\n<\/p>\n
Welcome to FT Asset Management, our weekly newsletter on the movers and shakers behind a multitrillion-dollar global industry. This article is an on-site version of the newsletter. Subscribers can sign up here to get it delivered every Monday. Explore all of our newsletters here.<\/p>\n
Does the format, content and tone work for you? Let me know: harriet.agnew@ft.com <\/p>\n
A pair of scoops to start<\/strong>: Chancellor Rachel Reeves<\/strong> is exploring reversing a decision to charge UK inheritance tax on the global assets of non-doms, following a spate of departures and lobbying by the City of London.<\/p>\n Hedge fund Millennium Management<\/strong> is working with Goldman Sachs<\/strong>\u2019 Petershill <\/strong>division to sell a 10-15 per cent stake to external investors at a $14bn valuation, as it presses ahead with plans to open up its ownership for the first time.\u00a0<\/p>\n In today\u2019s newsletter:<\/p>\n Trump SEC chair scraps proposed market rules as he charts new path<\/p>\n<\/li>\n Scottish Widows to slash UK equity exposure<\/p>\n<\/li>\n Emerging markets defy investor gloom to outshine developed world<\/p>\n<\/li>\n<\/ul>\n Donald Trump<\/strong>\u2019s top cop on Wall Street has thrown out more than a dozen rules put forward by his predecessor, in a move described by advocacy groups as \u201cpotentially very harmful to investors\u201d but hailed as a win for trade groups.\u00a0<\/p>\n Securities and Exchange Commission<\/strong> chair Paul Atkins<\/strong> bludgeoned 14 rules earlier this month that hadn\u2019t been enacted by the time Gary Gensler<\/strong> left office, in a fresh sign of the new administration\u2019s laissez-faire attitude to investment regulation, write my US colleagues Stefania Palma<\/em>, Harriet Clarfelt<\/em> and Eric Platt<\/em>.<\/p>\n The withdrawals have been lauded by the investment industry as good news, eliminating debate over which plans proposed by the Gensler-era SEC would be put into practice by the next.<\/p>\n \u201cIt doesn\u2019t mean they\u2019ve abandoned the policy goals,\u201d according to Lance Dial<\/strong>, partner at law firm K&L Gates<\/strong>, who said the SEC could reintroduce the measures in different ways. Still, \u201cgood riddance\u201d to most of the 14 rules, he added. \u201cThey were not ones that the industry really favoured.\u201d<\/p>\n Among the scrapped proposals by Atkins, a champion of light-touch regulation, were a measure attempting to manage how artificial intelligence is used to give financial advice to investors.\u00a0<\/p>\n Another rule also thrown out would have required investors to disclose their positions in opaque derivative trades because of the potential for them to mask outsized holdings that posed systemic risks. That rule was opposed by activist investors including Elliott Management<\/strong>.<\/p>\n Atkins, a digital asset advocate, also withdrew a proposal to define a securities \u201cexchange\u201d in a way that captured decentralised peer-to-peer digital currency platforms.<\/p>\n But while the investment industry has cheered Atkins\u2019 withdrawals as a sign that the SEC is now back within the parameters of its mandate, it\u2019s still waiting to see the new chair\u2019s own regulatory schedule.\u00a0<\/p>\n \u201cWe don\u2019t know in what direction Atkins will take the rulemaking agenda,\u201d said Aaron Schlaphoff<\/strong>, a partner at Paul Weiss<\/strong>. \u201cVery little has been said about that.\u201d<\/p>\n For the full list of the 14 scrapped rules click here<\/p>\n Just as lots of big investors have been reassessing and reducing their exposure to the US after Donald Trump<\/strong>\u2019s erratic tariff policy upended the outlook for global markets, one of the UK\u2019s largest pension funds managers is bucking the trend.\u00a0<\/p>\n Lloyds<\/strong>-owned Scottish Widows,<\/strong> which manages \u00a372bn of workplace pension assets in its default funds, is about to deliver a major revamp of its asset allocation, writes Mary McDougall <\/em>in London. This will see its North American equity exposure rise from 46 per cent to 65 per cent by January in its highest-risk portfolio, according to documents reviewed by the Financial Times<\/em>.\u00a0<\/p>\n Its lower-risk portfolio would increase US stocks from 17 per cent to 25 per cent, according to the planned allocations described as \u201cindicative\u201d that could still change.\u00a0\u00a0<\/p>\n The move involves a plan to sell billions of pounds worth of UK stocks, the latest blow to Britain\u2019s ailing stock market, where delistings are outpacing initial public offerings and there is a gulf in valuations between UK and US-listed companies. It comes just as ministers are trying to persuade domestic retirement funds to invest more in companies at home.\u00a0<\/p>\n The 210-year-old firm is planning to lower allocation to UK equities from 12 per cent to 3 per cent by January next year, while the lower risk portfolio would reduce exposure from 4 per cent to 1 per cent.\u00a0<\/p>\n Scottish Widows said its new approach \u201ctakes a market weight allocation to global equities by default, in line with similar propositions from other pension providers\u201d.<\/p>\n The planned changes come after Scottish Widows last month refused to sign a pledge by 17 providers to invest at least 5 per cent of their default funds in British private market assets by 2030 in the Mansion House Accord. It was the only big UK pension fund manager to do so.<\/p>\n Currencies, stocks and bonds in developing countries are defying US President Donald Trump<\/strong>\u2019s trade war and the conflict in the Middle East to outperform global markets in 2025, after years in the shadow of a strong dollar, write Joseph Cotterill<\/em> and Emily Herbert<\/em> in London.