Photo: adjusted Fotorus / Flickr Creative Commons image
. Rafael Tovar Joins Axa IM as US Offshore Distribution Director
Rafael Tovar has joined Axa Investment Management in order to develop the offshore business for the Americas, and will be working in James Wallace’s team.
Rafael will be based at the AXA Investment Management US headquarters, located in Greenwich, Connecticut.
Until a month ago, Tovar worked at Nikko AM, the Japanese management company, where he worked within the Sales and Marketing team based in New York, serving institutional clients and family offices throughout the Americas region.
Prior to that, he formed part of the team at Compass Group, where he was responsible for business development for institutional clients in Brazil, Miami, and New York, providing coverage to private banks, family offices, wholesalers, broker dealers, and pension funds. He had previously worked for renowned firms such as Goldman Sachs and Accenture.
He holds a Bachelor of Engineering Degree from the Simon Bolivar University in Venezuela, has an MBA in Finance, and an MA in International Studies from the University of Pennsylvania – The Wharton School.
As part of the process of internationalization of their asset management company, AXA Investment Managers, recently appointed Leticia Aymerich as Head of Customer Service for the region of the Americas, serving markets in the United States, Canada, and Latin America. Leticia has joined the management company’s headquarters in the United States from Spain, where she worked for Axa IM since 2006.
JP Morgan Asset Management has appointed Alex Stanic as a Portfolio Manager. Alex is based in London and joins the Global Equities Team, led by Howard Williams.
Alex has 20 years experience in the asset management industry, specialising in global equities. He spent over a decade at Newton, leading the global team, and the last six years at River & Mercantile as Head of Global Equities. Alex’s experience and track record in managing global portfolios will further strengthen an already strong team. He will work closely alongside the team managing JP Morgan Asset Management’s range of Growth equity strategies.
Commenting on the appointment, Alex Stanic said “I am thrilled to be joining JP Morgan Asset Management and to be working alongside a well-established, experienced team of portfolio managers as we look to expand the suite of global equity strategies.”
Photo: Arek Olek. Navigating The Storm: In Risk Budgeting and Alpha We Trust
The Lyxor Hedge Fund Index was down -2.7% in August. 1 out of 12 Lyxor Indices ended the month in positive territory. The Lyxor Convertible Arbitrage Index (+3.3%), the Lyxor L/S Equity Variable Bias Index (-0.7%), and the Lyxor L/S Equity Market Neutral Index (-1.1%) were the best performers.
The deflation and growth scares, which built up over the summer, accelerated following the CNY devaluation. They morphed into a vicious cycle in the last week of August. With volatility reaching 55 and equities plunging by the hour, Monday 24 will from now on count among the major stress episodes used as reference. The bulk of the Lyxor Hedge Fund index was endured during that week. Event Driven funds were the main losers. Return dispersion was elevated. Losses in some heavy-weight funds hid decent performances among macro traders (CTAs and Global Macro). A milder pressure on credit and govies supported credit and fixed income arbitrage strategies. The L/S Equity space proved resilient apart from Asian and US long bias managers.
“Beyond a possible near-term rally, we expect moderate and riskier returns from traditional assets. Thus, we continue to strengthen our focus on hedge funds’ relative value approaches.” says Jean-Marc Stenger, Chief Investment Officer for Alternative Investments at Lyxor AM.
To the notable exception of Asian and US long bias funds, the L/S Equity strategy was remarkably resilient. Most funds had steadily reduced their net exposures over the summer, cautiously positioned ahead of the sudden end-of-August debacle. In Europe, Variable bias managers implemented efficient hedging strategies, with an increased number of single shorts. European managers, which generally missed the reflation trade early this year, regained all the lost ground over the summer. They even outperformed market neutral strategies. In contrast, Lyxor Asian managers suffered in August, down -2% in aggregate. Their dramatic cut in net exposure since June (-10%) limited the damages. US Long Bias also took a major hit, losing most of their beta.
