Foto: LenDog64. John Hancock Investments entra en el negocio de los UCITS
John Hancock recently announced the launch of John Hancock Worldwide Investors, PLC, a Dublin-domiciled UCITS platform designed to extend the reach of firm’s signature manager-of-managers approach. Effective this week, the firm will make available four of its highly rated investment strategies targeted at non-US residents and UCITS model programs of our U.S. distribution partners.
As part of its commitment to this strategic market, John Hancock Investments has hired industry veteran Angela Billick to lead the UCITS product platform. Mrs. Billick will leverage her nearly 20 years of international business development experience in UCITS to serve the needs of investors.
“We are pleased to be able to provide our industry-leading manager selection and oversight capabilities to a new market,” said Andrew G. Arnott, President and CEO. “Our new UCITS platform is a natural continuation of the rapid growth we have experienced in the United States and a reflection of the strong demand we have received from our US broker/dealer partner firms for offshore funds that mirror some of our most popular US mutual funds.”
John Hancock Worldwide Investors, PLC is making available four of the firm’s most sought-after strategies in a choice of five UCITS share classes. These initial strategies are managed by portfolio teams at Manulife Asset Management and GMO Europe LLC:
John Hancock Strategic Income Opportunities Fund
John Hancock High Yield Fund
John Hancock U.S. Large Cap Equity Fund
John Hancock Global Equity (Ex.-U.S.) Fund
“We believe these four strategies help address today’s investor need for new sources of income, along with proven equity strategies with a measure of downside protection,” said Leo M. Zerilli, CIMA, head of investments at John Hancock Investments. “These are not simply challenges for U.S. investors; these are global challenges.”
John Hancock Investments is a premier asset manager with a unique manager-of-managers approach, whereby the firm builds funds based on investor needs, then searches the globe for the best managers with proven track records to lead those funds. John Hancock Investments has more than 165 professionals specializing in manager research and oversight, vetting over 250 investment strategies annually and overseeing relationships with 72 portfolio teams at 27 elite firms worldwide.
More than half of the world’s mutual fund assets reside outside the United States. The UCITS market is estimated to consist of more than $8 trillion in assets, according to the European Fund and Asset Management Association.
As the crackdown on “closet trackers” gathers pace in Europe, concerns are growing that the metric used to identify those funds that charge active management fees while merely hugging the index could undermine performance, according to the latest issue of The Cerulli Edge – Global Edition.
The regulatory spotlight has fallen on closet trackers recently. In May the Swedish government launched an investigation in the wake of the Swedish Shareholders’ Association filing a lawsuit against a leading fund house, alleging that it had mis-sold closet trackers to retail investors. Regulators in Denmark and Norway have also been proactive.
Cerulli Associates, a global analytics firm, notes that in response to heightening regulatory scrutiny more managers are voluntarily disclosing data showing the extent to which a fund’s portfolio diverges from its benchmark. “Active share” is the most commonly used measure, with a score less than 60% deemed to be index hugging.
“Active share, however, is no panacea and used in isolation is more likely to be misleading. It should be used alongside other relevant metrics, such as information ratio data showing the portfolio returns above the benchmark in relation to the volatility of those returns,” says Barbara Wall, Europe research director at Cerulli Associates.
Noting that there are times in an investment cycle when it might be prudent to stay close to the benchmark, Cerulli warns that a manager who feels obliged to maintain a certain active share is at risk of picking the wrong stocks simply to increase the deviation from the benchmark. Strict adherence to the tool may also prevent a manager from buying stocks that have a large weight in the index, even if they are expected to outperform.
Another limitation concerns the definition of being “active”, which typically refers to the actual shares that are owned. But “active” can also apply to a portfolio that largely adheres to the index, provided the manager has not simply taken a buy-and-hold approach and that performance is influenced by the timing of trades in those constituents.
