News archivos - Page 449 of 566

Wealth Managers Who Ask For Referrals Double Their Chance Of Being Recommended By Clients

Very few of the world’s up-and-coming wealthy are uncomfortable providing friends, family, or colleagues with referrals to a wealth manager, however the majority of wealth managers are missing out on the opportunity to acquire clients through this valuable channel, says a new global study released today by SEI, Scorpio Partnership, and NPG Wealth Management. The study, “The Futurewealth Report 2014: The Advocacy Impact,” reveals that advisors double their chances of receiving a referral by simply asking for one – as 47 percent of respondents said they would actively refer, without being prompted, and an additional 47 percent reported they would refer, but only if asked to do so. However, only 3 in 10 of the 3,025 global respondents with an average net worth of $2.9 million reported being asked for referrals by their wealth managers at least once a quarter.

The report, which also examined the drivers that compel the global wealthy to advocate for their wealth managers, further unveiled that the propensity to recommend does not translate into actual referrals. On the contrary, referrals are triggered by a complex blend of circumstances and financial behaviors and are heavily influenced by a client’s age and geographic background.

“This year’s Futurewealth series has provided valuable insights on investors’ digital habits, their purchasing drivers, investor loyalty, and, now, what it takes to spark client advocacy,” said Alfred P. West, Jr., Chairman and Chief Executive Officer of SEI. “It’s well known that a referral is one of the strongest tools in an advisor’s marketing arsenal, and what we’ve learned is that there is no exact science to winning client referrals. Client behavior and confidence in advisors varies based on personality, age, and location, and, thus, is unpredictable. However, by taking action wealth managers increase their likelihood of organically growing their business.”

According to the report, respondents from the West (the Americas and Europe) are more likely to recommend wealth managers if they demonstrate stability, good performance, personal service, and integrity. In the Americas specifically, nearly two-thirds of up-and-coming wealthy would recommend a stable firm (58 percent of respondents), followed closely by strong performance (54 percent). With the quality of the “salesperson” (15 percent) and “periodic contact” and “information about new products and services” (14 percent) ranking as the most important elements in a wealth manager’s ability to deliver a great experience (compared to staff efficiency and order processing in the 2011 survey), the study has uncovered that today’s high-net-worth investors increasingly desire a strong relationship with their wealth advisors.

“This year’s Futurewealth research confirms that the high-net-worth global investor base cannot be lumped into one single category. Rather, this group is incredibly diverse, and we’ve discovered that depending on lifecycles and net worth, high-net-worth investors select, stay with, and ultimately refer wealth managers for disparate reasons,” said Ryan Hicke, Senior Vice President, SEI Wealth Platform. “That said, above all this group is looking for stable, trustworthy, and engaged relationships with wealth managers. This finding should not be taken lightly. The relationship side of the business is ever-important, and managers must take the time to implement strategies that allow them to focus more heavily on personal interaction, without sacrificing quality.”

Further, while those in the Americas are most positive about their advisors, this group of up-and-coming-wealthy have referred the fewest clients to their firm (five) when compared to their European and Asian Pacific counterparts, seven and eight referrals respectively. In examining age, the study found that the respondents under 40 (4 in 10 of whom are asked by their wealth manager every quarter for referrals) referred the most clients (nine). By contrast, the oldest group polled (over 60), who are asked quarterly for referrals only 8 percent of the time, referred the least (four). In Asia Pacific, the region with the highest average number of recommendations, nearly 45 percent of clients are asked for referrals quarterly.

“Yes, many factors contribute to investors providing referrals, but one element of the referral game is undeniable: wealth managers who directly ask for referrals on a consistent basis are the most likely to get them,” said Kevin Crowe, Head of Solutions, SEI Advisor Network. “Furthermore, the more successful advisors we work with have found that facilitating actual ‘introductions’ as part of the referral process increases the likelihood the referral will actually become a client.”

This is the fourth paper in a four-part series delving into the findings of the Futurewealth Project, which maps the journey of the world’s up-and-coming wealthy with their wealth manager. The first paper examined the qualities impacting the decision-making process of selecting a new financial provider. The second paper studied the factors critical to high-net-worth individuals when making a transaction with a firm and the role of digital technology. The third paper looked into the factors that contribute to customer loyalty.

