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Next week, UK banks will be in focus during Europe's reporting season. Barclays Plc will give a long-awaited strategy update, while Lloyds Banking Group Plc's results may be subdued due to weakened revenue prospects and potential increases in loan provisions. Rising defense spending in Europe likely boosted income for Rolls-Royce Holdings Plc and BAE Systems Plc. Additionally, reports from Carrefour SA, JDE Peet's NV, Danone, and Nestle SA will provide insight into shopper sentiment as inflation slows. [Extracted from the article]

French asset manager Tikehau Capital SCA has increased its stake in UK competitor Schroders Plc, with the possibility of a future partnership between the two companies. Tikehau believes that Schroders' stock is poised to rise, and there may be potential for commercial collaboration down the line. Despite a previous unsuccessful cooperation deal with DWS, Tikehau maintains a partnership with Nikko Asset Management. Schroders has faced challenges in the market, but Tikehau sees it as an undervalued company with a promising future. [Extracted from the article]

Tikehau Capital SCA, a French asset manager, has increased its stake in UK competitor Schroders Plc to over 4%, with the possibility of future collaboration between the two companies. Tikehau's decision was driven by its belief in Schroders' potential for stock price growth, despite a recent decline in Schroders' shares. The move comes as Schroders faces challenges in cost management and growth, reflecting broader trends in the asset management industry. [Extracted from the article]

AirFund, a private markets platform backed by Amundi SA, has hired Markus Ruetimann and Trevor Hunt, former executives from Credit Suisse and UBS Group AG, respectively, to lead its expansion into the UK market. The platform facilitates the distribution of funds from alternative asset managers to private banks and financial advisers, competing with other firms like ICapital and Titanbay. AirFund aims to collaborate with major firms such as Blackstone Inc. and Apollo Global Management Inc. to attract investments from high-net-worth individuals. [Extracted from the article]

Boaz Weinstein's campaign against seven UK investment trusts has faced public defeats, but privately, it may still yield significant returns. Despite losing all seven ballots, Saba Capital Management's efforts have narrowed discounts to net asset values in many UK trusts, potentially resulting in returns in the low- to mid-teens. Weinstein's next move involves pushing for four trusts to switch to an open-ended structure, aiming to eliminate discounts and allow investors to redeem shares at NAV. The UK investment trust sector has seen a decline due to various factors, with Weinstein's strategy attracting significant inflows into Saba's funds. [Extracted from the article]

Several BP Plc shareholders, including Jupiter Asset Management and Schroders Plc, welcome activist Elliott Investment Management's stake in the company, believing that meaningful changes are necessary to close the valuation gap with peers. Elliott, with a 5% interest in BP, is pushing for drastic cost cuts and divestments to align BP's business more closely with other oil majors like Shell Plc. BP's CEO has pledged a "fundamental reset" of the company's strategy, expected to focus more on oil and gas production growth. Shareholders believe Elliott's involvement could accelerate necessary changes at BP. [Extracted from the article]

Boaz Weinstein's campaign against seven UK investment trusts has faced public defeats, but privately, it may yield significant returns. Despite losing six out of seven battles, Saba Capital Management's disclosed stakes in UK trusts have led to narrowed discounts to net asset values, potentially resulting in low- to mid-teens returns. Weinstein's next phase involves persuading four trusts to switch to an open-ended structure, aiming to eliminate discounts and allow investors to redeem shares at NAV. The UK investment trust sector has seen a decline due to various factors, with Weinstein's strategy attracting significant inflows into Saba's funds. [Extracted from the article]

Boaz Weinstein, an activist hedge fund manager, has launched a new campaign against four UK investment trusts after a previous attempt to gain control of some funds failed. Weinstein's Saba Capital Management is seeking shareholder meetings to propose changing the trusts to an open-ended structure to eliminate the discounts they trade at to their net asset values. This campaign is part of a larger effort by Saba to control and run closed-end vehicles in which it has amassed stakes worth a total of £1.5 billion ($1.9 billion). The UK's investment trust sector has been facing challenges in recent years, including high interest rates, lack of liquidity, and cost-disclosure regulations. [Extracted from the article]

