As of 1 August 2020, María-Grazia Carrasco will join Julius Baer’s Intermediaries Team Americas as a senior relationship manager “to drive continuing growth”, stated the firm in a press release.
Carrasco has a proven track record following 15 years at UBS. Most recently, she was a senior banker managing a significant book of Intermediaries in Latin America. The hiring follows several recent other appointments and hirings in the team.
Alexandre Berger, Head Intermediaries Americas, Julius Baer, commented: “I am delighted to welcome Maria-Grazia, who is bringing with her deep experience and knowledge. Our continued hiring efforts are paying off and position us well for our long-term growth ambition in the Intermediaries segment in the Latin American market. This supports our ongoing efforts to provide excellent services and platforms for our Intermediaries clients.”
Julius Baer’s Intermediaries team works with independent financial advisors and family offices that act as depositaries or brokers of the final accounts of their clients.
Pixabay CC0 Public Domain. Lombard Odier y WWF lanzan la Guía del Donante Medioambiental
Lombard Odier and the WWF are publishing a guide to philanthropy for individuals and private foundations wishing to make a meaningful contribution to reverse biodiversity loss and address threats to nature. The Donor’s Guide to the Environment is intended as “a useful resource for any philanthropist wanting to protect the environment and help fight climate change”, said Lombard Odier in a press release.
Written and published in partnership with the WWF, the guide aims to raise awareness and facilitate engagement and funding in this field. “It provides information and analysis to better understand the scope of the nature and climate emergency we are facing and identify different types of solutions”, they stated.
Drawing on the combined experiences of Lombard Odier Group and the WWF, it outlines concrete projects, expected outcomes and donor opportunities for preserving oceans, forests and freshwater habitats across the globe. The guide also highlights case studies in the field of impact investment.
“One million species are threatened with extinction and the way we currently produce and consume is causing irreparable damage to biodiversity, land, forests, oceans and river systems. The science is clear: the loss of nature together with climate change is a global emergency putting our economic prosperity, wellbeing, development and survival at risk”, said Marco Lambertini, Director General of WWF International.
In 2017, only 3% of the US$410 billion donated to charity by US citizens went to environment-related causes, although this represented an increase of 7.2% on the previous year (NP Source). In Europe, a study from the European Foundation Centre looking at 87 of the largest European foundations found that they gave a total of €583 million in environment-related grants in 2016, less than 1% of the estimated €60 billion given in grants by European foundations that year (EFC).
“Despite awareness being higher than ever before and increasing engagement by philanthropists around the globe, faster progress is needed, along with the commensurate financing, to rebalance our relationship with nature. Philanthropy can help today and more than ever before in financing actions that target the root causes of nature loss and climate change and mobilise decision makers in driving the much needed systemic change for a sustainable future for people and planet”, added Lambertini.
Lombard Odier stated that the guide “clearly demonstrates that all donations are important to respond to today’s climate and environmental crisis”. For example, an amount such as US$35’000 can kick-start the development of a local sustainable fishing industry in the Mediterranean, whereas getting a developing country climate change-ready “requires funding in the hundreds of millions or even billions of dollars”.
“The estimated funds needed to protect our climate and halt the loss of biodiversity are enormous. While the majority of the funding will come from governments, there are tremendous opportunities for philanthropic donors to make a difference as well,” said Patrick Odier, Senior Managing Partner of Lombard Odier Group and President of Fondation Lombard Odier.
“Philanthropy has a rare value. It is the catalyst that can ignite significant change in our culture. It can fund and support visions, no matter at what stage, be it the seed of a good idea or a fully-grown initiative. In this respect, the finance sector is also stepping up to the challenge, with innovative and sustainable finance initiatives”, he added.
As well as highlighting grants, the Donor’s Guide showcases some new financing tools, also important in addressing the environmental challenge. One example is the Blue Bond from The Nature Conservancy, which raises money to refinance developing countries’ debts on the condition that they use the money received to protect or preserve their natural environments.
“Such new financing tools are valuable because they mobilise capital that allows countries to address underlying structural factors that often attract less attention from philanthropists,” said Maximilian Martin, Global Head of Philanthropy at Lombard Odier Group.
The Donor’s Guide to the Environment has been edited by Lombard Odier Group and is available in English. It can be downloaded free of charge from the Lombard Odier Group and WWF websites.