As Overweight as Possible in Oil Based Energy

| For Fórmate a Fondo | 0 Comentarios

In the following Question and Answer session, David Donora, Head of Commodities at Threadneedle Investments, addresses some of the key concerns currently facing investors in commodity markets, and explains his view of the outlook for the market.

What is your outlook for commodities for the remainder of 2014?

David: We are bullish on the macro outlook for the rest of 2014. The OECD countries and in particular North America, the region where economic growth is currently the strongest, and where growth is accelerating, will drive the expansion. Unless there is a significant escalation of geopolitical events we expect global growth to improve. Given that the developed world is leading the global economy, we anticipate that the expansion will be more energy intensive, and less intensive in terms of its consumption of industrial-type commodities, than if it were led by the emerging economies.

Could you elaborate on developments in the energy complex, including how the Iraqi conflict is affecting oil?

David: We anticipate that the price of Brent will remain high at about US$110 to US$115 a barrel by the year end. We also foresee a continuing dislocation between Brent and WTI with the latter continuing to trade at a discount of around US$7-15 a barrel to Brent.

In terms of curves this means that we expect Brent to remain in backwardation, that is to say that the prices for immediate delivery will be higher than the prices for oil five to ten years ahead, and similarly in the short term we recognize that prices for WTI will also be in backwardation.

But as oil production continues to increase in North America, we would expect to see that curve eventually flatten out.

What is your view of base, industrial and precious metals?

David: At the sector level we are positioned in line in base metals, as opposed to oil-based energy where we are as overweight as possible. Although we have a market weighting overall in base metals, we are significantly overweight lead and nickel and underweight copper and aluminum.

In precious metals, we have an underweight stance towards gold and are market weight in silver. Our underweight in gold is not so much a reflection of a bearish view on the precious metal itself but more because we are increasingly bullish on the broader range of commodities and because we would expect gold to lag commodities in general in the current environment. Gold does best when, not only is there geopolitical risk, but also when we have questions about whether the US dollar is functioning as a credible reserve currency. At present it is, given that the US is enjoying relatively strong growth and investment is flowing into the country to fund growing manufacturing and energy production. Thus in 2013, US$200bn of investment flowed into oil production in the US alone.

You may download the complete report through the pdf file attached.

Itaú Buys the Stake of Chilean Wealth Manager MCC It Did Not Own

| For Alicia Miguel | 0 Comentarios

Itaú Unibanco Holding Financeira SA, Latin America’s largest bank by market value, agreed on Monday to buy the stake it still did own of Chilean wealth management company Munita, Cruzat y Claro SA‘s brokerage and securities unit for an undisclosed sum, according to Reuters.

Itaú first acquired a stake in Santiago-based Munita, Cruzat y Claro in 2011 to speed up the expansion of Itaú Unibanco’s wealth management and private banking platform in Chile. Currently, Itaú oversees $83 billion in private banking accounts, the largest for a Latin American bank.

In a statement, Itaú said the decision to exercise an option to buy the rest of MCC showcases “its clear commitment to the Chilean market and the vision for Itaú Private Bank to be a leader in Latin America.”

Ramón Suárez will remain as chief executive of MCC, with Alberto Munita, Gastón Cruzat and Eugenio Claro – the founding partners of MCC – will stay in the company’s board, the statement said.

CalPERS and UBS GAM Announce USD 500 Million Infrastructure Partnership

| For Alicia Miguel | 0 Comentarios

California Public Employees’ Retirement System (“CalPERS”) and UBS Global Asset Management have formed a strategic infrastructure partnership, Golden State Matterhorn, LLC to pursue infrastructure investment opportunities across core, OECD markets. CalPERS and UBS have made capital commitments of USD 485 million and USD 15 million, respectively, to the partnership.

UBS will be the managing member and it will utilize the services of Infrastructure Asset Management (“IAM”), an investment area within UBS Global Asset Management’s Infrastructure and Private Equity business unit. IAM originates and manages direct investments in infrastructure assets globally on behalf of institutional investors from around the world. The team includes senior executives who have been active in the infrastructure and related sectors since the early 1990s.

CalPERS’ Senior Portfolio Manager, Randall Mullan noted, “We are pleased to add UBS Global Asset Management to our roster of preferred partners as we expand our access to infrastructure assets across the globe.”

