Photo: Mortime, Flickr, Creative Commons. Standard Life Investments Launched the Enhanced Diversification Multi-Asset SICAV
Standard Life Investments launched the Enhanced Diversification Multi-Asset (EDMA) SICAV on July, 20th, 2016 in response to a growing client demand for multi-asset funds that manage downside risk.
According to a press release, “EDMA is part of our multi-asset range for investors who want to balance capital growth against volatility in financial markets. With EDMA, we aim to generate equity-like returns over the medium term with less volatility.” EDMA targets equity-type returns over the market cycle (typically five to seven years in duration) but with only two-thirds of equity market risk.
The Fund differs from many traditional diversified growth approaches. Standard Life Investments holds a range of market return investments (such as equities, bonds and listed real estate), however, they also use enhanced diversification strategies to provide additional sources of return and high levels of portfolio diversification.
“EDMA benefits from the expertise of our established and award-winning multi-asset investing team. By exploiting our resources and capabilities we believe we can offer enhanced, lower-risk performance that is cost-effective for our clients.” They conclude.
CC-BY-SA-2.0, FlickrDavid Kowach - Foto cedida. David Kowach es nombrado presidente y máximo responsable de Wells Fargo Advisors
Wells Fargo & Company announced on Thursday that David Kowach has been named president and head of Wells Fargo Advisors (WFA), the company’s national retail brokerage, effective immediately. Kowach will report to David Carroll, senior executive vice president and head of Wells Fargo Wealth and Investment Management (WIM). He succeeds Mary Mack, who was named head of Community Banking for Wells Fargo effective July 31.
Kowach has worked in the financial services industry for 25 years and has been with Wells Fargo and its predecessors for almost his entire career. Since 2012 he has served as head of WFA’s Private Client Group, WFA’s largest business channel with nearly 11,000 financial advisors who serve clients in all 50 states. Kowach will continue to be based in St. Louis and will lead the WFA Operating Committee. The company will address the matter of Kowach’s successor shortly.
“Ever since he began his career as a financial advisor, David Kowach has been focused on what is best for clients,” Carroll said. “David is well known and highly respected for his industry knowledge, deep relationships and proven results. He has a demonstrated track record of creativity and a vision for the evolution of the advisory business that is so important to our future competitiveness.”
Prior to leading the Private Client Group, Kowach led WFA’s Business Development Group where he was responsible for financial advisor recruitment and retention, growth strategies and national sales. He began his career as a financial advisor in the Philadelphia area.
“I’ve always believed that Wells Fargo’s advisors and team members are the best in the industry when it comes to serving clients,” said Kowach. “I’m so proud and honored for the opportunity to work with them and our partners to take care of clients and prepare our business for the future.”
Kowach is a graduate of Villanova University with a degree in finance. He actively supports several St. Louis-area charitable organizations, including the St. Louis Zoo, United Way, Forest Park Forever and Central Institute for the Deaf. Kowach and his wife Kerrin have two daughters.
CC-BY-SA-2.0, FlickrBill Miller, foto youtube.com. Bill Miller rompe lazos con Legg Mason tras 35 años en la entidad, al comprarle su participación en LMM
Legg Mason, announced on Thursday that it has reached an agreement with Bill Miller for the acquisition by Miller of all of Legg Mason’s interests in LMM LLC.
Miller will be no longer tied to Legg Mason and as a result of the operation he, together with companies he controls, will own 100% of LMM. The firm provides investment management services to Legg Mason Opportunity Trust, Miller Income Opportunity Trust and related strategies. There will be no changes to the investment team or portfolio management responsibilities as a result of the transaction, company said in a press release.
Bill Miller, Chief Investment Officer of LMM, said: “This transaction affirms my ongoing commitment to managing our funds and to our investors. I am excited about the future of LMM, and our team is dedicated to our long-term, value-driven approach and to true active management. I am thankful to Legg Mason for our 35-year relationship and to the many great people I’ve worked with along the way.”
“Bill has been an important part of the growth and success of Legg Mason over the years and we appreciate his many contributions. We wish Bill and his team continued success in the future. Today’s announcement is consistent with Legg Mason’s strategy of focusing on our nine diverse managers with size and scale that can be leveraged across global distribution,” said Joseph A. Sullivan, Chairman and CEO of Legg Mason.
Terms of the transaction were not disclosed.The transaction is expected to close on or around the calendar year end, subject to customary conditions and regulatory approvals.
