Tag Archives: funds

Fitch Requires Rating Actions on six Petercam Funds

(The following statement was released by the rating agency) PARIS/LONDON, December 14 (Fitch) Fitch Ratings has affirmed the “Robust” Fund Quality ratings of 5 funds managed by Petercam Institutional Asset Management (Petercam IAM) and placed yet another under evaluation. The list of rating actions is as follows: Petercam Equities Euroland (PEE1): affirmed at “Robust” Petercam Equities Europe (PEE2) affirmed at “Robust” Petercam Equities Europe Sustainable (PEES) affirmed at “Powerful” Petercam Securities True Estate Europe (PSRE) affirmed at “Strong” Petercam Equities World Sustainable (PEWS) “Sturdy” rating placed Below Review Petercam L Bonds Government Sustainable (PBGS) affirmed at “Robust” Fitch has placed the “Powerful” rating of PEWS “Under Overview” following the departure of Bart Baetens, the lead Portfolio Manager (PM) of the fund considering that 2008. A. Roose, who was a member of the worldwide equity group, will take more than as lead PM, with D.Dury, PM at Degroof, joining as co-manager. Fitch views Mr. Baetens as a important element of the fund’s investment method. The agency expects to resolve the “Under Review” status of the fund in the next six months. Fitch will closely monitor the fund throughout this period to decide if the capacity of the fund to accomplish its objectives and outperform peers is structurally modified. The ‘Strong’ rating reflects the funds’ active, extended-term investment approach, which is primarily primarily based on bottom-up fundamentals choice, and also incorporates leading-down thematic views and the SRI-ESG criteria for the relevant funds. All round, the funds advantage from strong, broadly steady, staffing and IT sources. The merger among DeGroof Fund Management and Petercam IAM creates some uncertainties, but need to have no rating impact, as the limited overlaps in between the two companies’ item variety and methods are anticipated to leave the present investment teams and processes of the funds unaffected. Essential RATING DRIVERS Fund Presentation PEE1, PEE2, PEES, PSRE and PEWS are UCITS IV-compliant Belgium SICAV. PBGS is UCITS IV-compliant Luxemburg SICAV. PEE1, PEE2, PEES, PSRE invest in European equity. Particularly, PEES invests according to their socially accountable investment (SRI) or environmental, social and governance (ESG) criteria. PSRE invests in European real estate equities. PBGS and PEWS also comply with a sustainable strategy, investing in sovereign bonds from OECD countries and international equities (with an emerging market place bias), respectively. Investment Procedure Petercam European equity funds (PEE1, PEE2, PEES, and PSRE) stick to an active, long-term investment approach, mainly based on bottom-up fundamental stock-picking and which also incorporates leading-down thematic views. The funds are fully invested, and have a quality growth, mid-cap bias. In Fitch’s view, the 4 European equity fund’s investment edge originates from its focus on beneath-researched, quality modest to mid-cap businesses. Portfolio building is not constrained by the funds’ benchmarks, even though risk recommendations limit deviation from the benchmark. PEES’s eligible universe of about 250 stocks is derived from a filtering process making use of third-party and proprietary SRI-ESG scoring elements, which the fund sees as determinants of sustainable growth. PSRE is managed against a customised benchmark, the Petercam European Property Shares (PEPS) index. PEWS invests in 50 equally weighted big-cap global businesses that it views as possible market place leaders and comply with Petercam’s sustainability criteria. Geographical allocation is based on the Oxford Economics’ 2025 GDP forecasts and focuses on companies’ sales location rather than on their domicile. The fund has an EM, top quality development bias and is exposed to the monetary sector. PGSB’s investment method is based on a quantitative evaluation employing over 50 criteria that rank OECD nations by sustainability metrics. The leading 50% of nations by ranking are eligible for investment. The PMs aim to weight their allocation towards countries with the highest SRI rankings. The fund is completely invested, with a bias towards ‘AAA’/’AA’ rated eurozone government bonds. Sources Investment decisions are taken collectively by the two (or 3) PMs of the funds. A dedicated equity analyst team of nine, specialised by sector, conduct equity research on European stocks. For real estate stocks, global equity stocks and sovereign, PMs conduct their own analysis. An independent investment threat group of four oversees and challenges the PMs’ decisions, producing full use of third-celebration danger analytics. Funds managed below a sustainable method advantage from the assistance of an advisory board and a dedicated SRI coordinator. Petercam IAM has outsourced its middle office and IT functions to Lombard Odier given that 2012. Track Record PEE1 has performed strongly in 2015, attaining a best quintile functionality, outperforming each peers and the index. PPE2 has also outperformed, generating a second quintile efficiency. Even so, both funds performed poorly in 2014 