Pixabay CC0 Public Domain. Un gestor de activos especializado en acciones locales
The Azimut Group, one of the largest independent asset managers in Europe, through its subsidiary AZ Mexico Holding, signed today an agreement to acquire 51% of the capital of KAAN Capital, an independent asset manager and advisory firm specializing in Mexican equities. KAAN is made up of a group of senior managers and analysts with a solid track record, and offers asset management and advisory services to institutional and HNW clients. Upon completion of the transaction, KAAN will be renamed Azimut-KAAN.
Headquartered in Mexico City, KAAN was founded by Alberto Rodriguez and Josè Fierro – current General Manager and Investment Director of Azimut-KAAN – who together have over 50 years of experience in the Mexican equity market as well as in the management of local funds and mandates for institutional clients, international sovereign funds, pension funds and HNWIs.
Thanks to this partnership, Azimut enters the investment advisory sector in Mexico, thus expanding the range of asset management services for local clients and strengthening its presence in a country where it has operated since 2014 through Más Fondos, the leading Mexican multi-manager company operating through an integrated and independent business model. Más Fondos continues to grow in financial advisory through the recruitment of financial advisors. The partnership with KAAN has effectively been already in place, since KAAN is the advisor of Más Fondos’ local equity fund, AZMT – V1 launched last December, with assets of 330 million Mexican pesos. Thanks to the expertise of over 120 managers in 18 investment hubs that make up the Azimut Global Asset Management Team, Mas Fondos is about to launch three new funds that will be listed on the Bolsa Institucional de Valores (BIVA).
The mutual fund industry in Mexico totals approximately 130 billion dollars and accounts for just under 10% of total GDP, a small percentage when compared to those of the major Latin American economies. More than 70% of assets are concentrated on low-risk fixed income strategies, while exposure to local equities has reached some of the lowest levels in recent years, which can be an interesting opportunity following a value approach.
Mexico, with a population of 130 million, is the second largest economy in Latin America and the largest in Central America with a purchasing power parity GDP of approximately 1,3 trillion dollars in 2019 (15th globally). With a debt-to-GDP ratio below 60%, Mexico is among the most virtuous countries in Latin America. The Mexican economy has private consumption and high export as its main growth drivers, while more than 60% of its GDP comes from the service sector and just under 30% from the industrial sector3 .
Giorgio Medda, CEO and Head of Asset Management of Azimut Group, comments: “The transaction with KAAN confirms Azimut Group’s constant interest in investing in asset management capabilities, continuing to improve services to its customers, both locally and globally, and further consolidating the presence and skills of the Global Team in Latin America. In addition, the partnership with KAAN fits perfectly with the development of our integrated financial advisory platform in the asset management industry in Mexico “.
Alberto Rodriguez and Josè Fierro comment: “We are thrilled to join forces with one of the world’s leading independent asset managers who shares our core values and investment approach. This partnership will allow KAAN to grow at a faster pace and, above all, will benefit our customers as the global approach and expertise of the Azimut Group will complement our knowledge and experience of the Mexican market.”
Foto cedida. Santander Private Banking acuerda la compra del negocio de banca privada de Indosuez en Miami
Santander Private Banking has reached an agreement with Indosuez Wealth Management –the global wealth management brand of Crédit Agricole group– to purchase 4.3 billion dollars in client assets and liabilities. The firm has announced in a press release that the transaction is subject to regulatory approval and is expected to close by midyear 2021.
“This transaction, which leverages our geographic presence and our capabilities as a leading financial group, is another step toward our goal of becoming the best global private banking platform. We want to keep growing our business –especially in geographies where we see major commercial potential like the US– and elevate our position as a growth engine for Grupo Santander”, said the Global Head of Santander Wealth Management & Insurance, Víctor Matarranz.
Meanwhile, Jacques Prost, CEO at Indosuez, commented that, after close evaluation of a number of international bidders, Santander’s proposal for the Miami business stood out to Indosuez thanks to the bank’s high quality and strong reputation.