LMM LLC is a registered investment advisor founded in 1999. LMM’s long-term, value-driven investment approach produces flexible strategies with high active share. LMM is headquartered in Baltimore, Maryland, and has $1.8 billion in assets under management as of July 31, 2016
The global private credit market, an alternative source of financing for small and medium sized enterprises, is flourishing, with institutional capital supporting increased lending in Europe in particular, according to a report by the Alternative Credit Council (ACC), a private credit industry body affiliated with the Alternative Investment Management Association (AIMA), and Deloitte, the business advisory firm.
The private credit market has grown from $440 billion last year, to $560 billion today. The research, Financing the Economy 2016, found that institutional capital is boosting lending in Europe and much of this growth has been driven by demand from European businesses. However, the US still remains the largest private credit market, both in terms of overall assets under management, and new assets raised in 2015.
The research is based on a survey of alternative lenders, representing assets under management totalling $670 billion, of which $170 billion is allocated to private credit strategies.
Stuart Fiertz, the Chairman of the ACC and President of Cheyne Capital, said: “As the recovery from the financial crisis continues, business innovation and demand for credit shows no signs of slowing. Alternative lenders are primed and ready to continue to fill the lending gap, but this is not necessarily at the expense of the traditional lenders. We see a cooperative relationship occurring between banks and alternative asset managers.”
Floris Hovingh, Head of Alternative Capital Solutions at Deloitte, said: “In the last couple of years, alternative lending has seen huge growth in Europe and is likely to accelerate over the next 24 months as a result of Brexit. As trade negotiations get underway, alternative lenders could be well positioned to navigate the increased risk in the market and price this accordingly.”
87% of global alternative lenders surveyed prior to the UK’s referendum said that the best lending opportunities are currently in the UK. This is followed by France (62%), Germany (54%), Spain (54%) and the US (50%).
Pension funds were cited by 57% of respondents as the biggest investor category, while a further 30% said pension funds were their second biggest source of capital. Insurance companies, endowments, foundations and sovereign wealth funds were other investor types cited as sources of capital for private debt funds.
The research found that most financing is going to businesses with pre-tax profits of $10 million or more. Most loans are greater than $5 million in size and half are in the $25m-$100m range. In comparison, bond market financing, a common form of non-bank finance for larger corporates, is in the $100m-$300m range.
The research also found that most private credit funds use little or no leverage, have low default rates and are structured in a way to prevent liquidity mismatches, bank-style runs and other financial stability problems. Fund managers said growing demand was partly driven by the flexibility, responsiveness and expertise of alternative lenders.
CC-BY-SA-2.0, FlickrPhoto: Foxspain, Flickr, Creative Commons. Nearly 16,000 Pass the Level III CFA Exam
CFA Institute, the global association of investment professionals that sets the highest standards of ethics, education, and professional excellence, announced that of 28,884 candidates who sat for the Level III CFA exam in June 2016, 54 percent passed the third and final exam. Pending experience and membership requirements, these successful candidates will become CFA charterholders starting in early October, and begin their journey as investment management professionals whose mission is to raise standards in the industry.
In addition, of 50,230 candidates who sat for the Level II exam in June 2016, 46 percent were successful and of 58,677 candidates who took the Level I exam, the pass rate was 43 percent. Globally, a total of 64,020 candidates passed Levels I, II and III, with the overall pass rate for all three levels at 46 percent. (View historical pass rates.)
“Congratulations to the successful candidates who have demonstrated their commitment to the highest standard of professional knowledge and ethics,” said Paul Smith, CFA, president and CEO of CFA Institute. “At CFA Institute, we aspire to develop future investment management professionals for the global financial markets. These candidates have taken the first step to earn the CFA designation and to join us in our pursuit to build professionalism, market integrity and a more trustworthy industry that puts clients’ interests above their own interests.”
To earn the CFA charter, candidates must pass all three levels of the exam which is considered to be the most rigorous exam in the investment profession; meet the work experience requirements of four years in the investment industry; sign a commitment to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct; and become a member of CFA Institute.
“We applaud CFA Institute for its continued efforts to strengthen the professional and ethical foundations of our industry by upholding the highest standards in their certification process,” said Ronald P. O’Hanley, President and CEO of State Street Global Advisors, “and we congratulate all successful candidates. As an organization that is proud to partner with CFA Institute, we strongly encourage everyone to avail themselves of the many opportunities it provides for continuing education and certification to improve our industry and the quality of service and engagement for our clients.”
