CC-BY-SA-2.0, FlickrPhoto: Gabriel Villena. Robeco Builds Presence in the UK
Robeco announces the opening of its new London office in the City of London. The office will focus on serving UK institutional investors, global distribution partners and global consultants.
As previously announced Mark Barry has been appointed Head of UK and Institutional Business for Robeco UK. Robeco’s Global Financial Institutions team, headed by Nick Shaw, and Global Consultant Relations team, headed by Peter Walsh, are also run out of the London office. They are currently supported by a team of 6 FTE and Robeco is planning to expand this to around 20 FTE within the next two years. Robeco has a long track record with the UK institutional market and currently has approximately GPB 5bn in assets under management (as at 30 September 2015) from UK client mandates.
As in many other regions across the globe, Robeco will provide its client base in the UK market with access to high level expertise, amongst others within the field of Sustainability and Quantitative Investing. Robeco has been integrating ESG criteria in its mainstream products for many years, and has been at the forefront of active ownership by engaging with companies in which we invest to improve their sustainability practices since 2005. Robeco is also a pioneer in the field of quantitative stock selection since the early ‘90s. In 1994 the first stock selection models were used in Robeco equity strategies. Following the success of these models in practice, Robeco launched a 100% quantitative equity product line in 2002. This expanded over the years, currently spanning a wide range of investment strategies, with different regional exposures and risk-return characteristic and has over the last years developed a number of innovative factor investing strategies.
Mark Barry said: “Robeco coming to the UK is about bringing a suite of capabilities and skill sets to help clients build more sustainable, long-term portfolios to achieve their objectives. There is definitely a space in the UK for Robeco’s ‘cautiously pioneering’ mentality of using long-term, highly innovative sustainable investment strategies. These have been built on the bedrock that founded Robeco in 1929 and still stands today: using research-based, tried and tested strategies to deliver long-term results.”
Hester Borrie, Head of Global Distribution & Marketing and a Member of the Management Board of Robeco Group, said: “Building on our track record with clients in the UK, we are ready to be going to the next stage. We are delighted that our commitment to the UK market is now set in stone, with the opening of our new London office and the appointment of Mark Barry as Head of our UK business. Mark is supported by a strong team within Robeco that has had a solid focus on London in recent years. London is a key hub for the institutional and wholesale investment business globally. With the opening of our new London office, Robeco is now well established in all of the world’s major financial centres.”
Northstar, a firm dedicated to provide financial solutions to meet the needs of non-US clients, announced the appointment of Alejandro Moreno in the role of Head of Distribution. Alejandro Moreno brings over 19 years of experience in global financial organizations. Alejandro has joined Northstar from Sun Life Financial International, where he was most recently Head of Global Relationships. At Sun Life, Alejandro managed the global key account and sales teams and the firm experienced significant growth across all territories under his stewardship. Prior to joining Sun Life in 2008, Alejandro spent 12 years at Putnam Investments where he held a variety of positions within the firms’ offshore business. Alejandro completed his undergraduate program at CENP in Madrid and is bilingual in English and Spanish.
Northstar’s CEO, Michael Staveley, commented: “We are delighted that Alejandro has joined us in the newly created role of head of distribution and we look forward to him playing a central role in the firms continued growth. Alejandro will be working closely with the other members of the executive team and directors as we seek to expand the firm’s global distribution network and enhance our product range. The Northstar platform has been in operation for 17 years and this key hire is a further demonstration of our longstanding commitment to the international business.”
Northstar was first established in 1998 as Nationwide Financial Services (Bermuda) Limited and renamed Northstar in 2005, the firm offers a range of attractive fixed-rate and variable investment plans to a global client base. The firm’s fixed-rate products offer competitive guaranteed interest rates coupled with the option of added principal protection. Northstar’s variable products offer investors access to a broad selection of funds from a range of leading asset managers, with unlimited free transfers between underlying investment options. Working with an extensive range of distribution partners such as banks and other financial institutions, Northstar has clients in over 100 countries.
