CC-BY-SA-2.0, FlickrHSBC Private Bank nombra a Joe Abruzzo director del negocio de Norteamérica - Foto cedida. HSBC Private Bank nombra a Joe Abruzzo director del negocio de Norteamérica
HSBC Private Bank today announced the appointment of Joe Abruzzo as Business Head of North America.
In this role, Abruzzo will be responsible for driving and executing HSBC’s strategy for private banking across North America, particularly in the US, a key market for HSBC Global Private Bank. He will also serve as a member of the HSBC Global Private Bank Executive Committee.
Based in New York, Abruzzo will report to Marlon Young, Regional Head of Global Private Banking, US & Latin America.
“This is an exciting time for Joe to join the Private Bank,” said Young. “We’re growing our business in the US and as we look to build on this momentum, Joe’s deep commercial and investment banking experience will help us to further capitalize on our strategy to be the Private Bank of choice to the owners and principals of HSBC’s corporate clients.”
With over 30 years in banking, Abruzzo most recently served as HSBC’s Head of US Large Corporate Banking. He joined HSBC in 2014 as Head of Northeast Corporate Banking and in early 2015 was named Co-Head of US Corporate Banking. Before that, he spent 26 years with JP Morgan Chase in various senior leader roles in Commercial and Corporate and Investment Banking.
Young added, “We continue to invest in our people, products and services in the US and I’m also personally delighted that we are able to develop local US talent within HSBC.”
CC-BY-SA-2.0, FlickrPrivate Equity Women’s Initiative busca incrementar la presencia de mujeres en el Private Equity - Foto facilitada por NAIC. NAIC presenta una Iniciativa para incrementar la presencia de mujeres en Private Equity
The National Association of Investment Companies (NAIC), the industry association for diverse-owned and emerging private equity firms and hedge funds, recently announced the commencement of the Private Equity Women’s Initiative to increase the number of women entering and advancing in the private equity industry.
A partnership between the NAIC and the American Investment Council (AIC) recognized that women are grossly underrepresented in the industry, making up just 10 percent of senior employee ranks in private equity. The difficulties women face in surmounting barriers into the industry is compounded by the challenge of effectively navigating their way towards senior level positions.
To achieve its objectives, the Private Equity Women’s Initiative will publish relevant research, as well as host educational forums, networking events and mentoring programs. A Working Committee comprised of 11 senior women from NAIC and AIC firms created the Initiative’s Guidelines and Best Practices, a framework for promoting recruitment and retention of women.
The Working Committee consists of: Kelly Williams (Chair), Senior Advisor, GCM Grosvenor; Maura Allen, Private Equity Fellowship and Program Manager, Robert Toigo Foundation; Lauren Dillard, Managing Director and Head of Investment Solutions, Carlyle Group; Daphne Dufresne, Managing Member, JBD Holdings; Martina Marshall Edwards, Former Director of Alumni & Alternative Investments Programs, SEO;Nia Gandy, Marketing Manager, GP Investments; Audra Paterna, Director of Human Resources, Silver Lake; JoAnn H. Price, Co-Founder/Managing Partner, Fairview Capital; Sarah Roth, Partner, The Riverside Company; Patricia Winton, Principal, Strategy and Human Capital, Arclight; Alisa A. Wood, Partner, KKR.
“We believe that the guidelines and best practices developed by the steering committee will provide meaningful tools to firms who are committed to improving gender balance,” says Kelly Williams, Chair of the Private Equity Women Investor Network and Chair of the Women’s Initiative Steering Committee. “I am very impressed by the efforts made by AIC and NAIC member firms to address this important issue.”
“NAIC is delighted that our collaboration with the AIC will positively contribute to more women having the opportunity to develop long, vibrant and rewarding careers in private equity because the industry worked to become more inclusive in our policies and practices,” says Robert L. Greene, President & CEO of the association. “We continue to believe that no group or demographic holds a license or monopoly on talent, rather talent is evenly distributed amongst all people!”
CC-BY-SA-2.0, FlickrPhoto: Brian Evans
. Robeco Opens a New Office in Singapore
Robeco has opened a new office in Singapore. This office will focus on credit research and strengthening Robeco’s service to their clients in the market and the broader Southeast Asia region.