Foto cedida. T. Rowe Price Will Launch Four Active Equity ETFs
The U.S. Securities & Exchange Commission (SEC) has granted the remaining approvals necessary for T.Rowe Price to bring to market four active exchange-traded funds (ETFs). The firm announced in a press release that they will be listed on NYSE Arca.
“These latest milestones clear the path for T. Rowe Price to introduce ETFs in an active management format that has characterized the firm’s investment approach for more than 80 years”, they said. The products will include the Blue Chip Growth ETF, the Dividend Growth ETF, the Equity Income ETF, and the Growth Stock ETF.
T. Rowe Price stated that the ETFs –which will just be available in the US- will use the same investment strategies and portfolio managers as their corresponding mutual funds. They will diversify and complement them for investors who prefer the intraday trading, tax efficiency, and cost structure ETFs provide. However, the firm believes mutual funds will remain a “key vehicle” for many investors.
“We have reached a significant milestone that will enable us to bring T. Rowe Price’s time-tested investment management capabilities to the ETF marketplace. When launched, these ETFs will be the only ones in the market informed by T. Rowe Price’s strategic investing approach and supported by our global research platform of more than 600 investment professionals”, said Rob Sharps, Group Chief Investment Officer.
T. Rowe Price’s active ETFs will feature a proprietary portfolio disclosure process that will ensure market makers have enough information to quote prices with a high degree of confidence, while it also protects the intellectual property of the firm’s investment professionals and the interests of its funds shareholders.
Over time, the firm plans to deliver a robust ETF product lineup covering investments in various asset classes and to offer its active ETF model to other asset managers interested in bringing their own active ETFs to market.
Tim Coyne, Head of Exchange-Traded Funds, pointed out that, today, active ETFs from the company are a step closer to reality. “As the ETF industry evolves to include active ETFs, T. Rowe Price is on the path to deliver flagship investment strategies in this new way. We believe that financial advisors and investors seeking the benefits of the ETF structure will find these to be compelling as we work to deliver quality offerings that meet a range of needs.”
T. Rowe Price has been engaged in communication with the SEC about the potential launch of semitransparent active ETFs for several years, having initiated dialogue in 2010 and submitted its first private filing in 2011. The firm anticipates launching its active ETFs this year.
Pixabay CC0 Public Domain. Los activos en fondos europeos alcanzaron los 11,8 billones de euros en 2020
There are as many reasons to believe that equities will continue the rally they began in March as there are to expect another downturn. In either case, volatility is likely to remain high. NN Investment Partners believes that in times of such heightened uncertainty, investors would do well to consider including convertible bonds in their portfolios. In their view, market developments since the coronavirus began have confirmed the relevance their convertible bond investment approach.
A convertible bond is a bond plus an embedded stock option, giving features of fixed income and equities in one instrument. These equity/fixed-income hybrids offer the best of both worlds: their conversion option gives exposure to the upside in share prices, and their bond cashflows provide downside protection should the underlying share price fall.
“The market has certainly responded to the potential merits of convertibles”. NN IP notes a sharp rise in issuance of convertibles over the past quarter: it was USD 16 billion in April, USD 27 billion in May and USD 25 billion in June, amounting to more than USD 67 billion in total. This is about two-thirds of the annual average over the past decade of around USD 100 billion.
The asset manager believes that the reason for the new issuance has to do with the fact that convertibles offer a cost-effective and flexible way for companies to raise capital, either to remain operational or to take advantage of new business opportunities. The current volatility in equity markets means it is also often more attractive than a share issue; the lower coupon rates for convertibles make the running costs much cheaper than those for straight debt.
Martin Haycock, Senior Convertible Bonds Specialist at NN IP, says that around a third of recent issues relate to companies that are in trouble because of the current crisis, such as travel companies, while the majority of issuers are looking for capital to finance growth.
“We are interested in this latter group, which includes companies involved in cybersecurity, cloud computing, batteries/electrification and healthcare, which will see growth in the next three to five years,” says Haycock. “This is why it is crucial to take a thematic approach to navigate economic cycles and invest in the right convertibles.”
Tarek Saber, Head of Convertible Bonds points out that convertible bonds bonanza is underway, as more and more companies see the benefit of issuing convertibles in the post-coronavirus world.
“This is a positive for the asset class and a growing number of investors are embracing the unique historic risk-return characteristics of convertibles and allocating a place for them in their strategic asset allocations,” says Saber. “We would recommend allocations of between 3% and 10%, depending on investors’ appetites. Whatever they choose, they should partner with investment managers who are strict in their investment process and won’t buy new issues just because they might be theoretically cheap at issue, but instead focus on the credit and equity fundamentals of the issuer.”