Boaz Weinstein, an activist hedge fund manager, has launched a new campaign against four UK investment trusts after a previous attempt to gain control of some funds failed. His Saba Capital Management is seeking shareholder meetings to propose changing the trusts to an open-ended structure to eliminate the discounts they trade at to their NAVs. Weinstein believes that converting these trusts into open-ended funds will address the long-standing issue of deep discounts and structural problems in closed-end vehicles. This campaign is part of Saba's efforts to control and manage closed-end vehicles in which it holds significant stakes, with one final vote scheduled for February 14. [Extracted from the article]

Legal & General Group Plc has agreed to sell its US insurance arm for $2.3 billion to Meiji Yasuda Life Insurance Co. as part of CEO António Simões' efforts to restructure the company and increase shareholder payouts. The deal includes the sale of L&G's US protection and pension risk-transfer businesses, with Meiji Yasuda also acquiring a 5% stake in L&G. The transaction is expected to be completed by the end of 2025 pending regulatory approvals, allowing L&G to focus on its core businesses and return capital to shareholders. [Extracted from the article]

Legal & General Group Plc has agreed to sell its US insurance arm for $2.3 billion to Meiji Yasuda Life Insurance Co. The sale is part of CEO António Simões' efforts to restructure the company and increase shareholder payouts. The deal will allow Meiji Yasuda to acquire L&G's US protection business and a 20% economic interest in its US PRT business, with L&G using a portion of the proceeds for share repurchases and a reinsurance arrangement. Simões aims to focus on core businesses and drive sustainable growth to enhance shareholder returns, following a strategy that includes returning more capital to shareholders from 2024 to 2027. [Extracted from the article]

Legal & General Group Plc has agreed to sell its US insurance arm for $2.3 billion to Meiji Yasuda Life Insurance Co. The sale is part of CEO António Simões' efforts to restructure the company and increase shareholder payouts. Following the deal, Meiji Yasuda will own L&G's US protection business and have a 20% stake in its US PRT business, with L&G planning to use the proceeds for share repurchases and a reinsurance arrangement. Simões aims to focus on core businesses and drive sustainable growth to enhance shareholder returns, with L&G expecting to return 40% of its market value to shareholders over the next few years. [Extracted from the article]

Legal & General Group Plc has agreed to sell its US insurance arm to Meiji Yasuda Life Insurance Co. for $2.3 billion. This move is part of CEO António Simões' efforts to restructure the financial services firm. Meiji Yasuda will acquire L&G's US protection business and have a 20% stake in its US PRT business, with L&G retaining 80% through reinsurance arrangements. Additionally, L&G plans to conduct a £1 billion share buyback and return about 40% of its market cap to shareholders over the next few years. Meiji Yasuda will also purchase a 5% stake in L&G. [Extracted from the article]

Asset management leaders have commended the Labour government's focus on enhancing economic growth and the competitiveness of the UK's financial sector. The government's efforts to reduce regulatory burdens and attract investment have been well-received, with a shift towards fostering growth and competition. Industry experts have suggested further measures, such as including long-term asset funds in tax-free savings accounts and expanding pension plans to alternative asset classes. [Extracted from the article]

BlackRock Inc., the world's largest asset manager, is set to launch a Bitcoin exchange-traded product (ETP) in Europe, following the success of its US ETF tracking the cryptocurrency. The ETP will likely be based in Switzerland and could be marketed as early as this month. BlackRock has been a strong supporter of cryptocurrencies, with CEO Larry Fink praising Bitcoin as a hedge against currency debasement. The European market for cryptocurrency ETPs is competitive, with over 160 products available, but still smaller than the US market. Financial institutions are expected to enter the space due to increased support and potential regulations. [Extracted from the article]

Amundi SA, a Paris-based asset manager, experienced significant inflows of €20.5 billion in the last quarter of 2024, driven by demand for exchange-traded funds and fixed-income strategies. CEO Valerie Baudson expressed confidence in maintaining this momentum in 2025, as assets under management reached a record €2.24 trillion. The company's adjusted net income rose by 21% year-over-year, exceeding analysts' expectations, and it plans to pay a dividend of €4.25 per share for 2024. Amundi, controlled by Credit Agricole SA, has been active in acquisitions and is positioned as a consolidator in the asset-management industry. [Extracted from the article]

