CC-BY-SA-2.0, FlickrPhoto: Bert Kaufmann
. Michael O’Grady, to Become Northern Trust's New President
Northern Trust Corporation‘s Board of Directors elected Michael O’Grady as their next President of the Corporation, effective Jan. 1, 2017, reporting to Frederick H. Waddell, Chairman and Chief Executive Officer. O’Grady was also elected to the Board of Directors of Northern Trust Corporation, effective January 1, 2017.
“Mike has proven himself to be an exceptional leader, both internally and externally, and a highly regarded member of our executive management team,” Waddell said. “He has deep industry experience, a keen understanding of Northern Trust, and a strong track record of translating vision and strategy into execution.”
Until a successor is named, O’Grady will retain his current responsibilities as President, Corporate & Institutional Services (C&IS). Steve Fradkin, President, Wealth Management, and Steve Potter, President, Asset Management, will report to O’Grady effective January 1, 2017.
Prior to becoming President of C&IS in July 2014, O’Grady served as Executive Vice President and Chief Financial Officer. Before joining Northern Trust in 2011, O’Grady served as a Managing Director in the Financial Institutions Investment Banking Group at Bank of America Merrill Lynch. He joined Merrill Lynch in 1992 as an Associate. O’Grady worked for Price Waterhouse from 1987 to 1990. He graduated from the University of Notre Dame with a bachelor’s degree in Accountancy and received an MBA from Harvard Business School. He is a member of the boards of trustees of The Field Museum and the Museum of Contemporary Art Chicago, the Finance Council of the Archdiocese of Chicago, and the Board of Advisors of Catholic Charities.
CC-BY-SA-2.0, FlickrPhoto: Joe Le Merou. Muzinich's New Hires Prepare Two Fund Launches
Corporate debt specialist Muzinich & Co is to launch two new funds to be managed by Torben Ronberg, Stuart Fuller, Sam McGairl and Alex Woolrich, the loans team who recently joined from ECM Asset Management Limited, a Wells Fargo Asset Management company.
Ronberg and his team, who took up their posts this week, will now prioritise the launch of a new European senior secured loans vehicle, the Muzinich European Loans Fund. They are also putting the foundations in place for the launch of a multi-asset vehicle, the Muzinich Senior Secured Fund, which will have a broader investment mandate. This vehicle will primarily invest in senior secured loans and senior secured high yield bonds, combining the core strengths of the joining team with that of the established team at Muzinich.
Both funds will sit under Muzinich’s Irish-domiciled ICAV, which has been established as a Qualified Alternative Investment Fund. They will be aimed primarily at pension funds, insurance companies and other institutional investors.
George Muzinich, founder and Chairman of Muzinich, said: “We’re thrilled to welcome Torben and his team, who have worked together for over a decade and established an outstanding reputation in the industry.”
Ronberg said: “We have built a 10-year benchmark-beating track record, delivering strong single-digit annualised returns through senior secured loan strategies. We’re confident that this asset class can continue to deliver attractive risk-adjusted returns. We believe there’s growing interest in senior secured loans from pension funds and other institutional investors. Senior secured loans offer attractive all-in floating rate returns, so they provide some protection against interest rate rises.”
CC-BY-SA-2.0, FlickrPhoto: Mark Morgan. Frenzied M&A Activity to Support Event Driven
October was a supportive month for Global Macro funds, which almost erased their year to date losses in a single month. According to LyxorAM’s Cross Asset Research team, the top contributors to their stellar performance last month included a short duration stance in fixed income and long positions on the USD vs. EUR and GBP in FX. Meanwhile, for Macro managers investing in equities, their preference for European and Japanese equities vs. US equities also paid off in October.
With regards to Event-Driven, Lyxor noted that the strategy underperformed on the last week of October (-0.3%) and is down almost 1% last month. “It is not surprising to see the strategy in the red when 10-year Treasury yields jump 25 bps in a month, as it has historically been negatively correlated to bond yields. But most managers were fairly resilient despite the adverse market conditions.” They state.
Going forward, the team maintains their slight overweight stance on Event-Driven, with a continued preference for merger arbitrage players. “We believe that the strategy can cope with higher bond yields as its net exposure to both equities and bonds has continued to decrease lately. Managers have thus ample room to deploy capital as opportunities arise. And in that regard, Bloomberg data suggests that October was one of busiest months ever for global M&A activity.”
Announced M&A deals represented more than USD 470bn (applies to deals with a transaction value above USD 400m). US M&A activity represented 60% of the total, and the media sector has been the most active thanks to deals such as the USD 107bn proposed merger between AT&T and Time Warner. Yet, ahead of US elections most Event Driven managers stayed cautious and waiting for greater political clarity before deploying their capital. “The strategy is thus likely to be resilient if equity volatility continues to rise, which would lead to wider deal spreads and open the door for cash deployment.” They conclude.
