New Legislation in the State of Florida for Foreign Trust Companies

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Florida pone en marcha una nueva legislación para compañías de Trust internacionales
CC-BY-SA-2.0, FlickrPhoto: Neil Williamson. New Legislation in the State of Florida for Foreign Trust Companies

Various international independent trust companies with presence in the State of Florida gathered in 2013 to create Florida International Administrators Association (FIAA), with the common goal to support the enactment of modern legislation for foreign trust companies, throughout their affiliates, that engage in marketing activities in Florida. FIAA’s primary goal has been to obtain an approved new section in the Florida Statutes that defines and regulates a Qualified Limited Service Affiliate (QLSA).

FIAA’s founding members Citco Corporate Services Inc, CISA LatAm LLC, JTC Miami Corporation, Amicorp Services Ltd, Corpag Services USA Inc and Integritas Inc, have registered to become a QLSA and all have been granted such qualification by the Florida Office of Financial Regulation (FOFR). This qualification, which is imperative by law and provides adequate supervision, has been a fundamental step in the consolidation of the international fiduciary industry in Florida.

FIAA’s  President Ernesto Mairhofer, Secretary Myriam Bril and the rest of the Directors, Emilio Miguel, Tony Valdes, Anthony Perea and Ewout Langemeijer, will carry out a series of events in the financial market of Miami with the objective of publicizing the new regulatory framework and ensuring that the trust services offered by international Trust companies are only through companies registered and approved by the FOFR, in order to preserve the good reputation of this sector and helping to maintain relations with the leaders of this industry.

Afores will Have to Wait in Order to Invest in International Mutual Funds

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Las afores tendrán que esperar para invertir en fondos mutuos internacionales
Pixabay CC0 Public DomainPhoto: AMAFORE. Afores will Have to Wait in Order to Invest in International Mutual Funds

It had seemed that the beginning of 2018 would mark a big milestone in the way the Mexican Pension Plans, or Afores, invest. At the end of 2017, the ‘Comisión Nacional del Sistema de Ahorro para el Retiro’ (CONSAR), or National Commission for the Retirement Savings System decided, among other things, such as making CERPI more flexible or including SPACs, to include Mutual Funds with active strategies as an additional investment vehicle. This decision was published in the official bulletin in January 2018.

As Carlos Ramírez, President of the CONSAR, commented, “When looking to invest with an international asset manager, we look for better yields and this is what we have seen with the mandates that have paid a good return… Mutual funds are a reflection of the mandates and what we are really doing is opening another option for investing abroad, especially with the small and medium Afores in mind.”

However, in a recent interview with Funds Society, which will be available in the printed magazine this October, Ramírez commented that, unfortunately, this resolution has as yet not been implemented waiting for its authorization in a pending CAR, or Risk Committee meeting, “which would formally give life to mutual funds, and which to date was unable to be held for various reasons. I hope it can be achieved before the end of the administration so that we can see closure on an issue that we have been working on for a long time, which is a very deep analysis of the benefits of Afores being able to invest in mutual funds, and which we hope to be able to complete before this administration ends. It‘s practically ready, all that’s missing is that CAR meeting.”

Meanwhile, Carlos Noriega Curtis, President of AMAFORE, told us prior to the Third Afores Convention that this meeting will most likely not go ahead until the next administration is in power: “If during the transition stage, within the next two months, there is communication between the incoming and outgoing governments, the CAR will meet, if not, it will meet as soon as it is able to do so following the transition.” The executive added that they are watching very closely how the situation develops. “All the information has been prepared. We, as an association, have been supporting the importance, the necessity, and the convenience of being able to invest in mutual funds… we are convinced of this, and we are doing everything possible to achieve it,” concluded Noriega.
 

Dan Siluk (Janus Henderson Investors): “We Will Probably Look Back to US Treasuries when the Fed Announces They Have Reached their Neutral point”

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Borrowing Donald Trump’s electoral campaign slogan, Dan Siluk, co-manager of the Absolute Return Income strategy at Janus Henderson, explained at the Madrid Knowledge Exchange 2018  event that markets are at the beginning of a new cycle of quantitative tightening that will “make rates great again”.

In the past decade, the intervention of the three main central banks were able to save the global economy from the financial crisis, but at the same time there were some intended and unintended consequences. The balance sheets of the Federal Reserve, the European Central Bank and the Bank of Japan rose exponentially, substantially dampening the volatility in the markets. 

