Foto: James Lumb
. Los gestores deben cuidar la distinción entre productos onshore y offshore
The growing interest in alternative Undertakings for Collective Investment in Transferable Securities (UCITS) funds among European investors is an opportunity for offshore managers, but offering the same strategy as two different products presents its own challenges, especially with regard to fees, according to the latest issue of The Cerulli Edge.
Demand for UCITS products and the introduction of the Alternative Investment Fund Managers Directive (AIFMD) has left many fund managers, that are keen to access a global investor base, unsure of whether to retain their offshore strategies, move them onshore, or do both, says Cerulli, a global analytics firm.
Seeking to resolve the offshore dilemma by adding an onshore product can create its own set of challenges, especially when launching UCITS funds designed to replicate the performance of an offshore strategy, says Barbara Wall, Europe managing director at Cerulli.
“Offering a UCITS product alongside a separate, offshore version of the same strategy can be problematic. The framework’s restrictions on strategy and liquidity (UCITS funds must trade at least twice a month) give rise to the potential for onshore/offshore pairings that could favor one set of investors over the other. This makes the dynamic of the said pairing paramount to a successful distribution strategy,” explains Wall.
A key distinction needs to be made: has the UCITS fund been designed to run pari passu to the offshore original or to complement it? Managers marketing the UCITS hedge fund as pari passu should expect fees to come under greater scrutiny, maintains Cerulli.
“Investors in the offshore fund, with less generous terms than the UCITS-compliant variant, may feel they are getting a raw deal if they are paying more or the same as investors in the onshore vehicle for less liquidity, especially if the difference in performance is minimal,” adds Tony Griffiths, a senior analyst at Cerulli.
“As such, tweaking the strategy within the offshore fund in order to change the risk-reward profile, thus distinguishing it from its UCITS counterpart, will help head off awkward questions and mitigate the chances of cannibalizing the investor base. If the manager is not marketing the funds as pari passu and has made clear that the UCITS strategy is a ‘lower strength’ version of the offshore original, a lower UCITS fee is then more applicable,” says Griffiths.
Alexandra Ruiz y Ana Contreras-Ludvigsen. Fotos cedidas. Alexandra Ruiz y Ana Contreras-Ludvigsen se unen al equipo de TotalBank
TotalBank has just announced the addition of Private BankerAlexandra Ruiz and Sales DirectorAna Contreras-Ludvigsen.
“We are pleased to be welcoming these two experienced and capable bankers to our TotalBank team. Our strategic goal is to expand Private Banking as well as our Downtown Banking Center, and we are confident their contributions will have a positive impact,” stated Jay Pelham, President of TotalBank.
Alexandra Ruiz, who joins TotalBank as a Vice President and Private Banker, will provide private client services to high-net-worth individuals, including residential, wealth management, and lending. In addition, she will develop relationships with new and potential clients. With 15 years of experience in the banking industry, she was most recently at City National Bank – Bci Financial Group, where she held the position of Assistant Vice President/Personal and Small Business Banker. Ruiz holds a bachelor’s degree from Florida International University. Her affiliations include United Way of Miami-Dade Young Leaders and the Coral Gables Chamber of Commerce.
With more than 28 years of banking experience, Ana Contreras-Ludvigsen, joins TotalBank as Vice President and Sales Director at the Downtown Banking Center. She will be responsible for the overall financial performance of the Downtown Banking Center with an emphasis on retail lending, deposit acquisition and customer ambassador. She was previously with U.S. Century as Vice President Branch Manager. Contreras-Ludvigsen holds an associate of arts degree from Miami-Dade College.
. HMC Capital Hired Diana Roa as Head for Colombia
Diana Roa is the new head of HMC Capital in Colombia. Following her departure from Alianza Fiduciaria, a Colombian asset management company where she was Head of Alternative Investments; Diana Roa has now joined HMC Capital, the Latin America financial services and advisory firm founded by Felipe Held and Ricardo Morales.
Diana also led the Alternative Investments of AFP BBVA Horizonte before it was sold to AFP Porvenir. She has a MBA from Grenoble Ecole de Management, in France and has an engineer degree from Universidad de Los Andes in Colombia.