Event Driven funds were the main losers, with a severe plunge across the board. The aggregate Event Driven performance was close to flat before the last week of the month. Until then, some losses were recorded in China and Resources related exposures. They were offset by positive earnings releases in few large corporate situations and by the favorable closing of several M&A deals. The last week of August unsettled both merger spreads and the pricing of corporate situations, including activist positions. Special Situation underperformed Merger Arbitrage funds, even adjusted from their market beta. The sudden widening of deal spreads and the depressed valuation levels of corporate situations will probably open a phase of recovery going forward.
The Lyxor L/S Credit Arbitrage index was only down -1.5%. The market turmoil infected credit markets but less than equities. Spreads had already meaningfully widened over the recent months. This kept managers on a very cautious footing, positioned on high quality and high grade issues, with increased diversification. As dispersion returned in the space, short opportunities also emerged – and not only in the energy segment. In particular weakening cross credit correlations provided fixed income arbitrage funds with greater relative value opportunities. The alpha produced by Credit strategies alleviated the adverse beta contribution.
High dispersion among CTAs in August. CTAs were up nearly +1% before the last week of August. With their long bond and USD positions along with their short commodities exposures, they were well hedged against the various risks being priced in. In particular: a slower global growth, a slower Fed normalization and the Chinese ripple effects on EM countries and resources. During the last week, a majority of funds remained reasonably resilient. However some heavy weight funds were substantially hurt on their remaining long equity holdings and on some of their long USD crosses. ST models outperformed thanks to a faster portfolio repositioning. We observe that, in aggregate, LT models cut their about 30% net equity exposure down to less than 10% over that week.
Heterogeneous returns among Global Macro, with losses in heavy weights. Until the last week of August the strategy remained resilient, with a slightly positive MTD return. While cautiously exposed to risky assets, their hedges had little efficiency in the sell- off. They were essentially hit in their equity and long USD positions, with limited cushion from bonds or safe havens. However, losses in large macro funds actually hide a more heterogeneous and favorable picture. After the sell-off, Lyxor Global Macro funds were on average 10% net long on equities (from 15% early August), with more than half of their equity positions in Europe. They continue to play commodities mostly in relative value. Overall they remain long USD, especially against EUR and GBP.
CC-BY-SA-2.0, FlickrPhoto: Heribert pohl. Misperceptions of Thailand
Nikko Asset Management has launched a Luxemburg domiciled Asia ex-Japan Equity UCITS fund. The fund is managed by Nikko Asset Management’s experienced Asia ex-Japan equities team headed by Peter Sartori and Eng Teck Tan as lead portfolio managers. Its active Asia ex-Japan equity strategy has been managed by the team since 2006.
The Asia ex-Japan strategy aims to achieve long-term capital growth by investing in a portfolio of 40- 60 mid- to large-cap stocks issued by companies in the Asia ex-Japan region. The team takes an active investment approach based on thorough fundamental research, taking advantage of mispricings in Asian equities.
The fund provides access to Nikko Asset Management’s proven Asia ex-Japan team and market leading resources in Asian fund management. The company has approximately 200 investment professionals operating in 11 countries, nine of which are based in Asia.
This latest fund launch builds on the success of Nikko Asset Management’s launch of the Global Equity and Global Multi Asset UCITS earlier this year. The firm continues to expand its range of UCITS funds for sophisticated global investors, providing access to a broad range of exposures across developed and emerging markets.
“We have launched the fund in response to investor demand for specialist expertise in actively managed investments in Asia ex-Japan,” Sartori commented. “The need for a highly skilled active fund management team with on-the-ground resources, and experience in different market conditions is increasing.”
“Our experienced Asia ex-Japan team has worked closely together since 1999, and they have a proven track record of long term outperformance through the different market cycles across Asia. This expertise is invaluable in delivering alpha in the fast evolving Asian markets.”
Nikko Asset Management will launch further UCITS funds later in 2015 to meet investors’ demands for access to specialist investment strategies.
Courtesy photo.. Hartwig Kos Joins SYZ Asset Management as Co-Head of the Multi-Asset Team
SYZ Asset Management, the institutional asset management division of the SYZ Group, has announced the appointment of Hartwig Kos as Co-Head of the Multi-Asset team. Hartwig Kos will co-manage the team with Fabrizio Quirighetti and also serve as Vice-CIO of SYZ Asset Management. He will take up his position on 15 October 2015.