<\/p>\n A JPMorgan<\/strong> index of the local currency bonds of large emerging markets and an MSCI <\/strong>gauge of their shares have each gained about 10 per cent so far this year. In comparison, the MSCI World index, covering large stocks across 23 developed economies, is up 4.8 per cent, while the FTSE World Government Bond index is up 6.6 per cent.<\/p>\n Despite initial expectations that developing economies would be hit hardest by a global trade war, investors have warmed to these markets in recent months, as they look to diversify away from dollar assets amid concerns over erratic US policymaking.<\/p>\n \u201cSuddenly, it makes emerging market local currency debt great again,\u201d said Damien Buchet<\/strong>, chief investment officer of Principal Finisterre<\/strong>.<\/p>\n Investors are now returning to markets that had previously been very much out of favour and on lowly valuations, or offering attractive yields when adjusted for inflation. Emerging market stocks have dropped to about 5 per cent of the assets under management in global equity funds, compared with more than 10 per cent before 2013, according to JPMorgan analysts.<\/p>\n Even this year investors have pulled more than $28bn net out of emerging markets shares and bond funds overall, according to JPMorgan data. That largely reflects $22bn that was withdrawn in April, at the peak of concerns over the impact of US tariffs on global growth, although a net $5bn came back in during May and June.<\/p>\n \u201cEmerging market local currency assets had been underinvested for a number of years,\u201d said Kevin Daly<\/strong>, co-head of CEEMEA economics at Goldman Sachs<\/strong>. \u201cEven small inflows are having arguably disproportionately large effects.\u201d<\/p>\n Howard Marks<\/strong>, co-founder of $200bn alternatives manager Oaktree Capital Management<\/strong>, has called on China to open up more \u201casset classes\u201d to foreign investors as he set out an upbeat view of the world\u2019s second-largest economy.<\/p>\n Redinel Korfuzi,<\/strong> a former Janus Henderson<\/strong> analyst who used working from home as a cover for insider trading, making profits of nearly \u00a31mn, has been found guilty in one of the most high-profile UK insider dealing cases in recent years.\u00a0<\/p>\n German prosecutors have closed their criminal investigation into former DWS <\/strong>chief executive Asoka W\u00f6hrmann<\/strong> over greenwashing allegations, opting not to press charges in the wake of fines for Deutsche Bank<\/strong>\u2019s asset management arm in the US and Germany.<\/p>\n When UK asset manager Aberdeen Group<\/strong> renamed itself four years ago as Abrdn<\/strong>, the new moniker stood out \u2014 arguably for the wrong reasons. Here are the lessons from Abrdn\u2019s disastrous rebrand.<\/p>\n Legal & General<\/strong> is doubling down on its asset management business as it seeks to expand internationally and sell more private-market products to customers ranging from pension schemes to wealth managers.<\/p>\n \u2018Hyphen\u2019 (1999) by Jenny Saville <\/span> \u00a9 Private collection courtesy of Gagosian; \u00a9 Jenny Saville<\/span><\/p>\n Jenny Saville<\/strong>: The Anatomy of Painting<\/em>, now showing at the National Portrait Gallery in London, exemplifies \u201chorror rendered with feather-light tenderness,\u201d writes art critic Hettie Judah<\/em>. \u201cThe best works in this career-spanning show are proof of an artist with prodigious and audacious talents,\u201d she says.<\/p>\n Thanks for reading. If you have friends or colleagues who might enjoy this newsletter, please forward it to them. Sign up here<\/p>\n We would love to hear your feedback and comments about this newsletter. Email me at harriet.agnew@ft.com <\/p>\n The Week Ahead<\/strong> \u2014 Start every week with a preview of what\u2019s on the agenda. Sign up here<\/p>\n Working It<\/strong> \u2014 Everything you need to get ahead at work, in your inbox every Wednesday. Sign up here<\/p>\n","protected":false},"excerpt":{"rendered":" Welcome to FT Asset Management, our weekly newsletter on the movers and shakers behind a multitrillion-dollar global industry. This article is an on-site version of the newsletter. Subscribers can sign up here to get it delivered every Monday. Explore all of our newsletters here. Does the format, content and tone work for you? Let me<\/p>\n","protected":false},"author":1,"featured_media":9367,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[49],"tags":[1546,1547,1545,1548,666,259],"class_list":{"0":"post-9366","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-bids","9":"tag-good","10":"tag-industry","11":"tag-riddance","12":"tag-rules","13":"tag-sec"},"_links":{"self":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/9366","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9366"}],"version-history":[{"count":0,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/posts\/9366\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=\/wp\/v2\/media\/9367"}],"wp:attachment":[{"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9366"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9366"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/naijaglobalnews.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9366"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
Out with the old SEC rules\u2009.\u2009.\u2009.\u2009In with the new?<\/h2>\n
Scottish Widows to slash UK equity exposure<\/h2>\n
Chart of the week<\/h2>\n
Five unmissable stories this week<\/h2>\n
And finally<\/h2>\n
Recommended newsletters for you<\/h3>\n