China has outlined in its latest five-year plan the three key pillars supporting its drive towards being a world power. These include technological advancement and boosts to both private investment and domestic consumption. But what will this mean for investors? NN Investment Partners answers in its latest analysis.
China’s technological advance will be crucial for growth but while investments in education and R&D have been impressive, the asset manager sees the main risk lying in its relations with other countries, from which it still needs to import knowledge, capital goods and high-end components. The extent to which China’s business climate will be able to generate the required level of private-sector investments is also questionable given the central government’s reluctance to give up enough control for competition in the corporate sector to drive innovation to a higher level.
NN IP believes that of China’s three ambitions, the one most certain of success is likely to be consumption growth. The improvements China has made in social security and public services since the 1990s have laid much of the groundwork for households to save less and spend more, while a more active income policy and the gradual easing of restrictions for internal migration should help expand the middle-income group and drive urbanization.
In the asset manager’s view, investors could benefit from focusing on consumption and services-driven stocks in the “new economy” sectors of consumer staples, consumer discretionary, media and entertainment, and healthcare. Additionally, investors should focus on IT companies, especially those that build digital and telecom infrastructure and those active in the broad shift from offline to online. Sectors to avoid are likely to be energy, materials and industrial stocks.
Many of the new economy companies are listed on the A-Shares market, which is becoming more accessible. In this sense, NN IP highlights that China is opening its equity and bond markets to foreign investors to reduce dependence on domestic bank funding and make capital allocation more efficient, while boosting international use of the renminbi.
“The Chinese leadership’s ambition to double its economy in the coming 15 years should be taken seriously. Experience shows that China tends to meet its growth targets. But whereas China’s rapid development in the past decades was mainly driven by exports, public investments in infrastructure and a sharp increase in leverage, growth in the coming period will have to come primarily from innovation and the private sector“, Maarten-Jan Bakkum, Senior Emerging Markets Strategist, says.
In his opinion, this strategy makes sense, given China’s high debt levels, the more challenging global environment and the less favourable demographics picture. “But if the private sector becomes the decisive force and capital allocation becomes increasingly market-driven, the authorities will not be as firmly in the driving seat as before. This should make China’s future growth trajectory less predictable and more volatile”, he adds.
All in all, NN IP thinks that investors who approach China from a strategic angle would do well to consider allocating explicitly to A-shares. The China weight in EM has risen sharply in the past years to 39% currently, and its dominance has become so large that more investors are likely to start allocating to China and EM ex-China separately.
China is likely to continue growing relative to the rest of the emerging markets. As this is likely to be driven primarily by the higher growth and better accessibility of the A-share market, the asset manager recommends to position for this with a strategic overweight in A-shares alongside a neutral allocation to Chinese equities overall.
Kandor Global, an independent registered investment advisor (RIA) serving ultra-high-net-worth clients worldwide, has partnered with Summit Financial Holdings and Merchant Investment Management, through the newly created Summit Growth Partners (SGP).
SGP is an innovative custom capital solution launched by Summit Financial Holdings and Merchant Investment Management in January which combines upfront cash monetization with equity participation as well as exclusive partnership privileges. Based in Miami, SGP has taken a minority, non-controlling stake in Kandor Global, which now represents its 13th investment, and its first investment targeted toward serving international clients.
Meanwhile, with 450 million dollars in assets under management, Kandor Global was seeking an established strategic partner to propel growth initiatives, provide access to premier advisor and client resources, and expand in-house expertise and strategic capital.
“Our mission in establishing Kandor Global is to be a key wealth and investment management resource for the Latin American community at home and here in the U.S. We are seeing more and more highly successful Latin American entrepreneurs and families flock to the U.S. to expand their businesses and their wealth. We have the experience and resources through Summit Growth Partners to serve this specific subset of clients at the highest level and address their unique financial needs”, said his CEO, Guillermo Vernet.
Meanqhile, Stan Gregor, CEO of Summit Financial Holdings, pointed out that, with all the disruption that has taken place in the international wealth management space, they’ve been looking for the right firm to partner with that could deliver a “truly differentiated and customized” suite of services and solutions to advisors who cater to international clients. “We were very impressed with Kandor Global’s leadership team and are excited about our partnership”, he added.
