Foto: Got Credit. Exceso de confianza: los inversores particulares de todo el mundo esperan retornos del 12% el próximo año
Over half (54%) of retail investors globally feel more confident about investment opportunities in the next 12 months than they did a year ago, according to the Schroders Global Investment Trends Survey 2015.
Nine-in-ten (91%) investors across the globe expect to see their investments grow over the next 12 months. Globally, retail investors are expecting a challenging average return of 12% over this period.
Increased appetite for investments
The study, commissioned by Schroders amongst over 20,000 retail investors in 28 countries, shows an increasing appetite for financial investments compared to previous years. Half (50%) of those questioned intend to increase the amount they save or invest in the coming 12 months, compared to just 43% of those questioned in 2014 and 38% of those polled in 2013. On average, investors plan to increase the amount they save or invest by 8.5% over the next year.
Overall, 87% of investors worldwide are looking to generate an income from their investments.
Disconnect between expected returns and attitude to risk
Almost nine-in-ten (88%) retail investors said they made a profit from their investments in the past 12 months, with average gains of 10%, and 5% reported a loss. In comparison, investors polled two years ago reported making an average loss of 4.6% since the recession. However, despite the high levels of confidence being reported this year and optimistic expectations of double-digit returns in the next 12 months, the Schroders survey reveals a significant disconnect between expected returns and the appetite that investors have for risk, with many favoring shorter-term and lower risk investments.
Typically, retail investors are looking to place only around 21% of their investment portfolio in higher risk / higher return assets such as equities, with 45% of investors’ funds going to low risk / low return assets such as cash and around a third (35%) being placed in medium risk assets such as bonds. The data shows a bias towards short-term investing, with almost half (46%) preferring outcomes within one to two years.
Despite this disconnect, less than a quarter (23%) of retail investors polled will change their strategy by seeking professional financial advice, with more than a third (34%) of global investors intending to invest as they have done in previous years.
Massimo Tosato, Executive Vice Chairman, Schroders plc said: “It’s overwhelmingly clear that the demand for income is prevalent as retail investors seek to meet various objectives such as financing their children’s education, purchasing a first home, setting up new businesses, or supplementing their existing income in retirement. The necessity and challenge to generate income from investments is strong, particularly given the global low interest rate environment.
“However, our survey highlights a clear disconnect globally between retail investors’ return expectations and their attitudes to risk. Expecting double digit returns within the next 12 months, while only placing less than a quarter (21%) of their investment portfolio in higher risk assets suggests that investors are not taking a realistic approach to investing. It’s imperative that investors shape their portfolios to balance the risk profile with the returns they are seeking, and in most cases, that will require a level of professional advice.”
Thirst for income
Globally Asian, UAE, South American and South African retail investors are the most focused on income investing, with more than 90% of each planning to do so, compared to more than 80% of North American, Australian and European investors. Interestingly, less UK investors (70%) plan to invest in assets to generate a regular income. Global investors are typically accessing income through funds (23%); direct equities (20%) or real estate – either as a direct investment or via real estate investment trusts or funds (10%).
Massimo Tosato concludes, “Retail investors around the world are considering income investing because of low bond and bank interest rates and the long-term and stable opportunities typically associated with dividend paying companies. They recognise the value of re-investment and portfolio growth as a cornerstone of income investing. It is also essential that retail investors diversify their investments across regions and asset classes.”
Alexander Schindler es el nuevo presidente de la asociación de fondos europea. Foto cedida. Alexander Schindler: nuevo presidente electo de EFAMA
EFAMA, the European Fund and Asset Management Association, has elected Alexander Schindler with unanimity of votes as President for a two-year term (until June 2017). The election took place during EFAMA’s Annual General Meeting (AGM) in Lisbon last Friday, 19th June.
At the same meeting, EFAMA Members also unanimously elected William Nott, the Chief Executive Officer of M&G Securities, as its Vice-President (for the same two-year term) and a new Board of Directors for a two-year term.
