View more on these topics

S&P strips rating from five Madoff-exposed funds

Standard & Poor’s has changed five funds of hedge funds which were exposed to Madoff strategies to ‘not rated’.

Last December, S&P put Bonhote Alternative Multi-Arbitrage; Constantia Composite; Constantia Low Volatility; DGC Pendulum Ltd; Dinvest Concentrated Opportunities; Dinvest Total Return and RMF Four Seasons under review because of their exposure to Madoff strategies.

Following its review, S&P concluded that due diligence fell short of the standard expected of a rated fund. It has changed the rating of each fund to not rated, except for Constantia Composite and Constantia Low Volatility.

It says: “We understand that the mandates of the two Constantia funds are likely to change significantly, but the group has withdrawn from our service so we will not be considering them for new fund ratings in future.”

Recommended

ABI looks at sector for cash stability

The Association of British Insurers is consulting on plans for a new fund sector to help consumers choose the right money market fund. It would run in parallel with the money market sector but identify funds with a greater focus on capital stability.

Japan Economic Insight

James Dowey, Chief Economist, and Paul Caruana-Galizia, Economist

The conventional wisdom is that following a roughly 50 per cent rise in the stock market in 2013 in Yen terms, the Japan trade is over and done*. So the story goes, those big gains were due to a one-off boost from quantitative easing (QE) and a depreciation of the Yen — policies that one should think of as a palliative to Japan’s economic weakness, but not a cure. Rather the cure, and by implication the necessary condition for a longer-term investment case, is deep structural reforms — a painstaking re-weaving of Japan’s economic and social fabric, no less. The story continues: this is a much tougher test than launching a blast of QE, and one that prime minister Shinzo Abe, although well intentioned and well supported by the public thus far, is likely to fail. Stick a fork in Japan, it’s done…continue reading

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com