Pixabay CC0 Public DomainMáximos históricos en renta variable estadounidense. Bolsa
The U.S. stock market rallied to a recordclosing high on the last day of March. The investment backdrop featured a disparate number of events, such as vaccination success, rising debt and ten year U.S. Treasury yields, and D.C. unrest, that generated high volatility cross currents for investors. The surprisingly strong March employment report bodes well for U.S. economic growth. This underscores the powerful ongoing U.S. fiscal policy and now prospective infrastructure stimulus, in combination with the Fed’s unprecedented easy monetary policy commitment to “maximum employment” and willingness to permit inflation to run “moderately above 2% for some time”.
Regarding surging U.S. debt levels, Mr. Powell made the following statement on March 25 during a National Public Radio interview, “Given the low level of interest rates, there’s no issue about the United States being able to service its debt at this time or in the foreseeable future”… “Nonetheless, there will come a time — and that time will be when the economy is back to full employment, and taxes are rolling in, and we’re in a strong economy again — when it will be appropriate to return to the issue of getting back on a sustainable fiscal path.”
Back to basics – Deals. On April 1, in a plus for broadcasters, the U.S. Supreme Court unanimously ruled that the Federal Communication Commission could repeal some local media ownership restrictions. Justice Kavanaugh summed it up: “The FCC reasoned that the historical justifications for those ownership rules no longer apply in today’s media market, and that permitting efficient combinations among radio stations, television stations and newspapers would benefit consumers.”
Looking more broadly, global deal activity in the first quarter totalled $1.3 trillion, an increase of 94% compared to 2020, and the strongest first quarter on record. This was the third consecutive quarter that deal activity exceeded $1 trillion, and the second strongest quarter for deal activity ever (behind only the second quarter of 2007 when deal activity totalled $1.4 trillion.) M&A in the U.S. was particularly strong, totalling $670 billion, tripling activity in Q1 2020. The most active sectors were Technology, Financials and Industrials. We believe the drivers for continued M&A strength remain: historically low interest rates, stimulative governmental policies, as well as more globally competitive corporate strategies adapting to changes in the business landscape hastened by the COVID-19 pandemic.
Finally, the global convertible market saw issuance continue at a torrid pace in March. With over $58 Billion in issuance globally, this quarter was second only to 2Q 2020 in terms of total convertible issuance. While terms were quite aggressive earlier in the quarter, they began to get a bit more investor friendly in March as investors pushed back on the low yields and high premiums that came with aggressive volatility assumptions. With all of the activity in the primary market, there was a bit of weakness across existing issues, and there are many existing convertibles that now have more attractive pricing offering us the opportunity to invest for total return with an asymmetrical risk profile. We anticipate convertible issuance to continue this year as it offers an attractive way for companies to add low cost capital to their balance sheets, particularly as interest rates move higher.
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552 Class I EUR – LU0687944396 Class A USD – LU0687943745 Class A EUR – LU0687943661 Class R USD – LU1453360825 Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648 Class I EUR – LU1216601564 Class A USD – LU1216600913 Class A EUR – LU1216600673 Class R USD – LU1453359900 Class R EUR – LU1453360155
GAMCO CONVERTIBLE SECURITIES
GAMCO Convertible Securities’ objective is to seek to provide current income as well as long term capital appreciation through a total return strategy by investing in a diversified portfolio of global convertible securities.
The Fund leverages the firm’s history of investing in dedicated convertible security portfolios since 1979.
The fund invests in convertible securities, as well as other instruments that have economic characteristics similar to such securities, across global markets (but the fund will not invest in contingent convertible notes). The fund may invest in securities of any market capitalization or credit quality, including up to 100% in below investment grade or unrated securities, and may from time to time invest a significant amount of its assets in securities of smaller companies. Convertible securities may include any suitable convertible instruments such as convertible bonds, convertible notes or convertible preference shares.
By actively managing the fund and investing in convertible securities, the investment manager seeks the opportunity to participate in the capital appreciation of underlying stocks, while at the same time relying on the fixed income aspect of the convertible securities to provide current income and reduced price volatility, which can limit the risk of loss in a down equity market.