Firms that are already disclosing the active share figure tend to have house management styles that are unconstrained in relation to benchmarks. Firms where the emphasis is on delivering outperformance with a relatively low-risk, low-active share element would be understandably anxious, says Cerulli, about publishing their active share figure. “They would also point out–with some justification–that a low active share doesn’t mean they are a closet tracker and that they should be judged on performance alone,” says Wall.
Cerulli believes that, used in conjunction with other metrics, active share can be a useful tool in promoting accountability and transparency. Laura D’Ippolito, a senior analyst at Cerulli, says: “Views within the European fund industry on the value of the active share figure differ widely, but what is clear is that the debate–which also takes in the active/passive issue–is only going to intensify.”
Other Findings:
With active exchange-traded funds (ETFs) at long last gaining traction in the United States, active mutual fund managers should seriously consider offering their strategies in these securities, advises Cerulli. It notes, however, that the path to success remains difficult. Another structure the firm recommends is the new exchange-traded managed fund.
The penetration rate of mutual funds in Asia ex-Japan has dropped to about 6.5% of household financial assets (HHFA) in 2013 from 9% in 2009, despite HHFAs expanding at, or close to, double-digit rates annually. Cerulli believes that the decline can in part be attributed to the short-termism that drives investment–in Taiwan, for instance, Cerulli has found that fund retention ranges from about six to nine months for the average investor, while in China it can be as short as a month. The firm says that analysis of the decision-making provides useful insights for determining product selection.
In the United Kingdom, active management is no longer the be-all and end-all for discretionary investment managers, says Cerulli, noting that a combination of regulatory change and the low-growth environment is forcing firms to review costs and portfolios. Not only are passive funds now more common in discretionary portfolios, but their role–and that of active funds–is changing. The analytics firm says that active managers face a challenge in staying relevant in a world in which cost is king, passives are core, and sustainable alpha is key.
CC-BY-SA-2.0, FlickrPhoto: Ana Montreal. Man Group Change Chairmanship of Remuneration Committee
Man Group has announced that Phillip Colebatch, Senior Independent Director, will resume the role of Chairman of the Remuneration Committee from 1 July 2015, replacing John Cryan who took on the role from Mr Colebatch in May 2015.
This reflects the change in Mr Cryan’s circumstances following the announcement of his appointment as Co-Chief Executive Officer of Deutsche Bank with effect from July 2015. Mr Cryan will continue to serve as a non-executive director of Man Group and as a member of the Nomination Committee but he will no longer be a member of the Remuneration Committee.
Man Group is currently undertaking a search to appoint an additional non-executive director to take up the role of Remuneration Committee Chair.
Phillip Colebatch was appointed to the Board as a non-executive director in September 2007 and is the Senior Independent Director. John Cryan was appointed to the Board as a non-executive director in January 2015.
New research from Standard Life Investments suggests that improvements in corporate governance at Japanese companies have the potential to raise the value of the Japanese stock market by 15% to 30%.
Prime Minister Abe’s administration has announced a range of policies designed to embolden corporate risk-taking – one area with high prominence in this growth strategy is boardroom reform. In the latest edition of Global Perspective, Govinda Finn, Senior Japan Analyst and Chris Faulkner-MacDonagh, Markets Strategist, Standard Life Investments, examine whether this governance reform will be the catalyst for a wider revitalization of the Japanese economy.
Govinda Finn, Senior Japan Analyst, Standard Life Investments, said:
“Many global investors have moved heavy or overweight in Japanese equity markets since the Abe government gained power. Yet Japan faces a growth conundrum. With a declining population and high levels of economic development, the prospect of future growth led by capital accumulation is low.
“To ensure that global investment in Japan becomes a longer term phenomenon, rather than a short term tactical trade, efforts to improve the capital efficiency of Japanese companies, and raise the return on equity for shareholders, become ever more important.
“Key engagement and governance policies for shareholders and institutional investors to monitor for progress over the coming months are: increasing board independence; expanding investor relations efforts; M&A activity; return on equity strategies; shareholder voting practices; restructuring of business operations; plus environmental and social policies.