due to their underweight positions to massive capitalisation stocks and utilities, combined with poor stock-picking. More than a five year period, PEE1 has achieved a leading quintile overall performance. PEES’s overall performance has lagged the index and (broad) peers more than one, 3 and 5 years to November 2015. As a consequence its Lipper Leader scores for constant return (for Belgium) were 1 more than a three-, five- and 10 year-period to November 2015. Nevertheless, its six-month rolling Jensen’s alpha (a measure of risk-adjusted functionality) has been improving because August 2014, returning to positive territory in 4Q15 for the first time because Could 2013. PSRE has delivered first quintile overall performance over 3 and five years to November 2015, outperforming its benchmark net of costs with decrease volatility, thereby meeting its objective. It is probably to underperform peers in markets where UK actual estate performs strongly, provided the benchmark’s and fund’s reduced weighting to the UK compared with peers. PEWS, which has been managed with the existing strategy given that 2008, has been an typical performer in its worldwide equity category. EM and the exclusion of the monetary sector explain most of its performance deviation from the indicative benchmark, MSCI World. PBGS has been an average performer in its category, underperforming given that 2012 the JP Morgan EMU Government Index, which is utilized for reference only, provided the fund’s restricted SRI universe. The fund’s efficiency is explained by its bias towards very rated, prices-sensitive rather than credit-sensitive eurozone government bonds. Fund Manager Petercam IAM is a wholly owned subsidiary of Bank Degroof Petercam. The merger of Bank Degroof and Petercam completed in October 2015 will be followed by the merger of the two asset management subsidiaries in early 2016. In Fitch’s opinion, the merger amongst Degroof and Petercam should leave core investment processes and front-office employees largely unaffected but could lead to alterations in support and manage functions, operating model and technological platform. Petercam IAM and Degroof had EUR30bn assets below management (AUM) at as at finish-September 2015. The company’s historical concentrate has been in European assets and investors. RATING SENSITIVITIES The rating might be sensitive to material modifications in the investment or operational processes or sources dedicated to the fund. A material adverse deviation from Fitch’s guidelines for any key rating driver could outcome in a downgrade. For example, notable structural deterioration in the fund’s performance or departure of PMs (to which PSRE and PEWS are deemed far more sensitive) or a substantial operational loss due a merger-connected procedure failure, might lead to a downgrade. The PSRE fund could be upgraded to ‘Excellent’ if it meets Fitch’s criteria for a ‘Strong’ track record and if PMs demonstrate stock choosing skills in markets that historically have not been core to Petercam’s knowledge. PEEI might be upgraded if the fund can demonstrate that 2014 was an isolated occasion in an otherwise robust lengthy-term track-record. This would be demonstrated through constant outperformance on a threat-adjusted basis more than five years and much more. Further, continued weak performance of PEES would most likely result in the fund becoming placed ‘Under Review’ or downgraded. Fitch sees little prospective for an upgrade of the other funds, provided the particular nature of these funds and due to the funds’ already high ratings. Contacts: Main Analysts Manuel Arrive, CFA (PSRE, PEWS, PBGS) Senior Director +33 1 44 29 91 77 Fitch France S.A.S. 60 rue de Monceau Paris 75008 Alastair Sewell, CFA (PEES, PEE1, PEE2) Senior Director +44 203 530 1147 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analysts Manuel Arrive, CFA (PEES, PEE1, PEE2) Senior Director +33 1 44 29 91 77 Alastair Sewell, CFA (PSRE, PEWS, PBGS) Senior Director +44 203 530 1147 Committee Chairman Charlotte Quiniou, CFA Director +33 1 44 29 92 81 Media Relations: Rose Millburn, London, Tel: +44 203 530 1741, E-mail: rose.millburn@fitchratings.com. Further info is accessible on www.fitchratings.com Applicable Criteria Fund Top quality Rating Criteria (pub. 16 Sep 2014) here Further Disclosures Solicitation Status here Endorsement Policy right here ail=31 ALL FITCH CREDIT RATINGS ARE Subject TO Specific LIMITATIONS AND DISCLAIMERS. PLEASE Study THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS Hyperlink: right here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE Offered ON THE AGENCY’S PUBLIC Site ‘WWW.FITCHRATINGS.COM’. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE Obtainable FROM THIS Website AT ALL Times. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO Obtainable FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS Internet site. FITCH May possibly HAVE Provided One more PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS Associated THIRD PARTIES. Specifics OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS Primarily based IN AN EU-REGISTERED ENTITY CAN BE Found ON THE ENTITY SUMMARY Web page FOR THIS ISSUER ON THE FITCH Web site.