“We are confident that this is the right fit to meet the interests of our clients and our people in Miami, ensuring a smooth transition and building on Santander’s sizeable footprint and 42-year long experience in the region. Indosuez’s decision to leave the Miami market was carefully considered due to our longstanding presence in the region, but was made in line with Indosuez’s strategy of focusing and expanding its presence in its key markets”, he added.
Santander US CEO Tim Wennes also assessed the acquisition, pointing out that it is part of the growth strategy for Santander US, which includes organic and inorganic opportunities. “I am confident that the team will provide world-class services to our new clients from Indosuez”, he said.
The bank has explained that the transaction will be executed through Banco Santander International (BSI), part of Santander Private Banking, Grupo Santander’s business unit dedicated to the private banking segment. Santander Private Banking manages a volume of 230 billion euros in customer assets and liabilities. BSI is a wholly owned subsidiary of Santander Holdings USA, Inc., Banco Santander’s intermediate holding company in the U.S.
Foto cedidaPhilippe Couvrecelle, consejero delegado y fundador de iM Global Partner.. Philippe Couvrecelle, consejero delegado y fundador de iM Global Partner
iM Global Partner has entered a definitive agreement to acquire Litman Gregory, a wealth and asset management boutique with 4 billion dollars in assets under management and 2.2 billion dollars of assets under advisory.
Philippe Couvrecelle, CEO and founder of iM Global Partner, declared that the purchase is “a major step forward” as they continue their U.S. expansion. “This strategic operation allows us to add wealth management as a new key activity. Our clients will benefit from the synergies that result when like-minded organizations leverage their talents and resources to enhance the client experience”, he added in a joint press release.
The group expects the transaction, once completed, to bring assets under management to over 24 billion dollars (from 20 billion as at end of December 2020) and to enhance distribution capabilities in the U.S.. It also believes that it demonstrates its “commitment to continued cross-border growth in serving the needs of sophisticated investors”.
The operation is still subject to the approval of the SEC, but it’s expected to close in the second quarter of 2021. When this happens, iM Global Partner will double the number of employees and it plans to operate Litman Gregory Wealth Management as a separate business unit to preserve the “recognition, independence and expertise” that it has built over many decades with its cross-generational clients.
Steve Savage, CEO of Litman Gregory, said that they are “excited” to become a part of the group as it improves their ability to deliver on their mission to excel for their clients: “iM Global Partner brings complementary global research resources and strong alignment on total client focus. The combination of our organizations is a natural fit because of our shared research DNA, commitment to independent thinking, integrity and total client focus.”
All in all, the joint press release highlighted that combining Litman Gregory’s capabilities with iM Global Partner creates a “uniquely powerful set of high-quality investment solutions” to serve both institutional and private clients in the U.S. and internationally.
iM Global Partner intends to continue to grow in its priority markets -the United States and Europe- as well as Asia, where it plans to open and begin local distribution in 2022.
Foto cedidaArnaud Llinas, responsable de Lyxor ETF e Indexación en Lyxor Asset Management. Lyxor ETF quiere duplicar sus activos ESG y ser líder en ETFs climáticos y temáticos
In 2021, Lyxor ETF plans to accelerate its efforts to expand its range on three key ETF product pillars: ESG and Climate, Thematics and Core. In a press release, the firm explained that this will help meet “the long-term needs of the wealth management segment as ETF usage in Europe expands among individuals and to support its institutional client base”.
To achieve this, the asset manager has made building assets in these three key areas a strategic priority for 2021. As such, it aims to double the ESG ETF assets it had in 2020 to 10 billion euros by the end of 2021. To achieve this, Lyxor ETF plans to expand its ESG offering by switching several of its existing ETFs to equivalent ESG indices, thereby offering a simple alternative to traditional market capitalizations to meet its clients’ needs. Lyxor also continues to implement its program of fund labelling and intends to obtain the “SRI Label” for its entire thirty ESG ETF range by the end of the year. At the end of February, its ESG ETF assets under management totaled 6.5 billion euros.