The main purpose of her role is to open the new office of HMC in Bogota, and lead the expansion of the firm into the Colombian market. They are targeting different areas of businesses including local asset management funds, international Alternative strategies and Asset Managers. She has the local expertise, knows the regulation in depth and used to manage more than 20 funds with almost USD 1 billion in AUM, involving 100 different counterparties, mainly Colombian investors, both private and institutional.
Diana started on February 1st 2016 and is based at HMC office in Bogota, Colombia.
Foto: Nicola Corboy, Flickr, Creative Commons. Allianz GI compra la gestora británica especialista en renta fija Rogge Global Partners
Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, has announced that it has agreed to acquire Rogge Global Partners (RGP), the London- based global fixed income specialist.
The transaction, for an undisclosed sum, will see AllianzGI acquire 100 per cent of the issued share capital in RGP from Old Mutual and RGP management. The combination will further strengthen AllianzGI’s growing fixed income capability and client proposition, while providing RGP with a strategic partner which will offer greater distribution potential for its strategies.
AllianzGI’s commitment to building out its fixed income capability has seen it make a number of investments in this area in recent years, including the creation of an Asian Fixed Income team under the leadership of David Tan, the development of its Emerging Market Debt team led by Greg Saichin and more recently the hiring of Mike Riddell to lead the development of its UK Fixed Income capability. These investments augment AllianzGI’s already substantial Fixed Income capability.
Commenting on the transaction, Andreas Utermann, Global CIO and CEO-elect of AllianzGI, said: ”We are delighted that RGP have chosen to partner with AllianzGI as the springboard for the next stage of their development. The two businesses are a natural fit – in terms of both product mix and culture – and we really look forward to working together closely for our clients’ mutual interests. The complementary nature of the fit extends also to geographic footprint, which will substantially enhance AllianzGI’s footprint in the UK as well as making RGP’s strategies available to more clients globally.”
Franck Dixmier, AllianzGI’s Global Head of Fixed Income and a member of its Global Executive Committee, added: ”The addition of RGP is a further important step in the development of AllianzGI’s global fixed income capability. It offers us a unique opportunity to accelerate the development of our client offering in fixed income. As active managers, we share a common philosophy on generating alpha in difficult market conditions and look forward to realising the fruits of this exciting new enterprise.”
Consistent with AllianzGI’s previous acquisitions and integrations, the integrity of the RGP investment team and process will be maintained. The RGP team will become part of the global investment platform, which is set up to preserve the distinct dynamics, processes and philosophies of different investment teams.
As a result of its client-centric strategy and focus on active investing, AllianzGI has attracted positive net inflows in each of the last 11 quarters and has seen the assets it manages in fixed income grow from EUR 109bn to EUR 167bn in the last four years.
Olaf Rogge, Founder, Executive Chairman and co-CIO of RGP, said: “We initiated the search for a new strategic partner back in 2015 with the support of our current majority owner, Old Mutual. Having had discussions with a number of interested parties, we are convinced that the combination with AllianzGI will be in the best interests of clients and will ensure the continued future growth of RGP’s successful investment approach.”
As at the end of September 2015, AllianzGI’s assets under management (AuM) totalled EUR 427bn on behalf of clients, of which EUR 167bn were in fixed income strategies. RGP’s AuM, all of which is in fixed income products, totalled EUR 34bn.
The transaction, which remains subject to regulatory approvals, is expected to close by the end of the second quarter of 2016.
Foto: Elza Fiuza. Mauricio Macri ofrece 6.500 millones de dólares para salir del default
Less than two months after President Mauricio Macri took office and expressed his commitment to a deal, Argentina offered a $6.5 billion cash payment to creditors suing the country over defaulted bonds from 2001. The offer represents a 27.5% discount for creditors who filed claims of about $9 billion.
According to a U.S. court-appointed mediator, two out of six leading bondholders have already accepted the offer, Montreux Equity Partners and Dart Management were the two funds that accepted the proposal, while Elliott Management and Aurelius Capital Management are the two lead creditors.
The payment will be financed through new sovereign debt issuances. If a settlement is reached, Macri’s next challenge will be to push it through Argentina’s left-leaning Congress, where no party holds a lower house majority.
