Latest news with #fundmanagers
Zawya
26-05-2025
- Business
- Zawya
Kenya's financial regulators seek to boost issuers' victim compensation
Kenya's financial sector regulators are discussing a proposal to require fund managers, investment banks and stockbrokers to make full disclosures of their clients whose funds are invested in corporate bonds. This is in an attempt to improve the value of compensation to victims of distressed bond issuers and save the corporate bond market from further crisis of confidence. The customer disclosures, the regulators say, will help to ensure bondholders of collapsed or defaulting issuers receive maximum compensation. Currently, fund managers pool together resources from several clients and make investments in corporate bonds as single investments and usually in their name, without disclosing the identities of the investors. This means that in the event an issuer falls into distress, the investment will be treated as a being from a single investor—the fund manager. Therefore, in the case of the Capital Markets Authority (CMA), the fund manager's compensation will be limited to a maximum of Ksh200,000 ($1,550.38), and this has to be shared among the many investors whose resources had been pooled to invest in the bond. Assuming the fund manager collected hundreds of millions from investors and bought a corporate bond, the investors would lose heavily. The financial regulators believe if the identities of the investors in the pooled investment are disclosed, each of them can be treated as an independent bondholder and thus minimise losses.'I think this has been a very good discussion largely and a lot of progress has been made. So, I need to confirm where we are, but I think these discussions have been very helpful. They have involved, of course, all the parties under the joint financial sector regulators and I think they made very good progress,' CMA Chief Executive Wycliffe Shamiah told The EastAfrican in an interview.'The issues of disclosures are the ones we are trying to see how we can make it easier for those who are making these investments, and it has sort of been agreed,' he added. He indicated that discussion among all financial sector regulators—CMA, Central bank of Kenya, Insurance Regulatory Authority, Retirement Benefits Authority and Sacco Societies Regulatory Authority—are centered on full disclosure of the investors whose money is invested by fund managers, investment banks and brokers in bond issues.'We have learnt from experience. For instance, if you find fund manager A has put Ksh100 million ($775,193.79) in a corporate bond. This fund manager is not using money from one person. There are many people who have given him money, so when the Ksh100 million goes bust there are many people who have burnt their fingers because the money was for many investors,' said Mr Shamiah.'So what we were discussing is how we can make it so that when people are being compensated you don't just look at the fund manager alone. You have a way of the fund manager sharing with the rest of the people who are the specific investors so that each of them can be seen as a separate investor,' he added. These discussions follow public outcry over the loss of investor funds in several companies that collapsed or defaulted on their debt repayments after issuing bonds. For instance, in 2015, Chase and Imperial banks were given the go-ahead to issue Ksh4.8 billion ($37.2 million) and Ksh2 billion ($15.5 million) bonds, respectively, only for the two lenders to be pushed into receivership in quick succession by the Central Bank as a result of financial and corporate governance issues. Other companies that have in the past defaulted on their obligations in the corporate debt market include Nakumatt (collapsed), ARM Cement (in liquidation), Real People Kenya Ltd and Consolidated Bank of Kenya, which was later bailed out by the National Treasury. Attempts by the CMA to amend the deposit protection law - separating fund managers' bond investments from customer deposits and other bank liabilities to protect bondholders in case of a bank collapse -have been unsuccessful. The absence of a compensation scheme for bondholders in collapsed companies has instilled fear of investing in corporate bonds. Treasury bonds remain dominant in the Kenyan bond market, accounting for about 99.93 per cent of the debt market. As of December 31, 2024, there were five active listed corporate bond issuers on the Nairobi Securities Exchange, with the total outstanding amount of bond issues at Ksh19.5 billion ($151.16 million). These are East African Breweries Ltd (Ksh11 billion or $85.27 million), Real People Kenya Ltd (Ksh390.93 million or $3.03 million), Family Bank Ltd (Ksh4 billion or $31 million), Kenya Mortgage Refinance Company (Ksh1.1 billion or $8.52 million) and Linzi Sukuk (Ksh3 billion or $23.25 million). © Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (
South China Morning Post
26-05-2025
- Business
- South China Morning Post
Hong Kong's MPF managers told to prepare for US bond holdings after Moody's downgrade: MPFA
Fund managers participating in Hong Kong's US$167 billion Mandatory Provident Fund (MPF) scheme may be forced to sell part of their holdings of US government bonds after the country lost its triple-A grade from three of the biggest rating companies. The Mandatory Provident Fund Schemes Authority (MPFA), the scheme's regulator, has instructed MPF trustees and fund managers to prepare for a contingency plan if the last remaining credit agency downgrades the US government bonds. 'Recently, the MPFA reiterated this reminder to all MPF trustees, urging them to evaluate the potential implications on MPF funds in consultation with relevant investment managers in view of the latest market situation,' the MPFA said in reply to a query from the Post on Monday. It also asked the 'trustees to formulate appropriate strategies and mitigation measures in case the US does not meet the definition of 'exempt authority' due to changes in credit ratings'. The MPFA said such preparation would be needed as the authority had no plan to change the current investment requirements. It would be the responsibility of the MPF investment manager to 'formulate suitable compliance contingency plans and make timely and orderly adjustments to their asset allocation in response to possible market developments while acting in the best interests of MPF scheme members', the MPFA added.
Forbes
25-05-2025
- Business
- Forbes
Three Fund Managers, One Truth About Investing In Chaos
20th October 1987: High-angle view of traders on the floor of New York Stock Exchange, the day the ... More Dow Jones posted a record one-day point rise, New York City. (Photo by Jim Wilson/New York Times Co./Getty Images) Today's markets are flooded with noise—AI hype, FOMO-fueled rallies, and sudden liquidity shocks. Amid the chaos, what's missing isn't more opinions, it's clarity. In this environment, the key to successful investing is not loudness but maintaining a sense of groundedness. Over the past month, I sat down with three seasoned fund managers whose strategies span the spectrum: On paper, their philosophies differ. In practice, their edge converges. Each manager thrives by doing the same thing: cutting through the noise with clarity, leaning on process over prediction, and keeping risk front and center. When markets fracture, it's not tactics that separate winners from losers; it's temperament. And in this moment, wisdom—not speed—is the most underrated asset. What unites all three fund managers isn't their investing style, it's their unshakable focus on not losing money. This principal shapes everything they do, even when it puts them at odds with market sentiment. At Vulcan Value Partners, C.T. Fitzpatrick builds portfolios around companies whose intrinsic value remains stable, even when the stock price doesn't. He patiently waits for moments of market dislocation, buying only when there's a clear margin of safety. As Fitzpatrick puts it, 'You can't compound capital you've lost.' That insight underscores why downside protection, not upside chase, drives long-term performance. At Vontobel, David Souccar and Rob Hansen lean into businesses with enduring tailwinds and resilient cash flows—companies that don't just survive market volatility but grow through it. Their discipline lies in knowing what not to own and resisting the urge to chase what works today if it compromises tomorrow. Dave Iben, meanwhile, gravitates toward tangible assets and strong balance sheets—especially in regions or sectors the market has mispriced or overlooked. His approach is deeply contrarian, but rooted. He looks for real value in real things, trusting that fundamentals eventually win. Together, these managers share a core belief: risk isn't volatility, it's permanent loss of capital. That's why their portfolios often look wrong in the short term, only to be proven right over the full cycle. And it's why they consistently outperform when others are still reeling. In investing, it's not the market that determines your outcome—it's how you behave when the market moves against you. That's where discipline separates professionals from pretenders. Discipline at Vulcan Value Partners involves persevering through market downturns. C.T. Fitzpatrick doesn't flinch when prices dip—as long as the intrinsic value remains intact, the position holds. At Vontobel, Rob Hansen and David Souccar continue to back high-quality businesses even when the narrative shifts or headlines scream otherwise. Their strategy isn't swayed by market fads or macro chatter—it's driven by fundamentals. Dave Iben, true to his contrarian roots, increases his exposure when value improves, not when price momentum builds. For him, falling prices signal opportunity—not danger. It's difficult to maintain this kind of patience. 