Taking this into account, the NN (L) Global Convertible Opportunities invests long-only in a portfolio of thoroughly researched convertible bonds. The fund is actively managed and invested in balanced convertibles that provide asymmetrical returns.It aims to outperform the global convertible universe (measured by the Refinitiv Global Focus Index – Hedged) by 200bps per annum.
As an active manager, we strongly believe that taking account of environmental, social and governance (ESG) considerations can help us make better long-term investment decisions for our clients. Furthermore, we believe in leveraging the power of investors to trigger positive change. This involves exercising our voting rights systematically in the best interests of our clients and engaging directly with the companies we invest in when we have ESG concerns.
In our latest active ownership report, we present key figures and commentary on our proxy voting and ESG engagement activities. We look forward to continuing our active ownership activities in 2020, both bilaterally and through collaboration with industry partners.
Engagement with corporate issuers
Through our engagement programme, we seek to focus on corporate issuers with material ESG failings in order to encourage them to align their policies, practices and disclosure with established industry best practice.
Corporate engagement examples: ESG in action
German power company on environmental and social issues
We started engaging with this company in early 2019 primarily to press the company to sell off its coal and lignite assets. During the year, the company rotated its assets towards renewables and the company committed to achieve carbon neutrality by 2040.
After multiple bilateral and collaborative meetings (through CA100+), the company made considerable progress on a number of engagement objectives as it:
started to work with the Science Based Target Initiative (SBTI) in order to assess the disparity between the company’s own carbon reduction targets and the goals of the Paris Agreement
committed to improve the alignment of their reporting with Taskforce on Climate-related Financial Disclosures (TCFD) recommendations
begun considering linking executive pay to climate targets
initiated a global review on climate-related lobbying practices to ensure they are consistent with the company’s own climate strategy
Canadian material company on corporate governance issues
In 2019, we engaged with this company to prevent a majority shareholder from acquiring it at what was, in our view, an unfairly inexpensive price. We discussed the issue with other long-term shareholders to better understand their views and exchange concerns. We directly engaged with the company’s board together with the external deal consultant and the case featured in a Canadian newspaper.
In June 2019, we visited the company’s latest acquisition on-site to see for ourselves whether this warranted the corresponding share price decline. We met the company CEO and VP Finance & Strategy to discuss the rationale and activities there. This only strengthened our conviction that the share price fall was unwarranted.
As a result, upon the announcement of a takeover, we emphasised to the board that we were not in favour of the move, especially at the existing offer price. When minority shareholders were asked to vote on the potential takeover bid, our investment team voted against the deal. The bid did not go through due to shareholder opposition and, as such, we achieved our goal and the engagement was closed.
Dialogue with sovereign issuers
For our Emerging Markets sovereign debt strategies, ESG factors are integrated within country risk models. A targeted dialogue with sovereign issuers is part of our active ownership strategy.
In 2019, we partnered with EMpower, a well-respected and innovative global philanthropic organisation focused on youth in emerging economies, in order to enhance their analysis and understanding of long-term sustainability issues.
Brazil: ESG in action
In 2019 our macroeconomic strategist designed a due diligence trip to Brazil to better understand the unique political and economic challenges, as well as gain insight into specific social development issues. Our research showed issues in the quality of spending in education and its diversity and inclusion system. Conversations with the Ministry of Economy show the current administration’s desire to improve Brazil’s business environment and to secure long-term growth for the country. This is an example of the positive feedback loop between improving ESG issues and the overall creditworthiness of a sovereign issuer.
Our ongoing analysis and dialogue surrounding these issues continues away from country due-diligence trips and at times we have an opportunity to act in a collaborative manner with other investors who share our concerns. For example, in 2019 Pictet Asset Management signed an Investor Statement on Deforestation and Forest Fires in the Amazon.
Opinion by Arabella Turner, ESG specialist at Pictet Asset Management.
Proxy voting: Pictet AM’s 2020 voting summary can be assessed here and the past records here.
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 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.