Alexander Schindler, who served as Vice-President of EFAMA from June 2013, will succeed Christian Dargnat, who has been President since 2013. Alexander Schindler was elected as a member of the Board of Directors of EFAMA in May 2012 and as a member of the management committee of the Board of Directors of EFAMA in June 2012. He became a member of the Executive Boardof Union Investment in January 2004 and was appointed Vice-President of EFAMA in 2013. Alexander has also been a member of the Board of Directors of BEA Union Investment Management Limited, Hong Kong since 2007. He is a qualified banker and lawyer.
The new Vice President, William Nott, is Chief Executive of M&G Securities, the combined Retail Business covering the UK, Europe and Asia, a post he has held since March 2006. He was previously Chief Executive Officer of M&G International, overseeing the development of M&G’s fund distribution into Europe.
Will has served as a member of the Board of Directors of EFAMA for six years and has been on the board of the UK’s Investment Association since 2007. He has been a member of the Consultative Working Group of the European Securities and Markets Authority‘s Investment Management Standing Committee, having previously served as a member of CESR Consultative Working Group on Asset Management.
In his inaugural address as President of EFAMA, Alexander Schindlersaid: “I want to thank our Members and Board for giving me the opportunity of presiding such a widely respected and influential industry body as EFAMA.
Having been involved in this association for three years, I am a strong admirer of the work that my predecessors have conducted, and most recently what has been achieved under Christian Dargnat’s mandate during a particularly defining time for the European asset management industry. The far reaching EU agenda, after the renewal of the mandates of both the European Parliament and European Commission last year, presents both a challenge and an opportunity for our industry and its role in the long-term growth and financing debate. I am very proud to get the chance to build on the strong progress and constructive dialogue process Christian and the EFAMA team have put in place for the past two years.
EFAMA is the voice of the asset management industry and strives to be considered as a valuable and reliable partner for legislators, regulators and market stakeholders. With our new Vice-President William Nott and the crucial support of all of our members, we will make sure this keeps being the case, and will continue our work with the European institutions to ensure that the legislative measures and long term goals that they formulate benefit the end-investor, industry and economy.”
As the representative association for the European investment management industry, EFAMA and its newly appointed Presidency are committed to an agenda that protects the investor and communicates on the crucial role asset managers can play in the financing of the economy. Their overarching priority themes for the next two years are:
To continue to rebuild investor confidence, promote investor education, and support investor-centric legislation;
To promote market-based financing of the economy and actively help build up a well-functioning Capital Markets Union;
To foster a regulatory level playing field for investment products in the EU;
To help develop an EU-wide personal pension product and a true single market for personal pensions as a solution for the current savings and long-term financing gaps in Europe;
To strengthen the competitiveness of the industry in terms of cost and quality;
To promote the asset management industry and increase global recognition of the UCITS and AIF brand on a European and worldwide level.
BNP Paribas Investment Partners announces the appointment of Matt Joyce as a Portfolio Manager within its Multi Asset Solutions group, headed by Charles Janssen. Based in London, Matt will join the Active Asset Allocation team led by CIO Colin Graham.
The Active Asset Allocation team consists of more than 20 dedicated professionals responsible for establishing active asset allocation strategies for a broad range of multi asset mutual funds and investment solutions offered to retail and institutional clients.
Matt has over 12 years’ investment experience, covering long-only and long/short strategies. Prior to joining BNP Paribas Investment Partners, Matt worked at Schroders Investment Management as a multi asset analyst and fund manager, focusing on equity and cross asset volatility research, and managing balanced products and volatility strategies.
His previous experience includes roles at Occam Asset Management, where he was an analyst and fund manager covering European equities, and at Polar Capital, where he was an analyst on UK and global equity long/short strategies. Matt has a BSc in Financial Economics from Birkbeck College, University of London, and an MSc in Applicable Mathematics from the London School of Economics & Political Science. He is a CFA Charterholder.
Charles Janssen, Head of Multi Asset Solutions at BNP Paribas Investment Partners, comments: “The addition of Matt Joyce to the Multi Asset Solutions group further demonstrates our commitment to expanding our multi asset offering as part of the strategic development of our business. Demand for multi asset products continues to grow in line with the increasing need for retirement solutions among retail and institutional investors and this is a key part of BNP Paribas Investment Partners’ investment offering. Given the ongoing environment of market uncertainty and low yields, we expect continued growing demand as investors look to outsource their asset allocation to meet their growth or income requirements.”
