CC-BY-SA-2.0, FlickrFoto: Oliver Schnücker. Reacciones exageradas del mercado: el enfoque ‘Episode’ de M&G para encontrar oportunidades
Amundi ETF announces the launch of the first ETF in Europe leveraging the theme of European share buybacks, by tracking the MSCI Europe Equal Weighted Buyback Yield strategy index. The launch represents another innovative expansion of Amundi ETF’s European equity Smart Beta range.
The ETF is designed for investors seeking to capture yield from the European equity market via a return-oriented Smart Beta approach, by providing exposure to companies performing share buybacks, a method of distributing income to shareholders which is likely to grow in Europe.
Share buyback programs allow cash-rich companies to repurchase their own stocks. Already widely used in the US, they should become more popular for European companies as they represent a more efficient use of cash in a low rate environment and give companies more flexibility than dividend programs. Moreover, buyback programs are compelling for investors as they can provide higher returns in a low rate environment.
The MSCI Europe Equal Weighted Buyback Yield strategy index reflects the performance of MSCI Europe securities that have performed buybacks in the previous 12 months . Moreover, this strategy index applies an equal weight methodology, thus increasing diversification and providing a purer exposure to the share buyback theme with a reduced bias.
Amundi ETF is launching this new product in response to client demand, following the launch of its US buyback ETF earlier this year, which prompted interest in a European version based on the same theme. The ETF has a TER of 0,30% and will be made available in Paris and subsequently the major European exchanges.
Valerie Baudson, CEO at Amundi ETF, Indexing and Smart Beta, said: “This innovative ETF adds to our broad mono and multi Smart Beta range and reinforces the positioning of Amundi as a leading innovative player in the European ETF market.”
Private banks and trust companies’ assets are projected to reach $5.3 trillion by year-end 2019, according to the latest research from Cerulli Associates “Asset Management Opportunities in Banks 2015: Capitalizing on a Resurgent Focus on Wealth Management”.
“With growing competition, most banks can no longer consider asset allocation their core differentiator,” states Donnie Ethier, associate director at Cerulli. “Delivering comprehensive goals-based planning that includes the softer nonfinancial elements of wealth is more important than ever.”
The research focuses on investors, asset managers, and banks. Particular attention is given to best-practice banks that have centralized the investment decision-making process across all of their wealth management platforms, including broker/dealer, trust department, RIA, and family office.
“Banks have unique characteristics that most other channels cannot fully replicate,” Ethier continues. “Such as the ability to be an all-in-one provider for any household. Banks that are not promoting their full offering are doing their firm and their clients a disservice.”
“The channel’s most promising trends include: client-centric advisory models, integrating wealth management platforms, consolidating research teams and portfolio construction processes, and centralizing fee discounting decisions,” Ethier explains.
The work finds that asset allocation is no longer a main distinguisher, which is only being validated more by the increase in direct-to-consumer providers and the electronic registered advisors (eRIAs)/robo-advisors. Delivering holistic goals-based planning that can incorporate the softer nonfinancial aspects of wealth is more important than ever for banks to differentiate themselves from the low-cost investments provided by the eRIAs.
Asoka Wöhrmann es el Chief Investment Officer de Deutsche Asset & Wealth Management hasta que asuma sus nuevos roles el próximo 1 de diciembre.. El CIO de Deutsche AWM Asoka Wöhrmann y Stefan Bender, nuevos responsables de Banca Comercial y Privada en Deutsche Bank
As part of the realignment of retail and commercial banking operations in Germany, Asoka Wöhrmann (50) and Stefan Bender (46) will be the new heads of Deutsche Bank’s Private and Commercial Banking in Germany. They have been appointed to succeed Peter Schedl and Wilhelm von Haller, who resigned from their offices effective September 30, 2015. Stefan Bender will assume his new role over the course of October, and Asoka Wöhrmann as of December 1, 2015.
In their new functions, Wöhrmann and Bender will take on responsibility for Deutsche Bank’s more than eight million private, commercial and corporate clients in Germany.
Within the Private and Commercial Banking management team, Asoka Wöhrmann will be head of retail banking and Stefan Bender will be head of commercial banking. They will both report to Christian Sewing, member of the Management Board of Deutsche Bank and Head of its Private & Business Clients (PBC) Corporate Division.
Regarding the new appointments, Christian Sewing said: “In Asoka Wöhrmann and Stefan Bender, we have gained two renowned and successful managers from within our own Bank for the realignment of our domestic Private and Commercial Banking business. This realignment will involve significantly strengthening our advisory banking business with private clients, further expanding our business with small and medium-sized enterprises, Germany’s ‘Mittelstand’, and closely networking our branches with our rapidly growing digital banking service.”