According to a press release, “Singapore is a fast growing Asian fixed income hub, so by establishing a permanent presence in the market, Robeco is able to expand capabilities, leverage opportunities and further strengthen our fixed income infrastructure in the region.” Maurice Meijers, Client Portfolio Manager Fixed Income for the Asian markets, will be heading the Singapore office. In addition to Meijers, two credit analysts will also be based in Singapore.
Maurice Meijers said: “Singapore is uniquely positioned as a leading fixed income hub in Asia, with a strong outlook for future growth. Robeco’s pan-Asia business, which includes offices in many key Asian markets, allows us to gain access to local market knowledge and attract local talent. The opening of our Singapore office is another important addition to Robeco’s Asia footprint and will enable us to further expand our fixed income capability to leverage opportunities in the region.”
Nick Shaw, Head of Global Financial Institutions, said: “The Asia Pacific region leads the world in new wealth creation and Singapore has long-since established itself as a global private banking hub. The opening of a local Singapore office will allow us to better service our distribution partners and provide local support to institutional clients and consultants in the region.”
Robeco has had a presence in Asia Pacific since 2005 and it has been growing its footprints in the region with offices in Australia, China, Hong Kong, Japan, Korea and now Singapore. Hong Kong is home to their Asia Pacific equities investment team, and their new Singapore office will be an extension of their Rotterdam fixed income team. The expansion in Asia Pacific is a key part of their “strategy 2014-2018: accelerate growth”.
Foto: Esparta Palma
. Julius Baer mueve su cúpula para reforzar su enfoque hacia clientes y mercados
Julius Baer Group has announced an alignment of its organization, leading to a strengthened client orientation and increased efficiency. The new set-up will consist of the five Regions Switzerland, Europe (new), Emerging Markets (new), Latin America and Asia Pacific and will lead to changes within the Executive Board of Bank Julius Baer.
Furthermore, Philipp Rickenbacher has been appointed as new Head Advisory Solutions, and Nic Dreckmann as new Chief Operating Officer of the Bank and member of the Executive Board of the Bank as of 1 August 2016. All new positions are staffed from within the organization. Both the alignment of various markets within the new regional structure as well as the adjustments within the products and corporate functions area will not only benefit the clients but also lead to efficiency gains.
Boris F.J. Collardi, Chief Executive Officer, said: “The alignment of the front organization will enable a period of very strong growth of our Group. The changes, which are beneficial for our clients and ease the set-up of our regional structure, are a further step to confirming our position as the leading Swiss private banking group.”
Alignment of front organization
The regional set-up of Julius Baer will be aligned and reduced by one Region as of 1 September 2016.
Region Switzerland will be led by Gian A. Rossi. The Intermediaries business will be allocated to the new regional set-up and largely integrated into the Region Switzerland which includes the Global Custody business as well. Gian Rossi currently is Head Northern, Central and Eastern Europe. Barend Fruithof, Head Switzerland & Global Custody and Member of the Executive Board of the Bank, has decided to leave the Bank.
The new Region Europe (excluding Central/Eastern Europe, including Israel) will be run by Yves Robert-Charrue. He will further develop the European strategy mainly out of the new European hub Luxembourg following the recent acquisition of Commerzbank International S.A. Luxembourg. At present Yves Robert-Charrue is responsible for the Intermediaries business.
The newly established Region Emerging Markets will be led by Rémy A. Bersier. The Region’s strategy will be to further capture the vast growth opportunities in the attractive markets of Central/Eastern Europe/CIS, the Middle East, India and Africa. Rémy Bersier, who currently is Head Southern Europe, Middle East and Africa, will be based in Dubai.
Furthermore, following the launch of ‘Julius Baer – Your Wealth’, the Group’s new holistic approach to advise its clients, the division Investment Solutions Group will change its strategic roadmap to fully focus on delivering the client experience. Hence, it will be renamed Advisory Solutions and will come under the new leadership of Philipp Rickenbacher as of 1 August 2016. He is currently Head Structured Products and will be member of the Executive Board of the Bank as of the same date.
Changes on Group level
The new COO, Nic Dreckmann, will also be a member of the Executive Board of the Group as of 1 January 2017, replacing Greg Gatesman who will step down from the Executive Board of the Group by the end of the year. Additionally, Giovanni M.S. Flury, Member of the Executive Board of the Group, will retire.