The VIX index, who typically settled in the 20 – 30 points range over decades, in the last ten years traded in a very tight range, between 10 and 15 points. Any time there was a bout in volatility, the presidents of the central banks always came back to give an answer that reassured the markets. That’s what happened during the Greece and the Eurozone crisis in 2011-2012, when Mario Draghi pronounced his “Whatever it takes” speech, or in the “taper tantrum” episode, in the summer of 2013, when Ben Bernanke’ FOMC statement was interpreted by bond investors as a sell signal. 

With a clear correlation between central banks’ balance sheet size and the value of global assets indices, there has been inflation in practically all the asset classes, something that has greatly favored passive investments, like ETFs and index funds.    

“In the past decade, investors could do pretty well by simply earning the beta of the market. They could obtain an attractive performance regardless whether they owned rates or credits, just because rates were driven lower, and credit spreads were driven tighter. Any bouts of volatility were short lived, because central bankers were coming to the rescue. So as long as investors could ride through those periods of volatility their fixed income portfolios tended to do pretty well”, said Siluk. 

However, consumer price inflation has barely appeared. Except for United States and United Kingdom, were inflation expectations are lower in the near future, is expected that there will be a real inflation growth in the rest of developed economies, that would be the case of the Eurozone and Japan. In the latter country, after decades of low growth, consumption and growth in wages is returning. While in the Eurozone, unemployment levels are declining in many of the member states. Also, the Asian region excluding Japan is contributing significantly to global inflation. The emerging consumer is one of the fastest growing segments of the global economy and lately is leading inflation.

According to Janus Henderson Investors’ portfolio manager, we are facing the beginning of a new cycle, in which the Federal Reserve is reducing its balance, the European Central Bank has reduced the volume of monthly of its program purchases, aiming to finalize it at the end of year. And, even the Bank of Japan, in the last two years has slowed its program of quantitative easing, sporadically decreasing its balance.

Upside risks to rates

In the US, the necessity of financing a swelling deficit has significantly increased the supply in Treasuries. This increase together with a decrease in foreign investors demand on Treasuries, mainly due to the higher cost of hedging the exposure to US dollars, has partially diminished the total demand for Treasuries.

“Fiscal expansions tend to generate high levels of inflation. Even when there is a strong dollar due to the diversion in monetary policies among developed economies. Trump’s administration has certainly a bias towards a weaker dollar, which is inflationary. All these factors support our vision that rates are going to climb, and curves are going to steepen, that does not necessarily mean that we are going to wake up one morning and see rates 25 or 50 basic points higher. Typically, what happens is that they try to trade in a range and when they break that range, the highest point of the range becomes the new support level. For quite few months of this year, we have seen these 2,70% -3,0% yield range in the US Treasury 10-year bond. We just broke the 3,0%, and at some point, this 3% becomes now the point that backs up a resistance level”, he said. 

All these factors are pointing out that you need to be very nimble in fixed income management, specially in terms of asset allocation. Therefore, in this strategy, they favor a benchmark agnostic strategy.

“Benchmark indices normally have certain limitations. We need to be active and flexible, to invest anywhere around the globe. For example, today, rather than bear interest risk in US, which is rising rates, we are looking at commodity-producing countries, like Australia and New Zealand. Because China is slowing down, these economies have very high household debt to income ratios. Their banking costs are increasing. Local banks are rising mortgage rates, whereas central banks are on hold. So, the domestic banks are partially doing the job of the central banks, who are maintaining a dovish position. We rather have interest rate risk in countries that are dovish or on hold monetary policy”, he explained.      

“We will probably look back to US Treasuries when the Fed announces they have reached their neutral point.  The US is today the highest yield across the developed world. It is also a very steep curve in the front part of the curve. The 10-year Treasury bond yields are offering a spread of 20 basis points over the 2-year notes, so investors are not actually getting paid for the additional interest rate risk or duration risk. On the other hand, the front-end of the curve will be an even more attractive investment once the Fed will finish their hiking cycle”, he concluded.

Important Information:

US Offshore:

This document is intended solely for the use of professionals, defined as Eligible Counterparties or Professional Clients, and US Advisors to Non-US Investors and is not for general public distribution.  We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes.

