WM 10final_Layout 1 7/11/19 12:15 PM Page 25 ● How major equities indices performed during the fifth month of the year p.3 ● Stock Exchanges World Map p.5 ifo Institute Dorine WORLD Boumans Survey Specialist "The global economy is said to gradually MarkeFinancial Markets Insights ts strengthen again" p. 07 Freely Distributed ⎥ Monthly Edition ⎥ Volume II ⎥ Issue 10 ⎥ June 2019 Geraldine Weiss East & SE Europe London-Shanghai The female guru of blue chip stocks Monthly performance reports and The long-awaited stock LISTING STOCK EXCHANGES p.03 INVESTORS and publisher of IQT p.06 statistics from the region p.02 connect finally goes live TRADING IN THE SPOTLIGHT Swiss-EU stock market battle kicks off Kyriaki I. Balkoudi Investors in the EU and Switzerland find it harder to access each others's bourses U stock exchanges will no civil aviation, industrial standards along ordinance is going to be activated with ef- longer be able to trade in Swiss with equivalence for Switzerland’s finan- Switzerland’s Stock fect from 1 July 2019, as the European companies from Monday (July cial services sector. The proposed accord, Commission will most probably no longer David Marsh Chairman and 1) as talks on a political agree- which would require the country to adopt Market is Europe’s recognise the Swiss legal framework as Co-Founder of OMFIF ment between Brussels and EU single market rules, has been opposed Fourth Largest equivalent. “Activating the protective Bern seem to have failed. both by the political right and labour measure with regard to trading venues in unions on the left in Switzerland for in- the EU serves solely to protect the func- Public The government of non-EU member fringing national sovereignty. The rich U.K $3.3tn tioning of the Swiss stock exchange infra- investors play Switzerland said Thursday (June 27) it Alpine nation received a one-year exten- structure” the Swiss government stated. will block trading of Swiss shares in sion to agree to Brussels’ demands in late FR $2.6tn SIX, the operator of Switzerland's main it safe in the 28-country EU after the European 2017, and a further six-month extension exchange, welcomed the Swiss decision to Commission announced that it saw no at the end of 2018, which expires on Sun- DE $2.1tn activate the protective measures. Switzer- blustery times reason to extend the “equivalence sta- day, June 30. land's stock market is Europe’s fourth tus” it has granted Swiss stock exchanges CH $1.7tn largest. About one-third of trading in External fund managers barely beyond June 30. “Equivalence” makes a Contingency measure Swiss shares currently takes place within get a look in on the $37.8 trillion trade on the Swiss stock market equiva- ES $710bn the EU. The EU is Switzerland's largest held under the auspices of large lent to a trade on an exchange in an EU In November 2018, the Swiss Federal trading partner and Switzerland is the EU's government-owned investors country, allowing trades to be pooled Council adopted an ordinance to safeguard IT $610bl third-largest trading partner, after the US globally, according to OMFIF’s across countries, something that supports and strengthen the functioning of the and China. Swiss elections are approach- latest annual report. Almost 70 per world trade and improves international Swiss capital market. If the recognition of ing and will take place in October. As cent of the 750 institutions cap- market liquidity. Switzerland and the EU equivalence is not extended, this measure Market capitalisation politicians are entering election mode, tured by the Global Public In- of listed companies are embroiled in an ongoing dispute over shall ensure that EU market participants Swiss officials say there is no point signing vestor 2019 survey – that includes a broader deal that is designed to replace continue to have access to the Swiss do- Source: Bloomberg a deal now that will likely not be passed 86 sovereign wealth funds, 173 a patchwork of treaties governing areas mestic market and continue to be able to Note: Data as of June 26, 2019 by parliament or be voted down under the central banks and 491 public pen- as diverse as immigration, agriculture, trade Swiss shares there. The Swiss system of direct democracy. sion funds – allocate between 0- 10 per cent to external managers. The reluctance to outsource re- flects the “fairly conservative” na- ture of the government institutions that follow mainly risk-averse in- Greg Coffey vestment strategies, the report compiled by the Official Mone- GREAT ▶ A hedge fund maestro's blockbuster return to the industry tary and Financial Institutions TRADERS Forum (OMFIF) says. OMFIF is icknamed "The Wizard of Oz", in aged 41 and to retire after 20 