PIMCO, a leading global investment management firm, announces that it has hired Danielle Luk as Executive Vice President and Portfolio Manager and Tiffany Wilding as Senior Vice President and U.S. Economist. Both will be based in PIMCO’s Newport Beach office.
Luk, who joins PIMCO from Credit Suisse where she traded options, will focus on interest rate derivatives and will report to Josh Thimons, Managing Director and Portfolio Manager. Wilding, who previously worked at Tudor Investment as the Director of Global Interest Rate Research, will report to Joachim Fels, Managing Director and PIMCO’s Global Economic Advisor.
Dan Ivascyn, Managing Director and Group Chief Investment Officer, said: “Danielle is an exceptionally talented investor who will help develop and execute the firm’s best ideas and solutions for our clients.”
Wilding will contribute to the firm’s investment process and macro analysis by focusing on the world’s largest economy. Among her many duties, she will be a contributor to PIMCO’s Cyclical Forums, which are held three times a year and co-led by Fels.
“Tiffany is incredibly talented and we’re very pleased that she’ll be joining our macro analysis team as a U.S. economist,” said Fels. “Her addition will strengthen and bring greater depth to our global forecasting efforts at a time of acute economic uncertainty, especially in the developed world,” he added. Ivascyn added that “Danielle and Tiffany are examples of the top industry talent we continue to add to our global team of investment professionals. So far in 2016, PIMCO has hired more than 140 new employees around the world, in a broad range of areas from portfolio management to business development.”
Foto: sz.u.
. Bolton Global Capital utilizará soluciones tecnológicas de FolioDynamix
Bolton Global Capital has recently signed an agreement with technology solution provider FolioDynamix for trading, portfolio management, and advisory services. Advisors will be able to leverage the institutional-quality trading interface to manage the entire client lifecycle, from account opening to rebalancing; they will also have access to a series of managed account options that have undergone extensive due diligence review.
“FolioDynamix offered a degree of flexibility that was very attractive to us,” says Steve Preskenis, President of Bolton Global. “The trading interface and overall solution was exactly what our advisors were asking for; many come to us from a wirehouse background, and this technology actually offers a better experience than what they were used to.”
Bolton plans to rollout the FolioDynamix platform over the next two months. As a multi-custodial solution with an integration already in place with Pershing, Folio offers an efficient onboarding experience.
“We believe strongly that the advisors who leverage technology—and the firms who invest in leading-edge solutions—are going to continue to grow exponentially,” says Joe Mrak, CEO of FolioDynamix. “We are thrilled to partner with a firm like Bolton that is actively seeking new markets and new opportunities, and we look forward to our collaboration.”
Bolton´s Growth
Increasing numbers of advisors are leaving the wirehouse model to join independent firms who have built an infrastructure leveraging technology tools. Bolton Global Capital, with headquarters in Massachusetts, has seen an influx of new advisors joining the firm, most notably from Merrill Lynch. Bolton continues to significantly expand in the Latin American market, “which is now underserved by the exit of major firms from the international space”, says the firm.
CC-BY-SA-2.0, FlickrPhoto: Aziz Hamzaogullari, CFA, Portfolio Manager, at Loomis, Sayles & Company. Active Matters in U.S. Large-Cap Growth
Passive investments such as index funds have become increasingly popular, due primarily to lower fees and attractive performance amidst a seven-year bull market*.
This investor preference was recently captured in the 2016 Natixis Global Asset Management Individual Investor Survey – where 67% of 850 Latin American investors surveyed believed index funds can help minimize losses. Further, 64% also believe they are less risky, and 57% think they offer better diversification than other investments**.
While there certainly is a place for passive investments in portfolios, these survey results may have uncovered misconceptions about their risk mitigation and diversification benefits. Aziz Hamzaogullari – a leading active investment manager in the U.S. large-cap growth equity space – shares his insight on active risk management, alpha, and diversification.
What can an active approach to growth achieve that indexing may not?
At the heart of active management lies the belief that one can deliver returns in excess of benchmark returns. Whether we are in the midst of a market rally or downturn, active investment management and active risk management are integral to alpha generation – creating risk-adjusted excess returns and adding value to long-term investor portfolios. Our focus is on quality companies uniquely positioned to capture long-term growth and active management of downside risk. Over the long run, we believe markets are efficient. However, short-term investor behavior can cause pricing anomalies, creating potential opportunities for active, long-term, valuation-driven managers like us. Capitalizing on these opportunities requires a disciplined investment process and a patient temperament.
