Wait a minute before you sack your fund manager
I f the football world were to follow in the footsteps of investment funds, you would no longer see suited and booted managers on the sidelines of many pitches. Instead, there would be a machine standing in the technical area, gesturing frantically to the players and swearing at the referee.
Active fund managers (human stockpickers who run an investment fund) have fallen out of favour. Many investors now prefer tracker funds, cheaper alternatives that track an index without a person at the helm.
Personally, I like a mix of the two. The bulk — about 80 per cent — of my portfolio is in a low-cost global tracker fund, and the rest is split between two individual companies (which are free to invest in), one active fund and one investment trust (which is actively managed).
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The Independent
2 hours ago
- The Independent
Trump clears path for Nippon Steel investment in US Steel, so long as it fits the government's terms
President Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in U.S. Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order didn't detail the terms of the national security agreement. But the iconic American steelmaker and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11 billion in new investments will be made by 2028 and includes giving the U.S. government a ' golden share " — essentially veto power to ensure the country's national security interests are protected against cutbacks in steel production. 'We thank President Trump and his Administration for their bold leadership and strong support for our historic partnership," the two companies said. "This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a U.S. Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. The companies offered few details on how the golden share would work, what other provisions are in the national security agreement and how specifically the $11 billion would be spent. White House spokesman Kush Desai said the order 'ensures U.S. Steel will remain in the great Commonwealth of Pennsylvania, and be safeguarded as a critical element of America's national and economic security.' James Brower, a Morrison Foerster lawyer who represents clients in national security-related matters, said such agreements with the government typically are not disclosed to the public, particularly by the government. They can become public, but it's almost always disclosed by a party in the transaction, such as a company — like U.S. Steel — that is publicly held, Brower said. The mechanics of how a golden share would work will depend on the national security agreement, but in such agreements it isn't unusual to give the government approval rights over specific activities, Brower said. U.S. Steel made no filing with the U.S. Securities and Exchange Commission on Friday. Nippon Steel in late 2023 offered nearly $15 billion to purchase the Pittsburgh-based U.S. Steel in an acquisition that had been delayed on national security concerns starting during Joe Biden's presidency. As it sought to win over American officials, Nippon Steel gradually increased the amount of money it was pledging to invest into U.S. Steel. American officials now value the transaction at $28 billion, including the purchase bid and a new electric arc furnace — a more modern steel mill that melts down scrap — that they say Nippon Steel will build in the U.S. after 2028. Nippon Steel had pledged to maintain U.S. Steel's headquarters in Pittsburgh, put U.S. Steel under a board with a majority of American citizens and keep plants operating. It also said it would protect the interests of U.S. Steel in trade matters and it wouldn't import steel slabs that would compete with U.S. Steel's blast furnaces in Pennsylvania and Indiana. Trump opposed the purchase while campaigning for the White House, and using his authority Biden blocked the transaction on his way out of the White House. But Trump expressed openness to working out an arrangement once he returned to the White House in January. Trump said Thursday that he would as president have 'total control' of what U.S. Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans,' although Nippon Steel has never backed off its stated intention of buying and controlling U.S. Steel as a wholly owned subsidiary. 'We have a golden share, which I control,' Trump said. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control.' The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States,' but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order doesn't detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to U.S. Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the Treasury Department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday. ___ Levy reported from Harrisburg, Pennsylvania.
The Guardian
2 hours ago
- The Guardian
Trump signs executive order to clear way for Nippon-US Steel deal
Donald Trump on Friday signed an executive order paving the way for a Nippon Steel investment in US Steel, so long as the Japanese company complies with a 'national security agreement' submitted by the federal government. Trump's order did not detail the terms of the national security agreement. But US Steel and Nippon Steel said in a joint statement that the agreement stipulates that approximately $11bn in new investments will be made by 2028 and includes giving the US government a 'golden share' – essentially veto power to ensure the country's national security interests are protected. 'We thank President Trump and his administration for their bold leadership and strong support for our historic partnership,' the two companies said. 'This partnership will bring a massive investment that will support our communities and families for generations to come. We look forward to putting our commitments into action to make American steelmaking and manufacturing great again.' The companies have completed a Department of Justice review and received all necessary regulatory approvals, the statement said. 'The partnership is expected to be finalized promptly,' the statement said. The companies offered few details on how the golden share would work and what investments would be made. Trump said Thursday that he would as president have 'total control' of what US Steel did as part of the investment. Trump said then that the deal would preserve '51% ownership by Americans'. The Japan-based steelmaker had been offering nearly $15bn to purchase the Pittsburgh-based US Steel in a merger that had been delayed on national security concerns starting during Joe Biden's presidency. Trump opposed the purchase while campaigning for the White House, yet he expressed optimism in working out an arrangement once in office. 'We have a golden share, which I control,' said Trump, although it was unclear what he meant by suggesting that the federal government would determine what US Steel does as a company. Trump added that he was 'a little concerned' about what presidents other than him would do with their golden share, 'but that gives you total control'. Still, Nippon Steel has never said it was backing off its bid to buy and control US Steel as a wholly owned subsidiary. The proposed merger had been under review by the Committee on Foreign Investment in the United States, or CFIUS, during the Trump and Biden administrations. The order signed Friday by Trump said the CFIUS review provided 'credible evidence' that Nippon Steel 'might take action that threatens to impair the national security of the United States', but such risks might be 'adequately mitigated' by approving the proposed national security agreement. The order does not detail the perceived national security risk and only provides a timeline for the national security agreement. The White House declined to provide details on the terms of the agreement. The order said the draft agreement was submitted to US Steel and Nippon Steel on Friday. The two companies must successfully execute the agreement as decided by the treasury department and other federal agencies that are part CFIUS by the closing date of the transaction. Trump reserves the authority to issue further actions regarding the investment as part of the order he signed on Friday.
Reuters
2 hours ago
- Reuters
Chinese firms in talks to join group to buy Li Ka-shing's ports, Bloomberg News reports
June 12 (Reuters) - Chinese ports operator China Cosco Shipping Corporation is among the firms in talks to participate in a global consortium seeking to buy 43 ports from billionaire Li Ka-shing-owned CK Hutchison ( opens new tab, Bloomberg News reported on Thursday. CK Hutchison said last month that Mediterranean Shipping Company, run by the family of Italian billionaire Gianluigi Aponte, was the main investor in a group seeking the portfolio of ports, which includes two near the Panama Canal, for $22.8 billion. Negotiation for the deal that covers 43 ports in 23 countries is on an exclusive basis between CK Hutchison and the consortium for 145 days until July 27. Adding Chinese investors to the consortium emerged as one of the options after high-level talks in Switzerland last month between Chinese and U.S. officials, the Bloomberg report said. China Cosco Shipping Corp is among the state-backed companies in talks with the consortium run by the Aponte family, the report said. CK Hutchison and China Cosco Shipping didn't immediately respond to Reuters requests for comment. Reuters could not immediately verify the report. The deal has been through weeks of global scrutiny and criticism in China and the U.S. over CK Hutchison's plan to sell the ports to a consortium, previously led by U.S. investment firm BlackRock (BLK.N), opens new tab. BlackRock remains part of the group.
