Pixabay CC0 Public DomainPhoto: Abdecoral. Christian Felix Joins Bolton Global Capital
Christian Felix has joined Bolton Global Capital. Felix, formerly with the Merrill Lynch office in Coral Gables, Florida, manages client assets worth more than $120 million. This latest transition continues Bolton’s success this year in converting Miami based financial advisors from the major wirehouses to the independent business model. The advisors joining the firm’s Miami office in 2016 collectively manage over $1.2 billion in client assets.
Christian Felix was born in Ecuador and began his career in 2002 with Lloyds Bank in Ecuador and was later transferred to Miami. In 2006, he moved to Santander Private Bank International as Vice President where he remained until joining Merrill Lynch in 2010 as First Vice President in the firm’s international wealth management complex. He services high net worth clients primarily from Ecuador, Colombia, Bolivia and Venezuela.
To bolster its footprint in international wealth management, Bolton recently hired Ricardo Morean, who has managed major complexes in Miami, New York and Latin America for Merrill Lynch, Wells Fargo and RBC. The firm expects continued robust growth in its business in 2017.
Pixabay CC0 Public Domain. Capital Strategies selected by Investec Asset Management for exclusive representation
Capital Strategies Partners, an independent securities firm specialising in the representation of international asset management companies in the South European and LatAm market, has been chosen by global investment manager Investec Asset Management, to be its selected independent distribution partner in Spain, Portugal and Andorra.
Investec Asset Management is a specialist provider of active investment products and services to institutional and individual investors. Established in South Africa in 1991, the firm has been built from a small start-up into a successful international business, now managing over 117 billion dollars.
The firm provides investment solutions to clients across a range of global and emerging market asset classes. This global approach, combined with a footprint in both emerging and developed markets, has characterised the evolution of Investec Asset Management’s strategies.
Capital Strategies Partners has a 16-year track record of representing international asset management companies, interested in further developing the markets in which they operate. According to Daniel Rubio, CEO of Capital Strategies, “The launch of Investec Asset Management in Spain provides investors with access to a new suite of successful global, regional and especially emerging market solutions”. He also stated that Investec’s investment philosophies include “intelligent” diversification metrics and bottom-up security selection, which provide a framework for portfolios, and which may help to support more attractive risk / return characteristics for investors.
Stef Bogaars, Head of the Europe Client Group at Investec Asset Management said, ‘This partnership is exciting to us as it allows us to offer a broad range of investment solutions to a new and sophisticated investor base. We look forward to working with a firm that is able to provide the highest standard of client services alongside insight and access in this market.’
Pixabay CC0 Public DomainVincent Taupin . Vincent Taupin, New Global Head of Edmond de Rothschild Asset Management
Edmond de Rothschild Group, the wealth and investment manager, announced that Vincent Taupin will assume global responsibility for Edmond de Rothschild Asset Management with effect from 1 January 2017, alongside his existing role as President du Directoire of Edmond de Rothschild France. This follows Roderick Munsters’ decision to resign from his role as Head of Edmond de Rothschild Asset Management for personal reasons. However, he will continue to contribute to the Group by joining the board of Edmond de Rothschild Asset Management (France).
Commenting on his departure, Roderick Munsters said, “In a short but exciting period at Edmond de Rothschild, I have been able to review and prepare a new and integrated asset management strategy. I have reluctantly taken the decision to step down and to return to the Netherlands.”
Ariane de Rothschild, Chairwoman of the Group Executive Committee, commented, “I fully understand the reasons for Roderick’s decision to step down from his leadership role in Edmond de Rothschild Asset Management, and wish him all the best for the future. I have asked Vincent Taupin to assume responsibility for the asset management business alongside his existing French Private Banking role, as I believe that now is the right time to accelerate the convergence of our expertise, businesses and geographies. This is what our clients expect from a leading investment house.”
Commenting on his new responsibilities, Vincent Taupin said, “I am very much looking forward to taking on this additional responsibility, having worked closely with Roderick over the last six months.”
