Financial_Times_Asia_-_April_6_2020

2 | FTfm FINANCIAL TIMESMonday6 April 2020

NEWS

was in response to “a signifi-

cant shift in risk tolerance

towards illiquid or unquoted

assets in the last year”, as well

as the “market dislocation and

opportunities arising”. The

fund manager said large and

mid-cap quoted companies

had been “heavily discounted,

well below our assessment of

theirtruevalue”.

But the move marks a

U-turn for Invesco, which had

emphasised the differences

between Mr Barnett’s strategy

andthatofMrWoodford.

FT Adviser, a Financial

Times’ publication, first

reported news of the asset

valuewritedown.

largest equity fund domiciled

in the UK and is popular with

British savers and pension

funds, had lost a third of its

valuein2020.

At the end of March, the

unlisted component for High

Income stood at 8.4 per cent

and 9.1 per cent for the Income

fund, placing them close to a

10 per cent regulatory cap on

unquotedinvestments.

Invesco said its decision to

offload its unlisted holdings

liquidity crisis similar to the

one that felled Mr Woodford,

the former star UK stock-

picker who had been Mr Bar-

nett’smentor,byvowingtosell

the unlisted component of

both funds and reinvest the

proceeds in publicly traded

largeandmid-capcompanies.

The coronavirus-induced

market swings of the past

month have pummelled Mr

Barnett’sfunds,depressingthe

valueofitspublicholdingsand

increasing the weighting of

unlisted investments relative

totherestoftheportfolio.

Morningstar, the data pro-

vider, two weeks ago said High

Income, which is the fourth-

S I O B H A N R I D I N G

Invesco’s Mark Barnett has

suffered a significant mark

down in the value of his

unlisted investments, forcing

the fund manager to pledge

the problem assets will be

ditched to avoid a Neil Wood-

ford-style liquidity crunch.

The US group has applied a

60 per cent writedown to the

value of the unquoted compa-

nies held in the £3.4bn High

Income and £1.5bn Income

funds, triggering falls of about

5 per cent in the net asset val-

uesofthefunds.

Invesco sought to distance

itself from the prospect of a

Invesco cuts Barnett’s unquoted assets

G E O R G E H A M M O N D A N D
S I O B H A N R I D I N G

A new wave of UK property
funds including vehicles man-
aged by BlackRock and Schro-
ders has been forced to sus-
pendtrading,pushingthetotal
amount locked in such funds
as a result of the coronavirus
outbreaktocloseto£17bn.
Trading was halted after
property companies such as
Knight Frank, CBRE and JLL
said they could not accurately
value real estate in the UK,
with the pandemic having
forced the closure of shops,
bars and offices, and derailed
almost all deals for commer-
cialbuildings.
The suspension of the
£3.4bn BlackRock UK Prop-
erty and the £2.4bn Schroder
UK Real Estate funds — which
have quarterly or monthly
redemptions and are typically
held by institutional investors
— follows the gating of more
frequently traded funds in
mid-March, which have a
greater proportion of retail
investors.
Five institutional funds
managedbyRoyalLondonand
Legal & General also featured
in the latest round of suspen-
sions.
“The basic issue is the same:
there’s fundamental uncer-
tainty over the net asset
value,”saidindependentprop-
erty consultant John Forbes.
“That’s compounded if the
rent income doesn’t arrive.
That potentially makes the

valuation more challenging.”

On March 31, the valuation

date for both monthly and

quarterly traded funds, valu-

ers deemed there was “mate-

rial uncertainty” as to the

value of the underlying assets

in the funds, which prompted

thesuspensions.

Material uncertainty “is still

goingtobehereonJune30.I’m

incredibly doubtful that we’ll

be through this on September

30. They can’t resume trading
    untilthen,”saidMrForbes.
    In the meantime, funds can
    continue to charge fees to cli-
    ents. “They still need to man-
    age the funds: arguably they
    need to do even more,” said Mr
    Forbes.
    Schroders said its property
    fund was “robust” and had a
    low allocation to the retail sec-
    torat14percentofitsnetasset
    value. Legal & General said its
    fundhad“appropriatelevelsof
    cash liquidity”, adding that its
    assets were diversified across
    geographyandsectors.
    Unlike retail investors in
    dailytradedfunds,institutions
    holding monthly or quarterly
    traded funds had access to a
    secondary market where they
    couldcontinuetotradedespite
    thesuspensions.
    Daily traded property funds
    have been hit by significant
    outflows over the past year,
    creating liquidity risk chal-
    lenges for asset managers. In
    December, M&G suspended its
    £2.3bnfundafteritwasunable
    to sell properties to keep pace
    with a surge of investor
    redemptions. The M&G fund
    remains suspended. Including
    this fund, total investor assets
    trapped in UK property funds
    standat£18.9bn.

