Citywire Americas rounds-up the biggest news in the funds and Ucits investment universe as reported by Citywire’s global publications.
Survival strategy for active managers
Two fund giants gave their survival tips at last week’s Morningstar conference in Chicago as passives continue to attract flows and more active asset managers try to grab a piece of the pie.
According to Vanguard founder Jack Bogle, active asset management companies are better off doing nothing and continuing with their current business models than slashing fees in a bid to compete with passive providers.
In a separate speech, BlackRock’s Larry Fink said that active managers will need to find alpha in new ways as he defended the firm’s decision to move to a more quantitative approach.
‘We are not running away from active. We are not frightened of the move towards passives,’ he said. ‘Passive still represents 20% of the mutual fund business, so there is more hysteria than reality.’
Signaling momentum in another area, US group Neuberger Berman is the latest firm to channel resources to environmental, social and governance (ESG) investing.
The firm appointed Jonathan Bailey as its head of ESG, a newly created role to work with its investment teams and research departments to further incorporate ESG principles into Neuberger Berman’s investment strategy.
The US-based real assets specialist Cohen & Steers will launch a new preferred securities fund later this month.
The Cohen & Steers SICAV Global Preferred Securities will be managed by William Scapell, who currently runs the $6.7 billion 40-Act version of the fund.
The fund will aim to tap into the improving fundamentals the firm believes banks and insurance companies are currently providing.
Mirae Asset Global Investments launched a corporate bond fund to exploit opportunities the firm sees in the Asian market.
The Ucits-compliant Mirae Asset Asia Bond fund will focus on short-to-medium duration investment grade credit.
It will also hold government, supranational and high yield debt and be run by the firm’s head of global fixed income investments Jin Ha Kim. He will be supported by a team of 27 investment professionals in five countries.
Credit Suisse has added thematic specialist Angus Muirhead to support Citywire + rated Patrick Kolb on the firm’s dedicated robotics fund.
Muirhead, joined from Ethenea in September of last year and was formerly a thematic investment specialist at the Swiss firm’s rival UBS Asset Management.
He was assigned to work alongside Kolb on April 28.