Boaz Weinstein's Saba Capital lost votes to gain control of Baillie Gifford's investment trusts, marking a setback in his campaign against London-listed vehicles. Shareholders rejected resolutions to replace the boards with Saba's proposed candidates, who aimed to manage the trusts and change their investment mandates. The outcome is seen as a win for Baillie Gifford, known for early investments in tech giants like Amazon, Tesla, and SpaceX, with further votes scheduled for other funds in the coming days. [Extracted from the article]

Boaz Weinstein's Saba Capital lost votes to gain control of two Baillie Gifford investment trusts, Baillie Gifford US Growth Trust Plc and Keystone Positive Change Investment Trust Plc. Shareholders rejected resolutions to replace the boards with Saba's proposed candidates, marking a setback in Saba's campaign against London-listed vehicles. The outcome is seen as a win for Baillie Gifford, known for early investments in tech companies like Amazon, Tesla, and SpaceX. The UK's investment trusts, popular among retail investors, have rallied to defend against Saba's campaign, with regulators ensuring investor awareness of the planned votes. [Extracted from the article]

Howden, a major insurance broker, is currently in discussions to acquire Risk Strategies, a large US broker backed by private equity firm Kelso & Co. Howden, owned by firms like General Atlantic and Caisse de dépôt et placement du Québec, has been considering an initial public offering. If the deal goes through, it would signify Howden's entry into the American retail market. This potential acquisition is part of a broader trend of consolidation in the insurance brokerage industry, with recent deals including Arthur J. Gallagher & Co.'s purchase of AssuredPartners and Marsh McLennan's acquisition of McGriff Insurance Services. [Extracted from the article]

DWS Group, the investment arm of Deutsche Bank AG, experienced €18.4 billion in net inflows last quarter, primarily into its Xtrackers funds. Despite active equity and fixed-income strategies seeing net outflows, the alternatives unit saw inflows, particularly in infrastructure funds. The company set new financial targets, including a dividend payout ratio of about 65% and aims for €150 billion in long-term net flows from 2025 to 2027. The firm's total assets under management reached €1 trillion at the end of December, with management fees and recurring revenues showing growth. [Extracted from the article]

DWS Group, the investment arm of Deutsche Bank AG, experienced €18.4 billion in net inflows in the last quarter, surpassing analyst expectations. The majority of these inflows went into the lower-margin Xtrackers funds, while active equity and fixed-income strategies saw net outflows. DWS also set new financial targets, including a dividend payout ratio of about 65% and aiming for €150 billion in long-term net flows from 2025 to 2027. [Extracted from the article]

Alternative asset managers are gaining traction with Europe's wealthy families by offering evergreen funds that provide better liquidity compared to traditional closed-end structures. Rule changes by the European Commission have boosted the market, leading to a record number of fund approvals and a significant increase in assets managed by evergreen funds. However, some experts caution about potential risks, such as illiquid assets being passed on to less knowledgeable individual investors, and emphasize the importance of maintaining the quality of assets in evergreen funds. The 'retailization' of private markets has led to increased efforts by firms to educate private bankers and financial advisers about the risks and illiquid nature of these investments. [Extracted from the article]

Larry Fink, CEO of BlackRock Inc., discussed the possibility of the US economy leading to interest rate hikes in the future due to its strength. Fink mentioned that while he sees probabilities of a rate hike beyond the next 12 months, it is not his core prediction. He also commented on Europe's economic outlook, stating that the continent may be too pessimistic and that it could be time to invest back into Europe. Other panelists at the World Economic Forum in Davos included prominent figures such as Kristalina Georgieva, Christine Lagarde, Tharman Shanmugaratnam, and Faisal Alibrahim. [Extracted from the article]

