FTfm on AV

Posted by Emma Boyde on Jun 26 19:42.

Some highlights from Monday’s FTfm.

Profits rise by inflows remain in the doldrums
Despite the recovery in global assets under management, which have risen to their pre-crisis peak, there has been little new money going into funds, according to a survey by McKinsey, which said banks were funnelling retail investors into savings and deposit accounts rather than mutual funds

The unhealthy truth behind robust AUM
is that inflows remain stagnant. This is because the banks hold all the cards and are squeezing fund managers out of the distribution business, writes Pauline Skypala

More pain than gain in funds innovation
A report analysing the impact of 35 innovations that saw wide take-up by investors in the past decade, finds that many of the new concepts foisted onto funds turned out to be damp squibs

Trading against the trend followers
Managed futures funds offer low correlation to markets, but their growth is leading to crowded trades, offering inefficiences for others to exploit

Libya guns for the right kind of gold
The timely accumulation of more than 140 tonnes of gold reserves by the Central Bank of Libya shows smart forward planning – especially as it acquired it in very usable small denominations. But the high transaction costs for physical gold leads one to question it as a hedge against real risks in today’s world, says John Dizard

The ENRC fiasco shows governance failure
The ENRC fiasco demonstrates that the UK approach to governance is simply not designed for a system in which controlling shareholders call the shots. It is also clear that the UK listing authority fell down on the job, says John Plender

Questions hang over IPO valuations
Are IPOs overpriced or underpriced by banks?
Imagine if the trusted real estate agent you hired to sell your house persuaded you to sell it to her best client for $1m by telling you this was the best price she could get. And then, the next morning, the person who bought your house turned around and sold it for $2m (using the agent to sell it, naturally). How would you feel if your agent did that? Shafted

This entry was posted by Emma Boyde on Sunday, June 26th, 2011 at 19:42 and is filed under Uncategorised.

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