As a pioneer in passive fund management, last year it became the first ETF provider in the world to launch an extensive ecosystem of ETFs in line with the Paris Agreement and carbon neutrality by 2050. In this sense, the asset manager believes interest in climate indices appears set to grow: “We are already seeing evidence of this in the flows towards regional (notably European and US equities) and global indices from various types of institutional investors (insurers, pension funds, asset managers), in part because of increasingly stringent regulations in Europe”, they said.
This year, Lyxor ETF intends to bolster its range of climate ETFs by extending it to certain fixed income segments and expanding its range of Green Bond ETFs. In total, it now manages close to 1.5 billion euros in climate-focused ETFs.
An enhanced and increased ETF range
Also, it plans to increase its Thematic ETF range to capture new global post-Covid trends. Following the success of its megatrend ETF range last year –over 700 million euros in net new assets collected in less than a year– Lyxor seeks to offer wealth managers in particular more ways to invest in the companies set to benefit from significant and lasting changes in the post-pandemic world. Having launched five Thematic ETFs in partnership with MSCI in 2020 –on Digital Economy, Disruptive Technology, Future Mobility, Smart Cities and consumer habits of Millennials– it is looking to offer investors exposure to rapid innovation in sectors such as healthcare and Clean Tech and in specific geographies.
The firm also wants to further enhance its Core range, which, since it was launched in 2017, has become a cornerstone of the firm’s product offering. In this sense, it has a raft of initiatives planned for 2021, notably within fixed income, where inflation products are key priorities with central banks and governments around the world spending freely to fuel a post pandemic recovery. “This builds on the success of the Lyxor Core ETF on US TIPS, which now totals 3.6 billion euros in AUM after a very strong 2020. Regional and single country allocations are also key areas of interest”, they explained.
In support of its repositioning around these three key pillars, Lyxor also plans to adapt and streamline the rest of its range to ensure it better reflects clients’ long-term investment and savings goals.
“Having started as tactical allocation building blocks for institutional investors, ETFs have since become long-term savings instruments for a much wider range of investors including in the wealth management segment. That is only going to accelerate. Our shift in focus aims at addressing investors’ long-term concerns -aiding the transition to a low-carbon economy, capturing new themes in a post-Covid world and ensuring maximum efficiency for their investments– and as such reflects the profound change in nature of the ETF market”, stated Arnaud Llinas, Head of Lyxor ETFs and Indexing at Lyxor Asset Management.
Colchester believes that local currency EM government debt is particularly attractive today for both strategic asset allocation (in terms of capital preservation, liquidity and return), and tactical reasons (it offers attractive valuations at this juncture). Whilst hard currency EM sovereign debt has historically generated attractive returns, its characteristics are less conducive to the objectives of safety (i.e. capital preservation) and liquidity, given the lower credit ratings and poorer liquidity in this space. In the following analysis, they show that current valuations of the hard currency EM debt asset class are less attractive than those prevailing in local currency space:
Our analysis suggests that the US dollar remains fundamentally overvalued in real terms against many developed and emerging market currencies. The recent relative weakness in the US dollar may be the beginning of a significant depreciation, and if this is the case, historically such a backdrop has been a positive environment for EM assets. Such a depreciation would also benefit non-USD EM assets. With US interest rates depressed, and monetary policy unlikely to shift gears any time soon, the incentive to deploy capital in EM is strong, in the absence of significant negative shocks.
Our stance on the relative attractiveness of EM currencies is further underpinned by the strength of the external position of many economies compared to history. A vulnerability to external shocks and capital outflows has historically been a characteristic of EM economies, but at present we believe that such vulnerabilities are low – at least in the major issuers of local currency EM government debt
In our opinion, local currency EM debt offers structurally higher liquidity and lower credit risk. The diversification benefits are also somewhat better. Global factors tend to have more of an influence on hard currency debt markets while domestic drivers tend to impact more on local currency debt markets. Lastly, the cyclical outlook favours local currency assets given (i) the relative undervaluation of the currency component, as the US dollar remains fundamentally overvalued against most global currencies; and (ii) the accommodative stance of monetary policy in developed markets continues to act as a “push factor” for capital to seek higher returns in emerging markets.