Based in London, Hartwig Kos will contribute with his specific skills and experience in active allocation strategies to the team of 7 people in place and will take over the management of the OYSTER Multi-Asset Diversified fund as lead manager. For their part, Fabrizio Quirighetti and his team in Geneva will manage the OYSTER Multi-Asset Absolute Return EUR and OYSTER Absolute Return GBP and Fixed Income strategies.
Before joining SYZ Asset Management, Hartwig was a Director in the Global Multi Asset Group at Baring Asset Management, where he was responsible for managing the Baring Euro Dynamic Asset Allocation Fund. He was also the Co-Manager of the Baring Dynamic Emerging Market Fund. Moreover, Hartwig was a member of the Strategic Policy Group at Barings, the firm’s asset allocation committee. Hartwig holds a Ph.D. in Finance from Cass Business School in London and a degree in Economics and Business Administration from the University of Basel, Switzerland. Hartwig is also a CFA® charterholder.
The London office is one of SYZ Asset Management’s clusters of excellence and notably houses the European equities fund management and research team. An office was opened in Edinburgh in November 2014 to include additional European fund management and research capabilities and an expanded sales team.
Commenting on the appointment, Katia Coudray, CEO of SYZ Asset Management, said: “I am pleased to have hired Hartwig Kos. He is an investment professional who is highly respected by his peers and his renowned experience in active allocation management adds value to our fund management team.”
Hartwig Kos added: “SYZ Asset Management has an excellent reputation and a convincing track record in the competitive field of multi-asset management. I am delighted to be a part of this team and join a Group with a strong investment culture and a human dimension.”
OppenheimerFunds announced a strategic partnership in which Apollo Credit Management, which is an affiliate of Apollo Global Management, LLC, will serve as sub-sub-advisor to the Oppenheimer Global Strategic Income Fund (GSIF).
“As a progressive money manager, OppenheimerFunds consistently strives to add value for our clients. Apollo Credit Management offers a wide range of alternative investment credit strategies that complement our strong in-house fixed income capabilities, which will help us continue to deliver a very compelling offering,” said Art Steinmetz, Chairman, CEO and President of OppenheimerFunds.
“Continuing the fund’s history of innovation, we wanted a quality partner in terms of performance, investment team and most importantly, one that shares our cultural viewpoint on serving investors first. We are launching our relationship via our marquee fixed income product, and will explore other potential initiatives over time.”
“We are delighted to partner with OppenheimerFunds on this innovative approach to provide their investors with access to Apollo’s flagship liquid alternative credit solution. These credit exposures, which have historically only been available to Apollo’s institutional investors, offer significant yield advantages and diversification to the individual investor,” said Marc Rowan, co-founder and senior managing director of Apollo.
“Similar to Apollo, OppenheimerFunds is focused on delivering investment excellence to its clients, and we look forward to a long and prosperous partnership with such a high-caliber institution.”
Global Strategic Income Fundis dedicated to providing current income from diversified sources of fixed income investments while maintaining low overall volatility relative to the multi-sector fixed income category. GSIF utilizes the complete set of OppenheimerFunds’ taxable fixed income capabilities, and the new partnership will help the Fund access non-traditional fixed income market opportunities – including structured credit, middle-market loans, direct real estate investments and insurance-linked securities – to improve yield and overall risk-adjusted performance, diversify the fund to minimize volatility, and advance the firm’s history of innovation.
“Our partnership with Apollo Credit Management is very exciting as it gives us access to different areas of the credit markets that can provide low-correlated, diversified sources of high income for our fund shareholders,” said Michael Mata, portfolio manager of GSIF at OppenheimerFunds. “Our shareholders will receive the benefits of our scale and service without paying extra to reach these non-traditional asset classes.”
Photo: Moyan Brenn. Advisors May Not be Allocating Enough Effort to Target Millenials
New data released by Hartford Funds suggests that there is significant opportunity for financial advisors to better engage their young clients. Survey results uncovered that most advisors report not proactively pursuing the ‘Millennial’ generation as potential clients, despite identifying as prospects the individuals that fall into that category. Findings also revealed that advisors expect client risk aversion to nearly double in the next 12 months, continuing an upward trend.