Vanguard has cross-listed three U.S.-domiciled funds on the Global Market of the Mexican Stock Exchange.
The U.S. domiciled ETFs are:
The Vanguard Mortgage-Backed Securities ETF (VMBS)
The Vanguard International Dividend Appreciation ETF (VIGI)
The Vanguard International High Dividend Yield ETF (VYMI)
The cross-listing of U.S. domiciled ETFs in Mexico provides a strong product foundation for Vanguard, and a cost-efficient method of serving the Mexican market. The addition of these three products brings the total number of Vanguard ETFs registered on the Mexican Stock Exchange to 65, which you can see in the attached document.
Vanguard’s Heinz Volquarts noted that the three funds they cross-listed are not registered with the Comisión Nacional del Sistema de Ahorro para el Retiro (CONSAR). therefore the Mexican Pension Funds (afores) are not yet allowed to invest in them.
According to global research and consulting firm Cerulli Associates, retail asset growth has managed to outpace institutional asset growth on a one-, three-, five-, and ten-year basis, reaching more than $18 trillion as of year-end 2015.
“A low-yield environment and a rise in average life expectancy is making it difficult for defined benefit (DB) plans to achieve returns to fund liabilities,” explains Jennifer Muzerall, associate director at Cerulli. “In recent years, sponsors have offered lump sums or buyouts to reduce the number of participants in DB plans via pension risk transfers.”
Pension risk transfer options are one of several drivers bolstering retail asset growth since asset managers have begun to explore the delivery of a wider variety of products and strategies through retail intermediaries. “The growth of retail assets has also been driven by the convergence of institutional-like strategies in the retail marketplace, such as alternatives,” says Muzerall.
Cerulli recommends that firms should continue to invest in distribution professionals and educational programs to get advisors comfortable with using alternatives. “It is important to work with advisors to show them how using alternatives or increasing allocations may impact their investment portfolios,” explains Muzerall.
“Asset managers must build out robust key account teams to face off with members of investment research or due diligence teams,” states Muzerall. Top asset managers surveyed recognize a need to accommodate the increasing sophistication of buying groups emerging within the intermediary channels. “The institutional sales process is making its way into retail channels and asset managers are seeking out relationships with top registered investment advisors and due diligence groups from both broker/dealer (B/D) home offices and B/D mega teams,” says Muzerall.
Cerulli’s latest report, The State of U.S. Retail and Institutional Asset Management 2016: Business Planning for Growth Opportunities, provides a comprehensive overview of the aggregate U.S. asset management landscape, benefitting both U.S. asset managers and those seeking distribution opportunities in the U.S. It explores all distribution channels, client segments, and product vehicles, with a focus on the interaction between the retail and institutional marketplaces.
Dominique Carrel-Billiard has stepped down from his position of chief executive officer of French boutique La Financière de l’Echiquier according to French economic trade publication L’Agefi reported.
The publication stated that Carrel-Billiard has reached an agreement with Didier Le Menestrel, co-founder and chairman of La Financière de l’Echiquier, to leave the company, it is understood that he will be replaced and Le Menestrel will take over his responsibilities as chief executive officer.
Carrel-Billiard joined La Financière de l’Echiquier in 2014, previously he was CEO of AXA IM from 2006 to 2013. Prior to that, he was Senior Vice President Business Support and Development at AXA and Principal at McKinsey & Company. He started his career in 1987 as an Associate at Crédit Commercial de France.
Established in 1991, La Financière de l’Echiquier has around €7.5bn of assets under management.
Foto: mulan
. 7.800 millones de dólares de grandes patrimonios a riesgo
According to Cerulli Associates, high-net-worth (HNW) households control close to 35% of all investable assets in the U.S. marketplace. Advisors surveyed by Cerulli were asked about the depth of their relationships with the potential inheritors of their HNW clients’ assets. While responses about the relationships with spouses were encouraging, advisor relationships with younger generations of the family are a large concern.
“The notion of helping a family define and accomplish their aspirations without involving spouses is irrational,” says Donnie Ethier, associate director at Cerulli. “The thought of referring to spouses as ‘heirs’ is not a welcoming idea, but many practices may have to approach it in this manner due to the generally limited rapport with family members.”
The study U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2016: Understanding the Long-Term Impact of Wealth Transfer reveals that 67% of HNW households are led by investors age 60 or older. “Overlooking the children of these investors is ill-advised as most are not adolescents, but adults well into their 30s and older, with their own financial habits, philosophies, and possibly established advisor relationships,” explains Ethier. “How and where the younger generations manage assets or inheritances represents a pivotal transformation, as these wealth transfers will likely determine who the future leading firms and channels become.”