Historical Returns and Correlations
Historically both EM hard and local currency debt (unhedged) have generated meaningfully higher returns than traditional defensive fixed income assets such as US Treasuries, albeit with higher volatility. The local currency asset class has comfortably outperformed US Treasuries, global developed market government debt, and US corporate debt since the inception of the standard index for local currency EM debt at the end of 2002. Hard currency debt has performed even better over this time period, generating similar returns to that of high yield corporate debt. Unhedged local currency EM debt has historically generated more volatile returns than hard currency EM debt. This is a function of exchange rate movements.
Furthermore, the diversification merits offered by local currency EM debt appear to be superior to that offered by hard currency EM debt, given its historically lower correlation to US Treasuries, investment grade corporate, and high yield corporate debt. Hard currency bonds are typically held by global investors and are valued and priced by the market as a credit spread relative to the US Treasury curve (as USD-denominated debt comprises the majority of this asset class). Local currency EM bond markets on the other hand, are typically dominated by domestic investors, and are therefore less sensitive to changes in global financial conditions and more sensitive to domestic economic conditions.
Relative Valuations
Both USD- denominated EM hard currency debt and US corporate debt are priced as a spread relative to US Treasuries. As US Treasury yields are close to historical lows and offering deeply negative real yields at present, and the yield on the standard EM hard currency index is also, not surprisingly, close to its historical lows. It is also questionable whether a nominal yield of around 4.5% sufficiently compensates for the underlying credit risk in the hard currency EM debt asset class.
Hard currency EM debt spreads widened meaningfully in early 2020 but have already retraced most of the maximum deviation from the average credit rating spread, with the “gap” relative to US Treasuries down to a relatively modest 60bps. This needs to be weighed against the increased default risk that has also risen materially over 2020. A number of issuers have already defaulted, and around 5% of the index by market value was trading at distressed levels at the end of 2020 i.e. with spreads of over 1,000bps. This suggests that the apparent attractiveness of the spread should be discounted by this changed default and stressed environment.
A closer look at the spread on the investment grade (BBB- and higher) segment of the index in isolation provides an insight into this effect. Instructively, the current level of spread is below the average of the past five and ten years, and is close to the lows observed in 2012, 2017 and 2019. This suggests that the relatively less risky segment of the index (i.e. with lower probability of default) is currently not offering compelling value. It also suggests that the spread on the index itself is being boosted by the lower-rated more speculative credits – hinting at a case of “spread illusion”.
Similarly, the nominal yield on the index itself, at 4.55% as at 31st December 2020, is somewhat boosted by the high spreads and the higher yields in these more distressed markets. The yield on the investment grade segment, which makes up over 50% of the total index, was only 2.72% as at the end of 2020.
Turning to local currency EM debt, Colchester values local bond markets in terms of their relative prospective real (i.e. inflation adjusted) yield, and currencies in terms of their real exchange rates. The bond element is simply the weighted average prospective real yield. In other words, the nominal yields in each market adjusted for Colchester’s forecast of future inflation. The currency element is the index weighted percentage over- or under-valuation in real terms relative to the US dollar, divided by -5. The over- or under-valuation is estimated by calculating the real exchange rate for the currency and comparing that to a measure of long-term equilibrium or “fair value”.
Combining today’s bond and currency valuations suggests that local currency EM debt is attractively valued compared to history. Whilst not at its widest observed valuation points, the intrinsic real value compares favourably to history.
This is largely due to EM currencies being generally undervalued in real terms today. By Colchester’s estimates the weighted average real exchange rate of the local currency index is 11% undervalued against the US dollar. Whilst currency valuation gains may be the largest potential contributor to potential returns today, potential bond returns are also making a meaningful contribution.