Family Office Exchange (FOX), a global membership organization of enterprise families and their key advisors, announced the introduction of FOX Networks, a new way for members to problem solve and gain expertise in six key family office disciplines. The six disciplines areTechnology Operations & Data Security, Human Capital, Private Family Trust Companies (PFTC), and three types of investing—Direct Investing, Strategic CIO, and Endowment Model Investing.
There are three aspects to these networks: leadership from a seasoned, subject matter expert, peer discussion to gain the experience of other members, and high quality research and educational content. These elements are delivered through an online community, in person meetings, and a series of scheduled webinars. Recorded webinars, research, and top industry white papers will be available for each network through the association online Knowledge Center.
“FOX has provided special interest work groups to solve specific problems for decades and now we are formalizing Networks to deepen this problem solving,” said Alexandre Monnier, President of Family Office Exchange. “FOX Networks provide a clear, easy way to reach the ideas and get answers to important topical challenges in family offices.”
The association has recruited a number of distinguished practitioners to run the Networks. Technology Operations and Data Security is headed by Steven Draper, who has served as a technology consultant in the wealth management industry for 25 years. The Human Capital Network is led by Kelley Ahuja, Director of Human Capital, who joined earlier this year from the Lyric Opera of Chicago. The PFTC Network is run by Ruth Easterling, a Managing Director for 16 years. The Direct Investing Network is run by Linda Shepro, Managing Director, who joined from FDX Capital earlier this year. The Strategic CIO Network is headed by David Toth, Director of Advisor Research, who joined from PNC, and the Endowment Model Network is led by Karen Clark, Managing Director, who recently joined FOX from Sandaire, a leading multi-family office in London.
Access to the Networks is included in core membership for current members. Non-members are able to access membership in one Network on an a la carte basis.
Photo: José Francisco del Valle Mojica. AXA IM Boosts EM Portfolio Management Team
AXA Investment Manager (AXA IM) has announced the appointment of Alex Khosla as equities analyst and the promotion of Ian Smith and Paul Birchenough as co-managers of the AXA Framlington Emerging Markets fund.
Both will work with Julian Thompson, head of the Emerging Markets Team, as part of a core emerging markets portfolio management team.
Mark Beveridge, global head of AXA Framlington, comments: “We believe in recognising and rewarding talent coming through the ranks. We already adopt a team approach to portfolio management and Paul and Ian have been part of our EM team since 2011 and 2012 respectively. They both have extensive experience in emerging markets and we are confident that they will continue to successfully manage the fund.”
Alex Khosla joins the team as an Emerging Markets equities analyst from UBS Investment Bank. He will be responsible for covering the energy, beverages and tobacco sectors as well as monitoring macroeconomic issues in India, Chile, Peru and Colombia.
Commenting on the hire of Alex Khosla, Julian Thompson, head of Emerging Market Equities at AXA Framlington, said: “Alex is a strong addition to our growing emerging markets team and we are very pleased that he has chosen to join us. Alex knows the team well from his previous role in Latin American equity sales at UBS and brings with him considerable experience in Latin American equity markets.”
. Lazard Asset Management Hires Léopold Arminjon as European Long/Short Equity Portfolio Manager
Lazard Asset Management announced that Léopold Arminjon has joined the Firm as a portfolio manager/analyst. Based in London, Mr Arminjon will be responsible for running a new European long/short equity strategy to be launched later this year.
“Léopold brings with him over 18 years of investment experience in European equities, which will benefit both our clients and our investment platform,” said Bill Smith, CEO of Lazard Asset Management London. “This new strategy will complement our strong European equity capabilities and will broaden our already robust expertise in long/short equities, a core focus of our investment offerings for clients.”
As of 31 March 2015, LAM has $180 billion of assets under management, including $7.6 billion globally across a number of alternative investment strategies, investing in global long/short equity, emerging market debt and hedged credit strategies.