years in an independent forum for central based on his past trading successes, the industry, to spend more time with his banking, economic policy and There’s Greg Coffey is an Australian hedge wife and three children in London, Aus- public investment with offices in life N fund manager. Coffey, who gradu- tralia, and on the remote Scottish island of London and Singapore. outside ated with a Bachelor of Economics Jura (population 196), where he owns a Government in- trading from Macquarie University in 1995, 12,000 acre estate and golf course. In started his career at Macquarie Bank in 2018, Coffey, known for taking multiple vestor AUM on 1993. The next year he traded emerging- trading screens on family holidays, had a the rise market equity derivatives at Bankers change of heart and made a comeback. He Trust and Deutsche Bank AG. He was launched in London Kirkoswald Capital, a Over the 2018 calendar year total hired by Blueborder Partners and was then new fund named after the Australian street public investor assets under man- hired by Bank Austria to oversee global he has a house on. The fund which moved agement (AUM) rose 3.7 per cent. equity proprietary trading. He worked for its trading desk to New York returned Sovereign wealth funds saw the London-based GLG Partners from 2003 to 6.9% year to date through the end of May, highest growth rate of almost 8 2008 managing about $7bn and then for according to a private database viewed by per cent to hit US$8.6 trillion, Louis Bacon's Moore Capital Manage- Business Insider. pension fund assets grew 4.8 per ment from 2008 to 2012 where he ran two Coffey's return to the market comes as de- cent to US$15.7 trillion, while emerging market funds. Bacon described mand for existing macro funds has re- central bank holds edged just 0.1 Coffey as "the most impressive trader I've bounded after a tough period. per cent higher to US$13.5 tril- ever seen". Since 2004, Coffey has deliv- Vicious but short-lived volatility spikes, lion. Global Public Investor 2019 ered annualised returns of 22% a year. spectacularly unsuccessful emerging market is the largest and most compre- bets and a dollar U-turn hit macro hedge hensive worldwide survey of pub- Kirkoswald Capital, funds, which tend to trade currencies and lic sector investment institutions bonds off global macro-economic trends, Created by Ip a new venture owning or managing assets equiv- The Australian decided to throw it all hard in 2018. alent to 43% of global GDP. WM 10final_Layout 1 7/11/19 12:08 PM Page 26 2 INSIDE THE MARKETS Issue 10 ⎥ June 2019 E-commerce giant Alibaba Group Kenya’s third Eurobond valued at The number of publicly listed US Holdings is debating whether to offer Sh210 billion ($2.1 billion) was ad- companies plummeted from about new public shares through a listing in mitted for trading at Euronext Dublin 8,000 in 1996 to about 4,300 in Hong Kong to raise $20 on May 22. The Eurobond was sold 2015 an EY study found, with the 1 billion, Bloomberg reported. Alibaba in 2 average number of IPOs per year in two tranches of seven and 12 3 ASIA 2014 raised $25 billion on NYSE in the decreasing from about 675 to NEWS AFRICA years. Stabilisation period for the Eu- WORLD world’s largest first-time share sale. about 120, according to research AMERICA MARKETS Graph: Alibaba net revenue 2010-2018 robond III will run until June 15. by the University of Florida. BALTIC STATES INVESTMENT TRENDS GPW's WIGtech offers exciting U.S. VC firms invest in opportunities to investors L. America A new index from Warsaw Stock Exchage contributing to Investments by U.S. venture capital (VC) firms into Latin America investment options diversification are skyrocketing and one of the firms leading the charge into deals is n June 24th, the Warsaw Stock Ex- nies play an increasing role in the economy and none other than Silicon Valley’s Andreessen Horowitz. It’s the only change (GPW) is launching a new on the exchange. GPW provides funding oppor- geography outside of the U.S. where the now 10-year-old venture index, WIGtech. The index will cover tunities to innovative companies which are instru- firm with $2.7 billion under management, has committed significant O high-tech companies listed on the Main mental to technological progress. As trading capital and the pace of its investments is increasing. Andreessen's first Market active in biotechnology, games, venues, exchanges are also highly specialised investment in Latin America took place in 2016 when the California- IT, telecommunication, and new technologies. The providers of state-of-the-art solutions which im- based VC firm invested an undisclosed amount in Rappi, a Colombian number of WIGtech participants will vary.