(October 17, 2007) Canadians’ interest in investing is waning, according to a new survey.
Manulife’s 35th Quarterly Investor Sentiment Index fell 11 points to +20 after remaining near its highest levels since 2001 for the past three quarters.
Manulife says concerns over U.S. sub-prime mortgages and weaker stock markets have contributed to falling confidence.
Paul Rooney, CEO of Manulife Canada, says despite a more negative attitude towards investing overall, Canadians are generally positive about long-term investing and real estate markets remain active.
Despite this, investor sentiment deteriorated in all six investment categories. The largest decline was recorded by investment properties – by 16 points, balanced funds by 15 points, and people investing in their own home – by one point. Cash and fixed income investments also lost ground, falling one point to +10 and nine points to +19, respectively.
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Employee retention is a top priority for hedge funds
(October 17, 2007) A new report from Ernst & Young shows that hedge funds’ top priorities are attracting, retaining talent and managing growth.
The report, which surveyed more than 100 of the world’s top hedge fund managers who collectively manage approximately $900 billion in assets, found that 42% of respondents believe that retaining the right people will be one of the biggest challenges they face. funds in the coming year. Others (39%) said managing growth was at the top of their to-do list. Only 9% said investing in or developing new products was a high priority.
Art Tully, co-leader of Ernst & Young’s global hedge funds practice, says: “Our research shows that managers are rethinking their infrastructure and operations to deal with this, not only to ensure scalability but, more important to minimize any negative effects on performance. This is an evolutionary development of funds. In this regard, we agree with industry commentators who argue that funds are moving from institutionalization to ‘industrialization’, transforming into more typical asset manager-type structures.”
Overall, managers are confident in their actions – 37% of respondents say they do not need to change their business practices in the next two years. Just 13% said they expected to raise permanent capital in the next few years.
Another challenge that hedge funds face is transparency in the valuation process. More than 60% said this would be a “mid- or high-level regulatory challenge” over the next two years, while conflicts of interest (57%) and market abuse (55%) were other key concerns.
The survey also found that 80% of managers expect incentive compensation and management fees to decline over the next few years, despite an expected increase in operating costs. However, Ernst & Young says the most effective managers will still charge whatever they see fit.
“While fee pressures may be reduced, managers who consistently perform well – both on an absolute and relative basis – will also be able to continue to charge the fee structure they want,” says Julian Young of Ernst & Young’s UK hedge fund team . “Weaker performers will suffer the most.”
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Desjardins Financial Security changes the name of the fund
(October 17, 2007) Desjardins Financial Security is rebranding its funds, adding a new fund manager and a new fund to its portfolio.
The company changes the term “separated funds” to “guaranteed investment funds”, and the name, in its opinion, “is more in line with the nature of the product and market trends.”
Desjardins says the new moniker reflects the company’s commitment to greater clarity and transparency.
From October 29, funds will be identified as follows: DFS GIF – name of the fund category – name of the asset manager. The designation Millennia III Funds will no longer be used.
“Using the terms ‘guaranteed investment funds’ rather than ‘segregated funds’ is a concrete way for us to simplify investment terminology for our clients,” explains Claude Paré, senior director of product development and marketing, individual savings at Desjardins. “This initiative is part of the company’s strategic direction to provide customers with guidance and support in all interactions with our company.”
The financial institution also disclosed that it has hired Addenda Capital, a Montreal-based company that specializes in managing bond portfolios for institutional clients, and UBS Global Asset Management to lead offerings of Canadian bonds and U.S. stocks, respectively.
Desjardins also said Wednesday that he is launching a new global equity fund managed by Alliance Bernstein. The fund will become part of the company’s securities portfolio.
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Mark Grammer joins the Focus Far East Class fund
(October 17, 2007) Mackenzie Financial has added one of its top managers to its Focus Far East Class fund.
On November 16, Mark Grammer, the company’s vice president of investments, will join the fund’s portfolio management team.
Grammer currently serves as co-manager of Mackenzie’s Universal Global Infrastructure fund and Focus Japan Class.
In this additional role, Grammer – together with managers from Henderson Global Investors, Mackenzie Cundill Investment Management and RCM Asia Pacific – will be responsible for establishing the Asian equity securities portfolio.
“We expect Mark’s extensive investment experience in Asia to be a valuable addition to Focus Far East,” says David Feather, president of Mackenzie Financial Services. “In addition, Mark’s growth investing style will provide a better balance between value and growth managers in the portfolio.”
(17/10/07)
