*** N/A Best of the web & events
Jonathan Boyd rounds up the best news and analysis from www.investmenteurope.net
128 funds up for new OBSR five-year awards
Ratings agency OBSR launched a new certificate scheme to highlight funds that had held an OBSR Fund Rating for five consecutive years or more.
The five-year certificates will be awarded to 128 funds from about 35 firms. Richard Romer-Lee, OBSR joint managing director, said the certificates in nearly all cases signify longevity of the manager as much as the product.
He added this was because typically if there is a manager change, then OBSR will suspend the product from its ratings service.
Société Générale commits to oil stocks
Société Générale Private Banking said it would remain overweight on oil stocks while recommending to uphold a defensive investment approach due to economic slowdown, particularly in the eurozone.
In a recent strategy report, the bank said: “We do not believe that energy prices will fall significantly.
The troubled geopolitical environment in the Arab world and demand that is still sustained by emerging markets constitute a floor for falling prices.”
Even if Libya were to resume exports at a larger scale, demand from emerging markets would continue to support the price, it added.
The bank predicted that by the end of 2011, the price of a barrel could fall to $90-$100bbl, with a gradual return to $100-$110 in the first half of 2012.
Mutual fund outflows back to 2008 levels
Lipper’s monthly snapshot of European fund flow trends to the end of August 2011 made for some gloomy reading.
It said that long-term funds in Europe suffered redemptions of €-53.8bn over the month, excluding money market funds.
That made it not only the worst month since October 2008 (€-117.9bn), but also worse than most months that year, which averaged €-32.4bn.
The key difference was in money market funds, which attracted net sales of €28.3bn, thus reducing outflows from the industry across all asset classes to €-25.6bn — the third month in a row that outflows have exceeded €-20bn.
ICI Global trade group’s keen eye on active funds
The Investment Company Institute launched ICI Global, a London-based trade association focused exclusively on globally active funds, including regulated US and non-US funds.
The new organisation will focus on four key areas: the role of funds and fund managers in financial stability; key transnational regulatory developments for funds; global trading and market structure policy developments; and retirement savings and pension systems.
Dan Waters joins as managing director after 12 years at the UK’s Financial Services Authority directing asset management policy.
Jamie Broderick, head of JP Morgan Asset Management in Europe, becomes chair of its steering committee.