According to Reuters, the offer contained two separate proposals, with full payment on the principle value of their bonds plus 50 percent for holders of defaulted debt who never joined the U.S. lawsuit and a 30 percent reduction on a creditor’s total claim, than can be reduced to 27.5% if signed in the next two weeks for all creditors who have sued Argentina through the U.S. law courts.
Photo: Aranjuez1404, Flickr, Creative Commons. Pamplona Capital Appoints Pedro Rapallo as Operating Partner Focused on Iberia
Pamplona Capital Management is pleased to announce the appointment of Pedro Rapallo as an Operating Partner in order to supplement its deal team and support its focus on the Iberian Peninsula. In this new position, Pedro, along with the Pamplona Capital team, will drive new investment opportunities in Spain and Portugal.
“Pedro brings a wealth of local knowledge and expertise in Spain and Portugal and a large experience in the global financial services industry. Pedro’s insight will be invaluable for Pamplona Capital as we increase our focus on investment opportunities in Iberia,” said John Halsted, Managing Partner at Pamplona Capital.
Pedro Rapallo brings 20 years of business and consulting experience to Pamplona Capital. Most recently, Pedro was a Partner and Managing Director at The Boston Consulting Group, with a focus on financial services in Iberia and wholesale transactional banking globally. Prior to joining The Boston Consulting Group, Rapallo worked for Oliver Wyman as a Partner in their financial services team focusing on corporate strategy, wholesale banking and risk and capital management, and was a visiting scholar at the Department of Economics at the University of California San Diego.
A native of Madrid, Spain, Rapallo holds bachelor degrees in Law and Business Administration from the Universidad Pontificia de Comillas, and a Masters and C.Phil. in Economics from the University of California, San Diego.
Pamplona Capital Management is a London and New York based specialist investment manager established in 2005 that provides an alternative investment platform across private equity, fund of hedge funds and single manager hedge fund investments.
Pamplona Capital Management, LLP manages over USD 10 billion in assets across a number of funds for a variety of clients including public pension funds, international wealth managers, multinational corporations, family offices and funds of hedge funds. Pamplona is currently managing its fourth private equity fund, Pamplona Capital Partners IV LP, which raised $4 billion in 2014. Pamplona invests long-term capital across the capital structure of its portfolio companies in both public and private market situations.
Foto: Daniel Wehner
. Los alternativos crecieron hasta marcar un récord en 7,4 billones en 2015
The Preqin´s 2016 Global Alternatives Reports find that alternative assets fund managers hold a record $7.4tn in combined assets under management (AUM) in 2015, up from $6.9tn a year before. The private capital industry in particular has grown over the past year, as almost every constituent asset class saw its AUM increase. The industry as a whole added $193bn in AUM through H1 2015, more than the $149bn growth seen in the whole of 2014. The aggregate value of the portfolios of assets held by private capital fund managers is continuing to rise as GPs put more capital to work.
Hedge funds saw a challenging year in 2015, but combined assets under management grew from $3.0tn to $3.2tn despite performance concerns. Total hedge fund AUM grew by 13.3% over 2014 as funds added $355bn in total assets; this rate of growth halved in 2015 with just $178bn worth of assets added, an increase of 5.9%.
“The private capital industry has continued to show healthy growth over the past year, and is now worth over four trillion dollars. This has been fuelled by a rise in dry powder levels, following another strong year for fundraising, and an increase in the unrealized value of portfolio assets. This is not without its concerns, though; the fundraising market is more competitive than ever and dry powder levels continue to increase and put pressure on finding attractive investment opportunities.” Says Mark O´Hare, chief executive, Preqin.
“The hedge fund industry has not enjoyed the same gains made in 2013 and 2014, although it has nevertheless grown to well over three trillion dollars. While the prolonged period of weak returns has taken its toll, returns are also difficult to find in other asset classes. 2016 looks set to be a challenging year, but the industry still has the potential for significant further growth.” Concludes O´Hare.