'We're not in the prediction game. We're in the patience game,' says Rob Hansen. It's a simple philosophy but incredibly difficult to execute, especially in volatile environments where panic and crowd psychology dominate. And yet, that's precisely what makes these managers exceptional. They don't chase. They don't flinch. They stick. Over time, it's this kind of unshakable discipline—built into their investment DNA—that transforms ordinary returns into extraordinary ones. Venn For The Three Profiled Managers Though their strategies differ—deep value, quality growth, and intrinsic value—these three managers share a common foundation. At the intersection lies what truly drives long-term success: discipline, capital preservation, process over prediction, patience, and a commitment to compounding. It's not the label that matters, it's the mindset. That shared core is where the real edge lives. What sets these managers apart isn't just their knowledge, it's the structure around them. Teams, frameworks, and decades of experience help them stay disciplined when it matters most. For most investors, especially those managing multiple demands, that kind of consistency is difficult to build alone. The pressure to react, to achieve something, is relentless. That's a big part of why I started my firm, The Edge. We focus on catalyst-driven special situations—like spinoffs, restructurings, and insider buying—because those are moments when something real is changing inside a company, even if the market hasn't noticed yet. That's where patience and process pay off. Our job is to assist investors in distinguishing early turning points from the noise. We do this not by guessing cycles, but by understanding when the fundamentals are shifting. Dave Iben digs where others don't. Vontobel waits while others react. Vulcan redefines investing value on its terms. Their portfolios may look different across geographies, sectors, and holdings, but they're all anchored by the same foundation: clarity of thought, conviction in process, and discipline under pressure. They know what they own, why they own it, and when to act. That same edge, clarity inside complexity—is precisely what my firm has been providing for nearly 20 years. If you are a fund manager investing, let's talk.
Daily Mail
23-05-2025
- Business
- Daily Mail
How to tariff-proof your investments: These six UK stocks could be a safe haven
Within 100 days of Donald Trump's election to the US presidency, he managed not only to help send global financial markets into a spin, but also throw into question the future of the current geopolitical status quo. The S&P 500, which tends to rise in the early days of a presidency, is lower now than it was at the time of the inauguration. When Trump made his tariff announcements on 2 April, the index fell off a cliff. Elsewhere, most other major indices such as London's FTSE 100 and Hong Kong's Hang Seng also tumbled following the announcement. Not only has Trump's approval rating slipped to just 45 per cent, from 52 per cent at his inauguration, but data from Quilter shows that a majority, 53 per cent, of fund managers now expect the US to have the worst returns of any region. At the time of Trump's election, these fund managers overwhelmingly expected the US to be the outperforming region. Tariffs might be paused for now, but in July they could be set to relaunch in full force, and with US equities now accounting for 63 per cent of the MSCI All Country World Index, it is difficult to avoid having exposure to the nation's firms. Meanwhile, the US is also the UK's largest trading partner, with total trade between the two countries worth £314.6billion in 2024 and the US taking some 22 per cent of UK exports. This means that choosing to invest closer to home can still mean that you are vulnerable to the whims of US trade policy. Pivoting away from US exposure could help investors to hedge against the possible negative effects of Trump's tariffs. Bet on UK domestic winners The UK small cap market is cheap and therein lies opportunity. Chris McVey, deputy head of quoted companies at Octopus Investments, told This is Money: 'If you look back over the last 25 years, UK small caps have only been this cheap on an Ebit/EV multiple perspective three times in this period, and once was after tech bubble and the other after the global financial crisis.' This, McVey says, could offer a way for investors to diversify their portfolios away from overweight exposure towards the US. He added: 'We should be diversifying and by diversifying we should be buying UK small caps and the UK market in general.' 