In related promotions, it was also announced today that Renzo Evangelista and Stéphane Pardini have been appointed Deputy Directors in the French Private Bank. In addition, Didier Deléage has been appointed CEO of Edmond de Rothschild Asset Management (France).
Commenting on these promotions, Ariane de Rothschild said, “I am proud to be able to strengthen the management team by nominating colleagues from within our excellent talent pool. I congratulate them and wish them success in their new roles.”
CC-BY-SA-2.0, FlickrPhoto: josip2
. UBS Wealth Management´s Ideas for 2017: US and Emerging Markets Equity and US Treasuries Hedged Against Inflation
UBS Wealth Management’s Chief Investment Office (CIO) predicts a polarized political world in 2017. Global gross domestic product (GDP) growth is likely to rise to 3.5% from 3.1% this year as US growth improves, despite the ongoing slowdown in China. With elections set for the Netherlands, France and Germany, investors will need to be conscious of increased post-Brexit division in Europe.
In the US, CIO expects the Federal Reserve to hike rates once in December and twice in 2017, but new fiscal stimulus should support growth, and inflation is likely to rise more than rates. In the Eurozone, the European Central Bank will probably start to taper quantitative easing. China will likely continue to manage its slowdown and let the USDCNY exchange rate depreciate to 7.0 in 12 months.
Mark Haefele, Global Chief Investment Officer at UBS Wealth Management, says: “We believe that central banks in the US and Europe will continue to err on the side of loose monetary policy. This means equities can remain supported, most notably in the US and emerging markets, and that investments with a decent yield will remain sought after. Investors will also need to consider means of hedging portfolios against rising inflation.”
The lessons of 2016
Don’t confuse a base case with a done deal. The past year has been ignominious for base case forecasts. Donald Trump won the US election. The UK voted to leave the EU. And central banks were forced to ease policy more than previously thought necessary.
Don’t panic. 2016 rewarded investors who remained calm amid uncertainty. The MSCI All-Country World Index dropped 13% early in the year on concerns over China, but bounced back by the end of March. After the Brexit vote, markets regained prior highs within three weeks.
Don’t underestimate central banks. Central bank policy surprises this year meant that even some negative-yielding assets provided positive returns.
Top 10 ideas for 2017
US equities. US earnings should grow 8% in 2017, supported by stabilizing oil prices, accommodative monetary policy and potential fiscal stimulus from the Trump administration.
Emerging market (EM) equities. A softer US dollar, low developed market (DM) interest rates and stabilizing GDP growth and commodity prices should continue to help EM stocks next year.
EM FX basket. Low DM rates help make high-yielding EM FX – real, rupee, ruble, & rand – attractive versus growth-sensitive DM peers – Australian & Canadian dollars & Swedish krone.
Asia Pacific real estate investment trusts should also benefit from low DM rates. Yields relative to government bonds are attractive compared with global averages.
Dividends and buybacks. With yields ultra-low in the Eurozone, Japan, and Switzerland, companies offering reliable incomes there have become even more appealing.
US senior loans. Senior loan yields offer a 4% pickup over short-maturity investment-grade corporate bonds, which is attractive even if default rates rise to long-term averages.
US Treasury Inflation-Protected Securities (TIPS). CIO expects TIPS to benefit from higher wage growth, stabilizing oil prices, potential fiscal stimulus and a weaker US dollar.
Palladium and platinum. A pickup in industrial activity, political uncertainty and falling real interest rates should support both precious metals in 2017.
Alternatives. Traditional asset class returns are likely to be moderate in 2017. The uncorrelated exposure offered by hedge funds, private markets, and short-term investment opportunities will be more valuable than ever.
Sell high-grade bonds. Yields are negligible and risks are rising. Investors could consider replicating some of the asset class’s insurance features with other approaches, including systematic hedging and allocation strategies.
Recommended long-term investment themes for 2017 and beyond
Emerging market healthcare catch-up. In developing nations, spending on healthcare is far outpacing GDP growth, creating opportunities for companies and impact investors.