The article discusses the challenges faced by DWS Group's private credit unit in attracting investors and achieving growth targets. Despite efforts to tap into the private credit market, the unit has struggled to secure commitments, leading to senior staff departures and a need for new strategies. The CEO, Stefan Hoops, who previously had success in other areas, now faces the significant challenge of establishing the firm's private credit business amidst competition and a weak track record. The article also mentions potential acquisition targets and strategic moves to bolster the unit's performance. [Extracted from the article]

The article from Bloomberg.com discusses TCW Group Inc. CEO Katie Koch's perspective on the current state of the markets, noting that optimism regarding Donald Trump's pro-business agenda is already reflected in market prices. Koch highlights concerns about the sustainability of high valuations in US stock markets and mentions that TCW is underweight credit in some portfolios due to expensive credit markets. Additionally, Koch emphasizes the importance of rebuilding Los Angeles after wildfires, noting the city's significant economic impact. [Extracted from the article]

Shares of Abrdn Plc surged after reporting £1.2 billion in total net inflows last quarter, providing a much-needed boost for the struggling asset manager. The inflows were driven by demand for alternatives, quantitative strategies, and liquidity products, while the adviser business experienced outflows. Despite recent job cuts and leadership changes, the company expects adjusted operating profit for fiscal 2024 to meet market expectations, with assets under management and administration increasing by 1% to £511 billion. [Extracted from the article]

Abrdn Plc reported £1.2 billion in total net inflows in the fourth quarter, with clients of its investments unit adding a net £0.5 billion. The inflows were driven by demand for alternatives, quantitative strategies, and liquidity products. Despite enduring years of outflows and job cuts, the company's assets under management and administration rose 1% to £511 billion. Abrdn remains on track to achieve its cost-cutting program goals and expects its adjusted operating profit for fiscal 2024 to meet market expectations. [Extracted from the article]

Schroders Plc, the UK's largest standalone asset manager, plans to cut 3% of its workforce, approximately 200 jobs, mostly in technology, under the leadership of new CEO Richard Oldfield. The firm aims to reposition itself for growth and meet its 2025 objectives by improving delivery and reinforcing its active investment proposition. This move comes as Schroders faces challenges such as a declining share price and slower organic growth, similar to other traditional active fund managers in the industry. Other firms like Wellington Management and BlackRock Inc. have also recently reduced their workforces. [Extracted from the article]

Ashmore Group Plc experienced a slowdown in net outflows to $400 million in the last quarter of 2024, compared to $700 million in the previous quarter, amidst challenges posed by a stronger dollar affecting emerging markets. CEO Mark Coombs highlighted the potential for upside in emerging market asset prices, contingent on the new US administration's policy decisions. Despite facing client redemptions and a decline in total assets under management to $48.8 billion, Ashmore remains a significant player in the emerging markets investment landscape. [Extracted from the article]

Neil Woodford, a former investment manager, defended his actions regarding the collapse of his fund empire over five years ago, disputing the UK financial watchdog's conclusions. Woodford stated in an interview that he believes his investment strategy was sound and that he did not make any mistakes. The Financial Conduct Authority criticized Woodford for his handling of liquidity risks and plans to take enforcement action against him. Woodford blamed the fund administrator and the FCA for the fund's suspension and liquidation, expressing frustration over the situation. [Extracted from the article]

Boaz Weinstein, through Saba Capital Management, has acquired a significant stake in seven UK investment trusts totaling £1.5 billion. He aims to take control of these trusts by urging shareholders to replace the current boards and elect him as a board member. Weinstein's campaign is focused on addressing the wide trading discounts to net asset value in the British investment trust industry, which has been in decline due to various factors. Additionally, he proposes that Saba Capital Management should run the trusts and shift their investment focus to buying other trusts trading at a discount to NAV. [Extracted from the article]

Boaz Weinstein, through his firm Saba Capital Management, is leading a campaign to replace the boards of seven struggling UK investment trusts with his own candidates. Weinstein aims to address the trusts' wide trading discounts to net asset value and proposes shifting their mandates to focus on buying other trusts at a discount. The UK investment trust sector has been declining due to various factors, leading to a decrease in the number of listed trusts. [Extracted from the article]