Vast amounts of stimulus have underpinned the markets after the initial shock of the COVID-19 crisis. The question for investors now is whether such support can continue to offset a sharp fall in corporate profits. Below, Pictet Asset Management (Pictet AM) shares their views on fixed income and currencies:
A focus on United States of America:
Global bond markets remain supported by unprecedented monetary stimulus. Pictet AM expects the world’s five top central banks to inject a whopping USD 8.4 trillion of liquidity into the financial system this year, which is equivalent to 14.3 per cent of their countries’ total GDP (1).
All bonds might look attractive against this backdrop. But central bank support must be balanced against the fact that valuations are now exceptionally high – some fixed income asset classes are the most expensive they’ve been in 20 years. Additionally, the global economy appears to be on a path to recovery, which could cause bond yields to reverse course.
Those contrasting signals keep us neutral on fixed income overall. Drilling deeper, among sovereign debt Pictet AM sees the best return potential in US Treasuries. The Fed has been particularly aggressive with stimulus, and Pictet AM expects it to deliver more in the coming months. This will most likely come in the form of yield curve control, which should keep liquidity abundant and Treasuries’ valuations unusually high for a long time.
The stimulus should also be good news for US corporations, which are already beginning to benefit from a pick-up in the economy. The US economic surprise index hit an all-time high in June, for example. Economically, US looks to be in better shape, which supports their overweight stance on US investment grade bonds – particularly as they have the backstop of Fed support should things dip again.
However, Pictet Asset Management is mindful that the economic recovery is still in the early stages, and there are many risks ahead, including the US election and the possibility of a second wave of the pandemic. Pictet AM therefore remains underweight US high yield. Although it is the only fixed income asset class that is not expensive relative to its 20 year history, according to their model, they believe such valuations do not factor in the potential for future defaults. The market is pricing in a default rate of just 7-8 per cent, while Moody’s expects it to reach nearly double that, at 13 per cent.
In the currency market, Pictet AM thinks the euro should benefit from an improving economic backdrop, helped by increased stimulus. The ECB’s TLTRO 3 bank funding programme and the EU’s economic recovery plan are big positives. The former has seen a very good take-up and will boost banks’ earnings as well, while the latter can potentially prove a game-changer for fiscal unity within the bloc. All in all, Pictet AM thinks the euro’s 14 per cent undervaluation against the dollar (see chart) is no longer justified, and upgrade the currency to overweight. Technical trends, such as seasonality, are favourable, too.
Pictet AM also sees potential for a rebound in emerging market (EM) currencies, which are extremely cheap and have lagged the broader ‘risk-on’ rally so far. That, in turn, should benefit EM local currency debt.
To guard against any renewed market volatility, Pictet AM keeps defensive positions in the Swiss franc (whose haven status is complemented by a strong uptick in the domestic economy) and in gold. Although gold has enjoyed a very strong run (up 15.5 per cent since the start of the year), it is still not in overbought territory according to their technical indicators, which makes it a good hedge. Indeed, Pictet AM believes fundamentals – including the possibility of an inflation spike over the medium term, persistently negative real rates and the prospect of a further weakening in the dollar – more than justify the precious metal’s apparently stretched valuations.
Notes:
(1) Data for US, China, euro zone, Japan and UK. Policy liquidity flow is calculated as net central bank liquidity injection over preceding 6 months as percentage of nominal GDP, using current USD GDP weights.
Please click here for more information on Pictet AM’s Investment Outlook.
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.
The Bank of New York Mellon Corporation announced that Mitchell Harris, CEO of BNY Mellon Investment Management, which includes the Wealth and Investment Management businesses, has announced his intention to retire effective on October 1st. Consequently, the company has appointed Hanneke Smits as new CEO of BNY Mellon Investment Management, and Catherine Keating will continue in her role as CEO of BNY Mellon Wealth Management.
The corporation stated in a press release that both Smits and Keating will report to Todd Gibbons, CEO of BNY Mellon. Furthermore, Smits will join BNY Mellon’s Executive Committee.
“Mitchell has been instrumental in driving our Investment Management business over the last four years as CEO and we wish him all the best in retirement. During a period of tremendous change in the investment landscape, he helped reposition our multi-boutique model and launch new investment capabilities, leaving us well positioned to meet the evolving investment needs of our clients,” said Gibbons.
He also claimed that they are “delighted” to elevate Hanneke into the CEO role for Investment Management. “She has spearheaded Newton’s business momentum and client-centric culture, and we look forward to her leadership within Investment Management. Mitchell has cultivated a strong bench of leaders, including Hanneke and Catherine, who will continue to drive the execution of our strategic priorities to deliver leading investment solutions to our clients underpinned by exceptional investment performance.”