When asked how much they focus on attracting Millennial clients, 56 percent of advisors said “less than other age groups” or “not at all.” However, 70 percent reported that they target clients in their late-twenties and early- to mid-thirties. Further, the majority (63 percent) of financial advisors who say they’re not targeting Millennials at all are also pursuing prospects in this age group.
“The term ‘Millennial’ has become a buzzword in financial services, being discussed constantly by financial firms and advisors. However, our survey suggests a disconnect when it comes to understanding who falls into this Millennial category,” said Bill McManus, Director of Strategic Markets at Hartford Funds. “In an attempt to filter noise, many advisors might be missing valuable insights for attracting their younger client targets.”
When asked about retirement, 71 percent of financial advisors plan to work for at least 16 more years, and 53 percent plan to work for more than 20 years. Despite the desire to continue offering financial advice beyond 2030, these advisors overwhelmingly are not focused on attracting Millennial clients. More than half of advisors who plan to work for more than 15 more years target Millennials less than any other age group or not at all. Similarly, 51 percent of advisors who plan to work for more than 20 years are also targeting Millennials less than any other age group or not at all.
“When factoring in career longevity, there is even greater concern that many advisors aren’t intentionally engaging Millennial clients. Advisors who plan to work for at least two more decades need to thoughtfully engage their younger clients in order to grow along with their needs,” McManus continued. “Millennials will reach critical planning milestones in the coming ten years and require support in navigating the market and reaching their goals.”
When discussing client risk aversion, advisors expect a significant rise in the coming 12 months. Continuing a steady upward trajectory, 57 percent of financial advisors expect clients to become more risk averse in the next 12 months, up 22 percent from 2014 (35 percent) and up 40 percent from 2013 (17 percent).
“Because advisors foresee greater risk aversion among clients in the coming months, they are in the unique position to help maintain focus on the bigger picture and minimize clients’ tendencies to make emotionally-driven investment decisions,” McManus added. “Particularly as the market and investors anticipate a rise in interest rates, it will be critical for advisors to help clients manage through potential market adjustments.” The data underscores that the majority of financial advisors (57 percent) place market volatility at the forefront of the issues that keep them up at night; interest rates follows in second (51 percent) and international turmoil and its impact on markets follows in third (46 percent). Financial advisors appear to be unanimously less concerned by clients’ anxiety about saving and investing (42 percent), while only 32 percent of financial advisors are worried about attracting the next generation of clients. Concerns about inflation come in last, with only nine percent of financial advisors noting this as an area of worry.
For its third annual Advisor Anxiety Survey, executed by Hartford Funds during June of 2015, Hartford Funds spoke with more than 100 financial advisors about their anxieties as well as attitudes and practices regarding Millennial clients, individuals born roughly between 1980 and 2000.
Robeco Group and RobecoSAM have announced that they have been awarded A+ scores by the United Nations-supported Principles for Responsible Investment (UN PRI) for their overarching approach to responsible investment. Of the 681 investment managers that are signatories of the UNPRI, only 16% received A+ scores for their overarching approach. Robeco has been a signatory of the UNPRI since 2006, RobecoSAM since 2007.
Roderick Munsters, CEO of Robeco: “I am delighted that Robeco has achieved A+ scores for all the different modules assessed by the UN PRI. It is testimony to our approach to Sustainability Investing; we were one of the first larger asset managers to make Sustainability Investing a strategic priority over a decade ago, and today Sustainability Investing is one of the strategic pillars of our 2014-2018 strategy. The high scores we have been awarded for all the modules confirm our leadership in Sustainability Investing across all asset classes. I’m convinced that the importance of sustainability investing will continue to increase and that our expertise in this area will continue to benefit our clients and us.”
Michael Baldinger, CEO of RobecoSAM: “We are proud to have been awarded such outstanding scores by the UN PRI. RobecoSAM has shaped the Sustainability Investing landscape over the past 20 years and these strong results reflect our unwavering conviction that financial analysis without ESG integration is incomplete. Our focus over the last two decades has helped us develop A+-rated knowledge, tools and best practices which are of benefit to both current and future clients. “
Although RobecoSAM’s scores are partly reflected in Robeco’s group score, the company was also assessed separately since it is a UN PRI signatory in its own right.