Janus Capital Management LLC actúa en calidad de asesor de inversiones. Janus, INTECH y Perkins son marcas registradas de Janus International Holding LLC. © 2018, Janus Henderson Investors. La denominación “Janus Henderson Investors” incluye a HGI Group Limited, Henderson Global Investors (Brand Management) Sarl y Janus International Holding LLC. Para obtener más información o localizar la información de contacto del representante de Janus Henderson Investors en su país, visite​ ​​www.janushenderson.com​​​.

Janus Henderson Investors is the name under which Janus Capital International Limited (reg no. 3594615), Henderson Global Investors Limited (reg. no. 906355), Henderson Investment Funds Limited (reg. no. 2678531), AlphaGen Capital Limited (reg. no. 962757), and Henderson Equity Partners Limited (reg. no.2606646), (each incorporated and registered in England and Wales with registered office 201 at Bishopsgate, London EC2M 3AE) are authorised and regulated by the Financial Conduct Authority to provide investment products and services.

© 2018, Janus Henderson Investors. The name Janus Henderson Investors includes HGI Group Limited, Henderson Global Investors (Brand Management) Sarl and Janus International Holding LLC

Abanca to Open an Office in Miami Before the end of 2018

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Abanca abrirá una oficina en Miami antes de que finalice 2018
Pixabay CC0 Public DomainPhoto: Abanca. Abanca to Open an Office in Miami Before the end of 2018

Abanca has obtained the license from the Federal Reserve of the United States (Fed) to open an office in Miami and operate in the United States.

The license that comes into the project after a year of work enables the Spanish bank to develop total activity with companies and non-residents and, in certain circumstances, to develop activities with residents of average and high incomes. Miami is a city with a large presence of Latin American, Spanish and Portuguese non-residents, groups that will focus on Abanca’s growth strategy.

With this new opening, the firm’s objective is to continue to grow in markets with high potential and, as in the case of Portugal, in the company segment and medium and high income.

The Miami office, located in the Brickell financial zone, will open before the end of 2018 and will have 12 employees, four Spanish and the rest of the United States.

Abanca is present through representations in Brazil, Mexico, Panama, Venezuela, France, Germany and the United Kingdom. In addition, the entity has centers in Portugal, with its own bank card and Switzerland, where we have offices with both modalities.

Tim Stevenson, To Retire From Janus Henderson

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Tim Stevenson, gestor del Janus Henderson Horizon Pan European Equity Fund, se retira
Pixabay CC0 Public DomainPhoto: James Ross (right) Tim Stevenson (left) . Tim Stevenson, To Retire From Janus Henderson

After 32 years with Janus Henderson Investors, Tim Stevenson, Director of Pan European Equities, has decided to retire from the industry. According to the company, Tim will remain with the team on a transitional basis through the first quarter of 2019.

James Ross, his co-manager on the Janus Henderson Horizon Pan European Equity Fund will continue to manage the fund. “The fund will follow the proven strategy that has delivered success over the long term by investing in high quality European companies. The investment process and objective will not change.”

James has worked directly with Tim co-managing Pan European Equity portfolios since August 2016 and has worked alongside him as a member of the European Equity Team for many more years in an earlier role as a UK equity fund manager. James Ross has 11 years of financial industry experience and holds the Chartered Financial Analyst designation.

Stevenson says: “James has impressive enthusiasm for, and knowledge of, the companies and the opportunities that exist from investing in Europe. The job of the European fund manager requires energy, brains, determination and skill. James has all of these and I am so pleased that he is taking on the full responsibility of looking after clients’ money in the complex but exciting area of Europe. I want to take this opportunity to wish him the very best of luck, and to thank clients for their support and patience over so many years. Finally, I would like to also thank all the great colleagues with whom I have worked in my career at Janus Henderson.”

Ross says: “I have thoroughly enjoyed working alongside Tim for the last few years; I am excited at the prospect of taking over sole responsibility for our mandates after his retirement. Tim will leave behind a legacy of consistent value-creation for clients; a record that I will seek to emulate.”

“We wish Tim well with his retirement and look to James and the wider European equity team to help build on his long-term success. If you have any questions about this announcement or any other investment-related queries please speak to your usual Janus Henderson representative.” The company concluded

 

Is the Market Satisfied with Bolsonaro’s Victory in the First Round?

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¿Está el mercado satisfecho con la victoria de Bolsonaro en la primera vuelta de las elecciones presidenciales de Brasil?
Pixabay CC0 Public DomainNunu_Lopes. Is the Market Satisfied with Bolsonaro's Victory in the First Round?