Meanwhile Smits stated that she is “deeply honored” to serve as CEO of BNY Mellon Investment Management. “We have made great progress in building a diversified investment portfolio to help our clients achieve their investment goals. We will build on this strong foundation to continue to drive performance and innovation across our investment products, while also serving as a trusted partner for our clients in today’s rapidly changing investment environment”, said Smits.
Smits will continue as CEO of Newton until October 1st and the company revealed a search is currently underway to replace her. Over the next several months, Harris will work closely with her and Keating to ensure a smooth transition of leadership.
Smits has been CEO of Newton Investment Management, a subsidiary of The Bank of New York Mellon Corporation, since August 2016. Her career spans close to three decades in financial services, including serving as a member of the Executive Committee at private equity firm Adams Street Partners from 2001 to 2014, and Chief Investment Officer from 2008 to 2014. Hanneke is a non-Executive Director to the Court of the Bank of England and serves on the board of the Investment Association.
In addition, she is Chair of Impetus, a venture philanthropy organization that supports charities that aim to transform the lives of disadvantaged young people, and as part of this appointment, she is Trustee of the Education Endowment Foundation, founded in 2011 by The Sutton Trust in partnership with Impetus. She is co-founder and former Chair of Level 20, a not-for-profit organization set up in 2015 to inspire women to join and succeed in the private equity industry. Originally from the Netherlands, Hanneke has a BBA from Nijenrode University and a MBA from the London Business School.
After 35 years in the market and with 9 billion in assets under management, Bolton continues to be in the premium segment of service providers to financial advisors, with just one aim: to provide a complete and evolving solution so that at the end of the day the advisor will be more profitable and, as Ray Grenier says, will be able to claim that moving to the world of independent financial advisory service was the best professional decision he ever made.
Bolton’s last few years can be summed up according to its growth data: the firm has been progressing at an annual rate of 20% and although 2020 is shaping up to be a neutral year, by 2021 growth is already projected at between 15% to 20% or more.
“We expect continued growth in international business, as major financial institutions are imposing higher account minimums for offshore clients, as well as limits on the number of countries where they do business, travel restrictions, and lower incomes for financial advisors. To complement this progress and support its market position as a premium brand, Bolton will open a 20,000-square-foot (over 1,800-square-meter) office complex in the Four Season Tower on Brickell Avenue in Miami by 2020,” explains Ray Grenier in this interview with Funds Society.
Bolton opened its first office in 2011 in Miami; this office currently manages over $3 billion in client assets. The New York office on 5th Avenue opened in 2017.
Bolton’s DNA
More than two-thirds of the financial advisors working with Bolton come from Merrill Lynch and Morgan Stanley. Bankers from firms such as Wells Fargo, UBS, CitiGroup, RBC and J.P. Morgan have also moved, with Bolton, into the world of independent financial advice. That results in Grenier positioning its brand in the “premium” segment of the business, since the minimum relationship with Bolton is $100 million of assets under management and recruitment is essentially by invitation.
“We have over 40 teams from the world’s leading banks. This has been achieved without maintaining a full-time recruitment department. Bolton relies on referrals from its affiliated advisors to identify candidates who have a history of successful client acquisition and service and share the company’s values for conducting high-quality business. Affiliation with Bolton is generally by “invitation only,” says Ray Grenier.
Financial advisors obtain higher earnings when they move into the independent world: “Many advisors are in their 50s and their main concerns are retirement planning and business succession. Working at Bolton allows them to save more and then sell the business or transfer it to partners and family team members through a structured buyout. The situation for advisors in large banks is very different because they are employees, the company owns their business book and they receive a small fraction of its value upon retirement,” the executive explains.
According to Grenier, Bolton is currently the highest ranked independent firm in terms of annual revenue and client assets by each financial advisor.
“Our offshore client mix has a very broad base in Latam and in Europe, mainly in Argentina, Brazil, Uruguay, Mexico, Colombia, Venezuela and Panama. Currently, Brazil is a strong growth area for Bolton, but there are opportunities to gain clients throughout Latin America,” says Grenier.
The Future of the Business
Bolton offers turnkey offices to independent consultants, a service that includes premium quality premises for the whole team, fully equipped with the best available technology platforms, as well as the legal, compliance, marketing and accounting infrastructure.