'Perhaps some of the larger cap, more global businesses will be more impacted, but we're focused on UK small and UK growth companies and I think lots of them are well positioned from that perspective.' McVey says investing in domestic winners that are unlikely to be impacted by happenings across the pond is a way counteract the effects of potential tariff chaos. Brick producer Brickability Group, for example, holds around a fifth of the UK market share for brick manufacture. McVey says the firm's dominant position in the market means that the firm makes a significant margin on managing customer inventory. He said: 'This is a stock that traders on about six to seven times price to earnings, so its extremely cheap from a ratings perspective.' Octopus also highlights Foxtons estate agency, which has refocused its business on lettings in recent years. McVey said: 'It has a high-quality lettings book that gives great earnings visibility, but its not ignoring sales… it has started to build back its market share and now has over five per cent. 'Sales are still modestly loss making but at some point this will swing back.' In 2024, Foxtons' sales operating loss narrowed by 58 per cent to £4.1million, from a previous £9.9million loss. Likewise, Gamma Communications, which offers telecoms-as-a-service, also has strong revenue visibility. McVey said: 'These are contracted revenues, meaning it has great cash generation as a result and it's a stock which I think has been massively oversold over recent months.' Gamma Communications shares have fallen 24 per cent since the beginning of the year, but has recently upped its dividend. McVey said: 'We're really bullish on the opportunity from here and for the potential of these stocks to rerate and for investors to make significant returns.' Quality and quantity of UK stock picks While smaller firms with UK-focused exposure will help to diversify investment holdings away from tariff chaos, investors can also head to the names that will be able to weather any coming storm. Canaccord Wealth says investors should consider backing quality stocks during tumultuous periods, to make the most of their strong fundamentals and lack of debt. Simon McGarry, head of equity research at Canaccord Wealth, said: 'When economic growth slows, investors want companies that have strong balance sheets, consistent earnings and resilient cash flows.' He added: 'We have taken a look at quality stocks, those that are seen as a safe haven in times of risk aversion, when investors move to defensive, high-quality names to preserve capital.' When it comes to UK giants, you can't get bigger than AstraZeneca. The pharmaceutical firm, which became a household name during the Covid pandemic, has a market capitalisation of more than £160billion and is that largest listing in the FTSE 100. McGarry said: 'With a 25.7 per cent Ebit margin and eight per cent average EPS growth over the past decade, it remains a strong defensive play in the pharmaceutical sector. 'Its diversified drug pipeline and strong oncology segment make it a compelling investment for long-term stability and growth.' Fellow FTSE 100 giant Relx is also tipped by Canaccord, with the analytics firm boasting a 34.1 per cent Ebit margin. McGarry says is a result of its strong pricing power and the scale of its operation. Relx, the fifth largest FTSE 100 constituent, has posted consistent earnings per share growth over the past ten years. 'Its stable business model and data-driven services provide resilience, making it appealing for investors seeking reliable growth,' McGarry said. McGarry warns that, in part, the movement away from the US comes as a result of concern that the nation's expensive AI and tech stocks might have a rocky road ahead. He said: 'In addition to what's been happening on a geopolitical level, concerns over high valuations, a potential slowdown in AI-driven demand and a broader shift in investor sentiment away from the more expensive parts of the market have contributed to a rotation out of US equities.' Despite this, McGarry also tips London-based Softcat which offers IT infrastructure and services. He said: 'Softcat has been a standout performer in IT services, with an exceptional 16 per cent EPS growth over the past decade 'With demand for IT infrastructure and cybersecurity rising, Softcat remains well-positioned for further expansion.'
Bloomberg
22-05-2025
- Business
- Bloomberg
Private Credit Funds Target Billions in Retail Demand From Asia
From Singapore to Japan and Australia, fund managers in Asia are looking to unlock billions of dollars for private credit from the last untapped pocket: retail investors. Private capital firms once catered almost exclusively to institutions and ultra-wealthy clients who are able to stomach the high-risk and long-term nature of the investments. But the recent trend to tap retail demand shows how industry players working with regulators are moving toward the goal of opening up the burgeoning asset class to the masses.