BlackRock and

Schroders freeze

property funds

SUSPENSION

Trading halted after

coronavirus throws

doubt on valuations

Invesco’s Mark Barnett is a former protégé of fallen star manager Neil Woodford— Alamy/FT montage

The decision was made

after ‘a significant shift

in risk tolerance towards

illiquid assets’

ReporterSiobhan Riding

Tel: +44 (0) 20 7873 4469

email: [email protected]

ProductionElena Losavio

Tel: +44 (0) 20 7873 3877

email: [email protected]

AdvertisingTom Da Costa

Tel: +44 (0) 20 7873 4569

email: [email protected]

FINANCIAL TIMES

Bracken House, 1 Friday Street,

London EC4M 9BT

+44 (0) 20 7873 3000

© The Financial Times Limited 2020.

Reproduction of the contents of FTfm in any

manner is not permitted without the

publisher’s prior consent. “FINANCIAL TIMES”

and “FT” are registered Trade Marks and

Service Marks of the Financial Times Limited

EditorPeter Smith
Tel: +44 (0) 20 7775 6382
email: [email protected]

Deputy editorOwen Walker
Tel: +44 (0) 20 7873 4408
email: [email protected]

Investment correspondent
Attracta Mooney
Tel: +44 (0) 20 7775 6237
email: [email protected]

ReporterChris Flood
Tel: +44 (0) 20 7873 3892
email: [email protected]

fm

continuedfrompage1

The China Securities Regu-

latory Commission said last

week it had accepted applica-

tions from BlackRock and US

investment manager Neu-

berger Berman, as authorities

removed restrictions on fully

foreign-owned fund manage-

mentcompanies.

JPMorgan Asset Manage-

ment, which had global assets

of just over $2tn at the end of

December,had$40bninassets

managed for clients in China

three months ago. That figure

excludes funds managed for

international investors invest-

ing in Chinese assets such as

ChinaA-shares.

As well as CIFM, it set up a

wholly foreign-owned entity,

JPMorgan Asset Management

(China) Limited, in 2016, and

last December announced a

third prong to its China strat-

egy after agreeing a strategic

partnership with China Mer-

chantsBank.

CIFM was formed in 2004

a n d h a d g r o w n t o

have Rmb150bn ($21bn) in

assetsasofDecember.

JPMorgan pays $1bn for

China fund venture

China is the third-largest

asset management market

continuedfrompage1

capital ratio of 15.9 per cent at

the end of 2019. The dividend

suspension coincided with a

similar move by Crédit Agri-

cole. Amundi had raised its

dividend to €3.10 in February

following two consecutive

quarters of inflows. The fund

managersaiditwouldparkthe

capital in its reserve account

and would consider distribut-

ing it to shareholders in the

secondhalfof2020.

Marina Cremonese, a senior

analyst at Moody’s rating

agency, said asset managers

tied to banks were more likely

to withhold their dividends,

along with fund managers that

were overly indebted. But she

added few groups fell into

these categories as fund man-

agers had deleveraged since

the 2008 financial crisis. “We

might see that for some asset

managers, this is a way to pre-

serve some cash,” she said.

“Some will be feeling the pres-

sureandneedtocutcosts.”

Analysts at Jefferies said it

was “highly likely” that Ger-

man-listed DWS would follow

Amundi’s lead. But the invest-

ment group, which is majority

owned by Deutsche Bank, told

FTfm it had not yet made a

decision on whether it would

cancel, cut or suspend its 2019

dividend, which stands at

€1.67pershare.

Two Italian wealth manag-

ers with banking licences,

Banca Generali and Banca

Mediolanum, said they would

withholdtheir2019dividends.

