Company briefs
BGL selling off stake in EFA after Fortis funds merger
Luxembourg-based transfer agent European Fund Administration (EFA) increased the number of sub-funds it services by 6.48 per cent in 2003, while the total number of sub-funds domiciled in Luxembourg fell by 3.8 per cent during the same period.
Last year EFA was awarded administration mandates worth €4.7bn, coming from international promoters and one hedge fund. EFA now services 1150 sub-funds with total assets of €69bn.
Banque Générale du Luxembourg (BGL), one of EFA’s shareholders, has announced the sale of its 26 per cent share in the company following the integration of BGL’s in-house funds into the Fortis fund family. “EFA no longer administer our own products and we have now aligned our shareholding with this situation,” said Robert Scharfe, member of the board at BGL.
‘Easy money’ warnings fail to prevent launches
Investors have been warned not to make excessive commitments to high yield bonds by Dutch private bank Insinger de Beaufort.
David Williams, investment manager at Insinger, said that the “easy money” from the asset class has already been made. Due to a recent tightening of spreads, leading to a less attractive risk-return ratio, Insinger portfolios have taken profits and lowered their exposure. But high yield investments are still recommended to clients due to broad economic improvements including easier capital access and better cash flow.
While many US investors have deserted the asset class, American houses continue to launch high yield funds for the European market. The latest, a Dublin-based fund from $118.5bn US manager Principal Global Investors, is so far open to investors in Germany, Ireland and the UK. The fund will follow a “risk aware strategy” rather than sliding down the credit curve into lower quality bonds.