Capital Preservation and Liquidity
Default Probability
Local currency debt has a lower default rate across the board. Intuitively we would have expected this. Sovereign issuers typically have the unique ability to create (“print”) the currency of denomination of the bond, as well as an ability to raise taxes from their domestic economies to meet financing and servicing needs. Governments also face pressure from their local population, who vote, or implicitly have the power to remove those in government. It is therefore not surprising that, as most local currency EM debt is held domestically, there is a greater willingness to default on foreign rather than domestic creditors at a point of stress.
Credit Rating
Given the higher default probability on hard currency EM debt, asset allocators need to be aware of the different rating profiles of both EM fixed income sectors when comparing the two. Not only is the probability of default lower in local currency debt, the credit rating of the standard local currency EM index (JP Morgan GBI-EM Global Diversified) has a demonstrably higher rating profile than its hard currency counterpart (JP Morgan EMBI Global Diversified). The higher credit rating enjoyed by local currency debt is not surprising as economies with more stable currencies and inflation, as well as deeper domestic capital markets, tend to issue more debt in local rather than hard currency. Many of those countries included in the local currency index issue around 90% of their debt in local currency.
Liquidity
Liquidity is the final characteristic asset allocators need to consider. When we compare the depth and liquidity of each market, we observe that the local currency universe is significantly larger and more liquid. Currently, the market value of EM local currency government debt is estimated by the Institute of International Finance, to be around USD 14 trn, whereas the stock of hard currency debt is estimated at only USD 1.3 trn. This large and widening discrepancy is not surprising, as countries have an incentive to reduce their external vulnerability by developing local capital markets and issuing in domestic currency. This reduces their exposure to external shocks, a flight of capital, and a potential shortage of foreign currency to meet funding needs. The three largest issuers of government debt within the EM universe – China, India and Brazil – each issue more than 90% of their government’s debt in local currency.
The depth and liquidity of the local currency EM government bond universe has been significantly enhanced by the opening of the Chinese local bond market to foreign investors in recent years. Local Chinese renminbi (yuan) denominated government bonds offer liquidity (the market is over USD 7 trn in size), a relatively high credit rating, and a negative correlation to risk assets.
Additionally, the opening of the domestic Indian government bond market to foreign investors is also accelerating. It too offers lower correlations with other global bond markets and asset prices. India is expected to be admitted to various EM bond indices in the not too distant future, further enhancing potential return and diversification characteristics of the local currency EM debt asset class.
This article should not be relied on as investment advice. Colchester Global Investors Limited is regulated by the UK Financial Conduct Authority, and only deals with professional clients. https://www.colchesterglobal.com for more information and disclaimers.
Insigneo is officially moving its headquarter offices to reside in the penthouse of 1221 Brickell Avenue (Miami), “right in the heart of Brickell’s fast-growing financial district”, revealed the company through a post on its LinkedIn. The building will bear its name and new logo.
“Along with the multitude of incredible companies making their transition to Miami, we’re ever so proud to still call this location our home”, commented the independent investment advisory firm in its publication, which referred to a Business Wire article.
The offices will occupy the penthouse of the class-A building and the floor below it,representing a total of 27,047 square feet. The expanded office space, designed by G. Alvarez Studio, focuses on transparency and community, and will allow the company to support its continued growth into the future, the article said.
While Insigneo prepares to begin utilizing the space later in the fall, their LCD signage is expected to rise to the top of the building this summer. In the meantime, their 70 full-time employees will continue to use their current offices at 777 Brickell Avenue; as the company is currently operating under a hybrid work model, with only 50% of employees in the office at the same time and many of them working from home.
“We are very excited about our future home as it represents the beginning of the next chapter in our company’s history. Our city continues to attract top talent in our field and continues to grow in importance as a Global financial center. We believe that being headquartered in Miami is a big advantage when it comes to our goal of being the first tech-enabled Pan-American Wealth Management platform” pointed out Daniel de Ontañon, Chief Executive Officer for Insigneo.