Class I USD LU2264533006
Class I EUR LU2264532966
Class A USD LU2264532701
Class A EUR LU2264532610
Class R USD LU2264533345
Class R EUR LU2264533261
Class F USD LU2264533691
Class F EUR LU2264533428
Disclaimer: The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
RegComp Financial, a specialized compliance consulting firm, announced in a press release its expansion into Florida in efforts to better service lower and middle-market investment advisers, private funds, and broker dealers in the Southeast region of the country.
The impact of the pandemic on the securities market gave rise to a host of regulatory risks for market participants, creating challenges for in-house compliance officers and general counsel staff. “From remote work arrangements to cybersecurity concerns and several material new rule adoptions governing investment advisers, there is a significant increase in the need for compliance expertise and guidance to augment a firm’s ability to lower the risk of being in the regulatory spotlight and resolve compliance challenges more efficiently”, says RegComp.
RegComp’s review of the Division of Enforcement at the U.S. Securities and Exchange Commission (SEC) orders covering the first quarter of 2021 has revealed enforcement activity totaling nearly 2.5 million dollars in penalties. These range censures, disgorgement, prejudgment interest, and civil penalties, as well as orders requiring executives to provide notice of the SEC’s order to advisory clients. Similarly, state regulators continued to institute enforcement actions, a situation which the firm believes to be especially true in the Southeast.
Identifying an opportunity to assist prospective clients maintain market integrity, reduce “and perhaps, entirely avoid penalties”, RegComp also launched a new service offering that covers the Financial Industry Regulatory Authority (FINRA) Rulebook for Capital Acquisition Brokers (CAB). In their view, understanding key issues that can give rise to regulatory scrutiny in the CAB space allows them to continue its focus of offering a comprehensive set of regulatory compliance, accounting and monitoring services intended to help its clients.
“With an unwavering commitment to meeting our clients’ regulatory compliance needs, we hope the expansion and new service offering allows us to further establish ourselves as leaders in the regulatory compliance space as we continue to find innovative solutions to meet the rapidly changing market needs,” said Gigi Thompson, Chief Operating Officer.
In his opinion, most regulators believe that the most important aspect of compliance at a firm is simply a series of elaborate systems and procedures but “what is most important is the permeation throughout the firm of a ‘compliance culture”.
Pixabay CC0 Public Domain. Vontobel amplía sus oferta de renta fija ESG con el lanzamiento de dos fondos de bonos sostenibles
Vontobel is expanding its suite of ESG bond funds with two products: an impact green bond fund and a sustainable emerging markets debt fund. The asset manager revealed in a press release that these new vehicles seek to meet growing investor demand for solutions that combine the goal of providing “attractive income with a sustainable approach”.
The Vontobel Fund – Green Bond invests across a global universe of green bonds, identifying issuers who use proceeds mainly for eligible environmental projects with a measurable impact in the transition to a low-carbon economy. It aims to maximize the contribution to climate change mitigation and environmental protection, while generating steady income over a full economic cycle.
Under SFDR regulations the fund qualifies as an article 9 fund and will be available in Austria, Switzerland, Germany, Spain, Great Britain, France, Italy, Luxembourg, Liechtenstein, the Netherlands, Portugal, Sweden and Singapore.
Vontobel highlighted that, supported by a team of more than 40 investment and ESG specialists, Portfolio Managers Daniel Karnaus and Anna Holzgang make high-conviction decisions based on in-depth analysis of credit quality, green bond projects, relative-value and macro factors. The fund follows a disciplined investment process, whereby only a select number of green bonds are eligible for investment, resulting in a concentrated portfolio.
“Climate change is a real financial risk for investors, and green bonds provide an effective tool to address it. The fund’s impact is also measurable. For every 1 million euro invested in the fund, we estimate that we reduce carbon emissions equivalent to 492 t CO2 equivalent, or about 206 fewer passenger cars on the streets per annum”, says Karnaus.