Additional reporting by Peter

Smith

Amundi to suspend

dividends after AGM

FINANCIAL TIMESMonday 6 April 2020 FTfm| 11

FTfm

Fund Bid Offer D+/- Yield

Pictet Asset Management (Europe) SA (LUX)

15, Avenue J.F. Kennedy L-1855 Luxembourg

Tel: 0041 58 323 3000

FCA Recognised

Pictet-Absl Rtn Fix Inc-HI EUR €107.77 - -0.12 0.00

Pictet-Asian Equities Ex Japan-I USD F$263.84 - 2.25 0.00

Pictet-Asian Local Currency Debt-I USD F$167.00 - -0.10 0.00

Pictet-Biotech-I USD F $829.65 - 30.460.00

Pictet-CHF Bonds I CHF SFr488.46 - 0.60 0.00

Pictet-China Index I USD $143.15 - 1.73 0.00

Pictet-Clean Energy-I USD F $ 88.11 - 1.25 0.00

Pictet-Digital-I USD F $378.52 - 2.88 0.00

Pictet-Em Lcl Ccy Dbt-I USD F $157.45 - -0.20 0.00

Pictet-Emerging Europe-I EUR F €333.24 - 15.660.00

Pictet-Emerging Markets-I USD F $527.10 - 3.66 0.00

Pictet-Emerging Markets Index-I USD F$234.41 - -5.96 0.00

Pictet-Emerging Corporate Bonds I USD$116.86 - 0.03 0.00

Pictet-Emerging Markets High Dividend I USD$104.13 - 1.21 0.00

Pictet-Emerging Markets Sust Eq I USD$ 83.40 - 1.40 0.00

Pictet-EUR Bonds-I F €616.01 - -0.79 0.00

Pictet-EUR Corporate Bonds-I F €204.46 - -0.13 0.00

Pictet-EUR Government Bonds I EUR€174.85 - -0.01 0.00

Pictet-EUR High Yield-I F €249.52 - 0.86 0.00

Pictet-EUR Short Mid-Term Bonds-I F€135.19 - 0.23 0.00

Pictet-EUR Short Term HY I EUR €111.76 - -0.98 0.00

Pictet-EUR Sov.Sht.Mon.Mkt EUR I€100.33 - 0.00 0.00

Pictet-Euroland Index IS EUR €124.68 - 0.83 0.00

Pictet-Europe Index-I EUR F €163.55 - 0.89 0.00

Pictet-European Equity Selection-I EUR F€499.21 - 0.23 0.00

Pictet-European Sust Eq-I EUR F €244.64 - 1.41 0.00

Pictet-Global Bds Fundamental I USD$125.54 - -0.50 0.00

Pictet-Global Bonds-I EUR €195.83 - 0.26 0.00

Pictet-Global Defensive Equities I USD$160.98 - 2.44 0.00

Pictet-Global Emerging Debt-I USD F$389.24 - 0.30 0.00

Pictet-Global Env.Opport-I EUR €210.01 - 4.29 0.00

Pictet-Global Megatrend Selection-I USD F$261.69 - 1.97 0.00

Pictet-Global Sust.Credit HI EUR €148.03 - 0.10 0.00

Pictet-Greater China-I USD F $625.69 - -11.360.00

Pictet-Health-I USD $286.21 - 4.85 0.00

Pictet-SmartCity-I EUR €171.57 - 2.47 0.00

Fund Bid Offer D+/- Yield

Pictet-India Index I USD $ 86.59 - -3.20 0.00

Pictet-Indian Equities-I USD F $405.56 - -10.950.00

Pictet-Japan Index-I JPY F ¥15172.19 - -210.310.00

Pictet-Japanese Equities Opp-I JPY F¥9285.35 - 7.09 0.00

Pictet-Japanese Equity Selection-I JPY F¥13351.59 - -12.470.00

Pictet-LATAM Lc Ccy Dbt-I USD F$115.62 - 0.39 0.00

Pictet-Multi Asset Global Opportunities-I EUR€120.55 - -0.86 0.00

Pictet-Nutrition-I EUR €204.42 - 1.12 0.00

Pictet-Pacific Ex Japan Index-I USD F$340.63 - -5.22 0.00

Pictet-Premium Brands-I EUR F €163.25 - -0.44 0.00

Pictet-Russia Index I USD $ 71.50 - 3.31 0.00

Pictet-Russian Equities-I USD F $ 67.49 - 4.07 0.00

Pictet-Security-I USD F $245.37 - 2.15 0.00