“There is hope that a transition to a more market based engagement approach will encourage businesses in Japan to make better investment decisions and boost shareholder value. This approach, when combined with other initiatives in the nation’s revitalization plan such as trade liberalization and labor market reform, may unlock further productivity growth.”
Oficinas centrales de Banco Ficohsa Guatemala - Foto cedida. Grupo Financiero Ficohsa toma el control de las operaciones de Citi en Nicaragua
Grupo Financiero Ficohsa (GFF) announced that it has completed the purchase of Banco Citibank de Nicaragua, S.A. and Cititarjetas de Nicaragua, S.A., after the Superintendency of Banks and Other Financial Institutions of Nicaragua (SIBOIF) and the Superintendency of Banks of Panama (SBP) authorized the transaction.
“Today we begin to deliver on our commitment to invest in Nicaragua,” stated Camilo Atala, president of Grupo Financiero Ficohsa. “We arrive with great expectation and with responsible practices to contribute to the country’s development.”
With the entry to Nicaragua, and following an expansion process both in Honduras and the Central America region, Ficohsa establishes its presence in four countries. In May, the Group successfully completed the integration of Citi’s consumer banking unit in Honduras, an experience that Ficohsa is using to ensure a smooth transition for clients and employees in Nicaragua.
Within the next few days, Citi’s agencies, ATMs and service points will be rebranded to Banco Ficohsa Nicaragua. However, customers will continue to conduct their transactions through the usual and customary processes and the channels they typically use. Additionally, all customer benefits and obligations, will remain the same. Ficohsa will honor its commitments to customers, who will retain points, miles and awards accumulated.
Ficohsa informed that the group’s plans in Nicaragua include the expansion of its network, which will entail expanding its workforce. Additionally, the group indicated that they would integrate various Ficohsa products and services gradually, to ensure a seamless transition.
Ficohsa takes over the totality of Citi’s operations in Nicaragua, including the more than 600 employees who join the group. “We are thrilled to welcome our new employees in Nicaragua into the Ficohsa family,” said Atala. “They will be the key to our success in the Nicaraguan market and in this integration process that begins today.”
The financial group, the first of Honduran capital to enter Nicaragua, appointed Marco Antonio López as executive president. López, a renowned Nicaraguan banker, until today served as regional vice president of business development at Ficohsa.
“I am pleased to come back home with Ficohsa and with a clear mandate to support the country’s productive sector and reinforce existing SME and consumer banking services, as well as expand the business into new areas, such as corporate banking,” added López. “The idea is to offer the most innovative financial services in the market.”
Today, Grupo Financiero Ficohsa includes the largest bank and insurance company in Honduras, as well as banking operations in Guatemala, Panama and Nicaragua, and financial services in the United States. After the acquisition, the group encompasses US$ 4.016 billion in assets, US$ 2.645 billion in loans, US$ 522 million in equity, US$ 2.577 billion in deposits, and more than 6,600 employees (using figures as of May 31, 2015.) This enables Grupo Ficohsa to strengthen its position among the 10 leading financial groups in Central America.
Claude Ewen. Courtesy Photo. Columbia Threadneedle Investments Appoints Sales Director in Luxembourg
Columbia Threadneedle Investments announces the appointment of Claude Ewen as Sales Director Luxembourg with immediate effect.
In his role, Claude will be responsible for broadening and deepening relations with Luxembourg-based professional investors. Claude will report to Prosper van Zanten, Country Head for the Benelux.
Claude has over 10 years’ experience in the Luxembourg financial market. He joins Columbia Threadneedle Investments from Fidelity Worldwide Investment where he had been senior sales manager since October 2009. Before that, Claude was portfolio manager for several years at Lux- Investment Advisors (now BCEE-Asset Management) where he contributed to the strategic and tactical asset allocation of UCITS funds and discretionary client portfolios and where he had responsibility for the analysis of the energy, commodities, industrial and utilities sectors. Claude started his career in 2000 at Banque et Caisse d’Epargne de l’Etat, Luxembourg as client relationship manager. He graduated from Louis Pasteur University of Strasbourg with a Master in Economics and Business Management.