Also, I think defining risk in relative terms obfuscates the fact that the benchmark itself is a risky asset. This is particularly true with cap-weighted indices because downside risk increases significantly when the stocks of a particular sector experience a run-up in prices that are above their fundamental intrinsic value. If a portfolio manager ties his investment decisions to benchmark holdings and risk factors, he must necessarily take on this additional downside risk. Instead, we define risk as a permanent loss of capital, which means we take an absolute-return approach to investing and seek to actively manage our downside risk.
How does your approach lead to high active share versus the Russell 1000 Growth Index?
Our approach is different from benchmark-centric portfolios that tend to begin their investment process by considering the influence of the benchmark’s top holdings and sector positioning on relative performance. The companies we invest in must first meet a number of demanding quality characteristics. Our philosophy and process often result in positions and position sizes that differ from the benchmark. If you want to outperform a benchmark net of fees, it stands to reason that you must be different from the benchmark. That said, high active share is a by-product of our distinct approach to growth equity investing. (Active share is a measure of how a portfolio differs from the benchmark. High active share indicates a larger difference between the benchmark and portfolio composition.)
A study by Antti Petajisto and Martijn Cremers found that high active share correlates well with positive excess returns and that the most active managers, those with active share of 80%–100%, persistently generated excess returns above their benchmarks even after subtracting management fees***.
Do you think there is a misconception among investors that more names in a portfolio mean more diversification?
Perhaps. While diversification does not guarantee a profit or protect against a loss, it is an important tool in managing portfolio risk or volatility. However, we do not think diversification is the simple notion that more names in a portfolio is better. Our 30 to 40 holdings isn’t a random number. A 2010 study by Citigroup demonstrated that a portfolio of 30 stocks was able to diversify more than 85% of the market risk. The diversification benefit of adding more stocks to the portfolio declined significantly as the number of stocks increased.
*- Refers to the U.S. stock market (as measured by the S&P 500® Index) from its low on March 9, 2009 through March 9, 2016. ** – Natixis Global Asset Management, Global Survey of Individual Investors conducted by CoreData Research, February–March 2016. Survey included 7,100 investors from 22 countries, 850 of whom are Latin American investors. ***- Martijn Cremers and Antti Petajisto, “How Active Is Your Fund Manager?” International Center for Finance, Yale School of Management, 2009.
This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. The views and opinions expressed may change based on market and other conditions.
In Latin America: This material is provided by NGAM S.A., a Luxembourg management company that is authorized by the Commission de Surveillance du Secteur Financier (CSSF) and is incorporated under Luxembourg laws and registered under n. B 115843. Registered office of NGAM S.A.: 2 rue Jean Monnet, L-2180 Luxembourg, Grand Duchy of Luxembourg. The above referenced entities are business development units of Natixis Global Asset Management, the holding company of a diverse line-up of specialized investment management and distribution entities worldwide. The investment management subsidiaries of Natixis Global Asset Management conduct any regulated activities only in and from the jurisdictions in which they are licensed or authorized. Their services and the products they manage are not available to all investors in all jurisdictions. In the United States: Provided by NGAM Distribution, L.P. 1535854.1.1
Foto: Kevin Dooley
. Northern Trust nombra vicepresidente de su Consejo a William L. Morrison
Northern Trust Corporation announced this week that President William L. Morrison has been appointed to a new role as Vice Chairman. The appointment will take effect October 1, 2016.
Morrison will continue to report to Chairman and Chief Executive Officer Frederick H. Waddell, who will assume the role of President. As Vice Chairman, Morrison will continue to lead the cultivation and development of key relationships with clients and prospects, both personal and institutional, around the globe. Additionally, he will assist with and/or lead development efforts around strategic opportunities as they arise.
“Bill is a leader with tremendous experience and outstanding judgment and we will benefit from his focused efforts around growing our talent, client relationships and capabilities,” Waddell said.
Morrison has served as President since 2011, and as Chief Operating Officer in addition to President from 2011 to 2014. He served as Executive Vice President and Chief Financial Officer from 2009 to 2011. Prior to that he held a number of leadership roles including President of Wealth Management from 2003 to 2009.
