Archive for August, 2010

Spotlight Series: Randall Stewart Khan, APS AM, considers the future growth of Asia.

August 17, 2020

Bloomberg reports that China has overtaken Japan to become the second largest global economy and foreign investment continues to increase month on month.

Foreign direct investment in China climbed in July, highlighting the confidence of companies from Volkswagen AG to Merck & Co. in an economy that surpassed Japan in the second quarter.

Investment rose 29.2 percent to $6.92 billion, the Ministry of Commerce said in Beijing today. It was the 12th monthly gain. Estimates of five economists surveyed by Bloomberg News were for increases ranging from 30 percent to 77 percent.

China may contribute a third of the global economic expansion this year, Byron Wien, a senior managing director at private equity firm Blackstone Group LP, said Aug. 11. The International Monetary Fund last month raised China’s growth forecast to 10.5 percent this year, three times the pace of the U.S., as government policies support consumption and investment…. more here

In an interview for the Spotlight Series, Randall explains how the slowdown in the US and EU markets have not effected the emerging markets of China, Japan and other Asian countries.  This polarisation helps APS AM’s Emerging Markets fund, giving investors a competitive edge. He believes that Asia will continue to grow.  While Japan still looks to external demand, increasingly China is shifting to domestic spend stabilising profit growth.

Randall Stewart Khan of APS Asset Management participated in and won a Quickfire Showcase.

Post Under: Asset Management

Spotlight Series: Mussie Kidane, Pictet, discusses UCITS.

August 9, 2020

In a recent article for the FT, Sam Jones, looked at the rising popularity of the UCITS structure outside Europe.  Adjustments in EU laws governing UCITS, have allowed Hedge Fund managers to repackage their strategies and so access the retail and institutional investor markets that had been out of reach.  Recent figures valued the UCITS Hedge Fund at $1,500bn, accounting for approximately 7 per cent of the Hedge Fund market.

Originally conceived as a regulatory framework for an investment vehicle that can be marketed across the EU,  maintaining high levels of investor protection, it is now increasingly popular in the US.

Mussie Kidane, Head of Fund Selection, PICTET participated in a panel debate on Retail Distributors and Fund Platforms entitled “How comfortably will the new generation of liquid & transparent Hedge Fund products fit into traditional retail platforms?”  Joining him on the panel were Borja Largo, Head of Investment Consulting, ALLFUNDS and Raphael  Lebrun, Executive Director, NOMURA INTERNATIONAL PLC. The panel was moderated by Amy Bensted, Manager, Hedge Funds, PREQIN.

In an interview for the Spotlight Series, he discussed the usage of the UCITS structure in the alternatives market and the possible pitfalls of using the model to manage investments strategies that it wasn’t designed for.

Post Under: Asset Allocation

Spotlight Series: Philip Hoffman, The Fine Art Fund explains the value of Art as an Asset Class

August 2, 2020

In a report from www.efinancialnews.com

The €11.8bn ($15.4bn) Rabobank Pensioenfonds, one of the 100 largest pension schemes in Europe, decided to pull out of funds of hedge funds and put the money into equities, according to its annual report, published last week.  The scheme’s reports show its disaffection with funds of hedge funds began in 2008. The average performance of the five funds of hedge funds it invested in – whose names it did not disclose – was a loss of 12.5%. The report said: “This is better than the return of a large number of other asset classes, but unfortunately there is no absolute positive return. This is disappointing, since hedge funds generally were considered able to give a positive return regardless of market conditions.” more here

The decision to focus on equities is understandable but perhaps they could cast their net a little wider; look at the performance of some of the more niche asset classes.  In a showcase of unusual top performing funds at GAIM International 2010, Philip Hoffman, Chairman, presented The Fine Art Fund as an alternative alternative.

Philip explained to the Spotlight Series, that investing in art is not as alternative as some might think.  Some of the wealthiest families in the world have probably made more from their art investments that all their equities & bonds.  Art is a great long-term value store, it outstrips inflation and is tax efficient.  The Fine Art Fund has traded out every asset at an average IIR of 31%.  And right now, there is a negative correlation between the art market and the equity markets where world record prices are being achieved at a time of economic austerity.

Post Under: Asset Allocation


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