Meanwhile, the Vontobel Fund – Sustainable Emerging Markets Debt invests mainly in government, quasi-sovereign and corporate bonds that demonstrate an ability to manage resources efficiently, as well as managing ESG risks. To find attractive opportunities, a proprietary ESG scoring model, based on a best-in-class inclusion as well as sectoral exclusion, is at the core of the investment process. Under SFDR regulations, the fund qualifies as an article 8 fund. The firm notes that this strategy is registered for sale in Austria, Switzerland, Germany, Spain, France, Italy and Luxembourg.
Supported by a team of nine emerging markets analysts and three ESG specialists, Portfolio Manager, Sergey Goncharov, focuses on optimizing the level of spread for a given level of risk. Utilizing an in-depth research and a proprietary valuation model, the team compares the risk vs return potential across issuer qualities, countries, interest rates, currencies and maturities within their investment universe to identify the most rewarding opportunities.
“As fixed income investors, a key part of our toolkit is our engagement with issuers. Engagement is extremely powerful in filling information gaps, particularly in emerging markets, where companies and countries may be less advanced in terms of ESG. A simple conversation can raise awareness and promote the importance of considering ESG risks among new issuers”, asserts Goncharov.
Pixabay CC0 Public Domain. Preqin compra Colmore, firma tecnológica de servicios y gestión de mercados privados
Ameriprise Financial has signed a definitive agreement with BMO Financial Group (BMO) to acquire its EMEA asset management business for 845 million dollars. The transaction is expected to close in the fourth quarter of 2021, subject to regulatory approvals in the relevant jurisdictions.
The firm has revealed in a press release that this all-cash acquisition adds 124 billion dollars of assets under management (AUM) in Europe. It will be a growth driver for Columbia Threadneedle Investments, the global asset manager of Ameriprise, and further accelerate the core strategy of the company growing its fee-based businesses and increase the overall contribution of wealth management and asset management within its diversified business.
Together with BMO’s EMEA asset management business, Ameriprise will have more than 1.2 trillion dollars of AUM and administration. The firm believes that the acquisition will add a substantial presence in the European institutional market for Columbia Threadneedle Investments’ and expand its investment capabilities and solutions. The addition of BMO will increase its AUM to 671 billion dollars and expand those in the region to 40% of total of the asset manager.
In addition, the acquisition establishes a strategic relationship with BMO Wealth Management giving its North American Wealth Management clients opportunities to access a range of Columbia Threadneedle investment management solutions. Separately, in the U.S., the transaction includes the opportunity for certain BMO asset management clients to move to Columbia Threadneedle, subject to client consent. Ameriprise expects the transaction to be accretive in 2023 and to generate an internal rate of return of 20%.
“We’ve built an outstanding global asset manager that complements our leading wealth management business and generates strong results. BMO’s EMEA asset management business will be a great addition to Columbia Threadneedle that will deliver meaningful value for clients and our business. This strategic acquisition represents an important next step as we expand our solutions capabilities, broaden our client offering and deepen our talented team”, Jim Cracchiolo, Chairman and Chief Executive Officer at Ameriprise Financial said.
EFG Asset Management (EFGAM), an international provider of actively-managed investment solutions, has announced in a statement that it will bring its US growth equity strategies to eligible US institutional investors.
New Capital, its fund management arm, will offer its products to the US domestic market through EFG Asset Management (North America) Corp, a newly formed US Securities and Exchange Commission (SEC) registered investment adviser.
Now, US institutional investors may access four funds via separately managed accounts (SMAs) and Collective Investment Trusts (CITs): New Capital US Future Leaders, New Capital US Growth, New Capital US Small Cap Growth and New Capital Healthcare Disruptors.
The equity strategies are managed by senior portfolio managers Joel Rubenstein, Tim Butler and Mike Clulow and portfolio manager Chelsea Wiater, all of whom have been running the portfolios since inception and are based in Portland, Oregon. They are supported by Donald Klotter and Amanda Meyer on business development. The senior portfolio managers have been together since 2003 and the team as a whole has worked together for over 10 years.