Successful candidates study approximately 1,000 hours on average to master 8,500 pages of curriculum. The CFA curriculum includes ethical and professional standards; financial reporting and analysis; corporate finance; economics; quantitative methods; equity, fixed income, alternative investments; derivatives; portfolio management; and wealth planning. Its depth and breadth provides a strong foundation of advanced investment analysis and practical portfolio management skills, which gives investment professionals a career advantage.
“The CFA designation is widely recognized as the gold standard of professional knowledge and business ethics in the investment industry,” said Yimei Li, CFA, Deputy CEO of China AMC. “We encourage and support our staff to pursue the CFA charter, as it demonstrates our commitment to our clients that we bring in the best talent to serve their needs.”
New candidates entering the CFA Program in this year’s exam cycle grew by 15 percent to 102,514 candidates, which reflects growing interest in building professionalism in the investment management industry. The growth has been strongest in Mainland China where Level I candidate registrations reached a record high of 22,999, surpassing the number of registrations in the United States for the first time.
The June 2016 Level I, II and III exams were administered in 258 test centers in 197 cities across 91 countries worldwide. The top 10 countries and territories with the largest number of candidates tested are the United States (31,501), Mainland China (26,758), India (12,117), Canada (11,136), United Kingdom (9,717), Hong Kong (5,359), Singapore (3,433), Australia (2,915), South Africa (2,006), and France (1,784).
CC-BY-SA-2.0, FlickrFoto: Hernán Piñeira. Los sectores bursátiles de infraestructuras, seguros o inmobiliario cotizan muy por encima de la media
Columbia Threadneedle Investments announces the introduction of the Threadneedle US Investment Grade Corporate Bond Fund to its SICAV range.
The UCITS fund, co-managed by Minneapolis-based portfolio managers Tom Murphy, CFA and Tim Doubek, CFA, aims to generate a total return from income and capital appreciation by seizing opportunities in the US investment grade corporate bond market, focusing on security selection and industry rotation as the primary sources of value added with a constant focus on downside risk.
The fund mirrors the existing investment grade corporate fixed income strategy managed by the duo for US investors with a strong track record over the last seven years. The fund’s benchmark is the Barclays US Corporate Investment Grade Index and the fund’s performance target is +100 to 150 bps over the index (gross) over a full market cycle of five to seven years.
The fund follows a rigorous, independent, bottom-up fundamental research process resulting in a deep understanding of issuer and industry dynamics. Experienced and dedicated portfolio managers and analysts are full partners in the portfolio construction and monitoring process allowing the team’s best ideas to emerge with a constant focus on maximized return and reduced volatility.
Initially registered in Luxembourg, the fund is intended for distribution across other markets (UK, Austria, Belgium, France, Germany, Italy, the Netherlands, Portugal, Singapore, Spain, Switzerland and Sweden) pending regulatory approval in each country.
Gary Collins, Head of Wholesale Distribution for EMEA and Latin America at Columbia Threadneedle Investments said: “In a low yield environment, exposure to corporate credit can provide an effective way for investors to preserve capital and generate income whilst diversifying their portfolio away from equity markets. Columbia Threadneedle manages c. US$24 billion in US investment grade and we also have successful European and Global investment grade corporate bond strategies available through our SICAV.”
Tom Murphy, CFA, Columbia Threadneedle’s Head of Investment Grade Credit and co-manager of the Fund, said: “Given solid fundamental credit insights, a reasonable time horizon, and the ability to withstand short-term volatility, we believe credit opportunities in the US investment grade corporate bond market can be exploited to achieve attractive risk-adjusted returns. Tim and I have close to 30 years’ experience each and a real focus on finding the best business models with the best management teams that offer solid relative value.”
CC-BY-SA-2.0, FlickrPaul Quinsee / JP Morgan AM. Paul Quinsee, New Global Head of Equities at JP Morgan Asset Management
Paul Quinsee, until now managing director and chief investment officer for U.S. equities at JP Morgan Asset Management, will replace Martin Porter as the firm’s global head of equities.
The appointment will be effective in the fourth quarter, after Porter’s retirement. He will split his time between New York and London and report to Chris Willcox, CEO of global investment management.
Quinsee will oversee a team of more than 400 investment professionals and $430 billion in assets under management. As of June 30, JPMAM had $1.693 trillion in assets under management.
