STAMFORD, Conn. - Initial new fundings of global/international allocations increased $14.3 billion in the first half of the year, according to a survey by InterSec Research Corp. That was 42% of the total for all of 1996, but more than 55% of full-year initial fundings in 1995.
Equity allocations represented the majority of new cross-border funding. Within that category, international still holds the largest share, InterSec found in its survey of 200 international managers.
Of the $14.3 billion of initial fundings, $8.3 billion went to active cross-border equity, while $2.4 billion represented active cross-border fixed-income mandates.
In this year's first half, new regional and small-cap international mandates were minuscule, while emerging markets activity was only 25% of what it was for all of 1996. However, InterSec points out the decline in emerging markets activity - like other categories surveyed - excludes allocations to existing pooled vehicles. But with emerging markets, the point is particularly significant because of investors' greater use of pooled vehicles for that investment segment. InterSec also found initial fundings of multiasset strategies increased $2.4 billion in this year's first half.
Paris Bourse helps update Warsaw exchange
WARSAW - The Warsaw Stock Exchange and the Paris Bourse plan to undertake a joint project to update the Warsaw exchange's electronic trading system.
The Warsaw exchange plans to buy the electronic trading system NSC-Supercac of the Paris Stock Exchange, and also the technology of Paris Bourse subsidiary GL Consultant for traders' workstations and operating systems.
The Warsaw Stock Exchange could start working with the NSC-Supercac system before year's end, and NSC-Derives (allowing equity derivative trading) could be launched in the spring of 1999. The exchange has 132 listed companies and a market cap of $13.8 billion.
Scottish mutual expands offerings
GLASGOW, Scotland - Scottish Mutual Portfolio Managers, the investment arm of Abbey National PLC, has expanded its offerings of funds in its relaunched pooled pension service.
The service, which will be available to U.K. defined benefit and defined contribution plans from Oct. 1, has added U.K. equity, international equity, long gilt and cash funds; and two new quarterly guaranteed funds, the Pooled Managed 95 and Managed 100 Controlled Risk Funds.
Glasgow-based Scottish Mutual's existing manager fund has returned upper quartile performance in the Combined Actuarial Performance Services Ltd. balanced fund universe for the two-and three-year periods ended June 30.
VESTEK SYSTEMS PROVIDES MARKET FORECASTS
SAN FRANCISCO - Vestek Systems Inc. launched a Country Alphas service that provides three-month forecasts for 21 global equity markets. It is geared to help money managers allocate investments among major equity markets. The San Francisco firm used economic, fundamental and technical factors, such as interest rates, expected economic growth and forecast growth in earnings. Using multivariate regression techniques, a specific model for each country was developed.