Prior to joining LAM, Mr Arminjon was a lead portfolio manager at Henderson Global Investors for both the Henderson Horizon Pan-European Alpha Fund and the Alphagen Tucana Fund. Previously, he was a senior analyst at Gartmore as well as being one of the five members of the Continental Europe equities team running both long-only and long/short funds.
LAM offers a range of equity, fixed-income, and alternative investment products worldwide. As of 31 March 2015, LAM and affiliated asset management companies in the Lazard Group manage $199 billion of client assets.
Photo: José Maria Silveira Neto. U.S. Asset Managers are Devoting more Resources to Develop their Global Equities Capabilities
A recent study by Cerulli Associates about asset managers’ retail and institutional product strategy and innovation across different asset classes (e.g., fixed income, alternatives) concludes that the industry is turning into the development of products centered on Global Equities.
“Aside from focusing on offering income-producing products and alternative investments, asset managers have been busy building out their international and global capabilities. U.S. investors have typically turned to international and global investment products for further diversification,” Pamela DeBolt, associate director at Cerulli, explains. “Retail managers are allocating more of their product development resources over the next year to international/global equity.”
“These funds are now attracting U.S. investors because they are considered cheaper than domestic equities,” DeBolt adds.
CC-BY-SA-2.0, FlickrPhoto: Dennis Jarvis. UK Treasury Planning for ‘Grexit’ Turbulence
Downing Street and the Treasury have been drawing up measures to control the “serious economic risks” to Britain should Greece default on its debts, or exit the eurozone – or both.
The Prime Minister’s official spokeswoman told reporters at Westminster that the Government was taking “all steps to prepare” for such eventualities.
Treasury officials declined to give details of the plans, but confirmed that Chancellor George Osborne regards a “Grexit” as “a very serious risk” to the economy of both Britain and the wider world.
Central bank warning
The comments came as Greece’s central bank warned for the first time that the country could be on a “painful course” to a debt default and an exit from both the eurozone and the European Union.
According to the most recent figures from the Bank of England, British banks are exposed to Greece to the tune of $12.2 billion (£7.7 billion) on an “ultimate risk basis”. In other words, this is the sum they would lose were the country to go bust completely.
The figure is not large by comparison with UK banks’ exposures to other eurozone countries that have experienced recent difficulties such as Italy, at $40 billion (£25.2 billion) or Spain at $50 billion (£31.5 billion).
But the knock-on effects from a Greek collapse could hammer confidence across the eurozone and beyond.
The British Chambers of Commerce warned that market upheavals caused by “a messy Grexit” could hit many UK businesses and called on central banks and governments to take action to limit disruption “through all means possible”.
Bailout talks continue
Talks continue between the Athens government and its international creditors over an economic reform deal which has held up more than £5 billion in bailout payments needed to allow Greece to continue servicing its debts.
Eurozone finance ministers are meeting in Luxembourg today to try to find a way forward, and the crisis is expected to dominate a European Council summit of EU leaders – including David Cameron – in Brussels next week.
Meanwhile, it has emerged that the Republic of Ireland is making its own plans in the event that the UK votes in an in/out referendum to leave the EU.
Irish foreign minister Dara Murphy told BBC Radio 4’s World At One: “It would be remiss of us [not to], given the possibility that our largest trading partner may be exiting the European Union. That is something we, of course, are looking at.”
Rotterdam-headquartered asset manager Robeco has announced the launch of a multi-factor credit fund, aimed at offering investors access to a factor-based investment strategy.
The fund will be managed by Robeco’s Credit Team, with Patrick Houweling as portfolio manager. Houweling joined Robeco in 2003 and has also been managing Robeco’s conservative credits strategy since 2012, which exploits the low-risk anomaly in credit markets.
The fund will have 150 to 200 names in its portfolio. Although it mainly consists of investment grade credits, it can hold a maximum of 10 percent in BB in order to benefit from the attractive characteristics of fallen angels and rising stars.
Patrick Houweling comments on the launch: “At Robeco, we have been closely studying the possibilities of bringing our factor investing offering beyond the traditional equity markets. I am delighted that we have put theory into practice by introducing this factor investing fund to credit investors. This fund is driven by our proprietary quantitative multi-factor model, which offers balanced exposure to the low-risk, value and momentum factors.”
