Brian Bollen's Blog

KKR Closes African Fair Trade Deal

The second private equity news item of the day emerging from Africa strongly features Kohlberg Kravis Roberts & Co (KKR), a US firm which needs no introduction.

Afriflora, a Dutch company operating in Ethiopia with 450 hectares of land and 8,700 employees and which holds the position of the world's largest producer of fair trade roses, has attracted KKR as an investor, giving the firm its first foothold on African soil. For its part, Afriflora hopes to have found the perfect partner to achieve the company's growth ambitions.

Hi-de-Hi: Rutland Partners With Maplin

Rutland Partners confirms stories in the UK's weekend business press that it has invested GBP85 million in Maplin Electronics Limited, an electronics specialist retail chain.

It describes Maplin as an iconic brand with a tech-savvy customer base. Having started in 1972 as a small mail order business, Maplin has established itself as a national electronics chain with over 210 stores across the UK and Ireland. Its retail model is based on technological solutions and product advice built on a strong brand identity and a loyal customer base.

BlackRock Awards UK Tax Transparent Mandate

BlackRock has mandated BNY Mellon to provide custody, fund administration and trustee services for the UK’s first Tax Transparent Fund (TTF).

Further Evidence Of Government Banditry

Catching up on correspondence after returning from a stay in Switzerland, I have found a letter from HSBC, relating to an account that I haven't used in 15 years. “You may be aware that the Government has a scheme to make use of money held in accounts that have not been used for a number of years...with the money being used to benefit community, social and environmental projects.”

“Your account now falls within this category and will be included in the next transfer...”

There is so much wrong with this in principle that I scarcely know where to start. One, if I choose to leave money lying idle to infinity and beyond that is MY business. The fact that I haven't touched the contents of an account does not confer ownership rights upon Government (if a Conservative Government can simply confiscate an individual's property on a whim what implied rights to go further does that confer upon a Socialist Government? Oh, hang on, the first Thatcher Government did something very similar in the early 1980s with a 'windfall tax' on banks...).

Two, what happens next? The Government spots that I've tucked money under the mattress for a fortnight and decides that that makes it theirs? Remember, once a Government establishes a new principle of confiscation it is only a matter of time before the confiscation increases in scale and frequency. If you haven't grasped the point by now, I'll spell it out: this is Government banditry. Henry VIII and extremely wealthy monasteries spring immediately to mind. Keep an eye on your purses and wallets because the Government certainly is.

Speaking of which, did you know that the last Government, the one 'led' by Gordon Brown, had an insane taxation plan that would involve HMRC taking ALL of your PAYE earnings and doling it out to you again as it saw fit? When I last raised that issue with my accountant, he confirmed the plan was still alive.

HSBC attempts to put a gloss on the 15-year-old untouched account plans, by advising me that although I will be able to reclaim my balance at any time (pretty much a basic requirement of current account banking)...“we would prefer to reunite you with your money now”. But only if I go along to a branch and produce a driving licence, passport or a nationally recognised ID card.

I think I might have a bit of fun and do just that and demand the return of my balance. Just to see the look on their faces as I stand up for my legal rights. I want all £0.00 of it...

BlackRock wins new RQFII licence

In a move that optimists will likely portray as a further step forward in China's economic liberalization and internationalization, BlackRock has been awarded its second Renminbi Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission (CSRC).

Finland Turns To BNY Mellon

BNY Mellon reports that it has been appointed by Valtion Eläkerahasto (VER), the State Pension Fund of Finland, to provide global custody for all of its direct equity and fixed income instruments, which are valued in the region of €7.5bn.

Babies Are Such A Nice Way To Start People…

Mint – Blain’s Morning Porridge – June 27 2014

We’re just about at the half-year – and it’s been a pretty torrid one for many market participants. Trying to fathom direction has been very challenging – and looking at fund performance, many folk have been wrong-footed, again and again and again. I liken it to sailing – when the tide is changing, the currents can get very confusing. The thing is – we are at the bottom of the tide; global markets are moving from the crisis era 2007-2014 into a new tide. I’m hoping that’s going to be a positive tide… but who knows..

Benze Lam To Lead Northern Trust AM Greater China business

Northern Trust Asset Management has appointed Benze Lam as head of the Greater China region to support its continued focus on China. In this newly created role, it says that Lam will lead a team of relationship and sales experts dedicated to supporting Northern Trust Asset Management’s clients across Mainland China, Hong Kong, Macau and Taiwan.  

BNPPSS Wins ICG Collateral Mandate

BNP Paribas Securities Services has been appointed to provide a range of debt market services, including collateral administration, trustee and liquidity services, to Intermediate Capital Group (ICG) for the launch of its latest European collateralised loan obligation (CLO) deal, St. Paul’s CLO IV.

LSE To Buy Russell Investments

Northwestern Mutual says it has agreed to sell subsidiary company Russell Investments, to the London Stock Exchange Group plc (LSEG) for $2.7bn. It says the sale will be finalised later this year, pending regulatory and LSEG shareholder approvals and satisfaction of other closing conditions.

