Manager briefs
BGI to replace Merrill as sponsor of ETF Stoxx funds
Merrill Lynch, which initiated the European exchange-traded fund (ETF) market in 2000, has stepped down as investment manager and sponsor of the Stoxx 50 LDRS and Euro Stoxx 50 LDRS funds. Merrill’s original role will now be filled by Barclays Global Investors (BGI), which becomes Europe’s largest ETF provider, running E4bn, up from E2bn before the switch.
The two ETFs, which track Dow Jones Stoxx indices, have been rebranded iShares DJ Euro Stoxx 50 and iShares DJ Stoxx 509.
Merrill said it remains committed to the ETF market, but will focus on brokerage, trading and research rather than management of funds.
BGI’s gain follows a strategic review, which involved the shelving of nine
sector-based funds. The plan is to develop further products covering equity and bond indices.
The ETF business in Europe and the US is overseen by Lee Kranefuss.
Axa outsources hedge fund business to ex-colleagues
French funds house Axa Investment Managers has outsourced the selection of external hedge funds managers to a newly-formed company, Celestar Capital Advisors.
But there is a twist to the tale. The two people who formed Celestar, Farzine Hachemian and Barry Seeman, have both just left Axa, where they had set up Axa Alternative Advisors. This hedge fund of funds operations currently runs $600m (E540m).
Principal global currency office relocates to London
US investment house Principal Global Investors, which runs $108bn (E97bn), has moved its global currency management office from Sydney, Australia, to London.
This marks a trend among portfolio managers to run currency as a separate asset class, with European investors seen as key customers in a growing market.