CC-BY-SA-2.0, FlickrFoto: AedoPulltrone, Flickr, Creative Commons. Jupiter ficha a Magnus Spence para su nuevo puesto de responsable de Inversiones Alternativas
Jupiter has announced the appointment of Magnus Spence as Head of Investments, Alternatives. In this newly-created position, Magnus, who joins on 30th August 2016, will be responsible for developing and expanding Jupiter’s capability in this strategically-important asset class.
Magnus will focus initially on the current range of Jupiter long/short equity UCITS products: Sicav funds Jupiter Europa and Jupiter Global Absolute Return, and a UK domiciled absolute return unit trust fund. In the medium term, Magnus’ focus will be on broadening Jupiter’s alternatives product range across asset class, region and country. He will report into Stephen Pearson, Chief Investment Officer, and work closely with James Clunie, Head of Strategy, Absolute Return as well as the rest of the investment team.
Magnus has 15 years’ experience in the alternatives asset management industry. Most recently, he has worked as Head of Product at Fidante Partners (formerly Dexion Capital plc) since early 2015. His role there involved the development of a liquid alternatives investment management platform. Prior to this, Magnus was Chief Executive and Managing Partner of Dalton Strategic Partnership LLP from 2011-2014, a specialist equity firm which he co-founded in 2002. In this position, he was instrumental in the development of the firm’s hedge fund, specialist equity fund and segregated account business aimed at both UK and international clients.
Stephen Pearson, Chief Investment Officer said: “We are very much looking forward to welcoming someone of Magnus’ experience and calibre to the investment management team we are building at Jupiter. Magnus will be working closely with me, James and the fund management team to strengthen and broaden our presence in the alternatives sector. This is an asset class which is highly sought after and important for the future development of our investment proposition’’.
Magnus Spence said: “This is an exciting time to join Jupiter. There is great potential for growth in the alternatives space both domestically and internationally. Jupiter, with its reputation for investment excellence, has the right ingredients to become a leading player in alternatives and I look forward to the opportunity of working with the entire team to meet this objective.
CC-BY-SA-2.0, FlickrPhoto: Quinn Dombrowski. Making Sense of Misalignment
Old Mutual has agreed to sell Old Mutual Wealth Italy to ERGO Italia, owned by Cinven, the European private equity firm. The consideration for the transaction is €278m in cash, plus interest to completion.
The transaction is subject to usual regulatory approvals and customary conditions and is expected to complete within six months. The sale is the final part of the divestment of Old Mutual Wealth’s continental European businesses allowing it to focus on its core UK and cross border markets.
As reported previously, Old Mutual is working on a wider plan to break up its business, cut costs and revamp earnings. On March 11, Old Mutual said it would split into four businesses: a South African bank, an emerging markets unit, a US asset manager and a wealth manager in Britain.
Old Mutual Wealth Italy was established in 1997 and accounted for less than 5% of Old Mutual’s overall wealth management activities.
The business employs 110 people and manages €7bn for more than 53,000 affluent and high net worth customers. The post-tax adjusted operating profit for the year ended 31 December 2015 was €22m.
“We are pleased to announce the acquisition of Old Mutual Wealth Italy. This transaction is the result of a clear vision, whose goal is to create a leading player through consolidation in the Italian life insurance market. We look forward to building on Old Mutual Wealth Italy’s capabilities to enhance our distribution network and our product line, gaining access to a high-growth market,” said Erik Stattin, CEO of ERGO Italia.
CC-BY-SA-2.0, FlickrFoto: LinkedIn. Thomas Zanios se incorpora a Gemspring Capital como managing director
Thomas Zanios has been appointed Managing Director at Gemspring Capital. Over the last 12 years, Thomas has invested in leverage buyouts, corporate divestitures, founder recaps, asset acquisitions through bankruptcy and growth equity investments across a range of industries including healthcare services, business services, insurance services, industrial services, manufacturing and localized rental businesses. Thomas has been involved with over 25 acquisitions over the course of his career including both platform investments and add-on acquisitions.
Prior to joining Gemspring, Thomas was a Principal at Odyssey Investment Partners. During his nine years with Odyssey, Thomas was involved in all aspects of the investment process including origination, due diligence, transaction structuring, financing, and working with management to execute key value creation initiatives for each investment. Thomas served on the boards of Safway Group Holdings and One Call Care Management during his tenure at Odyssey. Prior to Odyssey, Thomas worked as an Associate at H.I.G. Capital and was actively involved in a number of successful transactions.
Thomas began his career in the healthcare investment banking group of Banc of America Securities, and also spent time as at Ramius Capital, where he focused on private investments in public entities.
Thomas received a B.A, summa cum laude, from Tufts University.