According to the latest Investment Funds Industry Fact Sheet from the European Fund and Asset Management Association (EFAMA), which provides net sales of UCITS and non-UCITS, during September 2015, total net assets of the European investment fund industry decreased by 2.3% percent to stand at 12,109 billion euros.
With information from 27 associations representing more than 99 percent of total UCITS and AIF assets, the main developments that month can be summarized as follows:
UCITS net sales decreased to 1 billion euros, down from net inflows of 9 billion euros in August. The decrease can be attributed to net outflows from money market funds.
Long-term UCITS (UCITS excluding money market funds) experienced a rebound in net sales of 12 billion euros, compared to net outflows of EUR 3 billion in August.
Equity funds enjoyed a turnaround with net sales of EUR 3 billion, up from net outflows of EUR 3 billion in August.
Net outflows from bond funds amounted to EUR 1 billion, compared to net outflows of EUR 12 billion in August.
Net sales of multi-asset funds remained steady with inflows of EUR 8 billion in both August and September.
UCITS money market funds recorded net outflows of EUR 11 billion, compared to net inflows of EUR 12 billion in August. This reflected usual end-of-quarter redemptions.
Total AIF net sales saw net outflows of EUR 6 billion, down from inflows of EUR 6 billion in August.
Net assets of UCITS stood at EUR 7,815 billion at end September 2015, representing a decrease of 2.2% during the month, while net assets of AIF decreased by 2.5% to stand at EUR 4,294 billion at month end. Bernard Delbecque, Director for Economics and Research at EFAMA commented: “The rebound in net sales of long-term UCITS, even though modest, suggests that investor confidence began to strengthen again in September, after a few weeks of turbulence in the markets.”
New research from Cerulli Associates finds that two-thirds of marketing managers plan to add to their staff to support their digital transformation needs, focusing on content, data analytics, and technology-skilled individuals.
“When marketing managers are asked which trends are impacting their job, most respond with answers that are directly associated with digital transformation,” states Pamela DeBolt, associate director at Cerulli. “Acquiring more technologically-oriented personnel allows managers to enhance their ability to deliver content through budding digital channels, such as blogs, videos, or social media. Another opportunity for hiring comes in the form of more analytically-oriented candidates. More and more, marketing groups are performing their own segmentations, engaging in predictive analytics, and attempting to measure marketing return on investment (ROI).”
In its new report, Cerulli explores digital marketing and how firms are using these digital technologies to promote their brand, build preference, and increase sales through various sales marketing techniques.
“Digital is a positive game-changer for marketing groups, contributing to more targeted segmentation, expanded delivery mechanisms, and more opportunities to build firms’ brand,” DeBolt explains. “Firms have been able to use innovations in technology to improve the scale and efficiency of digital marketing, and to get a better handle on the idea and implementation of big data for business intelligence/predictive analytics. To take advantages of these opportunities for growth, marketers must recognize the importance of adding skilled employees to better shape their organization to navigate the challenges they will face.”
“The recent resurgence of product lines-in terms of both size and complexity-has led to a new demand for marketing professionals,” DeBolt continues. “The acceptance and embracing of technology into the marketing process has added a new flavor to marketing organizations. More quantitatively-focused candidates have become highly desirable, as marketing heads look to fill positions surrounding analytics and measuring ROI.”
Foto de Simon Cunningham. ¿Será que la volatilidad impulsa la gestión activa?
During the last six years, US equities experienced a nearly uninterrupted rally. An unusually accommodative monetary policy environment coupled with economic and earnings growth helped fueled the U.S. stock market—things, however, are starting to change.
The Federal Reserve (Fed) is signaling its intention to normalize monetary policy, which could happen as early as this month. At the same time, earnings growth outside of energy is modest and valuations are on the expensive side of fair value. It is therefore likely that investors going forward will not only have to adjust to more modest returns from U.S. stocks, but they may also have to brace for heightened volatility at a time when U.S. fixed income will continue to yield low level of returns.