Despite the possible risks and populisms, the market’s hopes and expectations were fulfilled and Jair Bolsonaro (PSL) moves to the second round of the presidential elections in Brazil; where he will be tested in both support and popularity against Fernando Haddad, the Worker’s party (PT) candidate. The result, while reassuring for the market, does not dispel all risks.

Although final election results will not be revealed until next October 28th, this is a clear indication of in which direction the political winds are blowing in Brazil.

“Losing the presidency is really in Bolsonaro’s hands. Today there will be a strong rebound of Brazilian assets, as financial markets assume that Bolsonaro will become the next President of Brazil in the second round of elections later this month. More than anything, it’s a sigh of relief for the market that leftist candidate Haddad, whose policies would not have helped Brazil out of its current economic hole, will almost certainly not become President,” says Edwin Gutierrez, Head of Emerging Markets Sovereign Debt at Aberdeen Standard Investments.

The reason is simple: much of Bolsonaro’s appeal is the fact that he is not part of the political establishment, which has completely lost its credibility in recent years. “He also has a credible plan of how to deal with two of Brazil’s most pressing economic problems: the cost of its pension system and its debt stock. Addressing these issues has probably become more difficult as a result of these elections. His party has won a larger bloc in Congress than what it had previously and the unfortunate results of other parties could lead to some defections, which should help him,” adds Gutierrez.

This result has allowed Brazilian markets to continue with their recent rally, as they were worried that the Workers’ Party could return to occupy the presidency. However, Paul Greer, Portfolio Manager at Fidelity International, observed that Brazil has challenges that go beyond achieving a new government.
In his opinion, if Bolsonaro wins in the second round, the post-electoral euphoria would soon disappear. “Bolsonaro’s controversial far-right opinions will make it difficult for his administration to approve legislative measures given the limited presence of his party, the PSL, in the Senate (5% of seats) and in the lower house (10%).”

According to the analysis carried out by the Fidelity International portfolio manager, elections aside, “we believe that Brazil’s fiscal balances will continue to deteriorate and that the sovereign rating will continue its decline towards a B rating over the next 12 to 18 months. The country’s growth is still below its potential level and we expect it to continue at that slow pace in the near future.”

The main concern for Renta 4 Banco is that, regardless of the final result on October 28th, no party has a clearly reformist plan. It would be necessary to control public accounts and reform social security and pensions. “Even so, and as we have seen in Mexico, where the new government seems to be orthodox in its economic decisions, we do not rule out that something similar happens in Brazil, which in turn could translate into a recovery of the Brazilian Real and be positive for securities with high interests in the area,” the financial institution points out in its latest report.

 

BlackRock Opens New Miami Office Consolidating its Presence in the US Offshore and LatAm Markets

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BlackRock abre nueva oficina en Miami y consolida su presencia en los mercados de US Offshore y Latinoamérica
CC-BY-SA-2.0, FlickrEduardo Mora, Armando Senra y Jordie Olivella. BlackRock Opens New Miami Office Consolidating its Presence in the US Offshore and LatAm Markets

Up to 40 industry professionals gathered at the end of August to celebrate the opening of BlackRock’s office in Miami, which is located at 701 Brickell Avenue and which will bring together the firm’s entire workforce within the same workspace.

“For me, this is a testament of our commitment to Miami, and to Latin America, and we will conclude the year with a team of 300 people dedicated to the LatAm and Iberian regions, and the greatest part of our growth has come from the Americas, which is the region with the fastest growth of our entire company,” Armando Senra, Managing Director and Head of Latin America & Iberia for BlackRock pointed out. Based in New York, he wanted to be present at the opening of this new office.

The new office addresses the need to better serve investors in the Miami area. It has state-of-the-art technology and will welcome all employees of the firm, including the offshore sales team, the official institutions’ group, and the Separately Managed Accounts product team.

“I believe that with this office we are solidifying our presence in this market. For us, Miami goes far beyond the local market, we believe that it is a point from which we can affect BlackRock’s influence, not only in the US Offshore market, but also in the rest of Latin America, it’s a very special moment for us, “explained Eduardo Mora, Co-Head of BlackRock’s Offshore business, with a special focus on Home Office and Key Accounts, during the typical inaugural ribbon-cutting ceremony.

Miami Presence

BlackRock already had a broad presence in Miami since 2013, the year in which it started with a staff of 5 people and which now totals 12 industry professionals. During these 5 years, the international asset management company has seen its assets under management grow at an average annual rate of 17%.