The operation takes place while Insigneo continues to grow its advisor network in its goal to position itself as “the true alternative” for top US Financial Advisors with Global practices.
Foto cedida. Morgan Stanley completa la compra de Eaton Vance
Morgan Stanley has completed this week the acquisition of Eaton Vance, a stock and cash transaction announced last Augustfor an equity value of approximately 7 billion dollars.
In a press release, the firm revealed that Eaton Vance common stockholders were offered 0.5833 Morgan Stanley common shares and 28.25 dollars per share in cash for each Eaton Vance common share, and had the opportunity to elect to receive the merger consideration all in cash or all in stock, subject to proration and adjustment. As provided under the merger agreement, Eaton Vance shareholders also received a special dividend of 4.25 dollars per share, which was paid last December 18 to shareholders of record on December 4.
“This acquisition further advances our strategic transformation by continuing to add more fee-based revenues to complement our world-class, integrated investment bank. With the addition of Eaton Vance, Morgan Stanley will oversee 5.4 trillion dollars of client assets across its Wealth Management and Investment Management segments. The Morgan Stanley Investment Management and Eaton Vance businesses are delivering strong growth and their complementary investment and distribution capabilities will deliver significant incremental value to our investment management clients,” said James P. Gorman, Chairman and Chief Executive Officer of the company.
Thomas E. Faust, Chairman and Chief Executive Officer of Eaton Vance, will become Chairman of Morgan Stanley Investment Management and will join the Morgan Stanley Management Committee. “We are pleased to join Morgan Stanley to begin the work of building the world’s premier asset management organization. On a combined basis, Morgan Stanley Investment Management and Eaton Vance have unrivaled investment capabilities, distribution reach and client relationships around the globe“, he commented.
Lastly, Dan Simkowitz, Head of Morgan Stanley Investment Management, claimed to be excited to welcome Eaton Vance: “Our combined organization is exceptionally well positioned to deliver differentiated value to our clients and growth opportunities for our employees”.
Pixabay CC0 Public Domain. Mediolanum International Funds otorga a SGA y NZS Capital sendos mandatos de renta variable
Mediolanum International Funds (MIFL) has announced two new equity mandates with SGA and NZS Capital as the firm looks to expand its footprint with boutiques in the United States.
In a press release, the European asset management platform revealed that the agreement with SGA, a Connecticut based independent investment boutique, will see MIFL providing capital of 80 million to seed the SGA Emerging Markets equity strategy, which adopts the same investment approach that made the firm known for the quality of their flagship global equity strategy. The initial investment is expected to grow over the next 5 years.
“We are very excited to work with Mediolanum International Funds and offer our Emerging Market Growth portfolio to European investors at a time when many are seeking EM exposure in a bid to participate in the wealth creation of growing middle classes. This partnership will give us privileged and timely access to European distribution across different countries through MIFL’s local ties to distribution networks in Italy and Spain, and strong partnerships in Germany within the IFA business”, Rob Rohn, Founding Principal at SGA, commented.
MIFL will also back NZS Capital’s Technology strategy, with a 300 million euros mandate. Based in Denver, the investment boutique has a unique philosophy known as Complex Investing which identifies companies that best adapt to unpredictable outcomes. It is minority owned by Jupiter Asset Management which acts as the firm’s exclusive global distribution partner and introduced MIFL to the investment opportunity.
Brinton Johns, Co-Founder of NZS Capital, said that partnering with Mediolanum International Funds is a great step in the firm’s evolution: “This Sub advisory mandate offers European clients access to a portfolio of companies that we believe is best equipped to handle the accelerating pace of change in the global economy. The focus on innovation and disruption is a long-term trend an investment perspective, and one that is especially relevant in today’s environment”.