In order to maintain the same level of returns, investors will have to change their strategies. One way to do so in the equity market would be to look for beta by pursuing cheaper markets (sectors, factors, geographies) with fundamental tailwinds, as well as strategies that have long-term structural support. For example, exposure in Europe or Japan—other developed countries with improving economic activity, accommodative monetary policy, cheaper currencies and strong profit growth.
Another strategy would be to combine active and passive management. While passive management has outperformed active management in the last years, this was done at a time during which the stock market was moving higher and was immersed in a low volatility environment, where generating alpha proves to be more difficult. Nowadays, investors can potentially benefit more from security and risk selection, be it via actively-managed exchange traded funds (ETFs), multi-asset managers, long/short managers or traditional active equity managers. However they must keep in mind two essential issues with active management: • Finding a top-tier investment manager who will benefit from this shift in the investment environment is not certain, and • Alpha generation is basically a zero-sum game over time. In aggregate, investors compete to generate alpha, creating winners and losers.
Although the dataset is admittedly small, historical data shows that in US large caps, periods when alpha generation improves happen to coincide with periods of stress in financial markets. So, while alpha generation may be thought of as sourcing opportunities to generate a higher return, it may equally be thought of as being underweight risks during times of heightened financial and economic stress. Thus, it might be safer to have a more thoughtful approach to combining alpha and beta strategies going forward.
In regards to the fixed income sphere, (where given the low level of interest rates it doesn’t take much of a reversal in interest rates to wipe out a year’s worth of coupon income), in order to boost returns and generate sufficient income, investors may feel compelled to migrate to ever riskier credits, extend maturity/duration, or allocate to less liquid securities. However, like with equities, there is an option other than pure market beta. Instead of taking more risk, investors could consider how they build alpha generation tools into their fixed income portfolio. One way to do so would be employing global multi-asset income solutions as a way to limit volatility while also pursuing objectives like income and total return. Tools such as unconstrained bond funds, global long/short credit or credit ETFs can be a good way of diversifying your fixed income sources.
With the world ‘normalizing’ comes the worry of higher volatility. Yet, it also presents an opportunity for alpha generation that has somewhat evaded markets in recent years. Investors can take advantage of that through picking the right active fund manager, through flexible multi-asset portfolios while also employing beta strategies to boost returns through tactical sector, geography and factor tilts.
This material is for educational purposes only and does not constitute investment advice nor an offer or solicitation to sell or a solicitation of an offer to buy any shares of any Fund (nor shall any such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. If any funds are mentioned or inferred to in this material, it is possible that some or all of the funds have not been registered with the securities regulator in any Latin American and Iberian country and thus might not be publicly offered within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein.
According to Thomson Reuters Lipper‘s latest Launches, Mergers, and Liquidations report, as of the end of the third quarter 2015 there were 31,982 mutual funds registered for sale in Europe. Luxembourg, hosting 9,136 funds, continued to dominate the fund market in Europe, followed by France, where 4,631 funds were domiciled.
Amongst European Funds, equity ones ontinue to dominate the scene with 37% of the funds available for sale, followed by mixed-asset funds at 27%. Bond funds stood at 21%, while money market funds represented 4% of the market. The remaining 11% of “other” funds were real estate funds, commodity funds, guaranteed funds, and funds of hedge funds.
As Detlef Glow, Lipper’s Head of EMEA Research, and Christoph Karg, Content Specialist Germany & Austria, state, during Q3, 646 funds (322 liquidations and 324 mergers) being withdrawn from the market and only 453 new products being launched, the European fund universe shrank by 193 products. The specialists note that “Since the European fund industry is enjoying high net inflows for 2015, it is surprising the industry is still cautious with regard to fund launches.” Adding that “there is still a lot of pressure on asset managers with regard to profitability, which is also driving the cleanup of the product ranges,” and so “the consolidation of the European fund industry might continue over the foreseeable future.”