This is your home and I would like to welcome you,” said Jordie Olivella, Co-Head of BlackRock’s Offshore business with a special focus on US Offshore Field Sales, addressing the cocktail audience. “We are committed to the market, to the city, and to our clients and their success. That is our focus every day and the spirit of BlackRock. “

Carlos Varela, in Charge of LatAm’s Institutional Clients for JP Morgan AM

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Carlos Varela pasa a dirigir el negocio de clientes institucionales de Latinoamérica de JP Morgan AM
Carlos Varela da Costa. Carlos Varela, in Charge of LatAm's Institutional Clients for JP Morgan AM

Carlos Varela da Costa, Managing Director of JP Morgan Asset Management, has assumed the management and direction of the firm’s business with institutional clients in Latin America.

In his position, as Head of Institutionals for the region, Varela will provide advice to central banks, sovereign funds, supranational organizations, pension funds and insurance companies in LatAm.

The JP Morgan executive is also in charge of the development of the asset management business in Mexico.

Varela, based in New York, has an extensive career of more than 20 years at JP Morgan, where his stage as Executive Director, Head of Sales Iberia, between 2009 and 2015, particulary stands out.

 

Julius Baer Group and Nomura Holdings Join Forces to Tackle the Japanese Market

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Nomura adquiere el 40% de Julius Baer Wealth Management para crecer en el mercado japonés
Pixabay CC0 Public DomainOadtz. Julius Baer Group and Nomura Holdings Join Forces to Tackle the Japanese Market

Julius Baer Group and Nomura Holdings have announced a strategic partnership, with Nomura acquiring a 40 per cent shareholding in Julius Baer Wealth Management. As a result, Julius Baer will introduce JBWM’s bespoke discretionary mandate services to Nomura’s high net worth client base in Japan. In doing so, Nomura will complement its comprehensive domestic product offering with JBWM’s tailor-made international mandate services.

JBWM specialises in the provision of discretionary investment services for Japan-based clients with a successful 20-year track record. The portfolio management team, based in Zurich, provides discretionary mandate services via its senior relationship management professionals in the Tokyo office. The investment process pays particular attention to currency risks, and the team has been adept at navigating market cycles, aiming to preserve client capital during times of financial market distress.

Upon completion of the transaction, JBWM’s name will be changed to Julius Baer Nomura Wealth Management Ltd. to underscore the strategic partnership.

Bernhard Hodler, CEO of Julius Baer Group, commented: “The strategic partnership with Japan’s premier securities firm represents a major milestone in our business strategy for Japan. Global financial markets are becoming increasingly complex, requiring skilful risk management, which is at the core of our offering in Japan. Working together with Nomura and its comprehensive domestic network and knowledge, we can best share our internationally diversified offering with a new audience and maximise the value of our presence in Japan.”

Ignacio de la Maza (Janus Henderson Investors): “A 280-Character Remark Can Now Start a Trade War”

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Last September 20th, Janus Henderson Investors celebrated their Madrid Knowledge Exchange event at the Villa Magna Hotel, bringing together 129 investment professionals from Spain, Chile, Argentina, Uruguay and Miami. Ignacio de la Maza, Head of Continental Europe and Latin America, together with Roger Thompson, Chief Financial Officer, welcomed the attendees.

This year’s theme was “Disruption in Motion” or how to protect client’s investments and create chances for profiting in a world in motion in which changes are a constant. According to Ignacio de la Maza, investment managers at Janus Henderson Investors spend a lot of time assessing how changes and disruption may affect investments, asking themselves what changes could threaten companies’ profitability, what new competitors could emerge, and to what extent could their earnings be resilient to changes.   

“Equity and fixed income managers have to worry about these previous questions. Many of the facts that affect equity markets have also implications for fixed income investors. A company needs to obtain any earnings to pay dividends, but it also needs to generate cash flows to pay their creditors. Changes at the regulatory level or a switch in monetary policy can also lead to big changes, in both the prices of bonds or the prospects for investors”, commented de la Maza. 

“At Janus Henderson we believe technology and disruption go hand in hand, as Alison Porter, Portfolio Manager of our Global Technology strategy, is going to explain technological transformation and changes in product and services are redefining our economy. We all are familiar with Amazon and how they have transformed traditional retail sales. But behind the scene, their capabilities in cloud computing and artificial intelligence are reorganizing supply chain, labor market and transforming all places. Amazon has a market capital around 960 billion US dollars, its closest rival in cloud computing services is Microsoft, which is valued at 870 billion US dollar. Just think about it, this two companies have a combined market capitalization higher than the GDP of Spain”, he added.  

