A sharp recovery in the Chinese domestic stockmarket in 2006 has prompted a previously reluctant securities regulator to approve the country’s first Qualified Domestic Institutional Investor (QDII) fund.

Lehman Brothers and Hua An Fund Management were recently given the go-ahead to launch a new foreign currency-denominated fund which allows Chinese investors to invest in foreign assets for the first time.

The European socially responsible investment (SRI) market has grown by 36 per cent since 2002 to over €1000bn of assets under management today.

Pension schemes, particularly in Europe, should communicate more effectively with exchanges to redress the still “wide variance” in the understanding, use and application of derivatives products in pension fund portfolios.

Stock exchanges in Europe are “still milking” their members and clients despite some recent moves to reduce the level of trading tariffs across the core products they offer, according to a UBS banker and representative of the London Investment Banking Association (Liba).

Churchill Franklin, co-founder and COO of Acadian Asset Management, believes that psychological prejudices cloud decisions over investment and that his quantitative strategies are far more likely to bring in bountiful returns. He speaks to Paula Garrido on the firm’s expansion plans.

With all the hoo-haa surrounding institutional investment into alternatives and commodities, it seems a strange choice to reject them altogether. However, this is exactly what the advisers for the KLM Royal Dutch Airlines fund have done. Henry Smith explores the reasons behind this.

Equities around the world endured a volatile period over the first half of 2006. The year began well, with most major markets registering consistent advances, supported by solid economic growth, healthy corporate earnings and high levels of merger and acquisition activity. However, rising US inflation raised concerns that further US interest rate rises would affect world economic growth.

It is amazing how many metaphorical parallels there are between sports and capital markets. Books like Michael Lewis’ Moneyball and Sam Walker’s Fantasyland typically show up on finance professionals’ summer reading lists because of the lessons one can draw and apply to the investment landscape.

At the beginning of the year, we identified the electoral cycle as the main risk for Latin American markets in 2006, and indeed we have witnessed some difficult events, such as the re-nationalisation of the energy industry in Bolivia by recently elected President Evo Morales.

A mantra long familiar to investors in non-Japan Asia is that of the region ‘decoupling’ from the rest of the world. This means that Asia has ‘grown up’ enough, both economically and politically, to become a self-reliant and self-sustaining entity, no longer dependent on the whims of Western consumers (especially the US) for economic growth.

In order to stave off pressure for renminbi appreciation, China was prompted to call an emergency meeting, writes Neil Mellor.

Schroders may have lost some of its standing in the City of London, but a more international focus means the firm is exploiting new opportunities.

Property’s current stellar returns are no secret, but with such good performance managers are looking at expanding their portfolios abroad and into alternatives, writes Christine Senior.

The expected rush towards inflation-linked bonds in the Netherlands following FTK has not happened, but Dutch managers are beginning to realise their value, writes Gerry O’Kane.

Wojtek Nabialek unveils a long-term approach to investing in commodities, which have received a new lease of life among institutions

Can life insurers truly pull in good enough returns across a wide range of investments using their in-house teams? The answer, it seems, is ‘no’ as more are turning to outsourcing, says Christine Senior.

The line between traditional and alternative investments is blurring, as large houses emulate the flexibility of boutiques and regulation controls the smaller players. Paula Garrido reports.

Outsourcing proved to be the right move for Julius Bär’s Central Europe Stock fund as it topped the tables over three years. A shake-up in asset allocation has also seen performance soar. Paula Garrido reports.

Azerbaijan is having to balance the demands of the poor with those of cautious economists when it comes to managing its soaring oil wealth. Nick Kochan explains.

The banking sector is growing hand-in-hand with the economy, accompanied by consolidation and privatisation, and opportunities for new products.

Samir Sharifov, Minister of Finance, tells Nick Kochan why Azerbaijan is tapping the Euromarkets as well as making great efforts to build up its non-oil sector.

So far the fortunes of the Baku Stock Exchange have been muted, but legal and systems changes are afoot.

Having embarked upon a course of creating a balanced market economy, Azerbaijan has reaped the rewards and The International Bank of Azerbaijan has had an integral role in the process.

Azerbaijan’s oil windfall is calculated to total $1000 dollars per capita per year for the next 20 years. Nick Kochan explains how production is being apportioned.

Forget the black gold of its oil industry – Azerbaijan’s real treasure is its cultural status as the birthplace of Indo-European civilisation, and the country is considering how to promote this to tourists. Courtney Fingar reports from Azerbaijan.

The LSE is reeling from news that the Plus Market platform offers better prices, which highlights the advantages of a quote-driven versus an order book system, writes Roger Aitken.

Roger Aitken speaks with Kyle Zasky from EdgeTrade and Simon Nathanson from NeoNet Securities on how DMA has become and integral and empowering tool for buy-side traders.

A new report suggests that the current number of stock exchange players in the US is unsustainable and that the bigger fish will force out the small fry. Roger Aitken reports.

Roger Aitken reports on how the money freed up by cheaper research is leading to more portfolio trades which could pile the pressure on brokers to perform.

Jake Smith uncovers the prime drivers behind the exponential growth in eFX, including increased capacity, workflow benefits, and heightened liquidity.

BNP Paribas Securities Services’ (BP2S) acquisition of the third-party securities clearing and settlement activity of Bankhaus Carl F Plump (Plump) not only positions the bank as a tier II provider in the segment in Germany for local brokers (marklers) and securities trading banks (Wertpapierhandelsbanken), but clears the way for further commercial opportunities.

Henry Smith talks to José Benjamin Longrée, managing director of Caceis Fund Services on the firm’s ambitions to be at the cutting edge of IT and its plans to grow its market share.

The private equity market has reached new heights in leveraged buyouts, fund raising and buys and sells. It has become a mature industry and private equity structures are today seriously competing with traditional stock exchanges as they provide a viable alternative for firms seeking financing which are willing to avoid going public.

The securities lending market can be a deciding factor in achieving upper quartile performance, and the asset class has seen exponential growth in recent years. But new opportunities in the emerging markets arena could mean that another explosion is on the horizon. Tim Cooper reports.

There are many ways to reach the securities lending market and lenders need to do their homework to make sure they choose the right vehicle, says Blair McPherson of RBC Dexia Investor Services.

Rob Coxon, senior vice president and head of international securities lending, ABN Amro Mellon questions the hype over third-party providers and defends the future role of custodian lenders.

Bas Cohen, global head of the securities financing group at Fortis’ Global Markets, explains how securities financing must shed its uncouth image and work towards being taken seriously.

Repurchase agreements in Europe have overtaken the US in recent years, but both markets agree that triparty agents, which act as a gatekeeper to the buyer’s exposure, are not only here to stay but will grow. Elizabeth Cripps reports.

A combination of best execution through MiFID and a need for a single platform has driven electronic trading up among hedge funds. Tim Cooper looks at the latest offerings and the technology debate.

Jerry Lees, head of Cheuvreux’s Electronic Execution Services speaks to FT Mandate on the future of electronic trading platform software and how it will relate to hedge funds.

As more investors turn to alternative investments to boost returns, hedge funds become the obvious choice. However, the knock-on effect is that prime brokers see a massive rise in demand. Elizabeth Cripps reports.