Merryn Somerset Webb

So important for Schroders to be part of this crucial Financial Times debate - 'How to reboot Britain's capital markets' - https://shorturl.at/MtqSv. Peter Harrison, Schroders Group Chief Executive, said: "The amount of money which is flowing into people's savings is nothing like sufficient to provide for them in retirement. But even when it gets into their pension pots it's then directed to low returning assets that are low risk." #investment #london #capitalmarkets #pensions #economicgrowth

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We take a break from IPOs in this week's ECM Pulse to take a look at the blocks market. There are some big trades in familiar names expected as well as a resumption of several government privatisation schemes for investors to sink their teeth into. But the buy side are warning that they are losing patience with some deal practices. Read all in this week's ECM Pulse.

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The volume of pulled real estate deals in the UK has soared to a new high. Samantha McClary digs into the latest MSCI Real Assets data for EG. https://lnkd.in/ebPqKUhn

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SCOOP with Michael O'Dwyer: Schroders has kicked off a search for a successor to its chief executive Peter Harrison, who is preparing to step down as the boss of the UK’s largest #assetmanager after eight years. The £750.6bn FTSE 100 group, whose founding family is its largest shareholder, has hired headhunters at Russell Reynolds Associates to work on “a full and extensive global search”, with succession expected to take place in 2025. Harrison has sought to offset the decline of Schroders's traditional business by pushing into faster-growing areas such as #privatemarkets, #wealthmanagement and in its business line that offers outsourced chief investment officers and liability-driven investing to #pensionfunds. But he has had to contend several headwinds: the rise of cheaper passive investing, a shift in investor demand from public to private markets, and a multi-decade shift by UK pension funds away from holding shares in their local market.

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Scoop - Hargreaves Lansdown launches multi-asset index range with some help from BlackRock https://lnkd.in/evbdURZn The rise in popularity of index funds has become impossible ignore for one of the biggest champions of active fund management. #indexfunds #Assetmanagement #ETFS

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While there has been plenty going on in the European #securitisation primary market, there was also a quirky story playing out in secondary last week. It's a cautionary #RMBS tale that underlines the importance of reading exchange notices. Four years ago, Atom Bank issued a UK RMBS called Elvet Mortgages 2020-1. It's performed well and the underlying collateral has paid down at quite a lick. As a result, the bonds will be redeemed in June under the clean-up call provision, according to an exchange notice published last Wednesday. "The prepayment rate on these deals is quite high," one trader observed. "I believe it took the market by surprise." Worse than that, some traders seem to have missed the memo, as the bonds continued to be traded after the exchange notice was published at prices that implied a call in September or December. "Obviously someone did not read the redemption notice," said a second trader. The mistake was quickly spotted, however, preventing other traders from cashing in. "We tried to sell our bonds too at the ridiculously high levels but failed," said the second trader. Subscribers can read our full coverage of the capital markets on IFRe or LSEG Workspace: https://lnkd.in/eZvUCbq8

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Thanks to Paul Ilott and Scopic Research for sharing the latest views from multi-asset teams across the industry in Q2, including some investors starting to look towards small and mid-caps for opportunities. #multi-asset #investment #portfoliomanagement

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Really interesting piece on Citywire Wealth Manager by Ninety One fund manager and Hargreaves Lansdown investor Ben Needham. https://lnkd.in/eaSU6aVF He believes HL was totally right to reject the ‘cheeky’ private equity approach earlier this month, pointing out that if the firm listed today, it would be at a higher price than it currently trades on. And just imagine if the PE exit strategy is to relist at a higher price at some point and, to rub salt in the wound, the US is chosen as the fashionable place for the relisting. Just imagine!  #privateequity #UKstockmarket

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Had a really interesting chat with Legal & General Investment Management (LGIM)'s Michael Marks about the exec pay and UK listings debate and the key issues the fund group has on its radar heading into AGM season. #AGM #ESG #assetmanagement https://lnkd.in/e8TUUwA9

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So what of smaller companies? Why bother considering small and mid-cap equities with many uncertainties and the prospect of ‘safe’ mid-single digit returns from bonds and gilts? Stuart Widdowson, Odyssean Investment Trust Odyssean Capital LLP explains why #uk #smallcap #specialsituations

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I’m interested to get feedback on this story. Amid all the talk in the regulator’s plan about consolidation, the recognition of the growth and influence of professional trustee firms is (I think) a big development. What should the regulator be looking at in this area? Do these companies have too much influence? Is the member voice being lost? Or are they a vital part of the solution for a maturing DB landscape? What do you think?