“Among the line-up brought to the event, Hamish Chamberlayne, Portfolio Manager of our Global Equity ESG strategy, recognizes two major generational investment trends, both closely aligned with sustainability, one being the energy transition, explained as the conversion to a low-carbon economy, also called the digitalization of energy, and the second one being the often known as the fourth industrial revolution, where the world becomes a computer through internet of things and the digitalization of every process. There are also two megatrends are transforming the world in which we live in, the demographic growth, as population is increasing, and people are living longer lives, and climate change, both creating constrains in the availability of resources. In this sense, disruption can be a powerful tool for good, as it is disruptive to become more efficient, to save money to customers and to pollute less, improving a company brand perception and gaining customer base. As Hamish will explain, sustainable investing and making money are not mutually exclusive”.

The event also counted with the participation a guest speaker, Malcom Moore, Editor at the Financial Times, who talked about the scale of political disruption in recent years around the world.

“Disruption is not just happening at a localized level but reaching every corner of society. Political parties that have been in the system for decades are being beaten by new players. Populism is evident in both the left and the right parties, and we have seen this trend manifesting itself in more and more mercantilism economic policies. After several decades of globalization, we may have to get use to a more protectionist society. This may have major consequences for the supply chain, the labor market and for the profitability of international companies”.

“The best example of political disruption is, of course, Donald Trump, the President of USA, whose tweets may have seemed controversial, rude, or even amusing at times, but conveyed a power that has been multiplied by a thousand a hyperconnected world. A 280-character remark can now start a trade war, swift bond yields, and lift or sink a currency”, explained de la Maza.  

The world is clearly changing, as an investment management firm, Janus Henderson has to predict the direction of changes and evolve with those changes. In the last decade, Janus Henderson has gone through acquisitions and mergers and expanded the range of products offered to investors. As an example, de la Maza mentioned that the firm now offers direct access to countries such as China, that are engaged in an economic growth revolution, where an economic expansion of 6% seems slow. 

“Disruption also means that there will be losers and winners, several of our portfolio managers here today offer strategies that can take long and short approach to investing, which means investors can benefit from stock price moves in either direction. I am sure that today’s session will let you hear at first hand how investment experts are dealing with disruption and how you and your clients can embrace this disruption as a potential opportunity for investment”, concluded de la Maza, handing the floor over Roger Thompson.   

About the merger

According to Thompson, the firm has been very busy internally since Janus Capital and Henderson Global Investors completed their merge in May 2017. “Over the last sixteen months, we have been working on bringing together the two business, making a great progress in their integration. The organization that we have put together has now 370 billion US dollars in assets under management and we currently employ around 2.000 people in 28 offices around the world. Our asset mix, which is similar to the asset mix of our industry, has about 50% of the assets in the US, about 33% in Europe and LatAm, and around 16% in Asia. Therefore, we believe we are well positioned to match the client needs around the world”, he stated.

“Why did we merge? First, we merged to be better positioned to serve clients around the world. We now provide a broader choice in investment propositions, some that you could see in the mix of portfolio managers and teams today, at the Madrid Knowledge Exchange event. In addition, there have been some structural changes, clients want fewer but deeper relationships with managers, and there have also been regulatory changes going on, making more difficult and more expensive to operate as a global manager. But we believe we are going to have a significant footprint around the world.

In the five largest markets, the US, the UK, Europe and LatAm, Japan and Australia, we have a real presence. We have over 200 investment professionals and around 330 distribution professionals”, he continued.

“I have talked a little bit about talent, I am delighted that we have been able to attract high quality talent through the merger in all areas. Paul Brito, who joined us in early September, is definitively the newest member of the team, a genuine Janus Henderson employee. But if you look at some others of our recent hires, -such as Dan Siluk, Global Head of Fixed Income, or Georgina Fogo, current Chief Risk Officer at Janus Henderson and former Global Head of Compliance Officer at BlackRock-, it is quite possible that all the talent hired by Janus Henderson would not have been able to join Janus Capital or Henderson Global.

Internally, we are working to complete our integration to unleash the power of the full potential that we have put together with Janus Henderson. We need to continue to evolve, as the market place, the clients and the financial intermediaries do evolve”, concluded Thompson.