Energy efficiency. Governments are increasing incentives to cut down on carbon emissions and lower energy consumption. Such standards now cover 30% of the fuel used worldwide.
The education gap. Companies are helping to meet demand for higher education and training as governments struggle to keep up.
As investors look forward to 2017, CIO’s End Game offers the opportunity to play policymaker and see how solutions to the world’s economic issues can affect economies, markets, and portfolios. A recent survey of UBS’s Industry Leader Network of entrepreneur clients globally underscored the importance of policy in investment planning: 25% named the political landscape as the biggest potential change for their business in 2017, compared with 19% who cited technology upgrades, 12% who cited a different shift, and 44% who saw no change.
Asia ex-Japan retail investors of all wealth tiers and age groups have become more conservative in 2016 compared to 2015, a survey conducted for the upcoming The Cerulli Report – Asian Wealth Management 2016 has shown.
Due to unsettled market conditions, Asia ex-Japan retail investors have become less patient in their investment horizons. The survey reveals the proportion of respondents with an investment horizon of three years or less rose 48.4% in 2016, from the 39.1% seen in the 2015 survey.
Generally, Asia ex-Japan investors have higher cash holdings in 2016 compared to last year. Except for India, investors in other Asian markets pared down their exposure to unit trusts, mutual funds, and exchange-traded funds.
Indian investors appeared to put more money in managed funds at the expense of investment properties. Hong Kong investors also reduced their exposure to investment properties as prices have been falling steeply in recent years, in favor of directly held bond investments.
Meanwhile, the shift from other asset classes to alternatives was muted for the past year. The survey reveals China is the only country that showed a more than one percentage-point uptick in holdings in the asset class between the 2015 and 2016 surveys.
However, Cerulli notes that alternative products in China are unlike those available in Singapore, for example. In China, alternatives tend to be in the form of structured products, whereas in Singapore, they are often more conventional liquid alternative funds. Cerulli notes that allocations to alternatives in Singapore remained steady over the period, helped by their availability to lower-wealth-tier investors.
Third, funds of funds managed by foreign asset managers have become popular in Taiwan, as they oversee seven of the top-10 funds of funds in terms of inflows year-to-date July 2016.
Evidently, Taiwanese investors are very keen for international exposure. Cerulli believes this provides foreign asset managers with the opportunity to leverage their reputation and expertise to make greater inroads onshore.
Meanwhile, as the FSC continues to tighten regulations on the offshore fund space, it will be harder for smaller, boutique foreign asset managers with niche investment products to enter the Taiwanese market.
This might have an impact on the diversity of products available to Taiwanese investors, and Cerulli notes that it will be ideal for offshore and onshore fund management to co-exist so as not to potentially stifle further product innovation.
Courtesy photos. Cosimo Marasciulo and Declan Murray Take Over New Roles at Pioneer after Le Saout and Chabaane Resign
Pioneer Investments announces that Tanguy Le Saout and Ali Chabaane have resigned from Pioneer with immediate effect, and on the 13th of December, 2016, they will consent to the orders of the Dublin High Court that effectively redress any advantage they might have obtained due to their conduct in seeking to launch a competing asset management business.
Le Saout and Chabaane were recently suspended following an internal investigation that showed they had acted against the commercial best interests of Pioneer. There has been no negative impact on client assets or accounts; no other investment professionals were involved; and no regulatory breaches occurred. Two other human resources employees, associated with the actions of Le Saout and Chabaane, will also consent to the orders of the Dublin High Court and have also resigned with immediate effect.
Giordano Lombardo, CEO and Group CIO of Pioneer Investments, commented “Any actions that violate our corporate values of trust, loyalty and teamwork must be responded to, irrespective of the circumstances. We have taken decisive action in this instance in order to protect our commercial best interests and have ensured that no client assets were adversely affected and no compliance breaches took place.”