Global Head of UBS Global Asset Management’s Infrastructure and Private Equity business, Paul Moy, said, “We are delighted to be partnering with CalPERS, one of the world’s pre-eminent institutional investors, for this important mandate. We share a common view of good infrastructure investment and the value-add and risk management activities associated with these investments. We are now working together to put this view into practice.”

GSM LLC was established on June 30^th, 2014 and is actively considering infrastructure investments opportunities with the goal of making two to four investments over the next few years.

BNP Paribas Securities Services to Acquire Prime Fund Services from Credit Suisse

| For Alicia Miguel | 0 Comentarios

BNP Paribas Securities Services, a global custodian with USD 9 trillion in assets under custody, has announced that it has agreed to acquire Prime Fund Services (PFS), a leading provider of fund administration, custody and banking solutions for alternative investment managers, from Credit Suisse. The move is part of BNP Paribas Securities Services’ strategy to develop its global fund administration franchise.

The transaction will result in a global fund administrator dedicated to alternative investment managers that will service over USD 231 billion of alternative assets and will be ideally positioned to support the convergence of traditional and alternative managers.

Clients will benefit from an enhanced, full service offering that brings together PFS’ administration expertise in the alternative investment sector and BNP Paribas Securities Services’ extensive custody and depositary network, and global reach, according to BNP Paribas Securities Services.

PFS employs staff in Europe, Asia and the United States. The transaction is expected to close in the first half of 2015.

Reflecting on Argentina’s “Default”

| For Alicia Miguel | 0 Comentarios

Despite falling stock markets and a decline in the peso versus the dollar, Argentina remains in defiant mood regarding its “technical default”.

The stumbling point is the so-called ‘vulture’ funds (a group of US hedge funds), which had rejected a renewed offer from the government. The Argentinian government is refusing to offer more to placate these holdouts. Judge Thomas Griesa is insisting that Argentina must pay the holdouts in full at the same time as holders of its performing debt.

To understand the problem you need to go back a little in Argentina’s history. Having initially defaulted on its debt in 2001, the vast majority of bondholders – around 93% – agreed to a settlement in 2005 and 2010. However, a small group of holdouts refused to settle. A rights upon future offers (RUFO) clause, however, was written into the settlements in 2005 and 2010. Essentially, this clause means that if better terms are agreed with the holdouts then the same terms need to be given to those who had settled in 2005 and 2010, which would vastly increase the cost of any settlement.

The situation remains highly fluid and hinges on a complex legal and financial transaction. At the time of writing, there are plenty of headlines in the media, according to Henderson Global Investors. There is talk of a potential deal in which a consortium of banks would buy the bonds from the holdouts and then attempt a fresh negotiation with the Argentinian government, either in the near future or maybe after the expiry of the RUFO in December 2014.

The International Swaps & Derivatives Association (ISDA) is reported to rule on 1 August on whether the missed bond payments mean that credit default swaps (CDS) have been triggered on Argentina’s overseas securities. Also at stake is the issue of ‘cross-default’, where holders of Argentina’s foreign currency bonds might invoke a ‘cross-default clause’ in their bond holdings and demand immediate payment.

Steve Drew, Head of Emerging Market Credit at Henderson Global Investors comments: “In terms of ability to pay, from Argentina’s perspective it wants to avoid paying a lot more than it has to. The expiration of the RUFO clause in December 2014 offers a potential exit strategy as it would allow Argentina to negotiate better terms with the holdouts without triggering additional payouts to those bondholders who settled in 2005 and 2010.

“In terms of willingness to pay, there is no love lost between the Argentinian government and the holdouts, with the government staking a lot of political capital on not paying any more to what it sees as a collection of opportunists. A scenario that might allow both sides to save face is for the holdouts to sell their bonds, probably at a discount to existing prices, to a consortium of banks who would then negotiate with the Argentinian government. Such a scenario might occur as early as the first quarter of 2015, with the banks receiving a price higher than the 2010 settlement but lower than that demanded by the holdouts. In such a situation, Argentina could be welcomed back into the capital markets fold within 1-2 years as markets tend to be quite forgiving when there is an appetite for yield and a lack of similar opportunities. Of course, the situation is highly fluid and I expect we will learn more over the coming days and weeks.”