CC-BY-SA-2.0, FlickrPhoto: Julia Rubinic
. FinCEN Takes Aim at Real Estate Secrecy in Manhattan and Miami
The Financial Crimes Enforcement Network (FinCEN) today issued Geographic Targeting Orders (GTO) that will temporarily require certain U.S. title insurance companies to identify the natural persons behind companies used to pay “all cash”for high-end residential real estate in the Borough of Manhattan in New York City and Miami- Dade County. FinCEN is concerned that all-cash purchases – i.e., those without bank financing – may be conducted by individuals attempting to hide their assets and identity by purchasing residential properties through limited liability companies or other opaque structures. To enhance availability of information pertinent to mitigating this potential money laundering vulnerability, FinCEN will require certain title insurance companiesto identify and report the true “beneficial owner” behind a legal entity involved in certain high-end residential real estate transactions in Manhattan and Miami-Dade County.
With these GTOs, FinCEN is proceeding with its risk-based approach to combating money laundering in the real estate sector. Having prioritized anti-money laundering protections on real estate transactions involving lending, FinCEN’s remaining concern is with the money laundering vulnerabilities associated with all-cash real estate transactions. This includes transactions in which individuals use shell companies to purchase high-value residential real estate, primarily in certain large U.S. cities.
“We are seeking to understand the risk that corrupt foreign officials, or transnational criminals, may be using premium U.S. real estate to secretly invest millions in dirty money,” said FinCEN Director Jennifer Shasky Calvery. “Over the years, our rules have evolved to make the standard mortgage market more transparent and less hospitable to fraud and money laundering. But cash purchases present a more complex gap that we seek to address. These GTOs will produce valuable data that will assist law enforcement and inform our broader efforts to combat money laundering in the real estate sector.”
Under specific circumstances, the GTOs will require certain title insurance companies to record and report to FinCEN the beneficial ownership information of legal entities purchasing certain high-value residential real estate without external financing. They will report this information to FinCEN where it will be made available to law enforcement investigators as part of FinCEN’s database.
The information gathered from the GTOs will advance law enforcement’s ability to identify the natural persons involved in transactions vulnerable to abuse for money laundering. This would mitigate the key vulnerability associated with these transactions – the ability for individuals to disguise their involvement in the purchase.
FinCEN is covering certain title insurance companies because title insurance is a common feature in the vast majority of real estate transactions. Title insurance companies thus play a central role that can provide FinCEN with valuable information about real estate transactions of concern. The GTOs do not imply any derogatory finding by FinCEN with respect to the covered companies. To the contrary, FinCEN appreciates the assistance and cooperation of the title insurance companies and the American Land Title Association in protecting the real estate markets from abuse by illicit actors.
The GTOs will be in effect for 180 days beginning on March 1, 2016. They will expire on August 27, 2016.
Courtesy photo. BNY Mellon Announces Lisa Dolly as the Next Chief Executive Officer of Pershing
Pershing announced that Lisa Dolly has been named as the company’s new chief executive officer, effective February 16, 2016.
Dolly, currently the firm’s chief operating officer, succeeds Ron DeCicco, who after a long and distinguished 45-year career with Pershing, has decided to retire from his role as chief executive officer of Pershing. As part of the leadership transition, he will serve as an executive advisor over the next year working closely with Dolly, Pershing’s executive committee and key clients.
“We’ve selected a very capable and committed leader at a time when Pershing is in a strong position,” said Brian Shea, BNY Mellon vice chairman and CEO of Investment Services. “For the past three years, Lisa has been an exemplary chief operating officer and in her new role as Pershing’s CEO, I am confident that she will lead the company to continued success.”
“I also want to recognize and thank Ron for being an outstanding leader, consistently putting the good of our clients, the company, the industry and the well-being of employees as his highest priorities”, said Shea. “Ron has been a strong, highly effective and responsible leader and we have been extremely fortunate to have had him as CEO and now as an executive advisor.”
Dolly is a member of Pershing’s executive committee and BNY Mellon’s Operating Committee. Over her 25-year career at Pershing, she has held numerous leadership roles prior to becoming Pershing’s COO. She was responsible for the firm’s Managed Investment business and Lockwood Advisors, Inc., managed global operations, and served as chief administrative officer overseeing a number of internal and operational functions. Dolly has served as chairperson of the Securities Industry and Financial Markets Association (SIFMA) Operations and Technology Steering Committee and has served on cross-industry committees with DTCC. In addition, she volunteers her time with the 30% Club mentoring aspiring professional women.