Following the resignations, 15-year Pioneer veteran Cosimo Marasciulo currently Head of European Government Bonds, has been appointed as Head of European Fixed Income and Declan Murray, currently Global Chief of Staff for Investments at Pioneer, to provide guidance and leadership to the Portfolio Construction team. Pioneer expects a seamless transition under Marasciulo and Murray given the capability and experience of both individuals, as well as the strength and depth of the broader Pioneer European fixed-income team that encompasses a matrix structure of over 15 portfolio managers and 24 research analysts.
Amundi announced on Monday that it has signed a binding agreement with UniCredit in order to acquire Pioneer Investments for an all-cash consideration of €3,545 million.
Pixabay CC0 Public DomainPhoto: Freejpg. Ezentis Renews a 120 Million Euro Contract in Chile
Network services provider Ezentis announced the renewal of its contract to provide fixed network maintenance, operation and construction services for Telefonica Chile for 120 million euros (127 million dollars).
The contract is valid for three years, renewable for a further year said Ezentis in a statement filed with Spanish market regulator CNMV.
Ezentis Chile will provide services in the Eastern Metropolitan Regios as well as the cities of Puerto Montt, Rancagua, Talca, Linares, San Fernando, Temuco, Osorno, Valdivia and Curico, as well as in the Santiago Metropolitan region.
In 2016 the company acquired the 100% of its Chilean subsidiaries and energy company, Tecnet.
Foto: legabbiedelcuore. Los prejubilados priman la construcción de su legado sobre la acumulación de patrimonio
Many Americans aged 51 to 69 have a unique outlook on life, particularly when it comes to financial management and insurance, according to a new white paper from Chubb. While sharing several of the same interests and passions as younger cohorts, pre-retirees are more focused on legacy building than on wealth accumulation.
“The Pre-Retirees: Changing Minds, Changing Needs”white paper explores the implications this changing mindset may have for wealth advisors and insurance agents. It also outlines the property and personal liability issues impacting pre-retirees, including risks associated with home ownership, travel and passionate pursuits.
“Pre-retirees hold about $8 trillion in assets but, unlike younger generations, the majority are not focused on accumulating more wealth or property—rather, the emphasis is on what they have accomplished and the legacy they want to leave,” explains Alanna Johnson, Senior Vice President, Premier Practice Leader, Chubb Personal Risk Services. “This has implications for how pre-retirees and their advisors approach risk management. Wealth advisors and insurance agents can best serve this generation by understanding the client’s changing risk profile and designing a holistic risk management program that fits their lifestyle.”
According to the white paper, some of the most pressing legacy building-related risks pre-retirees and their advisors should be aware of include:
Serving on non-profit boards that might not offer sufficient D&O liability coverage in the event of a lawsuit
Emerging property risks as a result of relocation as more pre-retirees move or purchase property to be closer to their adult children and grandchildren
Unforeseen gaps in protection when pursuing sophisticated wealth transfer strategies, such as the establishment of a trust or LLC
Having sufficient medical evacuation coverage and travel insurance in the event of an accident or injury abroad.
Aliant, aLos Angeles-based international law firm, has observed a significant spike in the number of clients moving wealth outside the United Statesfollowing the presidential election.
Donald Trump’s successful campaign clinched him the presidency, but his ‘America First’ foreign policy has raised concerns in the global community and among the affluent Americans. It is not unusual for governments with a nationalist bend to restrict the outflow of wealth.
Jacob Stein, one of Aliant’s partners in Los Angeles, chairs the firm’s private wealth and asset protection practice and represents a significant number of ultra-high net worth families, including Forbes 400 families. Stein states, “A lot of our wealthy U.S. clients have contacted us about moving wealth offshore. Some have expressed concerns about the uncertainty of the Trump presidency, the future of the U.S. economy, possible currency controls, prohibitions against foreign investment and currency risks. These clients are looking to diversify their wealth out of the U.S., access foreign markets, diversify their currency portfolios and set aside a secure box of wealth beyond the reach of the U.S. government.”