Pictet-Small Cap Europe-I EUR F €1077.35 - -0.05 0.00

Pictet-ST Emerg Local Currency Debt-I USD F$ 94.02 - 0.16 0.00

Pictet-ST.MoneyMkt-I €138.05 - 0.00 0.00

Pictet-ST.MoneyMkt JPY I USD ¥100703.09 - -3.45 0.00

Pictet-ST.MoneyMkt-ICHF SFr119.86 - 0.04 0.00

Pictet-ST.MoneyMkt-IUSD $145.56 - 0.03 0.00

Pictet-Timber-I USD F $133.32 - 0.27 0.00

Pictet-US High Yield-I USD F $152.67 - -0.52 0.00

Pictet-USA Index-I USD F $234.99 - 5.26 0.00

Pictet-USD Government Bonds-I F$769.83 - 0.75 0.00

Pictet-USD Short Mid-Term Bonds-I F$141.43 - 0.07 0.00

Pictet-USD Sov.ST.Mon.Mkt-I $109.56 - 0.02 0.00

Pictet-Water-I EUR F €342.69 - 5.28 0.00

Platinum Capital Management Ltd

Other International Funds

Platinum All Star Fund - A $129.11 - - -

Platinum Global Growth UCITS Fund$ 9.24 - 0.03 0.00

Platinum Essential Resources UCITS Fund SICAV USD Class E$ 6.40 - 0.17 0.00

Platinum Global Dividend UCITS Fund$ 45.75 - 0.73 0.00

Polar Capital Funds Plc (IRL)

Regulated

Automation & Artificial Intelligence CL I USD Acc$ 10.44 10.44 0.04 0.00

Fund Bid Offer D+/- Yield

Asian Financials I USD $298.69298.69-0.89 0.00

Biotechnology I USD $ 23.80 23.80 0.41 0.00

Emerging Market Stars I USD Acc$ 8.71 - 0.10 0.00

European Ex UK Inc EUR Acc € 9.57 9.57 0.11 0.00

Financial Opps I USD $ 8.95 - 0.11 3.42

GEM Income I USD $ 9.12 - 0.07 0.00

Global Convertible I USD $ 11.77 11.77 -0.10 0.00

Global Insurance I GBP £ 5.86 - 0.11 0.00

Global Technology I USD $ 49.52 - 0.32 0.00

Healthcare Blue Chip Fund I USD Acc$ 12.33 12.33 0.22 0.00

Healthcare Opps I USD $ 43.34 - 0.77 0.00

Income Opportunities B2 I GBP Acc£ 1.71 1.71 -0.01 0.00

Japan Value I JPY ¥ 87.81 87.81 -1.23 -

North American I USD $ 19.56 19.56 0.20 0.00

UK Absolute Equity I GBP £ 15.14 15.14 0.27 0.00

UK Val Opp I GBP Acc £ 8.36 8.36 -0.10 0.00

Polar Capital LLP (CYM)

Regulated

European Forager A EUR €196.48 - -12.250.00

Private Fund Mgrs (Guernsey) Ltd (GSY)

Regulated

Monument Growth 31/03/2020 £424.96429.1033.101.80

Prusik Investment Management LLP (IRL)

Enquiries - 0207 493 1331

Regulated

Prusik Asian Equity Income B Dist$138.70 - -0.33 6.05

Prusik Asia Emerging Opportunities Fund A Acc$105.08 - 1.06 0.00

Prusik Asia Fund U Dist. £149.63 - 1.62 0.00

Purisima Investment Fds (CI) Ltd (JER)

Regulated

PCG B 189.95 - -3.14 0.00

PCG C 185.85 - -3.07 0.00

Ram Active Investments SA

http://www.ram-ai.com

Other International Funds

RAM Systematic Emerg Markets Eq$137.02 - 1.35 -

RAM Systematic European Eq €340.48 - 0.99 -

Fund Bid Offer D+/- Yield

RAM Systematic Funds Global Sustainable Income Eq$ 93.26 - 0.42 -

RAM Systematic Long/Short Emerg Markets Eq$107.07 - -0.20 -

RAM Systematic Long/Short European Eq€135.59 - -0.28 -

RAM Systematic North American Eq$255.63 - 4.99 -

RAM Tactical Global Bond Total Return€145.08 - 0.02 -

RAM Tactical II Asia Bond Total Return$144.44 - -0.28 -

Ruffer LLP (1000)F (UK)