“We are implementing a set of products to support full remote operation capability while meeting our regulatory responsibilities. These technologies include WhatsApp, Microsoft Teams, DropBox Business and Agreement Express, a fully digital document management and account opening system,” said Bolton’s CEO.
The company is also developing a “Concierge Service Network” that will include a database of high-profile service providers who meet the needs of high net worth clients: legal, accounting, event planning, travel, property management and various other services.
“As asset management becomes increasingly cost driven, advisors operating in the high net worth market will need to stand out from the rest by offering more services to add value to the client relationship,” explains Grenier.
For this executive, the most important factor for sustainability in offshore business is to maintain an effective “Anti-Money Laundering Program” (AML), as many of the major banks have been forced to withdraw from offshore business and pay staggering fines due to AML deficiencies.
“There is little or no margin for error when it comes to AML. But we believe that risk can be mitigated by limiting membership to professionals who have a solid reputation for conducting high-quality investment business. Almost all of our recruits are referred to us by our affiliate advisors. In the relatively small universe of LatAm wealth management, they are the best sources for identifying the most reputable teams in the offshore business,” explains Grenier.
Ray Grenier, a Low Profile CEO
It’s very difficult for Grenier to talk about his personal experience as Head of Bolton, as he always insists on speaking in the plural and playing down his importance. How did it occur to him to move from an essentially onshore business to an offshore one? To each question, Grenier answers without triumphalism, with a cascade of market data and objectives.
During these years of Bolton’s continued growth (and success as well) the most rewarding thing for Grenier was the friendship he developed with many financial advisors and hearing them say that moving into the world of independent financial advice was the best decision they could have made.
Foto cedidaJeremy Roberts, nuevo responsable global de distribución de GAM.. GAM ficha a Jeremy Roberts y le nombra responsable global de distribución
GAM Investments announced the appointment of Jeremy Roberts as Global Head of Distribution. Roberts will join the asset manager in September from BlackRock, where he was Co-Head of EMEA Retail Sales and Head of the UK Retail Business. He will report directly to Peter Sanderson, Group Chief Executive Officer, and will be a member of the Senior Leadership Team.
GAM has announced in a statement that this is a role recently created as Tim Rainsford, current Head of Sales and Distribution, is leaving the company “to take up a new opportunity”. That’s why a new role of Global Head of Institutional Solutions will also be appointed to assume the responsibilities of Rainsford together with Roberts.
“I’m thrilled to be joining GAM as Global Head of Distribution in September. GAM has an extremely strong management team, a great suite of active products and an innovative, client-centric culture and therefore I’m really looking forward to joining such a talented group of people”, said Roberts, who has 20 years of experience in the industry.
Meanwhile, Sanderson claimed to be delighted with Roberts joining the company. “His leadership experience, enthusiasm and his passion to deliver outcomes for clients make him a great fit for GAM. I am excited to welcome Jeremy to the firm to help us further build on our strong distribution capabilities. I would also like to thank Tim for his contribution to the firm and to wish him all the best for the future”.
Allianz Global Investors announced a strategic partnership with Virtus Investment Partners that will focus on enhancing both firms’ growth opportunities in the U.S. retail market to existing and potentially new clients.
AllianzGI stated in a press release that Virtus will become the investment adviser, distributor and/or administrator of their approximately $23 billion in open-end, closed-end and retail separate account assets. Meanwhile, AllianzGI’s teams will continue to manage the strategies in a subadvisory capacity, providing continuity for their U.S. retail clients.
Also, their Dallas-based Value Equity team, which manages approximately $7 billion of the assets, will join Virtus as an affiliated manager. The partnership also provides for future joint product development of investment solutions for retail clients in the U.S.
The asset manager pointed out that partnership will enhance Virtus’ offerings, giving it access to AllianzGI’s “deep, global investment expertise while expanding AllianzGI’s access and presence in the U.S retail markets”.
“This new partnership is strategically meaningful for us in terms of scale, fit and growth potential,” said George R. Aylward, President and Chief Executive Officer of Virtus.
Tobias C. Pross, Chief Executive Officer of AllianzGI stated that the partnership is “truly complementary” and will allow them to focus their U.S. distribution efforts on the Institutional, Insurance, Sub-Advisory and Non-Resident markets, “which are more closely aligned with our strengths in other markets”, he said.
Based on current asset levels, the partnership will increase Virtus’ mutual fund assets under management by approximately 40% to $54 billion and its total to $128 billion.
