News

Spain's new rules focus on smaller investors

The Spanish government published new draft regulations for the investment fund industry on Monday, intended to better protect small investors and increase the range of possible investments on offer. The new rules, which still must be approved by a high-level state council, could come into force in October, the Treasury said. The Spanish investment fund industry manages almost 300 billion, or $362 billion, on behalf of eight million investors. The new rules distinguish between hedge funds and exchange-traded funds for the first time. Under the regulations, funds will be able to invest up to 10 percent of their capital in hedge funds or venture capital firms, something they cannot do now. The minimum investment in a hedge fund is set at 50,000. Hedge funds can borrow at most five times their capital but they are exempt from some other regulations on commissions and investments that apply to funds in general. In the future, funds of hedge funds will be permitted, to give smaller investors access. (Reuters) Venture funds up 87.5% Forty-three U.S.-based venture capital funds raised $6.1 billion in the second quarter, an 87.5 percent increase from a year earlier, according to data released by Thomson Venture Economics and the National Venture Capital Association. The surge in venture capital fund-raising highlights the recent upswing in venture investing, which suffered a major downturn after the Internet bubble burst in 2000. Venture capital funds typically invest in early-stage companies. The second-quarter results represented a 6.5 percent increase over the previous quarter, when $5.7 billion was raised by 61 funds, according to the data. (Reuters) Putnam Investments said Paul Markkand, a manager of its $2.8 billion Vista fund, had resigned to manage money for another company. His departure comes as the once-struggling fund stages a comeback after Markkand and Kevin Divney adjusted the portfolio's holdings. (Reuters) Jean-Claude Trichet, the European Central Bank president, reiterated his argument that international agreement would be needed for regulations to be imposed on the hedge fund industry. "I strongly believe that any regulatory response, if it proves necessary, should be taken in a coordinated manner at the international level, with particular attention to the trans-Atlantic level, given the global nature of the hedge fund industry," Trichet said. (AFX) Zafar Ahmadullah, who manages a European stock mutual fund for Schroders, is leaving the company to set up his own fund management business. Gary Clarke, who was hired from Gartmore Investment Management in May, will take over management of the $6.5 billion Euro Equity Fund when Ahmadullah leaves at the end of October, said Lauren Stewart, a spokeswoman. Adriaan de Mol van Otterloo, who ran the company's European fund, is also leaving to start an asset management business, she said. (Bloomberg) Amvescap said it had rejected an approach for its Canadian operations from the Canada-based fund manager CI Financial on the grounds that the sale would "not be in the best interests of shareholders." (AFX)