As the industry continues to evolve toward a more transparent, goals-based approach to investing, practices will need to adjust to the new expectations of clients by offering a collaborative advisory model with a broader range of products and services. “We believe that wirehouses and private banks will adapt, while registered investment advisors and multi-family offices stand to capitalize,” states Ethier.
CC-BY-SA-2.0, FlickrFoto: Youtube. FINRA incorpora a Stephen M. Cutler a su Consejo
The Financial Industry Regulatory Authority (FINRA) has named a new Large-Firm Governor – Stephen M. Cutler, Vice Chairman of JPMorgan Chase & Co. – to its Board of Governors. Cutler was appointed to complete the term of former Governor Gregory Fleming, who resigned his board seat earlier this year.
Cutler joined JPMorgan asits General Counsel in 2007 from the law firm of WilmerHale in Washington, D.C., where he was a partner and co-chair of the firm’s Securities Department. Prior to that, he was the director of the U.S. Securities and Exchange Commission’s Enforcement Division. Before joining the SEC in 1999, he was a partner at Wilmer, Cutler & Pickering, where he worked for 11 years.
Cutler obtained his bachelor’s degree summa cum laude from Yale and his J.D. from Yale Law School, where he was an editor of the Yale Law Journal.
“Steve brings a valuable perspective and a keen understanding of securities regulation and the industry to FINRA’s Board,” said FINRA Chairman Jack Brennan. “We welcome Steve and look forward to working with him.”
“FINRA will benefit from Steve’s depth of industry and regulatory knowledge in advancing our mission of protecting investors and ensuring the integrity of our markets,” said Robert Cook, FINRA’s President and Chief Executive Officer. “We are very fortunate to have Steve join the FINRA Board.”
FINRA is overseen by a Board of Governors, the majority of whom are public representatives. The 10 industry governors include three from large firms, one from medium-size firms, three from small firms, one floor member, one independent dealer/insurance affiliate and one investment company affiliate. FINRA’s CEO has the remaining seat.
The channels through which financial services are provided in the UK wealth market are undergoing a transformation. With an influx of new entrants offering digital platforms and robo-advice, traditional wealth managers are now responding to the rise in demand for automation, according to financial services research and insight firm Verdict Financial.
The company’s recent report, which analyses the UK wealth management space, indicates that traditional wealth managers are starting to embrace the ability to resonate with audiences on a digital level while still offering professional advice from a wealth manager or private banker.
Nicole Douglas, Analyst for Wealth Management at Verdict Financial, states: “According to our 2016 Global Wealth Managers Survey, 49.5% of wealth managers believe the demand they currently experience for automated investment services will increase in the next two years, indicating a noticeable proportion of the market prefers digital platforms in which to carry out investment decisions or seek advice.”
According to Douglas, automated services are becoming more prevalent in the UK market but do not pose an immediate threat for traditional wealth managers. She explains: “Advisors are not likely to be replaced by robots in the near future. Our data shows 87% of wealth managers disagree with the statement that traditional wealth managers will lose market share to automated investment services – or ‘robo-advisors’ – in the next 12 months.”
In short, there is still demand for having investments managed professionally. Verdict Financial’s data shows that lack of expertise and time are the two most common reasons wealth managers believe high net worth clients opt to have wealth professionally managed.
As such, wealth managers will do well to continue providing personalized advice and embrace digital capabilities as a supporting role. Douglas adds: “Our data shows that 67% of wealth managers agree with the statement that investing in automated investment services can complement their existing offering.”
Verdict Financial believes that investing in automated services will prove successful for competitors in the UK market, and wealth managers will come to experience that an offering with both human and automated components resonates with a range of investors.
Fundinfo, a leading international provider of fund information, now publishes documents and data for funds available to investors in Ireland and Portugal. With this expansion, fundinfo serves 13 European countries plus Hong Kong and Singapore. The service connects fund houses, fund distributors and investors via an online, on-demand information platform.
Jan Giller, Head of Marketing and Sales at fundinfo said, “Since the founding of our fund platform in 2006, we have steadily expanded our coverage from serving just the Swiss market to covering all the main fund markets in Europe, plus Hong Kong and Singapore. We welcome fund distributors and investors in Ireland and Portugal and invite them to take advantage of the most comprehensive, accurate and up-to- date source of fund information available.”
The platform provides complete information about funds and ETFs from over 800 fund houses comprising over 25,000 funds and 180,000 share classes. Participating fund houses include most of the world’s largest asset management companies.
For investors, the service is free of charge, and does not even require a log-in. It provides the latest fund documents such as monthly and semi-annual reports, KIIDs, prospectus, legal announcements, plus the latest information about the fund, fees, NAV price, and analyst ratings. The service as well as fund documents are provided in multiple languages. Documents in local language are provided where available.
In addition to the platform, fundinfo also offers associated services such as automated document and data dissemination, direct document and data feeds for banks, fund distributors and financial publications, as well as web-based fund popularity analysis and fund selection tools.