A study by asset manager Columbia Threadneedle suggests that de-risking defined contribution pension pots in the UK could cost as much as £25 billion during the current Parliament. This cautious investment strategy is hindering government efforts to drive funding into UK companies, startups, and infrastructure. Chancellor of the Exchequer Rachel Reeves aims to consolidate smaller pension plans into larger funds to cut fees, spread risk, and increase investment in major UK projects, ultimately benefiting the economy and pension savers. [Extracted from the article]

Ardonagh Group has received a significant investment from Stone Point Capital, increasing its valuation to $14 billion. Stone Point will become a minority shareholder in Ardonagh, with a stake likely ranging from 15% to 20%. Ardonagh, a UK insurance broker, has grown rapidly since its founding in 2017, acquiring multiple businesses globally and becoming one of the world's largest brokers. The deal reflects a trend of large-scale transactions in the insurance broking industry, with private equity and strategic buyers actively seeking assets. [Extracted from the article]

Ardonagh Group, a UK insurance broker, has received new investment from Stone Point Capital, increasing its valuation to $14 billion. Stone Point will become a significant minority shareholder in Ardonagh, which was previously valued at $7.5 billion. The insurance broking industry is seeing large-scale transactions, with companies like Arthur J. Gallagher & Co and Marsh McLennan making significant acquisitions. Ardonagh has grown rapidly since its founding in 2017, acquiring multiple businesses globally and becoming one of the world's largest brokers. [Extracted from the article]

Private credit assets should be valued higher than traditional fixed-income assets due to their lower liquidity, Franklin Templeton Investments CEO Jenny Johnson stated. She expressed concern that some private credit assets are trading at the same spreads as corporate bonds, without factoring in the illiquidity premium. The private credit industry has grown significantly to $1.7 trillion, prompting increased regulatory scrutiny. Johnson also discussed the potential benefits of blockchain technology in financial services and addressed the investigation of former star trader Ken Leech from Western Asset Management Co. Franklin's acquisition of Wamco is currently under review. [Extracted from the article]

Aviva Plc has reached a preliminary agreement to acquire Direct Line Insurance Group Plc for £3.6 billion, creating the UK's largest motor insurer. The deal involves a cash-and-stock proposal, with Aviva offering 275 pence per share to Direct Line shareholders. The acquisition would double Aviva's share in the UK auto-insurance market and is subject to a firm offer by December 25th. Direct Line, based in Bromley, England, offers various insurance products beyond motor insurance, including home, travel, pet, and life insurance. [Extracted from the article]

Amanda Blanc, the CEO of Aviva Plc, is working on a £3.6 billion plan to merge Aviva with Direct Line Insurance Group Plc, which would be her largest acquisition to date. This move aims to strengthen Aviva's personal lines business in the UK and transform the insurer. Blanc, a respected figure in the City of London, has faced challenges such as activist shareholders and sexist comments throughout her career, but has successfully led Aviva through significant changes and won over investors. Her career in insurance, marked by a commitment to gender equality and business success, has earned her recognition and accolades, despite facing misogyny and discrimination in various professional settings. [Extracted from the article]

St. James's Place Plc is planning to cut approximately 500 jobs as part of a cost-saving initiative to save £100 million annually by 2027. The job cuts may impact various roles within the company, excluding the network of financial advisers. This decision comes after the company set aside provisions for potential refunds due to an increase in customer complaints. [Extracted from the article]

The Bank of England has raised concerns about the risks associated with private equity firms entering the insurance sector, warning of potential "fire sales" that could disrupt financial markets. Private equity-backed insurers may engage in higher-risk investments, leading to increased vulnerability in the event of market downturns. The central bank supports regulatory efforts to address these risks, including enhanced disclosure of private equity activity in the insurance industry. Recent examples of insurance dealmaking, such as the sale exploration of Britain's Pension Insurance Corp. and the administration of Italy's Eurovita, highlight the complexities and challenges in this sector. [Extracted from the article]