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Watch this space: H2O Asset Management revealed in its annual report for 2020 that it was under investigation from the FCA. We're now in 2024 and it looks like British market regulators are about to conclude their case. There's talk of a pot of money to compensate investors - who would be offered to take a deal - and of the FCA considering whether a fine would be appropriate. https://lnkd.in/d7uxKDyi

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As the UK election campaign sets off at pace, joining the crucial contests in India and the US, the concept of 'security' will undoubtedly play a part. The UK is a key party involved by proxy in the wars in #Ukraine and #Gaza and its role is hugely important in these major geopolitical events. In addition, these conflicts significantly affect our economy, trade, energy consumption and migration patterns, as well as our moral compass. Geopolitics has become one of the key factors now taken into account by investment managers and wealth firms, when examining both opportunities and risks, particularly where China is involved. It was fascinating researching latest trends, with expert comment from former British Army chief of staff, General Sir Mark Carleton-Smith, Paul de Leusse of Sienna Investment Managers, a rising European player, the outspoken Dr. Jian Liang from Banque Internationale à Luxembourg (BIL), Yves Choueifaty from TOBAM, who is one of the most inspiring investment thinkers I have come across, and Natznet T. from S&P Global Market Intelligence, who offers a very detailed and thoughtful long-term view of geopolitical trends. Please read the article on Professional Wealth Management (PWM) and the Financial Times Wealth Management Hub https://lnkd.in/eCQk_5c6

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Some first thoughts below on the CMA's digital markets draft guidance.... As a reminder, the CMA's Digital Markets Unit will conduct "Strategic Market Status" (SMS) investigations to assess firms' power in digital markets, before then imposing Conduct Requirements (CRs) to ensure fair competition and / or impose Pro-Competition Interventions (PCIs) to address adverse effects on competition (AECs). Some thoughts... 𝟭. 𝗧𝗵𝗲 𝗖𝗠𝗔 𝗶𝘀 𝗴𝗶𝘃𝗶𝗻𝗴 𝗶𝘁𝘀𝗲𝗹𝗳 𝘀𝗶𝗴𝗻𝗶𝗳𝗶𝗰𝗮𝗻𝘁 𝗱𝗶𝘀𝗰𝗿𝗲𝘁𝗶𝗼𝗻 / 𝗹𝗲𝗲𝘄𝗮𝘆 𝗳𝗼𝗿 𝗱𝗲𝗰𝗶𝗱𝗶𝗻𝗴 𝘄𝗵𝗲𝘁𝗵𝗲𝗿 𝗮 𝗳𝗶𝗿𝗺 𝗵𝗮𝘀 "𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝗶𝗰 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝘁𝗮𝘁𝘂𝘀", e.g. it doesn’t have to define “relevant markets” or use existing definitions / case law tied to dominance when considering Strategic Market Status (SMS) designation; whenever “significant” is used it is not defined numerically but case by case, evidence is considered “in the round”. This is tied to the fact the regime is "future-facing" (trying to ensure more competitive behaviour in the five years ahead) rather than "backward looking" like conventional antitrust (trying to rectify past wrongs) 𝟮. 𝗜𝗻𝗳𝗼 𝗳𝗿𝗼𝗺 𝗽𝗿𝗲𝘃𝗶𝗼𝘂𝘀 𝗠𝗮𝗿𝗸𝗲𝘁 𝗦𝘁𝘂𝗱𝗶𝗲𝘀 𝗰𝗮𝗻 𝗯𝗲 𝘂𝘀𝗲𝗱 𝗳𝗼𝗿 𝗦𝗠𝗦 𝗱𝗲𝘀𝗶𝗴𝗻𝗮𝘁𝗶𝗼𝗻 . Does this suggest firms with "significant" positions in mobile ecosystems, cloud computing or AI could be the first designations...? 3. 𝗧𝗵𝗲 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝗰𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗯𝗲𝗻𝗲𝗳𝗶𝘁𝘀 𝗮𝗻𝗱 𝗽𝗿𝗼𝗽𝗼𝗿𝘁𝗶𝗼𝗻𝗮𝗹𝗶𝘁𝘆 𝗮𝗿𝗲 𝗳𝗹𝗮𝗴𝗴𝗲𝗱 𝗮𝘀 𝗽𝗿𝗶𝗼𝗿𝗶𝘁𝗶𝗲𝘀 𝗯𝘆 𝘁𝗵𝗲 𝗖𝗠𝗔 𝘁𝗵𝗿𝗼𝘂𝗴𝗵𝗼𝘂t, including “lower prices, higher quality goods and services and/or a greater range of products and services" plus "safety or privacy of users or innovation".  How both proportionality and consumer benefits are considered will be both important and potentially quite difficult, as it can be hard to quantify what "could" happen - the benefits of future innovation and competition - as opposed to what already has. Welcome views....

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For the latest @ftadviser Vantage point I've put together this long read rounding up what the latest economic data means for global equities...https://lnkd.in/emWtdeuP

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Old hands will remember Janesh Manek, the UK pharmacist who won the Sunday Times Fantasy Fund Manager competition in 1994 and 1995. He took home £100,000 each time and also caught the eye of John Templeton - who ended up giving him £10m in real money to invest. In 1997 Manek launched the Manek Growth Fund, which attracted another £100m or so in funds,. And invested almost entirely in very high risk growth stocks. It started well. By 2000 it was up 160% and there was much talk about how useless professional fund managers were compared to this obviously gifted amateur. It ended in disaster. By 2017 the fund was down 55% in a decade (the average fund was up 70%), the asset under management were down from a peak of £300m to more like £7m and Manek chucked the towel in. It turned out a little training might have helped (maybe something on valuations, diversification and risk management). It is this story of amateurs only making in the short term that the pros must hang on today in the face of the depressing news that the average UK manager was outperformed in the first quarter of this year (and over several other time frames) by the average 18-24 year old client using the Interactive Investor platform. But there is one thing the pros can learn from the kids.. it is hard to outperform a bench mark when your job depends on you not under performing it... https://lnkd.in/ewKe8T3k

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