Both of them have worked for Deutsche Bank for many years: Wöhrmann joined Deutsche Bank in 1998 and has most recently been Chief Investment Officer in Deutsche Asset & Wealth Management.
Stefan Bender has been with Deutsche Bank since 1997. Until he takes up his new functions, Bender is Head of Global Transaction Banking in Germany (GTB, Trade Finance and Payments) and Co- Head of Corporate Finance in Germany. In his new role, Bender will remain head of Global Transaction Banking in Germany and will continue building on GTB’s strong ties with commercial banking.
Photo: Mark Mobius, Guru of emerging market equities at Franklin Templeton. Star Manager: Hero or Villain?
Each asset management firm has a star portfolio manager or at least a manager who’s held as the role model. This is typically a PM with years of experience, a track record to die for, and a renowned reputation within the industry. If at Franklin Templeton we have Mark Mobius and Michael Hasenstab, or at Matthews Asia Andy Rothman, we must not forget Russ Koesterich when speaking of BlackRock, or Greg Saichin of Allianz GI.
They lead teams with good results and are in major mutual fund firms. For years, their management attracts clients, and therefore increase the flow of capital. The problem comes when they want to start new projects, change companies, or retire without further ado.
What for years was a sweet dream for any company suddenly becomes its nightmare overnight. The most recent example is Bill Gross, who after years as a star manager at PIMCO, a company which he helped to establish, he decided on a change of scenery and joined Janus Capital.
The Allianz subsidiary then experienced capital outflows amounting to $176 billion worldwide in 2014, i.e. 26% of the assets it managed in 2013. The losses of the PIMCO Total Return, Gross strategy, amounted to over $96 billion dollars in just five months. A genuine catastrophe.
Something similar happened in Spain with Francisco Garcia Paramés’ departure from Acciona Group’s Bestinver, after 25 years of service to the company. Known as “Europe’s Warren Buffett”, he achieved a placing for the company’s funds at the top of the rankings within their class. When he decided to start a new project, however, the outflow of funds began. Assets under management fell by about 30%, especially with the exit of institutional clients.
The capital outflow requires companies to react quickly in searching for the most suitable replacement, but, even so, prefer to choose other managers with similar reputation. The damage to the company is twofold. Not only do they leave, they also do so to join the competition.
Recently, Morningstar left the door open to hope by giving an example of an orderly transition with low impact for the company when placing Jupiter UK Growth in the hands of Steve Davies, who replaced Ian McVeigh after his departure. Among the lessons to be learnt from this is that the longer the star manager and the manager who shall replace him work together, the less impact on the firm.
Maria Elena Lagomasino, CEO y MP de WE Family Offices, es ahora consejera independiente de The Walt Disney Company. Foto: We Family Offices. Maria Elena Lagomasino: elegida consejera independiente de The Walt Disney Company
The Walt Disney Company Board of Directors has elected Maria Elena Lagomasino, the CEO and Managing Partner of financial advisory firm WE Family Offices,as an independent director, effective Dec. 1.
“Ms. Lagomasino is a respected leader in the finance and investment field and also has a wealth of experience with, and keen understanding of, global consumer brands,” said Robert A. Iger, Disney’s chairman and chief executive officer. “I know the Company and its shareholders will benefit greatly from her Board service.”
“Disney is a brand that embodies the values I believe in, with its unwavering commitment to creating high-quality entertainment, exceeding consumer expectations, and delivering outstanding financial performance for its shareholders,” Ms. Lagomasino said. “I am honored to have the opportunity to serve on the Board of such an iconic and beloved company.”
Ms. Lagomasino will stand for election along with the company’s other directors at Disney’s annual meeting next March.
Before founding WE Family Offices, Ms. Lagomasino served as CEO of GenSpring Family Offices, a leading wealth management firm. Prior to that she served as chairman and chief executive officer of JP Morgan Private Bank. Her career began in 1977 at Citibank. She joined Chase Manhattan Private Bank in 1983 and was named head of Chase’s worldwide private banking business in 1997. Following the Chase-JP Morgan merger, she became chairman and CEO of JP Morgan Private Bank.
Ms. Lagomasino is a founder of the Institute for the Fiduciary Standard, and serves on the boards of The Coca-Cola Company, Avon Products, Inc., and the Americas Society. She is also a member of the Council on Foreign Relations.