Australia's largest pension fund, AustralianSuper, has hired three senior investment managers in London to expand its international equities team. The fund aims to run its global equities team out of the UK capital and plans to triple its London-based staff by 2030. AustralianSuper manages about £180 billion ($226 billion) for its members and is increasing its focus on global markets, with about 30% of its global equities portfolio managed internally, set to increase significantly by 2030. Other major Australian pension funds are also expanding their international investments as the industry's total assets under management in Australia surpass A$4 trillion ($2.6 trillion) for the first time. [Extracted from the article]

St. James's Place Plc is closing three UK property funds worth £1.84 billion due to a commercial real estate downturn, with the majority of assets expected to be sold over two years. The decision was influenced by investors' caution towards property funds following changes in working patterns post-Covid-19, reducing demand for office space. Invesco Real Estate will manage the wind-down process, which was prompted by a property price correction and liquidity issues faced by similar funds during past events like Brexit and the pandemic. [Extracted from the article]

Australia's largest pension fund, AustralianSuper, has hired three senior investment managers to expand its international equities team in London. The fund tapped Steve Kelly from AXA Investment Managers and Anu Narula from Mirabaud Asset Management to co-head high growth global equities, while Colin Moar from Barings has joined as a senior portfolio manager for technology stocks. AustralianSuper's CEO, Paul Schroder, plans to run the global equities team out of London, where the fund currently employs about 100 people and aims to triple that number by 2030. [Extracted from the article]

HSBC Holdings Plc's asset management arm is introducing a new venture debt strategy to expand its offerings in the private credit market. The strategy will focus on investing in senior secured loans for technology and life sciences companies backed by venture capital firms, with a target of raising $500 million from investors. HSBC AM aims to triple its private credit business to over $20 billion in assets under management and advice in the next three to five years. [Extracted from the article]

HSBC Holdings Plc's asset management arm is launching a new venture debt strategy to diversify its offerings in the private credit market. The strategy will focus on investing in senior secured loans for technology and life-sciences companies backed by venture capital firms. HSBC aims to raise $500 million from investors and target annual returns of 15% to 18%. The bank is expanding its private credit business to over $20 billion in assets under management and advice in the next three to five years. [Extracted from the article]

Short seller Carson Block announced at the Sohn conference in London that he is shorting the shares of Elf Beauty Inc. due to concerns about the company's revenue. Block suspects that Elf Beauty has overstated revenue and that a buildup in inventory is a result of lackluster sales. Elf Beauty's shares dropped 16% initially but recovered to a 2.2% loss by the end of the trading day. Founded in 2004, Elf Beauty reported strong net sales and adjusted net income for the quarter through September, exceeding Wall Street projections. Block, known for his successful short positions, has targeted Elf Beauty among other companies in the past year. [Extracted from the article]

Short seller Carson Block announced at the Sohn conference in London that he is shorting the shares of Elf Beauty Inc. due to concerns about the company's revenue. Block suspects that Elf Beauty has overstated revenue and that a buildup in inventory is a result of lackluster sales. Elf Beauty reported $301 million in net sales for the quarter through September, exceeding Wall Street projections, but its stock dropped 16% after Block's announcement. Muddy Waters, Block's firm, has taken at least four new short positions in the past year, with a history of successful bets against companies. [Extracted from the article]

(Bloomberg) -- Short seller Carson Block said he's shorting the shares of cosmetics brand Elf Beauty Inc.Speaking at the Sohn conference in London on Wednesday, the chief executive officer of Muddy Waters Capital said he is shorting the stock because he has concerns linked to the Oakland, California-based firm's revenue.A representative for the beauty company did not immediately respond to a request for comment.©2024 Bloomberg L.P.By Nishant Kumar and Leonard KehnscherperReported by Author; Author [Extracted from the article]

Hedge fund managers presented a variety of investment ideas at the Sohn conference in London, including long bets on companies like Pennon Group Plc and Spotify Technology SA, as well as short positions on firms like Elf Beauty Inc. and Cargojet Inc. Activist campaigns were also discussed, such as CIAM's opposition to Vivendi SE's spinoff plans. The event highlighted diverse perspectives on the investment landscape following the re-election of Donald Trump as US President. [Extracted from the article]