You can read the full report in the following link.
The latest research from global analytics firm Cerulli Associates found that assets overseen by different types of institutional investors in the U.S. rose about 6% in 2014, compared to 9.8% in the previous year.
“Institutional assets experienced more modest growth than the strong equity markets of last year,” said Chris Mason, research analyst at Cerulli. “This modest overall growth masked substantial growth among several institutional channels, representing continued addressable market opportunities for institutional asset managers.”
One area of significant growth was in the growing demand by institutional investors for more customized investment solutions. “Custom solutions assets have more than doubled since 2010 from about $500 billion to more than $1 trillion last year,” stated Mason. “Cerulli’s projections show increasing demand for custom solutions in the next five years from corporate pension plans, public plans, and non-profits.
Cerulli’s research also finds that asset managers and investment consultants are moving rapidly to address the demand for sustainable investments by U.S. institutional investors. “Asset managers and investment consultants that focus on environmental, social, and governance (ESG) factors will benefit from increased demand as different stakeholders place more pressure on investment committees to consider such factors in their investment decision-making process,” explained Mason.
According to a proprietary survey done in partnership with The Forum for Sustainable and Responsible Investment (US SIF), 64% of responding asset managers indicated that they believe it will be “very important” for managers to offer ESG capabilities in the next 2 to 3 years in order to compete in the marketplace.
Foto: Gideon Tsang
. El número de advisors creció en 2014 en Estados Unidos
The industry’s total U.S. advisor headcount increased for the first time in nine years – by 1.1%-, according to the research “Advisor Metrics 2015: Anticipating the Advisor Landscapein 2020”, by Cerulli Associates.
“Many positive developments led to the headcount growth last year,” states Kenton Shirk, associate director at the firm. “From the advisor perspective, there is a heavier focus on teaming and onboarding rookie advisors into multi-advisor practices. Advisors are eager to hire junior advisors so they can refocus their own efforts on their largest and most ideal clients. There is also greater awareness and concern about succession preparedness.”
“While all of this recent growth has provided some positive momentum, the industry is still not in the clear,” Shirk explains. Although there was an uptick in the number of advisors in 2014, the projection is that the industry’s headcount will begin declining again in 2019 as advisor retirements increase.
“In 2020, we believe that modest headcount gains will be trumped by a sizable uptick in advisor retirements,” Shirk continues. “The industry’s headcount will begin to decline once again at an even more pronounced rate than in the recent years.”
To minimize the decrease in headcount, Cerulli recommends the industry begins laying a solid foundation to recruit and groom new advisors in the upcoming years.
CC-BY-SA-2.0, FlickrPhoto: Naroh. Dentons Combines With Luxembourg's OPF Partners
Global law firm Dentons today announced that it will further its leading presence in the world’s top financial centers with a combination between Dentons Europe LLP and Luxembourg’s OPF Partners. OPF Partners’ is a leading Luxembourg firm, rated by Chambers and The Legal 500 for banking and finance, corporate, investment funds, tax, real estate and dispute resolution. The firm’s 34 lawyers, including nine partners, will join Dentons Europe LLP on January 1st, 2016.
In 2015, Dentons has entered or expanded in six of the world’s leading financial centers, and this combination means that the Firm now has a presence in the following cities out of the 25 top financial centers in the world: London, New York, Hong Kong, Singapore, Seoul, Toronto, San Francisco, Washington, DC, Chicago, Boston, Frankfurt, Sydney, Dubai, Montreal, Vancouver, Shanghai, Doha and Shenzhen.
“In our 10th transformative initiative in 2015, Dentons has done more for its clients this year than any global firm,” said Dentons Global Chairman, Joe Andrew. “By listening to our clients and planning our strategy around their business goals, we are creating the law firm of the future—one that anticipates client needs and delivers the specific practice expertise and business experience required, in communities around the world.”