Analysts speculate that trade and investment will drop sharply because Trump’s proposed foreign policy will place a strain on alliances and trade agreements, leading to instability. An unstable economy makes investors fearful.
Stein confirms that the fear of economic and financial instability is the primary reason for the flight of capital out of the U.S. The firm is representing these clients to establish offshore wealth holding structures like foreign trusts and private foundations, to set up offshore bank and investment accounts and to ensure that all offshore structures are protected from creditors and anonymous to the greatest extent possible, without running afoul of the tax laws and government mandated disclosures.
Photo: Pok_Rie. Por qué no es buena idea seguir ignorando a los mercados emergentes
According to Derek Silva, Portfolio Manager at Elvi, nothing scares more than the words “Emerging Markets corporate debt.” in his opinion, the list of frightening aspects is plentiful:
There’s Russia’s geopolitical issues.
Turkey’s coup attempt and downgrade to junk.
Brazilian corporate and political scandals.
President elect Trump’s Mexico obsession.
And then there’s China, for which CNBC and Bloomberg have a favourite term, “China worries”, to lazily explain any down day in global markets when they cannot find any other good reason.
So, EM corporate debt? Who buys this stuff? Well, if you ignore it, Silva believes you’re missing out on some excellent diversification and the best risk/return over the past 17 years. In fact, since 1999, EM IG has the best risk/return (in terms of Sharpe ratio) among all major fixed income asset classes. And EM HY outperforms its US and EU counterparts by the same measure.
It is interesting that diversification is one of the basic principles of investing and yet many investors, both professionals and laypersons, only put tiny portions of their equity/fixed-income allocations into EM, despite EM growth rates being double those of DM economies. Only in this year’s extreme scenario of a global low rate environment have investors piled into EM equities and debt. But even after retail inflows into EM corporate debt reached record levels this summer, a recent survey by JP Morgan revealed most are still underweight in EM debt. To see the benefits of adding EM to an investor’s portfolio, since 1999, the addition of EM IG & HY (to US credit holdings) have provided an extra 0.5% of return for the same level of risk, and dramatically higher returns for smaller increases in risk.
Silva believes that the EM market is more resilient to crises than US and European markets. Why? Because DM markets are priced to perfection and any scandal or crisis can have wide-ranging negative effects for the whole DM markets. Just look at the most recent example, with problems at one bank (Deutsche Bank) shaking the European markets and even spilling over into the US.
In contrast, “EM” is truly diversified by 5 vastly different regions (Asia, Latin America, Middle East, East Europe, Africa) and over 40 countries within the broad corporate bond benchmark (no country more than 10% weighting). These include even advanced (but not yet officially “DM”) economies like Singapore, Taiwan, Hong Kong and Korea, along with riskier “high beta” countries like Russia, Turkey and South Africa. But it is rare for any individual crisis to affect the EM credit market as a whole.
When Turkey’s credit rating was junked recently, only the Turkish credits were weak. Last year, during 2015’s corporate and political scandals in Brazil, it was mainly Brazil’s markets that suffered. The prior year, in 2014, when Russia was in conflict with Ukraine, it was mainly Russia and Ukraine that were affected. During all of these events, regions like Asia continued chugging along with attractive returns, immune to the crises in other EM regions. Even for a more wide-ranging crisis, like when many commodities prices fell dramatically in late 2015 and early 2016, some countries suffered (LatAm, Middle East), while some countries benefited (Asia).
In 2016, EM credit markets have been the best in global fixed-income, with double-digit returns, in spite of a myriad of negative factors:
still low commodity prices,
slow turnarounds in Brazil and Russia,
Turkish political problems and downgrade to junk,
South Africa’s impending downgrade to junk,
“China worries”,
the Trump-Mexico effect,
and the looming threat of a Fed rate hike.
“I believe this is a testament to EM’s superior diversification, growth and ability to derive attractive long-term risk/return performance. This is something that cannot be ignored for long.” He concludes.