In August 2015, Private AssetManagement named Ms. Lagomasino one of the 50 most influential women in Wealth Management. American Banker named her one of 2012’s Top 25 Women in Finance. Hispanic Business Magazine namedher “Woman of the Year” in 2007.
Ms. Lagomasino earned her B.A. at Manhattanville College, an M.S. at Columbia University and an M.B.A. at Fordham University.
BNP Paribas Investment Partners (BNPP IP) has announced a series of new appointments within its Institutional business line, headed by David Kiddie, in order to enhance investment expertise, research and thought leadership capabilities.
Guy Williams has been appointed Chief Investment Officer for BNPP IP’s Institutional business. Guy will be responsible for promoting collaboration across investment teams, and developing investment strategy and market views. Formerly Chief Investment Officer of BNPP IP’s global fixed income affiliate Fischer, Francis, Trees & Watts (‘FFTW’), Guy successfully developed BNPP IP’s global fixed income platform across a range of strategies, and with three decades of experience he is ideally suited to this new role.
Joining Guy’s team are Senior Investment Strategist Daniel Morris and Senior Economist Richard Barwell. In their newly-created roles, Daniel and Richard will promote collaboration between investment teams and formulate alpha-generating investment views across all asset classes.
Morris’ wide-ranging experience encompasses advising clients and providing investment recommendations, as well as offering a strategic perspective to senior management and portfolio managers. He is a frequent commentator in print and broadcast media.
Barwell’s background is as a monetary economist within investment banking and central banking, covering both the UK and Eurozone economies. His thought-provoking insights combine academic rigour, strong analytical skills and deep knowledge with an innovative approach to macroeconomic issues, and his work has been published widely.
Replacing Guy as Chief Investment Officer and Head of Institutional Fixed Income is Dominick DeAlto, who will be instrumental in further strengthening BNPP IP’s fixed income platform, which currently has over 75 investment professionals and manages 40 investment strategies ranging from traditional to alternative fixed income, as well as driving its investment and commercial success. Dominick, who prior to this appointment was Head of Global Multi-Sector and Sector Rotation, has considerable experience managing a range of strategies, making him well placed for today’s changing fixed income environment, which lends itself to the development of contemporary investment strategies in order to address the requirements of clients.
Dominick has also made two changes to his team, with Timothy Johnson being appointed Head of Total Return Multi-Sector, which is a combination of the Global Multi-Sector and Global Sovereign teams, and Dan Singleman joining as Senior Portfolio Manager in the Sector Rotation Alpha team.
Timothy joined FFTW in early 2013 and has over two decades of experience, gained within both asset management and central banking. The Total Return Multi-Sector includes global aggregate, global unconstrained and global sovereign portfolios.
Dan has spent most of his career within BNPP IP. For eight years he was a credit analyst and then portfolio manager, before leaving last year to take up a broader asset allocation role and now re-joining BNPP IP to pursue a similar opportunity.
David Kiddie, Head of Institutional business at BNP Paribas Investment Partners, comments:
“I am very pleased to welcome such seasoned professionals. These appointments are designed to further strengthen our investment culture, as well as to enhance our research and investment capability. The strength of our investment culture is one of the key drivers of our future success and these appointments are a further step towards developing an environment in which our business can flourish, helping us to achieve our goal of offering our clients a world class investment proposition.”
In order to gain from a major technological and social shift that is still under-exploited by investors despite its strong value creation credentials, Edmond de Rothschild Asset Management, a pioneer in investment themes like healthcare – EdR Fund Global Healthcare has just celebrated its 30th birthday- is launching Edmond de Rothschild Fund Global Data.
The fund takes a stock-picking approach across all capitalization sizes and geographical zones, investing in growth stocks which have only limited exposure to global economic conditions.
Jacques-Aurélien Marcireau, the fund manager, has isolated several different but complementary stock profiles. Some companies (infrastructure) collect data and sell them to clients; others (analytics) develop software which analyses data while the third category concerns data users, or non-tech companies which have already integrated big data into their main business so as to achieve competitive edge.
The fund is a balanced blend of core holdings (51% minimum) in established big data players and companies which are capable of using big data to transform their business model. To mark the launch of EdR Fund Global Data, the international equity team has just been reinforced with the arrival of Nan Zhang, a junior fund manager and analyst.
A New Value-Creating Investment Opportunity
The arrival of big data is ushering in major social changes and forcing companies to adapt their strategy. The concept emerged at the beginning of the decade and covers two key areas: technological innovation to facilitate data storage but also, and perhaps more importantly, new developments tied to the rapid increase in connected objects which are bringing billions of people together.Huge sections of the economy are concerned by a development which seeks to turn data into a key decision-making tool, thereby creating value for companies.