A 5-year plan
MIFL highlighted that its multi manager approach, which combines funds and mandates, is the engine of several mutual funds and customised investment solutions and services for insurance products and banking services distributed across Italy, Spain, and Germany. “We are delighted to have both SGA and NZS Capital LLC on board. Both managers have proven to generate great value over the time for their investors and by partnering with them in these new strategies we expect our clients to benefit as well”, pointed out Furio Pietribiasi, CEO of the platform.
He also revealed that their objective in the next 5 years is to invest at least one third of all their equity and fixed income assets externally managed in partnership with boutiques with strong track record by seeding new strategies or investing in existing ones. In his view, the evolution of the industry globally is offering “a unique opportunity” and they believe they are well positioned to take advantage due to their entrepreneurial culture and 23 years plus experience in multi management.
“We are looking to collaborate with boutiques where we can add value to their overall business. We think that the AUM in breadth of strategies we have, plus our flexibility and unique entrepreneurial culture is fundamental to success We already have a proven track record in helping start-ups or small asset managers to grow, it is now time to scale it up”, he concluded.
Foto cedidaKimberley Stafford, nueva directora global del Grupo de Estrategia de Producto de PIMCO.. PIMCO nombra a Kimberley Stafford directora global del Grupo de Estrategia de Producto y a Alec Kersman director de Asia-Pacífico
In the last few days, PIMCO has announced numerous changes in its executive positions. As it confirmed this week to Funds Society, Giovanni Onate will be joining them in Miami in the position of Senior Vice President. Also, in a press release, the asset manager revealed that Kimberley Stafford, currently Head of Asia-Pacific, will become Global Head of its Product Strategy Group.
Onate will be leading business development efforts in Mexico as the firm continues to expand its presence in Latin America and the Caribbean. He will report directly to Barbara Clancy, Executive Vice President and Head of Latin America and the Caribbean for PIMCO. Onate had been leading BlackRock’s Mexico institutional client business for more than a decade and will now be replaced by Horacio Gil, who joined the firm in 2019.
Stafford will return to PIMCO’s Newport Beach office in the middle of this year to take up the new role, overseeing traditional strategies and alternatives, which include PIMCO’s private strategies and hedge funds. Consequently, Alec Kersman, currently Head of Strategic Accounts in U.S. Global Wealth Management, will become the new Head of Asia-Pacific. Both will report to Emmanuel Roman, Managing Director and PIMCO’s Chief Executive Officer.
Stafford has been a member of PIMCO’s Executive Committee for five years and will also serve as a Trustee on the Board of PIMCO Funds, alongside Peter Strelow, Co-Chief Operating Officer and Chairman of PIMCO Funds. Stafford has led the Asia-Pacific region since 2017 and, during her 21 years at the asset manager, she has held various positions including Head of the Consultant Relations Group, oversight of U.S. institutional sales and alternatives marketing teams, Head of Human Resources and Talent Management and Head of Global Sustainability Initiatives and Account Manager in the Consultant Relations Group.
“Kim has served in almost every facet of our business during her two decades working for PIMCO. She is a strategic thinker and a natural leader who motivates, mentors and develops employees. Her expertise in managing client relationships will be invaluable as we continue to evolve our products and strategies for investors in traditional and private strategies”, said Roman.
Regarding Kersman, the firm highlights that he drove the growth of the Latin America business over more than a decade and, more recently, has played a major role in bringing his client relationship expertise to U.S. GWM: “With his deep understanding of the regulatory environment and proven strategic leadership, Alec will build on the excellent work that Kim and the team have delivered over the past four years driving our expansion in Asia-Pacific,” added Roman.
Kersman will be supported in Asia-Pacific by PIMCO’s regional leadership team and deep bench of investment professionals. In addition, John Studzinski, Vice Chairman of PIMCO’s Executive Office, will continue playing a key role in broadening relationships in Asia-Pacific with leaders in business, finance, government and NGOs.