CORRECTED-Kairos may launch three funds with combined $160 mln

(Corrects business name makes clear in headline and lead paragraph that the funds could launch with $ 160 million removes reference to domicile makes clear Kairos IM is part-owned by Julius Baer removes reference to funds taking outdoors capital corrects source attribution)

* Japanese asset manager may seed a single fund with $ 100 mln

* Loved ones offices could seed two additional funds

* Comes amid market outflows from fund of funds

LONDON, Dec 9 Kairos Investment Management is gearing up to launch 3 funds with potentially more than $ 160 million in assets by year-end, bucking the trend in an industry that continues to see rivals close.

Kairos, element-owned by Swiss bank Julius Baer, is setting the funds up with initial investment from 3 separate customers, a organization representative told Reuters.

One particular fund could launch with $ 100 million in capital from an unnamed Japanese asset management organization, although two extra funds might also launch with beginning capital of $ 30 million each and every from undisclosed household offices, he stated.

The fund launches would assist take Kairos’ total assets invested in related funds to $ 2.six billion and firm-wide assets to $ 9 billion.

The demand to open new funds of hedge fund investments comes as Kairos’ flagship Kairos Multi-Strategy Ltd fund has returned 8 percent after costs in the year to the end of November, to take its 3-year efficiency to 30 percent.

That stands in contrast to the fortunes of other people in the market, with $ 5.2 billion yanked market-wide in the 1st half of 2015 – a trend that forced Liongate Capital Management to shut down in October.

“If one particular looks at the industry, the cause that the industry has not in fact completed effectively is … simply because of the efficiency,” he stated.

“If you do have the numbers, then I consider people are satisfied to deploy income and start off a fund and commit capital to this approach, so I am quite optimistic in this sense.” (Reporting by Maiya Keidan Editing by Simon Jessop/Mark Heinrich)

U.S. fed funds price remains at .13 pct

NEW YORK The U.S. federal funds price USONFFE=, which banks charge each and every other to borrow excess reserves, averaged .13 % for a fifth day on Monday, according to Federal Reserve information released on Tuesday.

The typical, or efficient, fed funds rate, which the Fed targets to achieve its price objective, traded in a variety of .06 % to .35 percent for a third straight session on Monday.

(Reporting by Richard Leong)

UPDATE 1-U.S. stock, bond mutual funds see 4th straight week of withdrawals – Lipper

(New all through adds data and analyst quote) By Trevor Hunnicutt NEW YORK, Dec 3 Investors withdrew $  6.6 billion from U.S. stock and taxable-bond mutual funds in the course of the week that ended Dec. 2, Lipper data showed on Thursday, marking the fourth straight week of outflows for those investments. All round, stock funds posted $  920 million in outflows during the week, led by the mutual fund withdrawals, according to the Lipper information, which also measures exchange-traded funds. "Retail investors threw the child out with the bath water," stated Tom Roseen, head of analysis solutions at Lipper. "People are getting out of the way of a price hike." Roseen mentioned concern about the direction of U.S. Federal Reserve policy, mixed financial information and geopolitical concerns have weighed on retail investors. These issues also prompted a flight-to-good quality move into income-marketplace funds. That category attracted $  17.8 billion during the week, marking the second consecutive week of inflows for the low-threat investments, Lipper stated. Stock ETFs, by contrast, took in $  3.8 billion. The SPDR S&P 500 ETF took in about 71 percent of that amount, Lipper said. "They're saying, we really feel comfortable saying there may possibly be a Santa Claus rally here," Roseen stated of ETF investors, referring to a potential end-of-year run up in stock costs. Investors pulled $  2.1 billion in cash out of U.S.-listed taxable bond mutual funds and ETFs in the course of the week that ended Dec. 2, Lipper mentioned. Treasury funds posted $  1.three billion in outflows for the duration of the week, although high-yield corporate debt attracted $  398 million of inflows and broke a 3-week streak of outflows. Greater-credit investment-grade bond funds posted $  547 million in outflows. Emerging-marketplace stock funds extended their streak of outflows to five straight weeks, posting $  583 million in withdrawals in the most current period. The Lipper fund flow information is compiled from reports issued by U.S.-domiciled mutual funds and exchange-traded funds. The following is a broad breakdown of the flows for the week, such as exchange-traded funds (in $  billions): Sector Flow Chg % Assets Assets Count ($  Bil) ($  Bil) All Equity Funds -.920 -.02 five,236.782 11,819 Domestic Equities -.065 -.00 3,705.334 8,449 Non-Domestic Equities -.855 -.06 1,531.448 3,370 All Taxable Bond Funds -two.090 -.ten 2,200.798 six,070 All Cash Marketplace Funds 17.811 .76 2,350.362 1,163 All Municipal Bond Funds .364 .10 355.059 1,504 (Reporting by Trevor Hunnicutt Editing by Jennifer Ablan and Lisa Shumaker)

