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Co-op to pay bonuses despite withholding £65m in state funds

Co-op to pay bonuses despite withholding £65m in state funds

Business
The Co-op Group is to hand annual bonuses to senior executives despite refusing to repay £65m in business rates relief it received from the government to support it through the pandemic.Sky News can reveal that the mutual's remuneration committee has decided to reward chief executive Steve Murrells and senior colleagues for their work last year - a move that insiders say could spark a fierce backlash from members and employees. The size of the bonuses to be handed to executives will be disclosed in the Co-op's annual report in the coming weeks, and was unclear on Thursday. Image: Tesco led the way in repaying business rates relief Confirming a report by Sky News, the Co-op said it would give back only part of the state support it rece...

Vanguard gave up on mutual funds in China, but it may have found a different way into the market

Finance
A logo of Ant Group is pictured at the headquarters of the company, an affiliate of Alibaba, in Hangzhou, Zhejiang province, China October 29, 2020.Aly Song | ReutersBEIJING — Vanguard's experiment with financial technology in China is showing early signs of success.In less than a year, more than 1 million users have signed up for "BangNiTou," a smartphone-based investment advisory product run through the American mutual fund giant's joint venture with Alibaba-affiliate Ant Group.That's according to a release from BangNiTou on Thursday, just four days after Vanguard said it would drop its own pursuit of a mutual fund license in China. Instead, the company plans to focus on its partnership with Ant.Ant operates Alipay — one of the two dominant mobile payment apps in China — on which BangNiT...
Equity and debt mutual funds witness massive outflows in January

Equity and debt mutual funds witness massive outflows in January

Finance
Equity and debt mutual funds registered heavy outflows in the month of January. While equity funds saw a drop in outflow numbers, there was a drastic outflow from debt mutual funds this time. Equity mutual funds saw net outflows worth Rs 9,253 crore, debt mutual funds saw investors pulling out Rs 33,408 crore in January. Hybrid fund categories finally saw inflows in January.The highest outflow of Rs 5,933 crore was seen from flexi cap funds. This might be attributed to the recent change in mandate and many schemes re-categorised in the space. This was followed by an outflow worth Rs 2,853.43 crore from large cap funds. Here’s a look at the data for January: Scheme Name Net inflow (+)/outflow(-) Multi Cap Fund 2,857.90 Large Cap Fund -2,853.43 Large & Mid Cap Fund -187.4...

Why the GameStop frenzy may hurt retirees along with hedge funds

Finance
Jakub Porzycki/NurPhoto via Getty ImagesReddit users and other retail investors who piled into GameStop stock aimed to take down Wall Street.Pension funds, which support ordinary Americans in retirement, may be an unintended casualty.Some hedge funds have sustained big losses as a result of bets against GameStop stock. Melvin Capital, for example, lost more than 50% in January.But pension plans — which invest assets on behalf of workers like teachers and police officers — may hold big positions in hedge funds. That means a financial hit for hedge funds could spill over to workers' retirement assets."Your 'eat the rich' mentality just took a bite out of the pension funds of working Americans," Barbara Roper, director of investor protection at the Consumer Federation of America, said of Game...
‘Heavy inflows in equity ETFs and debt funds pushes mutual fund AUM up’

‘Heavy inflows in equity ETFs and debt funds pushes mutual fund AUM up’

Finance
A massive rally in the equity markets since May bringing in heavy inflows into equity ETFs and open-ended debt funds has helped mutual fund AUM grow 17 per cent to top the Rs 31-lakh-crore-mark in 2020, which is 1 percentage point lower than 2019, according to a report. During the year, the 44-player industry has added Rs 4.5 lakh crore to the AUM, while in 2019 it grew 18 per cent from Rs 22.86 lakh crore in 2018, when it had grown only 7.5 per cent, as per Crisil data. In 2017, the industry rallied 32 per cent and added over Rs 5.4 lakh crore in AUM. In the decade ending 2019, it had grown from Rs 8.52 lakh crore to Rs 27.6 lakh crore in 2019, an over three-fold jump. In December, the industry clipped at 3 per cent to take the overall AUM to Rs 31.02 lakh crore mark. "A buoyant run-up...