Harnessing exponential flows of data (Volume) from different sources (Variety) which are most often cross-referenced in real time (Velocity) allows companies to better understand their markets, boost organisational efficiency and generate robust revenues. The financial gains from such large-scale analysis based on the 3V concept could run into billions of US dollars in coming years.Economic players will benefit from as yet largely untapped growth from digital data reckoned to hit 35,000 exabytes in 2020, or twenty times more than in 2010. According to the International Data Corporation (IDC), only 0.5 % of global data is currently being analysed.
Giants like IBM, Cisco and Microsoft as well as start-ups have big ambitions in data analysis which they see as a value-creating tool.A good number of sectors like insurance or autos are making huge efforts to collect as much data on customer behaviour as possible to optimise risk analysis and identify new markets. Growing use of big data should also radically transform the healthcare sector with the emergence of personalised medicine. Companies, governments and entire cities will see real benefits from this development. Estimates suggest that the smart city market, for example, will be worth USD 100 bn by 2030.
CC-BY-SA-2.0, FlickrPhoto: 一元 马 . Aberdeen Granted WFOE Licence, Signals Long-Term Ambition in China
China has granted Aberdeen Asset Management, the UK-based asset manager, a Wholly Foreign-Owned Enterprise (WFOE) business licence.
The announcement comes as UK Chancellor of the Exchequer, George Osborne, leads a trade delegation to China.
The licence, issued to a newly-created Aberdeen subsidiary by the Shanghai Administration for Industry & Commerce, Pilot Free Trade Zone Branch, will enable the company to set up an office there under the pilot Free Trade Zone.
Aberdeen has long wanted to expand its activities in China. The chief constraints have been access, control and manpower. The company has taken a gradual approach, having opened a representative office in 2007. That office has mainly performed liaison work.
Under the new venture, the plan is to add analysts to research local equities and business development staff. At present, Aberdeen does such research mainly from Hong Kong, preferring to do this in-house, and this will continue.
In the first stage asset-raising will focus on local institutions. The WFOE is based in the Free Trade Zone which brings further advantages.
Aberdeen stresses the importance of patience, however. It is not seeking quick returns but looking to build its presence step by step, mindful that, while liberalisation is good for the industry, opportunities are evolving fast.
That view is informed by the raft of new investment initiatives, which have included the likes of ‘Stock Connect’, the Hong Kong-China mutual recognition scheme for funds as well as the WFOE regime itself.
Catalonia is voting to renew its parliament this Sunday. Contrary to other regions, attention was not focused on emerging parties like Podemos and Ciudadanos but completely monopolized by the independence question. Debates have mostly opposed the pro-independence list “Together for Yes”, led by current President Artur Mas, to the rest of parties that defend the unity of Spain. “We expect the current uncertainty to ease in the medium term, in particular after the general elections of December, since the next central government should take note of the Catalan elections and start negotiations for additional political and fiscal autonomy”, explains Jean-Alexandre Vaglio, member of the Research team at AXA IM.
The Catalan political landscape is facing an almost unprecedented situation. The ruling Convergence and Union (CiU), that federated the Democratic Convergence of Catalonia (CDC) and the Democratic Union of Catalonia (UDC) since the first post-Franco elections, was dissolved due to diverging opinions regarding the Catalan independence process. Artur Mas, President of Catalonia and leader of the CDC, is now running the pro-independence joint list “Junts pel Si” (JS, Together for Yes) that gathers the centrist CDC and the Republican Left of Catalonia (ERC). In addition to this move, Mas directly called for a plebiscitary vote to turn this regional election into the referendum he wanted last year and that he had rebranded in a “participation process”, to abide by the Spanish Constitution.
As yet, polls suggest that JS will not be able to get the absolute majority, even though it is leading polls and that the Catalan system favours more than proportionally the party that ends up with the most votes. The Popular Unity Candidacy (CUP), an emerging extreme-left party, chose not to ally with JS but might support it just for the sake of the unilateral independence declaration, such that latest polls found JS-CUP might get a short absolute majority (set at 68 seats). Parties opposed to independence, Popular’s Party (PP), Spanish Socialist Workers’ Party (PSOE) and Ciudadanos gather roughly the same votes than three years ago, though the breakdown is different, to the advantage of Ciudadanos and mostly at the expense of PSOE. Lastly, Podemos joined ecologists to form Catalunya Si que es Pot (“Catalonia Yes we can”), with a moderate stance as regards independence, not supporting it but letting voters decide through a referendum. However, to the contrary of what happened in Barcelona, Podemos does not seem to get much traction, since this joint list currently polls at 13-14%, while its allies already got 10% in the 2012 elections.