Gary Collins, Head of Wholesale Distribution for EMEA and Latin America at Columbia Threadneedle Investments, said: “I am delighted to welcome Claude Ewen to our Benelux team. Claude has spent several years building and nurturing relationships with Luxembourg-based professional investors. We look forward to benefitting from his experience and insight as we grow and harness our presence in this market, significant both in its own right and as a central decision-making hub in Europe”.
Ashley Lester - Foto cecida. Schroders nombra nuevo responsable global de análisis de soluciones de carteras e inversiones multiactivo
Schroders hasannounced the appointment of a new role within its $114.7 billion –as at 31 March 2015- Multi-asset Investments and Portfolio Solutions Business. Ashley Lester has been appointed as the Global Head of Research. He will join Schroders in July and will report to Nico Marais, Head of Multi-asset Investments and Portfolio Solutions.
Ashley joins from MSCI where he was Head of Fixed Income and Multi-Asset Class Research. Before joining MSCI Ashley was Head of Market Risk Research at Morgan Stanley. Ashley was previously an Assistant Professor of Economics at Brown University and a Visiting Assistant Professor of Finance and Economics and Columbia Business School.
Ashley will join Schroders’ well established business and team of Multi-asset Investments and Portfolio Solutions specialists in New York.
Nico Marais, Head of Multi-asset Investments and Portfolio Solutions, commented: “We are pleased to have Ashley lead our global research team as we deepen our experience and thought-leadership around portfolio construction, asset allocation, risk premia based investing and as we continue to build out our advanced beta capabilities.”
. Allfunds Bank Hires Simon Shapland to Head UK & Ireland
Allfunds Bank has hired Simon Shapland to head its office for UK and Ireland. The company is Europe’s largest mutual fund platform with over €200 billion (£142Bn) under administration and has recently recognised by asset managers for having the best potential to support their distribution strategies.
Simon Shapland was until recently, the Managing Director for the UK & Middle East of RBC Investor and Treasury Services. He has significant experience in international sales as well as general management and strategy expertise and he has a demonstrable record of accomplishment of delivering revenue growth across a diverse and complex client base spanning multiple geographic locations. He has board level experience gained from membership of senior executive committees.
After a decade at RBC and RBC Dexia Investor Services, where he undertook a number of senior roles, Shapland took responsibility for the company’s UK branch overseeing some 350 staff and managing strategic relationship management in the day-to-day account management function.
At Allfunds Bank, Simon Shapland will report to Gianluca Renzini, Allfunds bank’s Deputy General Manager and he will lead the London office that today administers over £15 billion of assets. This announcement ratifies the consolidation of the UK operation, which is becoming a key business engine of the platform’s great performance.
Gianluca Renzini, Allfunds Bank’s Deputy General Manager, said:“Simon Shapland has significant experience in funds administration and is very well-placed to take forward our UK business to the next stage. We continue to believe our UK and Irish business will be one of the main drivers of growth of Allfunds Bank over the coming decade”.
Javier San Félix, new Head of the Retail Bank in Santander UK / Photo: www.santander.com. Javier San Félix Appointed Head of the Retail Bank in Santander UK
Banco Santander’s Board today approved a series of management and organisational changes which further simplify the Group’s corporate structure and enhance its internal governance: in the Board of Directors, Ignacio Benjumea, General Secretary and Secretary of the Board, will leave his executive role and will become an external Board Director. Juan Rodriguez Inciarte, has resigned from the Board for personal reasons and will leave his role as Senior Executive Vice-President in December this year.