SGSS Trumpets New European UCITS Solution

Societe Generale Securities Services (SGSS) reports the launch of “Manco by SGSS”, a management company solution to assist asset managers seeking access to the European market to set up and market Undertakings for Collective Investments in Transferable Securities (UCITS).

Singapore Secondary Listing Could Be Easier

The Singapore Exchange's (SGX) recently announced proposals for a new regulatory framework could make it easier for established global companies from certain developed markets to seek a secondary listing in Singapore if implemented, says BNY Mellon. This move could be the key which unlocks the door to attracting an even greater number of overseas issuers which, in turn, could draw investors, improve market liquidity and strengthen Singapore's status as a world leading financial centre, the bank adds.

Mamadou-Abou Sarr to Lead ESG i

Mamadou-Abou Sarr has been named global head of Environmental, Social and Governance (ESG) investing at Northern Trust Asset Management, a newly created role designed to meet increasing demand for responsible investing strategies in markets worldwide.

BNY Mellon Realignment Moves Intrigue The Market

The news that significant senior staff moves are afoot at Bank of New York Mellon is doing the rounds at Fund Forum in Monte Carlo and spreading through the global custody world. Not the least of the  moves is the proposed departure of Tim Keaney, vice-chairman and CEO of investment services. The market is intrigued and asking whether the timing was deliberate, to coincide with Fund Forum.

Investment Manager Outsourcing On The Up

Anyone looking for new reading materials to fill whatever spare time they might have at Fund Forum in Monaco might enjoy a report by BNP Paribas Securities Services and Investit. They say they have found that asset management firms are increasingly looking to outsource their front office; the driving forces behind this include the need to keep pace with new regulatory requirements, advances in technology and the need to diversify in new markets and instruments.

If You Are A Famous Smuggler

Mint – Blain’s Morning Porridge – June 25 2014

If you are a famous smuggler, you’re doing it wrong…

I managed to sneak out the office for a few hours yesterday to attend Euromoney’s excellent Global Borrowers and Investors Forum. Great to see so many old friends from my days as a DCM originator.

A few interesting moments to share:

REST Renews State Street Contract

Catching up with recent news we find that REST Industry Super, Australia’s largest super fund by membership, is renewing its contract with State Street Corporation for the provision of a wide range of custodial and investment administration solutions for an additional two years.

Riverside Finds A Bone To Pick

Global private equity firm The Riverside Company has acquired Global Orthopaedic Technologies (Global), an Australian manufacturer and distributor of orthopaedic implants.

Global supplies implants and instrumentation for hip, knee, shoulder and spine surgeries, along with related orthobiologics; it has two research, design and manufacturing facilities in Bella Vista and Seven Hills in New South Wales.

Schynige Platte: A Trip To Remember

Finally took a local tourist marketing board-sponsored trip up Schynige Platte yesterday (June 22). I have to be careful not to offend the board, in effect bite the hand that feeds me complimentary tickets, but I also have to be honest in my assessment of the experience.

Let me start by saying that the journey up is pretty awesome, if only for the admiration it inspires of the people who decided to build a cog railway up such difficult terrain. I'm no surveyor but the gradient must have been 25-30% in some places. There were in fact parts of the journey where I found it literally imposible to stand up.

The scenery is, of course, spectacular, almost from start to finish (see sample below).

It is sometimes better to travel, however, than to arrive and I don't think I have ever found that saying to ring truer than in the case of Schynige Platte (which translates into English as Shining Slates: it gets its name from the way the slate glimmers in the sunshine). I found the facilities that awaited us at the top underwhelming. The much-vaunted Alpine Garden is a collection of pretty much everyday plants with the added attraction of a name tag identifying their genus and species.

The paths were almost without exception narrow and steep (as one expects in this region) making it an unviable option for someone of restricted mobility. The robust Swiss attitude to health and safety gives the impression that the paths (some of which exist purely in an existential or Platonic sense rather than in the concrete) are safer than they are. In particular, I find a sign that suggests you can safely start a six-hour hike to First at 17.00h downright alarming.

The toilet facilities at the station are basic, even Spartan, with just one small outside wash basin for both the ladies and gents, and this ran out of hand towels by about 13.00h. The self-service restaurant was shut but the tables were full of signs forbidding picnics. Speaking of which, as a picknicker, there was a clear lack of the picnic facilities that I thought had been made compulsory at such tourist attractions.

All in all, I was distinctly underwhelmed and by the time the excruciatingly uncomfortable downward journey was over I was ready for a shower and early to bed. If you like interesting train trips you'd probably enjoy the outward leg, but be warned that you'll be a physical wreck by the time you return to Wilderswil station. Take a tip if you're going to make the trip: you'll find a cushion a godsend on the way back down...

 

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Recent minutes and statements from the major central banks reveal that the US economy is in the Goldilocks zone – not too hot (think UK housing), not too cold (think eurozone deflation threat), but just right.