Global Chief Executive Officer Elliott Portnoy added, “OPF Partners is recognized as one of Luxembourg’s leading firms and its lawyers will be able to offer our clients elite counsel in this important European market, consistent with our polycentric approach of offering the best legal talent in communities around the world. We are very pleased to welcome this high quality team to the Firm.”
Evan Lazar, Chairman of the Europe Board said, “Luxembourg plays a key role in the global and European investment fund and private equity sector, which is one of our core areas of focus and strategy. We are delighted to welcome our new colleagues from OPF Partners, with whom we have been working jointly for clients over recent years, and who share our commitment to excellence and building a leading pan-European practice.”
“We have already achieved a lot this year with our Milan launch, the hire of a substantial team in Hungary and the significant growth of our German practice with nine new partner appointments,” said Chief Executive Officer for Europe Tomasz Dąbrowski. “This transaction implements another top priority under our strategic plan for Europe which we will continue to focus on in 2016 and the coming years.”
Frédéric Feyten, Managing Partner of OPF Partners, commented, “We have always been committed to innovatively supporting local and international clients on the full spectrum of their Luxembourg projects. This combination will strengthen our capabilities in delivering pinpointed legal advice on a global scale. Luxembourg has achieved its status as a leading financial center, the largest European investment fund center, and a major private equity hub through its excellent services, international open-mindedness and stability. In this context, our teams are well positioned to solve the most challenging global client demands.”
The news builds on Dentons’ recent growth in Europe with the launch of a Milan office last month; the hire of 50 lawyers in Budapest earlier this year; and significant lateral partner hires in Germany, Russia and France. It also follows transformative combinations in China and the United States; the recent announcement of combinations with Australia’s Gadens and Singapore’s Rodyk; the Firm’s February establishment of its Johannesburg office in Africa, where it is the first global law firm to achieve Level 1 Broad-Based Black Economic Empowerment status; and the creation of its innovation platform, NextLaw Labs, which is focused on developing, deploying, and investing in new technologies and processes to transform the practice of law around the world.
Foto de Chris Ford. Crear un perfil de objetivos reales para los inversores es más importante que buscar un rendimiento numérico
When it comes to building investment portfolios, managers must look for durable, risk focused portfolios that allow investors to navigate short term volatility in the markets.
According to John Hailer, President and Executive Director, Natixis Global Asset Management, it is imperative to “remove emotions from investing.” In his opinion, creating a real goal profile for investors is more important than looking for quantitative returns, also, considering the current expectations and the fact that “volatility will linger for a while, traditional portfolios will not be enough to achieve the expected return.” Instead, a combination of strategies including active management and liquid alternatives must be used.
Of course, when opting for an active strategy, according to David Lafferty, Chief Market Strategist, Natixis Global AM, such strategy should be “very active and not just half-ways”, since if the only active feature is in the name, it will be very diffícult to exceed the net return. With regards to the Mexican market, where the operation of the firm according to Mauricio Giordano, CEO, Natixis Global AM Mexico, is a long term commitment, including, “a wide offer of solutions with a high level of specialization in each of its affiliate managers”, Lafferty recalled that when the Mexican bonds offer an average 3.5% in return, Mexican investors are expecting returns of 10% in their portfolios, hence there is an important difference in the perception of the market.
However, he feels optimistic about the prospects for Mexico since its current circumstances are not linked to the situation in China, and the fact that the peso has lost more than other currencies vs. a strong dollar, means that “Mexico is better positioned than most emerging economies to offer returns denominated in dollars,” which makes it an “attractive destination for the international capital.”
With regards to the rate hike from the Federal Reserve, Lafferty explained this should not be of concern, as any process of normalization will happen gradually and it is an evidence that the economy is improving, which is positive for the market perspectives. While the volatility is here to stay, keeping a long term, well diversified profile will help navigate the current environment.