Christopher Palmer, Director of Emerging Markets Equities comments: “This is largely a US-judicial driven situation and, frankly, has had little or limited impact on Argentinian assets in the long term.

“We are looking through this to the elections next year, when we anticipate a more market-friendly government to be elected. In our view, this is the last gasp of the populist Kirchner government that has drawn its battle lines. We believe a solution will ultimately be worked out because the amount outstanding – even if holdouts were paid in full – is around $1.5 billion (provided the RUFO clause is not triggered), which is small relative to the size of the Argentinian economy.”

Nikko Asset Management Makes Senior Executive Hire in Institutional Business

| For Alicia Miguel | 0 Comentarios

Stefanie Drews is joining Nikko Asset Management as Global Head of Institutional Marketing and Proposition, as the Tokyo-based firm continues to invest in its institutional platform and solutions business globally, the company has announced.

Drews was most recently Global Head of Key Clients and Family Offices at Barclays Wealth and Investment Management in London. She will be relocating to Tokyo later in 2014 to assume her new role.

“We feel very fortunate to have Stefanie join Nikko Asset Management as we take our institutional business to the next level,” said Hideo Abe, Executive Vice Chairman of Nikko Asset Management. “She has had a distinguished career in the investment and wealth management industry and we are very confident that her contributions will greatly improve the customer experience for institutional clients.”

Drews will be responsible for developing and managing the institutional proposition working closely with the firm’s investment, operational and distribution teams globally. She will manage institutional product, marketing and cross border specialist groups in Nikko Asset Management’s locations around the world. Her role was created in line with the firm’s strategy of increasing its business in the institutional arena.

Prior to Barclays, Drews was a Managing Director in Morgan Stanley’s Private Wealth Management business, where she ran a highly successful investment management program for institutional clients as well as high-net-worth individuals. She is a graduate of the Harvard University Graduate School of Business Administration and received a Bachelor of Arts degree from Oxford University.

Hispania Acquires 199 Dwellings in Madrid for €29.9 Million

| For Alicia Miguel | 0 Comentarios

Hispania Activos Inmobiliarios, through its subsidiary Hispania Real SOCIMI, has acquired in two separate deals two residential buildings totalling 199 dwellings located in the Madrid region, out of which 115 are in Majadahonda and 84 in San Sebastián de los Reyes. The deals include the purchase of 227 parking spaces and 115 storage units. The total acquisition price has amounted to €29.9 million euros.

The dwellings are currently rented, with an overall occupancy rate of 87%. They are high quality assets, located in consolidated areas in the north and north-west of the Madrid region.

“These new acquisitions of residential assets fit perfectly in our strategy of investing in high quality assets with a value creation potential through an investment and management plan. We are very confident in the value creation opportunity which these assets present, given their location in consolidated areas within the Madrid region”, asserted Concha Osácar, Board Member of Hispania.

Azora, external manager of Hispania, has extensive experience in the investment, repositioning and management of residential assets under rent through a team of c. 95 professionals, who manage c. 100 buildings with more than 10,500 dwellings across 17 Spanish provinces.

Majadahonda assets

The 115 dwellings acquired are within a closed residential community. They have an average surface of 85 square metres, with two bedrooms and two bathrooms, as well as associated parking spaces and storages. This promotion is located next to the commercial area of El Carralero and has multiple additional services in its surroundings: hospitals, schools, universities –Francisco de Vitoria and Somosaguas Campus of the Universidad Complutense de Madrid– and sport facilities, including golf course.

With a population close to 71,000 inhabitants, Majadahonda is one of the municipalities with the highest rent per capita in the Madrid region. Majadahonda is located in the north-west of the Madrid region and is well communicated with the city centre by the A-6 and M-503 highways and thanks to a wide public transportation network.

San Sebastián de los Reyes assets

The 84 acquired dwellings have two and three bedrooms and are distributed across two buildings. They have an average surface of 100 square metre and have parking spaces and storage units linked to the apartments. Located in the north of Madrid, next to the commercial areas of Plaza Norte 2 and Factory, the dwellings have access to numerous services in the surroundings: hospitals, sports facilities, including golf course and subway.

With this transaction, Hispania has already invested €292.7 million, 54.9% of the net proceeds raised in the IPO.

