Including: UK - Henderson launches high alpha UK equities fund; UK - IMA annual survey; CANADA - Brookfield Asset Management plans spin-off; US - Higher tax on PE could hurt pension funds; GLOBAL - New fund launched to offset long only volatility
UK – Henderson launches high alpha UK equities fund
Henderson Global Investors has launched a pooled fund for investors, the Henderson High Alpha UK Equity Fund.
The fund targets returns of 2% to 3% above the FTSE All Share Index and will be managed by Henderson’s UK equity team, headed by Graham Kitchen.
UK – IMA annual survey
The fifth annual asset management survey of the Investment Management Association (IMA) has revealed the following trends in the institutional market: alpha/beta separation with increasing demand for high alpha mandates; the increased use of specialist mandates; and a strong focus on liability led strategies.
The IMA also estimated its members managed over £3.1trn for clients at the end of 2006, with 27% of total assets managed on behalf of overseas clients.
CANADA – Brookfield Asset Management plans spin-off
Brookfield Asset Management plans to spin off its infrastructure operations to form Brookfield Infrastructure Partners LP.
The firm has filed with securities regulatory authorities in the US and Canada to give holders of its Class A shares an interest in the new spin-off company.
US – Higher tax on PE could hurt pension funds
Plans to tax carried interest on private equity investments could hurt public pension plans, claimed private equity managers in front of a US Senate Finance Committee.
Carried interest (normally set at 20% of earnings) is currently treated as capital gains and taxed at 15%, but the tax rate could rise to 35% if a plan to treat it as ordinary income is enforced.
The private equity managers claimed this action would mean less deals got done, therefore leading to lower returns for pension plans.
GLOBAL - New fund launched to offset long only volatility
Ermitage Group has launched a global long/short equity fund of hedge funds with an initial investment of US$70m aimed at institutional investors looking to offset long-only volatility.
The portfolio will consist of 20-25 new and established hedge fund managers.
The Pensions Regulator (TPR) has granted 11 master trusts extensions to apply for authorisation, as it confirms it has received 22 applications ahead of the 31 March deadline.
Aegon Master Trust, Fidelity Master Trust and Ensign have sent off their authorisation applications to The Pensions Regulator (TPR).
Self-administered pension funds spent £15bn on payments to pensioners in Q4 2018, but received just £12bn in contributions (net of refunds), Office for National Statistics (ONS) data reveals.
Aberdeen Standard Investments (ASI) and Gresham House are to team up to form a joint venture.