An announcement of Dolly’s successor as chief operating officer of Pershing is expected in the coming weeks.
CC-BY-SA-2.0, FlickrPhoto: Janus Capital. Bill Gross: “Don’t Go Near High Risk Markets, Stay Safe and Plain Vanilla”
The BoJ’s surprise move to take interest rates into negative territory this month helps Bill Gross continue its case against ultra-low interest rates policies. “How’s it workin’ for ya?” He writes in reference to central bankers.
The US Federal Reserve, the European Central Bank and the Bank of Japan, “they all seem to believe that there is an interest rate SO LOW that resultant financial market wealth will ultimately spill over into the real economy. I have long argued against that logic and won’t reiterate the negative aspects of low yields and financial repression in this Outlook. What I will commonsensically ask is ‘How successful have they been so far?’… The fact is that global markets and individual economies are increasingly ‘addled’ and distorted,” says the former Bond King at PIMCO and now part of Janus Capital Group.
In its February’s outlook, Gross lists the main distortions of recent monetary policy:
Venezuela – bankruptcy just around the corner due to low oil prices and policy mismanagement. Current oil prices are (in significant part) a function of low interest rate central bank policies over the past 7 years.
Puerto Rico – default underway due to overspending, the overpromising of retirement benefits, and the inability to earn adequate investment returns due to ultra-low global interest rates.
Brazil – in deep recession due to commodity prices, government scandal and in this case, exorbitantly high real interest rates to combat the effect of low global interest rates, and currency depreciation of the REAL. No country over time can issue debt at 6-7% real interest rates with negative growth. It is a death sentence. In the interim, the monetary authorities deceptively issue, then roll over more than a $100 billion of “currency swaps” instead of selling dollar reserves in an effort to hoodwink the world that there are $300 billion of reserves to back up their sinking credit. This maneuver effectively costs the government 2% of GDP per year, leading to the current 9% fiscal deficit.
Japan – 260% government debt/GDP and climbing sort of says it all, but there’s a twist. Since the fiscal (Abe) and the monetary (Kuroda) authorities are basically one and the same, in some future year the debt will likely be “forgiven” via conversion to 0% 50-year bonds that effectively never come due. Japan will not technically default but neither will private investors be incented to make a bet on the world’s largest aging demographic petri dish. I’m tempted to say that “Where Japan goes – so go we all”, but I won’t – it’s too depressing.
Euroland – “Whatever it takes”, “no limit”, what new catchphrases can Draghi come up with next time? It’s not that there’s a sufficient recession ahead, it’s just that the German yield curve is in negative territory all the way out to 7 years, and the shaky peripherals are not far behind. Who will invest in these markets once the ECB hits an effective negative limit that might be marked by the withdrawal of 0% yielding cash from the banking system?
China – Ah, the dragon’s mysteries are slowly surfacing. Total debt/GDP as high as 300%; under the table capital controls; the loss of $1 trillion in reserves to support an overvalued currency; a distorted economic model relying on empty airports, Potemkin village housing, and investment to GDP of 50%, which somehow never seems to transition to a consumer led future. Increasingly, increasingly addled.
U.S. – Well now, the U.S. is impervious to all this, is it not? An 85% internally generated growth model that relies on consumption which in turn, relies on job growth and higher wages, all of which seems to keep on keepin’ on. Somehow, though, even the Fed seems to have doubts, as in last week’s summary statement, where for the first time in 15 years they were unable to assess the “balance of risks”. “We need some time here to understand what is going on”, says Kaplan from the Dallas Fed. Shades of 2007. The household sector has delevered, but the corporate sector never did, and with Investment Grade and High Yield yields 200-1000 basis points higher now, what does that say about future rollover, corporate profits and solvency in many commodity-sensitive areas?
“Our finance-based global economy is transitioning due to the impotence of monetary policy which has always, and is now increasingly focused on the elixir of low/negative interest rates. Don’t go near any modern day Delos Romans; don’t go near high risk markets, stay safe and plain vanilla. It’s not predetermined or guaranteed, but a more prosperous outcome should be somewhere around the corner if you do.” He concludes.