Other appointments
The firm also announced other key leadership roles: David Fisher, currently Head of Traditional Product Strategies, will become Co-Head of U.S. GWM Strategic Accounts alongside Eric Sutherland, President of PIMCO Investments LLC. Fisher, who has spent 13 years as a leader in the Product Strategy Group and also serves as a trustee of PIMCO Closed End Funds, will relocate to the New York office. He and Sutherland will report to Gregory Hall, Head of U.S. GWM. Ryan Korinke, Head of Hedge Fund and Quantitative Strategies, based in Hong Kong, will join PIMCO’s Executive Office in Newport Beach, where he will report to Roman.
Commenting on Korinke’s role in the Executive Office, Roman pointed out that his understanding of hedge fund strategies and the role they play for clients, together with his “detail-oriented and thoughtful approach” have helped deepen many of their relationships with hedge fund investors around the world. “He is a creative and analytical thinker and widely admired by PIMCO colleagues as an executive who embodies PIMCO’s culture”, he concluded.
Foto cedidaStephen Bird, director general de Standard Life Aberdeen.. Standard Life Aberdeen cambia su nombre a Abrdn
A few weeks ago, there were rumors that Standard Life Aberdeen might change its name after selling its brand to Phoenix Group. Finally, this week the asset manager announced in a statement that it has decided to simplify and expand its partnership with Phoenix Group, shedding light on the future of its brand.
This strategic partnership started in 2018, when Standard Life Aberdeen sold its UK and European life insurance business to Phoenix Group for 3.24 billion pounds. The transaction created a complex network of commercial and operational services between the groups, including the shared use of the “Standard Life” brand.
The agreements announced this week simplify the partnership focusing it on the provision of Standard Life Aberdeen’s high-quality asset management services to Phoenix Group and its insurance and workplace pension customers.
Now, the strategic asset management partnership, under which Standard Life Aberdeen currently manages 147.4 billion pounds of Phoenix Group assets, will be extended until at least 2031 (in the original agreement, it was up to 2028). Also, the asset manager will pay upfront 62.5 million pounds for the purchase of the Wrap SIPP, onshore bond and TIP businesses from Phoenix, which represent 36 billion pounds in assets under management.
The agreement also establishes that Standard Life Aberdeen will pay 32 million pounds to Phoenix Group for bearing the cost of some transferring colleagues going forward after selling its brand and will no longer provide marketing services. Lastly, the resolution of legacy matters will not materially impact on Standard Life Aberdeen’s 2020 financial performance, as it will receive a net cash inflow of 34 million pounds this February.
Standard Life Aberdeen will sell its brand to Phoenix Group during the course of 2021, a transaction that they don’t expect to impact materially on their results. The asset manager also revealed that it has initiated a branding review, the outcome of which it will announce later this year.
A recognized brand
“The most successful partnerships in business tend to be formed on clear and simple terms. What we are announcing today is an agreement that simplifies the relationships between Standard Life Aberdeen and our strategic partner Phoenix Group in a way that will allow us to work together constructively as partners for at least the next ten years. Both businesses will be able to play to their respective strengths in the partnership”, said Stephen Bird, CEO of Standard Life Aberdeen.
He also pointed out that the “Standard Life” brand has an important heritage: “In the UK, it has strong recognition as a life insurance and workplace pensions brand. This is closely aligned with Phoenix’s strategy and customer base. This is much less the case with the business we are building at Standard Life Aberdeen which is focused on global asset management, our market-leading platforms offerings to UK financial advisers and their customers, and our UK savings and wealth businesses. That’s why I am excited about the work we are doing on our own brand, which we look forward to sharing later this year”.
Lastly, Andy Briggs, CEO of Phoenix Group, claimed to be delighted with the extension of the strategic asset management partnership until at least 2031: “This recognizes the global expertise and excellent service that Aberdeen Standard Investments delivers to Phoenix Group and our customers as our preferred asset management partner. The simplification of the Standard Life brand, sales and marketing will be a key enabler of Phoenix’s growth strategy, which in turn should lead to greater asset flows to ASI.”