“This move marks an important step in the development of our growth strategy across North America and our ongoing commitment to the region. The US equity strategies have offered a great source of performance to our clients in Europe and Asia, and we are delighted to be able to offer US institutional investors access to the same strategies”, Moz Afzal, Chief Investment Officer at EFGAM said.
Lastly, Donald Klotter, Global Head of Institutional Sales, commented that, although the team has been managing US equity portfolios for almost two decades together, this is a “pivotal time” for their institutional audience.
“The New Capital US Growth and New Capital US Small Cap Growth strategies each have a five-year track record, and both have assets in excess of USD 200 million. All strategies have delivered strong results since inception. Our conviction of multi-year growth in the US remains high and we look forward to continuing to deliver long-term results for our clients”, he concluded.
Pictet Asset Management’s Asian Equities ex Japan strategy aims to invest in companies with sustainably high or improving cash generation and returns, which they think are undervalued and have a strong potential for growth. Find out how to capture the investment potential of Asia.
Reasons to invest in Pictet Asset Management’s Asian equities ex Japan strategy:
1. An inefficient market creates investment opportunities
Pictet Asset Management believes Asia ex-Japan is inefficient, as market participants often focus on the short-term over the long-term and earnings (which can be manipulated) over cash. Pictet Asset Management aims to capture investment opportunities primarily across two broad areas where they think the market is either underestimating:
structural growers – companies that are able to sustain their above average/above market growth rates and returns
companies that are going through an inflection – where temporarily depressed returns are extrapolated into the future
2. A focused approach
An active, research intensive investment process helps to identify the best investment opportunities. While Pictet Asset Management likes growth stories, they won’t overpay for them. Their investment philosophy incorporates a focus on cash generation whilst maintaining a strong valuation discipline. They believe a portfolio made up of companies like this should be able to outperform across market cycles.
3. Strong local knowledge and presence
The strategy is run by an experienced investment team including regional specialists based in Hong Kong. Together, they hold over 900 company visits a year.
Why invest in Asia ex Japan?
Asia is the fastest growing region in the world thanks to its highly diversified economies, its demographic advantages as well as structural reforms; and in Pictet Asset Management’s view is today far more resilient due to its better management of the pandemic. The region is also among the most advanced in terms of themes such as e-commerce and fintech with its companies investing more than many developed peers in research & development (1), which would drive future growth.
Asia is the fastest growing region in the world thanks to its highly diversified economies, its demographic advantages as well as structural reforms; and is today far more resilient due to its better management of the pandemic. The region is also among the most advanced in terms of themes such as e-commerce and fintech with its companies investing more than many developed peers in research and development, which should drive future growth.
Despite their superior growth potential, Asian assets are under-represented in investor portfolios. Pictet Asset Management believes Asian equities are attractive due to the strong earning potential of companies and attractive valuations, especially relative to developed markets.
A pick-up in global activity, better corporate earnings, and receding currency and debt risks across the region all contribute to a positive outlook. Against this backdrop, Pictet Asset Management continues to find companies with strong cash flow, earnings growth higher than the market and compelling valuations.
How Pictet Asset Management manages the portfolio
Pictet Asset Management has over 30 years’ experience investing in Asia equity markets, with offices throughout the region. They take an active approach believing that Asia equity markets are inefficient. Therefore fundamental analysis and judicious stock selection are paramount to success. Arguably this is now the case more than ever as markets open up to foreign investors and disruptive technologies rapidly change industries.
Pictet Asset Management seeks companies, with the best growth potential, using a valuation approach based on cashflow rather than simple earnings. Asia is a complex market and they also take into account Environmental, Social and Governance (ESG) criteria, making them multidimensional stock pickers. Finally, they believe this analysis is best achieved through meetings and engagement with company management using qualitative criteria to score businesses.
Notes:
(1) Source: Refinitiv Datastream, Pictet Asset Management, February 2021
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to risks and uncertainties that could cause actual results to differ materially from those presented herein.
Important notes
This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation. Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.
For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
Pictet Asset Management Inc. (Pictet AM Inc) is responsible for effecting solicitation in North America to promote the portfolio management services of Pictet Asset Management Limited (Pictet AM Ltd) and Pictet Asset Management SA (Pictet AM SA).