At the end of 2015, investors were confronted by a world that appeared to be full of potential pitfalls. To preserve and grow the value of their assets, they needed robust portfolios that could outperform the market in challenging environments and deliver resilient returns in the face of unforeseen events.
The investment environment in 2016 has been no easier. A slowing Chinese economy, the Bank of Japan’s surprise move to introduce negative interest rates, political and economic uncertainty in the US and the UK’s momentous decision to leave the European Union have all played their part in increasing global financial instability and volatility.
Investec’s approach to building portfolios that are resilient in the face of such tumultuous events requires a strong understanding of investment risks, beyond estimates of volatility. For them, portfolio construction should balance the trade-offs between potential returns and individual assets’ contribution to overall risk exposure. But also they need to be diversified and to avoid those parts of the market that could be vulnerable to sudden liquidity squeezes. According to them, investors should also have strategies to cope with periods of market stress.
Diverging monetary policies Six months ago, they believed the US dollar would reach new cyclical highs, as US monetary policy slowly normalized. Then, Europe had only just started to run down private-sector debt and seemed at least three years behind the US. Asia, and China in particular, were further behind Europe. These markets’ debt to gross domestic product ratio were still high, suggesting that monetary easing would need to continue for several years.
Since then, global economic headwinds and a weaker domestic backdrop has prompted a more dovish tone from the US Federal Reserve in the first quarter of 2016, which has slowed the pace of monetary policy normalization. “This means that the phenomenon of diverging monetary policy is less pronounced than it was at the beginning of the year.”
Selectivity needed in emerging markets “Our belief that the emerging market universe is disparate, and offers a wide range of investment opportunities still holds true. We continue to favour economies that are natural extensions of developed markets, such as Hungary or Romania are for the European Union. Nevertheless, we believe we need to continue to be selective in emerging markets, partly due to different sensitivities to demand for Chinese commodities and the US dollar.” They note.
Finding bottom-up opportunities “We continue to believe that a bottom-up approach to choosing investments can help penetrate the short-term macroeconomic noise. Emerging market equities and resource stocks led global stock markets higher from mid-January, at a time when Chinese data remained negative and many analysts were forecasting a US recession. However, we still acknowledge that the environment has, even if temporarily, become marginally less supportive for stock picking.”
ESG going mainstream Investec’s experts believe that 2016 is when many investors will be focused on taking account of environmental, social and governance (ESG) issues. Integrating ESG assessment into investment processes is increasingly being seen as a way of driving long-term value creation. “German auto manufacturer Volkswagen could be seen as a game changer triggering increased attention on corporate behavior and practices. The Paris Agreement on Climate Change in December 2015 has also focused investors’ minds on the environmental challenges surrounding global warming.” They conclude
Andre Suaid / Linkedin. BTIG Nueva York ficha al brasileño Andre Suaid
BTIG, a global financial services firm specializing in institutional trading, investment banking, research and related brokerage services, announced that Andre Suaid has joined the firm as a Managing Director within its International Equities Group in New York.
Suaid will focus on U.S. and Latin American-based institutional clients, navigating developed, emerging and frontier markets throughout Latin America. He joins an established, global team of professionals throughout BTIG’s nine U.S. offices, and affiliate office locations in London, Edinburgh, Hong Kong, Singapore and Sydney. The move comes in response to increasing client demand and heightened focus in the region. Previously, Suaid was Head of Latin America Global Prime Finance and Head of International Equity Trading for the Americas at Deutsche Bank Securities. He was responsible for the execution of Deutsche Bank’s international products for global clients, overseeing the risk for Latin America Cash, Delta One, and Program and Synthetic Trading. Suaid was also part of the leadership team responsible for building out the Latin America Synthetic Platform at Deutsche Bank. Earlier in his career, he spent several years in similar roles at Credit Suisse, First Boston and FC Stone.
“Specializing in Latin American markets throughout his 25-year career, Andre will be instrumental in expanding the firm’s offering for our high-touch clients conducting business in the region,” said Richard Jacklin, Managing Director and Head of International Equities at BTIG. “His extensive network of local relationships, understanding of regional trading nuances and client-first approach will be important as we look to unlock valuable pockets of liquidity for clients.”