In the Senior Management space, Jaime Pérez Renovales, Senior Executive Vice-President, has been appointed General Secretary and Secretary of the Board effective September 1st. He will lead the newly-created Division of General Secretariat and Human Resources, which will integrate the areas of Legal and Tax and all the areas which were under the former division of Human Resources, Organisation and Costs. Pérez Renovales is a highly accomplished professional who is returning to the Group following a period of 3.5 years in the public sector. Jesús Cepeda, Senior Executive Vice-President and until now Head of Human Resources, Organisation and Costs, will leave his role on September 1st.
Rami Aboukhair, Senior Executive Vice-President of the bank with extensive expertise in retail banking in Spain and the UK, has been appointed country head for Santander Spain, replacing Enrique García Candelas, who will become Vice Chairman of Santander Totta (Portugal) following his great work in Spain.
Javier San Félix has been appointed Head of the Retail Bank in Santander UK, reporting to Nathan Bostock, CEO of Santander UK. Ángel Rivera, Senior Executive Vice-President, has been appointed Head of the Retail and Commercial Banking Division.
In the last few weeks, the following Senior Executive Vice Presidents have also resigned from their roles: Remigio Iglesias (Head of Recoveries); Juan Andrés Yanes who will be replaced as Head of Strategic Alliances by Juan Manuel San Román; Luis Moreno (Head of Private Banking); and José María Espí (Director of Internal Control and Risk Assessment).
The Board of Directors, Santander Spain
Two years ago all the Group’s businesses serving customers in Spain were consolidated under Santander Spain to establish a clear separation between the functions of this unit and the corporate center. Today they are announcing a further step in the process of strengthening Santander Spain by creating a Board to oversee it. This will bring its governance structure in line with the Group model which exists in other country subsidiaries. This Board will monitor and supervise the activities of Santander Spain, including its policies and strategies, risk, human resources and senior management appointments as well as a number of control and monitoring tasks.
The Board of Directors of Banco Santander has appointed Rodrigo Echenique, Vice Chairman of the bank, in the additional role as Chairman of the Board of Santander Spain. The Board of Santander Spain will have at least one third independent directors with the Country Head of Spain (Rami Aboukhair) as a permanent member. The Group has also appointed to the Board of Santander Spain, Ignacio Benjumea, Angel Rivera (Head of the Retail and Commercial Bank Division), José María Nus (Chief Risk Officer), José García Cantera (CFO), Carlos Barrabés, Javier Monzón and Gonzalo Alonso-Tejuca, the last three of whom are independent directors.
According to the bank, the new corporate structure will facilitate work and increase both competitiveness and focus on adding value to the Group’s core local country businesses; and the number of divisions has been reduced from 15 to 10 in the last six months and with today’s changes the number of senior executive vice-presidents is reduced by 7 (or 23%). “We are enhancing the Group’s internal governance with the creation of a board for Santander Spain”. Ana Botín, Santander’s Group Executive Chairman, said: “These changes complete the management team which José Antonio Álvarez and I began restructuring in 2014. To achieve our vision to be the best retail and commercial bank for our people and customers, and to continue to generate sustainable growth we must simplify and make our organisation more competitive”.
“Our goal in making these changes is to have the best qualified professionals in the right roles and progress towards becoming a bank that is Simple Personal and Fair for our people, customers, shareholders and communities”, Ana Botín said.
Juan Garcia. Juan Garcia se incorpora a Eaton Vance como especialista Offshore
Eaton Vance recently announced Juan Garcia is joining the company as offshore specialist for North and South America, working in concert with Vince Leon, director of offshore sales, to bring timely solutions in varied market environments.
To Eaton Vance, Juan brings more than 10 years of industry experience, most recently with the MFS Offshore team. He previously worked for Fidelity Investments and Suntrust Bank as Financial Representative,and for Easthampton Savings Bank as Customer Service Representative.
Juan Garcia holds an MBA with honors from Jack Welch Management Institute at Strayer University, a Certificate in Financial Planning by Boston University and a BBA, Management, by theUniversity of Massachusetts, Amherst. Originally from Mexico, Juan now resides in Boston with his wife.