Stock funds attract $2.9 bln in latest week – Lipper

NEW YORK Nov 27 U.S.-primarily based stock funds attracted $ 2.9 billion in new money throughout the week ended Nov. 25, data from Thomson Reuters’ Lipper service showed on Friday.

The positive outcome for those funds came despite outflows all round for mutual funds invested in equities and other danger assets.

Taxable bond mutual funds and exchange-traded funds posted $ 2.8 billion in outflows over the period, reversing moderate inflows the week prior to, Lipper said. Low-threat cash marketplace funds took in $ 6.1 billion in new cash in the course of the week after posting much more than $ 20 billion in outflows a week earlier. (Reporting by Trevor Hunnicutt)

UPDATE 1-Stock funds attract $two.9 bln in latest week – Lipper

(New throughout, adds specifics on negative 4-week moving averages for investment grade and junk bond mutual funds) By Trevor Hunnicutt NEW YORK, Nov 27 Investors in exchange-traded funds added practically $ 7.7 billion to U.S.-primarily based stock funds throughout the week ended Nov. 25, information from Thomson Reuters’ Lipper service showed Friday, moderating a wave of withdrawals by mutual-fund investors from risky assets. General, U.S.-primarily based stock mutual funds and ETFs attracted $ 2.9 billion in new cash in the course of the week. The optimistic result for these funds came despite outflows all round for mutual funds invested in equities and other danger assets. Those investors took $ four.7 billion out of stock funds and another $ 3.five billion from taxable bond funds. Altogether, taxable bond mutual funds and exchange-traded funds posted $ two.8 billion in outflows over the period, reversing moderate inflows the week just before, Lipper said. Mutual funds that invest in investment-grade bonds saw cash withdrawals of $ 1.eight billion in the week that ended Wednesday, posting a unfavorable 4-week moving typical of $ 627 million. Higher-yield junk bond mutual funds, meanwhile, saw cash withdrawals of $ 505 million in the newest week ended Wednesday, driving their negative 4-week moving average to $ 219 million. It was the higher-yield fund group’s third week of money withdrawals. Low-risk cash marketplace funds took in $ six.1 billion in new cash during the week following posting much more than $ 20 billion in outflows a week earlier. Emerging-market place funds saw their streak of outflows extend to 4 weeks, though the pace of these withdrawals slowed to $ 59 million as investment functionality enhanced for the duration of the weekly period. The 4-week moving average of outflows for these funds stands at unfavorable $ 417 million. The period measured by Lipper does not incorporate trading on Friday, when funds tracking China and a broader suite of emerging markets all saw their costs decline after Reuters reported the stock regulator had widened its probe on brokerages to include the country’s fourth-largest securities firm. The Lipper fund flow data is compiled from reports issued by U.S.-domiciled mutual funds and exchange-traded funds. The following is a broad breakdown of the flows for the week, such as exchange-traded funds (in $ billions): Sector Flow Chg % Assets Assets Count ($ Bil) ($ Bil) All Equity two.907 .06 5,269. 11,833 Funds 758 Domestic 2.530 .07 three,724. eight,461 Equities 200 Non-Domestic .376 .02 1,545. 3,372 Equities 558 All Taxable -2.770 -.13 two,197. 6,061 Bond Funds 913 All Money six.117 .26 2,339. 1,170 Marketplace Funds 637 All Municipal .684 .19 353.29 1,504 Bond Funds 2 (Reporting by Trevor Hunnicutt Editing by Jennifer Ablan and Andrew Hay)