Photo: ben
. Most Latino Business Owners Expect to Pass Business on to a Family Member
According to a new study by Massachusetts Mutual Life Insurance Company (MassMutual), research from the2015 MassMutual Business Owner Perspectives Study revealed that 80 percent of Latino respondents expect to pass their businesses on to a family member – most often a child. However, 37 percent of those individuals said their chosen successor may not even know about this succession plan.
For Latino business owners, the aspiration to live the American Dream is no different, but the definition of success may be broader, encompassing their ability to care for and support extended families, friends, and their communities. The study reported they feel a strong sense of responsibility to their families and communities but tend to lack financial confidence and knowledge to put plans in place to ensure they can continue to provide for them.
“Latino entrepreneurs are strongly interconnected with their businesses, community and families,” said Dr. Chris Mendoza, Latino Markets Director, MassMutual. “Without the proper financial knowledge and preparation, Latino business owners are inhibited from fully realizing and protecting their dreams.”
Latino-owned businesses are growing at double the national rate, according to the U.S. Census, are generally younger and more likely to take community into account when making business decisions.
Only half of the Latino business owners surveyed have a formalized plan in place (a buy-sell agreement) to protect themselves for an untimely death; even fewer have a buy-sell agreement in place for disability; Protecting the business (35 percent) and family (37 percent) are the primary motivators for having these plans in place, yet an unforeseen illness or injury could jeopardize their ability to meet that goal.
While Latino business owners are ahead of their general population peers, when it comes to succession planning (49 percent of Latinos vs. 41 percent of the general population have a succession plan), only about half of the Latino business owners surveyed have any type of succession plan in place; Eighty percent said they will pass the business on to a family member – most often a child. However, 37 percent of those individuals said their chosen successor may not even know he/she is the successor (significantly higher than 23 percent of the general population).
Forty percent don’t have any retirement savings plan outside of their businesses and either plan to continue receiving income from the business post-retirement or will use the proceeds from the sale of the business to fund their retirement; Latino business owners are significantly more likely than the general population to say they plan to retire but haven’t given it much thought, and few (only 12 percent) say they plan to retire in the next five years, driven by the younger average age of Latino business owners; They are more likely to leave the business to a family member or relative (80 percent vs. 65 percent of the general population) and much less likely to sell the business to a key employee (9 percent vs. 14 percent of the general population).
Foto: ChristianFraustoBernal. Deutsche AWM ficha a Pascal Landrove como managing director y SRM de su negocio de banca privada en México
Deutsche Asset & Wealth Management (Deutsche AWM) has announced that Pascal Landrove has joined the Bank as a Managing Director and Senior Relationship Manager for Mexico. Based in Geneva, Landrove reports locally to Matthias Musch, Head of Wealth Management, Latin America within Switzerland and directly to Felipe Godard, Head of Wealth Management, Latin America.
“We have been focused on strategically building out our Private Bank in Latin America, and believe Pascal will play a significant role in expanding our business in Mexico,” said Godard. “His deep, local relationships and extensive experience will help grow Deutsche’s Wealth Management platform’s market share in the region.”
Landrove has over 15 years of wealth management experience, and joins the Bank from Lombard Oddier, where he spent seven years as a Managing Director and Relationship Manager, covering Mexico. Prior to Lombard, Landrove spent over a decade at UBS, where he spent most of his tenure covering Latin America as a Relationship Manager and Desk Head for Mexico.
Over the past year, Deutsche AWM has expanded their private banking presence in several key markets including Latin America, the West Coast, Texas, and Miami. Earlier this year, Dessy Arteaga joined the Bank as a Senior Relationship Manager, Santiago Trigo joined as the Head of Central America, Andean and Southern Cone regions, and most recently, Francesca Boschini joined as an International Wealth Planner with a focus on Latin America.
Other private bank hires have included Lee Hutter, who was appointed Head of the US Western region last September, and Mark Laroe, who was hired to start the Dallas Private Banking office. In addition, Deutsche AWM hired private banking teams in New York, Chicago and Los Angeles throughout 2014.
