Report Suggests Diversification Will Drive Down Hedge Fund Returns
Worldwide, 40% of fund managers have diversified into long only funds and 30% into alternatives in the last three years, causing convergence in investment strategies used in different sectors in their industry. However, in cash terms alternatives have attracted larger sums, according to a new study published by KPMG International and CREATE-Research.The report shows that as hedge fund managers and private equity firms have fuelled competition by promising absolute returns that are not correlated to conditions in the financial markets, long only managers have responded by offering products that mimic the returns offered by their new competitors.
Dollar Falls to Record on China's Plans to Diversify Reserves
The dollar fell to a record versus the euro and the lowest since 1981 against the pound after Chinese officials signaled plans to diversify the nation's $1.43 trillion of foreign exchange reserves. The U.S. dollar also declined to the cheapest versus the Canadian dollar since the end of a fixed exchange rate in 1950 and a 23-year low against the Australian dollar. The New York Board of Trade's dollar index dropped to 75.077, the lowest since the gauge started in March 1973.
Hong Kong And Luxembourg Sign Tax Pact
Hong Kong and Luxembourg have signed a comprehensive agreement on the avoidance of double taxation, the fourth such agreement concluded by Hong Kong. The agreement was signed on November 2 by Secretary for Financial Services and the Treasury, Professor KC Chan and Luxembourg Economy and Foreign Trade Minister, Jeannot Krecke. It will eliminate double taxation instances encountered by Hong Kong and Luxembourg investors, and bring about tax savings and certainty in tax liabilities in connection with cross-border economic activities.
SEC Seeks To Further Increase Information Available To Investors
The US Securities and Exchange Commission on Friday proposed that mutual funds and other companies seeking exemptions under the Investment Company Act of 1940 submit their applications electronically, so that investors can access them sooner, and the Commission can consider them more quickly. “This is another step in our commitment to making public filings available electronically for the benefit of investors,” explained SEC Chairman Christopher Cox, continuing: “This proposal would significantly improve public access to exemptive applications through the Internet, and at the same time will eliminate unnecessary administrative requirements for filers.”
China Plan to Buy Hong Kong Stocks May Be Delayed, Wen Signals
Premier Wen Jiabao's comments on a plan to allow Chinese investors to buy Hong Kong stocks may signal a delay in its implementation, analysts said. The government needs to study the risks, increase knowledge among Chinese investors and prepare regulations to protect the stock markets in Hong Kong and at home before launching the program, Wen said yesterday during a trip to Uzbekistan.
Citigroup Doesn't Deny Prince Exit as Shares Drop 31%
The crisis of leadership at Citigroup Inc. may come to a climax this weekend amid widespread speculation that Chief Executive Officer Charles O. ``Chuck'' Prince III will resign, undermined by widening losses from bad mortgage debts and disgruntled shareholders who have suffered a 31 percent loss in the market capitalization of the largest U.S. bank. Just a week after New York-based Merrill Lynch & Co. ousted Stan O'Neal, Citigroup provided no comment on front-page stories throughout the U.S. that said Prince, 57, will step down.
Deutsche Bank Reports Third Quarter Income
Deutsche Bank has reported before tax income for the third quarter 2007 of EUR 1.4 billion, down 19% versus the third quarter of 2006. According to the Bank, net income for the quarter rose 31% to EUR 1.6 billion, reflecting a net positive tax impact on earnings arising from specific items.
Credit Suisse Group reports CHF1.3 billion Q3 net income
Credit Suisse Group, a provider of financial services, has reported net income of CHF1.3 billion, in the third quarter of 2007. The net income posted by the group is down 11% from the third quarter of 2006. It has posted 26% increase in pre-tax income from private banking partly offset declines in investment banking and asset management.