In Canada Pictet AM Inc is registered as Portfolio Managerr authorized to conduct marketing activities on behalf of Pictet AM Ltd and Pictet AM SA. In the USA, Pictet AM Inc. is registered as an SEC Investment Adviser and its activities are conducted in full compliance with the SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref. 17CFR275.206(4)-3.
Foto cedidaYves Perrier, consejero delegado de Amundi.. Amundi firma con Société Générale el acuerdo marco para la compra de Lyxor
Amundi declared in a press release that it has entered into exclusive negotiations with Société Générale for the acquisition of Lyxor for 825 million euros (755 million euros excluding excess capital) in cash.
The asset manager highlighted that the transaction would allow them to accelerate its development on the fast-growing ETF segment, while complementing its offering in active management, in particular in liquid alternative assets as well as advisory solutions.
The operation is expected to be completed by February 2022 at the latest, after consultation of the Works Councils, and subject to receiving the required regulatory and anti-trust approvals.
After this acquisition, Amundi will become the European leader in ETF, with 142 billion euros in assets under management, a 14% market share in Europe and a diversified profile in terms of client base and geography.
Founded in 1998, Lyxor is a pioneer in ETF in Europe and has 124 billion euros in assets under management. It is one of the key players in the ETF market, with 77 billion of assets under management and a 7.4% market share in Europe. Also, Amundi pointed out that it has developed a recognized expertise in active management, notably through its leading alternative platform.
“The acquisition of Lyxor will accelerate the development of Amundi, as it will reinforce our expertise, namely in ETF and alternative asset management, and allows us to welcome highly recognized teams of people. This acquisition is fully in line with the Crédit Agricole group’s reinforcement strategy in the asset gathering business. It will also further reinforce the business relationships with our historical partner Société Générale. Finally, by creating in France the European leader in passive asset management, it will contribute to the post-Brexit positioning of the Paris financial centre”, said Yves Perrier, Chief Executive Officer of Amundi.
Lastly, Valérie Baudson, Deputy Chief Executive Officer, claimed that they are looking forward to welcoming the “talented teams” of Lyxor. “The combinations of our strengths will allow us to accelerate our development in the ETF, alternative asset management and the investments solutions segments”, she added.
Foto cedidaTim Ryan, consejero delegado de Natixis IM.. Tim Ryan, nuevo consejero delegado de Natixis IM
Tim Ryan, former CIO at Generali, has been appointed member of the Natixis senior management committee in charge of Asset & Wealth Management, and CEO of Natixis Investment Managers, effective April 12th. He will succeed Jean Raby, who has decided to pursue another professional opportunity, revealed Natixis in a press release.
Ryan started his career in the asset management industry in 1992, working in quantitative research and equity portfolio management in an HSBC subsidiary. In 2000 he joined AXA, where he broadened his experience as Head of Quantitative Asset Management before becoming Chief Investment Officer for the insurance business in Japan in 2003 and subsequently for Asia. In 2008, he was appointed Chief Executive Officer in charge of various regions (Japan and EMEA) for AllianceBernstein’s US asset management subsidiary. In 2017, Ryan joined Generali as Group Chief Investment Officer for insurance assets and Global CEO of Asset & Wealth Management.
“I would like to warmly thank Jean Raby for his remarkable work over these past four years. Under his leadership, Natixis Investment Managers has asserted its position as a world leader in asset management with assets under management of more than 1.1 trillion euros and has built out its commercial offer with new affiliate asset managers and new areas of expertise. I am pleased that Jean will remain at my side over the coming weeks to ensure an efficient transition”, commented Nicolas Namias, CEO of Natixis and Chairman of the Board of Directors of Natixis IM.
He also said that, as they prepare to launch their new strategic plan for the period to 2024, he is “delighted” to welcome Ryan to drive forward their “robust momentum” across their Asset & Wealth Management businesses, develop their multi-affiliate model to serve their clients and enhance their ESG strategy. “Ryan’s in-depth knowledge of the asset and wealth management businesses, together with his international experience, leadership and business development skills, will be key advantages for Natixis and our Group”, he added.