Financial Markets are Priced for US Interest Rates to Remain Below UK Rates

| For Fórmate a Fondo | 0 Comentarios

carney-yellen — Mark Carney (BoE) and Janet Yellen (FED). Financial Markets are Priced for US Interest Rates to Remain Below UK Rates

John Stopford Co-Head of Multi-Asset in Investec Asset Management shares its thoughts about one of the most crucial developments for the global markets in the months to come:

UK increases likely to be limited and gradual

The Governor of the Bank of England has put the market on notice that interest rates could start to rise as soon as the fourth quarter of this year. This is rather earlier than he had suggested previously. The Governor has been very consistent, however, in saying that rate increases will be, “limited” and “gradual”.

So, should we believe him? We tend to think so. As he says, “Households have a lot of debt.” The UK economy, especially the housing market, tends to be very sensitive to the cost of borrowing. While the UK’s sensitivity to higher rates is not new, it does appear to have increased as debt levels and house prices have gone up.

In the five prior tightening periods since 1994, the bank rate has never risen by more than 1.6 percentage points before being cut again. The Governor suggested that this cycle could see rates that are “slightly lower”, or, “slightly higher”, than the market’s pricing of the 2.5 percent in three years’ time. We may not even get that high. In addition, to mortgage concerns, the UK has to contend with fiscal tightening, higher bank lending margins, a stronger pound, and macro-prudential constraints.

The US Federal Reserve may have to raise rates by more than the Bank of England

The US Federal Reserve, by contrast, is in less of a hurry to tighten monetary policy, but may have to raise rates by more than the Bank of England when the time comes. Broad measures of labor market slack suggest that the US cycle is at a similar stage to when the Federal Open Market Committee (FOMC) began to raise interest rates in 1994 and 2004. Unlike the UK, in those two prior cycles US interest rates were increased by 3 and 4 percentage points respectively, before any pause. This time may not be so different. Yes, the trend rate of nominal growth is lower, but so is the federal funds rate. Indeed, FOMC members expect to raise interest rates by around 3.5 percentage points in the long run.

Financial markets are priced for US interest rates to remain below UK rates

The US economy is much less sensitive to changes in short-term borrowing costs because its mortgage market is more reliant on fixed rate financing. A recent McKinsey study estimated that UK household debt burdens are about 2.5x more sensitive to interest rates than they are in the US. Furthermore, the US economy has less need to implement macro prudential policies because the housing market is less extended. Also, the dollar is fairly soft, fiscal tighteningis limited, and unlike the UK, inflation and wage costs are already rising, albeit slowly. Financial markets, however, are priced for US interest rates to remain below UK rates as far as the eye can see.

We expect markets to start repricing within the next 6-12 months. This should see UK yields top out below those in the US and sterling fall back against the US dollar. This in turn should help the FTSE 100 Index to break its all-time highs and outperform the S&P 500 Index.

Authored by John Stopford, Co-Head of Multi-Asset in Investec Asset Management

Guggenheim Partners Announces Launch of Representative Office in Japan

| For Alicia Miguel | 0 Comentarios

Guggenheim Partners, a global investment and advisory firm, announced the official opening of its representative office in Tokyo, Japan.

Guggenheim Partners Japan Representative Office has been established in Tokyo, and will initially conduct market research activities.

“We are honored to open our first office in Japan,” said Mark Walter, Chief Executive Officer. “We look forward to delivering innovative solutions and providing exceptional value to Japanese institutions and investors.”

Guggenheim also announced the hiring of Atsuhito Sakai as Senior Managing Director and Guggenheim’s Representative in Japan. Prior to joining Guggenheim, Mr. Sakai was Managing Director and Senior Banker for Corporate and Investment Banking at Societe Generale. He brings a wealth of experience in asset management, insurance, and capital markets.

“Guggenheim’s history of performance across market cycles should resonate with many Japanese institutional investors including banks, insurance companies, pensions, and financial intermediaries,” said Mr. Sakai. “I am very pleased to join Guggenheim Partners and to lead our efforts in establishing Guggenheim’s presence in Japan.”

Added Scott Minerd, Global Chief Investment Officer, “Guggenheim has been very deliberate in how we approach our global expansion. In this regard, we believe our full complement of investment capabilities is ideally suited for a Japanese market. Guggenheim is committed to Japan and to delivering long-term value to all of our clients.”