65 Gresham Street, London, EC2V 7NQ

Order Desk and Enquiries: 0345 601 9610

Authorised Inv Funds

Authorised Corporate Director - Link Fund Solutions

LF Ruffer European C Acc 503.76 - -11.840.81

LF Ruffer European C Inc 92.02 - -2.16 0.73

LF Ruffer European O Acc 492.31 - -11.570.42

LF Ruffer Equity & General C Acc 415.52 - 3.36 0.55

LF Ruffer Equity & General C Inc 380.77 - 3.08 0.55

LF Ruffer Equity & General O Acc 406.11 - 3.28 0.21

LF Ruffer Equity & General O Inc 375.99 - 3.04 0.23

LF Ruffer Gold C Acc 184.30 - -3.39 0.00

LF Ruffer Gold C Inc 111.54 - -2.06 0.00

LF Ruffer Gold O Acc 180.06 - -3.31 0.00

LF Ruffer Japanese C Inc 118.95 - -3.31 0.55

LF Ruffer Japanese C Acc 255.43 - -7.11 0.35

LF Ruffer Pacific & Emerging Markets C Acc 305.76 - -4.81 1.51

LF Ruffer Pacific & Emerging Markets C Inc 84.04 - -1.32 1.38

LF Ruffer Pacific & Emerging Markets O Acc 298.55 - -4.70 1.19

LF Ruffer Total Return C Acc 443.46 - -5.49 1.53

LF Ruffer Total Return C Inc 287.94 - -3.56 1.55

LF Ruffer Total Return O Acc 433.37 - -5.37 1.53

LF Ruffer Total Return O Inc 281.23 - -3.49 1.55

RobecoSAM (LUX)

Tel. +41 44 653 10 10 http://www.robecosam.com/

Regulated

RobecoSAM Sm.Energy/A £ 16.15 - 0.18 1.78

RobecoSAM Sm.Energy/N € 15.30 - 0.20 0.00

RobecoSAM Sm.Materials/A £142.53 - 0.11 2.05

RobecoSAM Sm.Materials/N €153.10 - 0.41 0.00

RobecoSAM Sm.Materials/Na € 99.84 - 0.27 1.65

RobecoSAM S.HealthyLiv/B €200.46 - 2.01 0.00

RobecoSAM S.HealthyLiv/N €192.92 - 1.94 0.00

RobecoSAM S.HealthyLiv/Na £140.06 - 1.14 1.55

Fund Bid Offer D+/- Yield

RobecoSAM S.Water/A £217.90 - 3.90 1.89

RobecoSAM S.Water/N €195.94 - 3.87 0.00

Rubrics Global UCITS Funds Plc (IRL)

http://www.rubricsam.com

Regulated

Rubrics Emerging Markets Fixed Income UCITS Fund$132.42 - -0.20 0.00

Rubrics Global Credit UCITS Fund$ 16.32 - 0.02 0.00

Rubrics Global Fixed Income UCITS Fund$181.34 - 0.04 0.00

Q Rubrics India Fixed Income UCITS Fund$ 10.88 - 0.03 0.00

Rubrics India Fixed Income UCITS Fund$ 94.81 - 0.32 0.00

Slater

Investments

Slater Investments Ltd (UK)

http://www.slaterinvestments.com; Tel: 0207 220 9460

FCA Recognised

Slater Growth 446.17446.17-3.07 0.00

Slater Income A Inc 103.90103.90-1.83 0.00

Slater Recovery 218.43218.43-1.08 0.00

Slater Artorius 181.99181.996.96 0.57

Stonehage Fleming Investment Management Ltd(IRL)

http://www.stonehagefleming.com/gbi

[email protected]

Regulated

SF Global Best Ideas Eq B USD ACC$165.29 - 2.71 0.00

SF Global Best Ideas Eq D GBP INC£202.58 - 4.06 0.12

Toscafund Asset Management LLP (UK)

http://www.toscafund.com

Authorised Funds

Aptus Global Financials B Acc £ 2.30 - 0.00 8.31

Aptus Global Financials B Inc £ 1.63 - -0.01 11.67

Fund Bid Offer D+/- Yield

Toscafund Asset Management LLP

http://www.toscafund.com

Tosca A USD $340.91 - -2.27 -

Tosca Mid Cap GBP £267.95 - -46.53 -

Tosca Opportunity B USD $408.63 - -67.52 -

Pegasus Fund Ltd A-1 GBP £ 64.40 - -11.090.00

WA Fixed Income Fund Plc (IRL)

Regulated

European Multi-Sector €110.23 - -0.04 0.00

Yuki - Co, LLC (IRL)

Tel +18015545191 http://www.yukifunds.com

Regulated

Yuki Mizuho Umbrella Fund

Yuki Mizuho Japan Dynamic Growth¥5059.00 - 5.00 0.00

Yuki Japan Low Price ¥25746.00 - -725.000.00

Yuki Asia Umbrella Fund

Yuki Japan Rebounding Growth Fund JPY Class¥21861.00 - 3.00 0.00

Yuki Japan Rebounding Growth Fund USD Hedged Class$896.20 - 0.27 0.00

Zadig Gestion (Memnon Fund) (LUX)

FCA Recognised

Memnon European Fund - Class U2 GBP£147.56 - 1.20 0.00

Data Provided by

http://www.morningstar.co.uk

Data as shown is for information purposes only. No

offer is made by Morningstar or this publication.