“Overall, such reshuffle of parties casts some shadow on the final output of these elections which look like a very close call, in a very fragmented context.
As for last year’s “participation process”, debates have experienced a significant escalation, with strong stances adopted by opposing parties in the run-up to elections. Hence, if the situation is to remain volatile in the short term, it may ease and stabilize in the medium term once negotiations are engaged with the central government, probably about additional political and fiscal autonomy. The stability of the forthcoming government will also be questioned as electoral themes outside independence were neglected while they can differ very significantly between the parties that have similar positions on independence, in particular for JS and CUP, which would find very difficult to coordinate and rule Catalonia together”.
Old Mutual Global Investors announced that the Old Mutual Absolute Return Government Bond Fund, which is a UCITs fund, and the Old Mutual Liquid Macro Fund, which is a Qualifying Investor Alternative Investment Fund (QIAIF), will be launched on 7 October 2015, with US$ 150 million of seed capital from Old Mutual plc.
The funds will be managed by Russ Oxley and his team, who joined Old Mutual Global Investors from Ignis Asset Management earlier this year. Russ Oxley, the lead manager, and co-managers Adam Purzitsky and Paul Shanta, will be supported in their portfolio management and trading by Huw Davies and Jin Wong, and in systems development by Josh Heming.
“This is a very exciting development for our company as a lot of work has been undertaken to prepare for the launch of this range. We have had a lot of interest from investors as Russ and his team are highly respected, having one of the best track records of managing absolute return government bond funds in our industry. We are therefore confident that demand will be strong from our global client base”, said Warren Tonkinson, managing director of Old Mutual Global Inverstors.
The objective of the funds is to seek to deliver positive total returns on a rolling 12-month basis with stable levels of volatility uncorrelated to bond and equity market conditions. The Old Mutual Absolute Return Government Bond Fund will be managed to a volatility target of 4%-6%, with expected annualized returns of cash plus 5%. The Old Mutual Liquid Macro Fund, which will also offer investors daily liquidity, will be managed to a volatility target of 7%-9%, with expected annualized returns of cash plus 8%. The funds aim to be diversified from global fixed income markets by employing a highly distinctive investment strategy focused on expressing views on macro themes through exposure to forward interest rates, inflation expectations and foreign exchange.
The low correlation with global bond markets is likely to be appealing at a time when the traditional safe-haven role of government bond markets is increasingly questionable. Due to the distinctive process and avoidance of credit and credit-like assets, and of emerging market debt the Fund is also expected to exhibit low correlation with other absolute return investment strategies (including global macro hedge funds, fixed income, equity and multi-asset based strategies), making it a potentially attractive addition to a portfolio. The portfolio managers will place a strong emphasis on investing in highly liquid assets, in which the market has historically remained liquid, even in the most extreme periods, including for example the global financial crisis.
“We are delighted that Old Mutual will be supporting the strategy with US$ 150 million of seed capital at launch. This demonstrates the belief we have in the strategy and our commitment, to both these Funds, and to the development of the Alternatives business within Old Mutual Global Investors. We have successfully delivered uncorrelated returns in our highly liquid Global Equity Market Neutral strategy, which now has over US$ 4.5 billion in client assets under management, and we hope for similar investor support for this highly liquid, uncorrelated, strategy”, commented Donald Pepper, managing director of Alternatives.
“Our investment philosophy hinges on the belief that, through a detailed understanding of forward interest rates, it is possible to express views on global macro trends in a very precise way. Through our approach to investing, we are able to target specific risks and opportunities, without “inadvertently” taking economic exposures to those risks we would rather avoid. At the core of our approach is the understanding that forward rates are influenced by very different factors depending on their location on the curve. We believe we have the potential to deliver positive returns for investors within clearly defined volatility parameters irrespective of the direction of interest rates. Our investment track record of successfully managing these strategies is clear evidence that our process if very effective”, commented Adam Purzitsky, co-manager of the fund.
Paul Shanta, co-manager of the fund, also added: “We have developed a unique investment strategy over a period of many years and a product that we think plays a valuable role in our clients’ wider portfolio. Joining Old Mutual Global Investors has given us the opportunity to further enhance our processes and technology and to prepare a bespoke platform for the launch of our new funds. We are excited about being part of an organization that shares our ambition and now look forward to working with investors.”
