Under the agreement, Xtract will sell its 100% interest in Explorator Limitada, the entity which holds title to the Manica mining licence 3990C on completion of the deal. Xtract said it is expected that a bankable feasibility study, to assess the viability of developing and mining a hard rock gold deposit identified within the Manica licence, will be completed in the second quarter of 2016, Mine construction is planned to begin in the fourth quarter, with first production to follow in the final quarter of 2017. Mining of the alluvial gold deposit is planned for the third quarter this year – The European Bank for Reconstruction and Development (EBRD) is providing up to €294m in local currency equivalent for two ground-breaking projects to increase the use of domestically produced natural gas and largely replace the use of coal in Kazakhstan. The first project is the upcoming modernisation and refurbishment of the underground storage in Bozoi in the Bank’s first-ever cooperation with the national gas company KazTransGas (KTG). An EBRD loan equivalent to €242m in local currency to the KazTransGas subsidiary Intergas Central Asia will allow for the upgrade of the storage to its full capacity of 4bn cubic metres (bcm), from the current limit of 2.6 bcm - United Utilities reported a 0.6% rise in full year revenue to £1.73bn this morning, although the new regulated price controls contributed to a 9% drop in underlying operating profit to £604m. The company says it is confident of reaching its targets for capital expenditure in the first year of the new regulatory period and announced plans to invest £100m across the 2015-2020 period in renewable energy projects, mainly solar power. The final dividend was raised 2% to 25.6p, making a total of 38.45p for the year – Ahead of its planned initial public offering in Australia, fantasy sports app Sports Hero has raised an additional $2.4m in funding. SportsHero is a new app that lets sports fans dabble in match predictions and show their skills off against friends and other game-watchers. The app is made by the team behind Singapore-based TradeHero, a virtual trading app backed by more than $10m from investors. - DONG Energy has set an indicative price range for its planned stock market listing of 17.4% of its shares at DKR200 to DKR255 per share, giving the group a market value of DKR83.5bn to DKR106.5bn ( between $12.6bn and $16bn), making it Europe’s biggest float this year. The state-controlled company, is one of the world’s largest offshore wind farm developers -

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RBC Dexia/Accenture report says change is due in Spanish investment industry

Friday, 15 June 2012
RBC Dexia/Accenture report says change is due in Spanish investment industry The shape of Spain’s asset management industry is set to change dramatically according to a report by RBC Dexia and Accenture. http://www.ftseglobalmarkets.com/

The shape of Spain’s asset management industry is set to change dramatically according to a report by RBC Dexia and Accenture.

The RBC Dexia/Accenture report predicts further concentration of Spain’s asset management industry into fewer, more specialised managers and a stronger focus on improving efficiency and performance. Improvements in technology will also be vital to success, with outsourcing high on the agenda. José Maria Alonso-Gama, managing director of RBC Dexia in Spain, sets the scene, explaining that: “Spanish fund firms are concentrating on bottom-line indicators such as fund performance and increased assets under management. They recognise the need to restore credibility and investor confidence by showing they are delivering on their performance promises.”

The report is based on a survey of 33 asset management firms in Spain in the first quarter of 2012 by RBC Dexia Investor Services and Accenture. Some 33% of respondents have more than €1bn in assets under management (AUM), 46% have between €200m and €1bn in AUM and 21% have less than €200m in AUM.



Although the industry is dominated by a small number of firms, with the top three managers accounting for 45 percent of assets under management, the average size of funds in Spain is only €57m. This compares with an average of €300m in Switzerland and €262m in the UK. The total number of funds in Spain has been contracting (down by about 20% to 2,500 in the past three years due to industry consolidation) and the report expects this trend to continue with, “The evolution of larger and more specialised companies with rationalised fund ranges”.

Also according to the report, of the 33 investment companies surveyed, 95% of local managers and 91% of foreign managers cited increased assets under management as a key indicator of success over the next two years. Fund performance was cited by 91% and 73% respectively and increased service quality by 86% and 45%. When it came to development of new products, 36% of foreign managers cited this as important but only 9% of local managers.

Over 80% of independent managers in Spain believe that the Undertakings for Collective Investment in Transferable Securities IV (UCITS IV) directive will make it easier to distribute investment funds abroad by creating a common regulatory environment. However, 70% of local managers were also concerned that it would lead to increased competition from overseas funds while independent managers were worried it would result in increased reporting obligations.

More than two-thirds of respondents cited improving technology as the most important factor in increasing efficiency. Most managers (90% of foreign managers and all local Spanish managers) expected an increase in the number of fund managers outsourcing certain functions in coming years. And 90% of those surveyed said there would be an increase in the diversity of functions outsourced in coming years. “The increased risks control imposed by new regulations and cross-border distribution opportunities that they also create, require increasingly sophisticated technology,” says Diego López Abellán, of Accenture’s Capital Markets practice for Spain. “Outsourcing can play a pivotal role in enabling continuous technology upgrades while avoiding costly investment.

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