Deutsche Asset & Wealth Management is strenghting its team in Americas and USA with several appointments announced last week. The company has hired J.J. Wilczewski as Co-Head of the Global Client Group, Americas. Wilczewski, a Managing Director, will focus on serving institutional investors, overseeing client coverage and distribution in the Americas region. He will work alongside fellow Co-Head Bob Kendall, who is responsible for DeAWM’s Americas retail business. Wilczewski and Kendall report to Dario Schiraldi, Head of the Global Client Group, with a regional reporting line to Jerry Miller, Head of DeAWM Americas.
Wilczewski brings 18 years of industry experience, most recently as Head of Advisory Solutions at AON Hewitt and Head of Business Development at Wilshire Associates. Wilczewski takes over from Joe Sarbinowski, Head of the Global Client Group’s Investment Specialist team for Liquidity Management, who has been responsible for institutional coverage in the Americas on an interim basis.
The company has hired also Thomas Clarke as Head of Lending & Deposit Products, Americas effective September. In this role, Clarke will lead DeAWM’s Lending & Deposit Product business across the Americas region, with overall responsibility for strategy, product development and client service. He will manage a team of specialists who work with bankers and clients to structure bespoke solutions to suit clients’ liquidity and funding needs. Clarke, a Managing Director, will be based in New York. He will report to Balaji Prasanna, Global Head of Lending, Deposit Products and Wealth Planning Solutions, and regionally to Jerry Miller, Head of DeAWM Americas. Clarke will join from JPMorgan, where he was U.S. Head of Capital Advisory in the Private Bank, responsible for the U.S. wealth management lending business. Before that he was U.S. Head of Banking Products at JPMorgan Securities.
In USA market, the company announced that there will be a new office in Dallas to serve high net worth clients. Also, Deutsche Asset & Wealth Management has added two Private Bankers in Los Angeles: Matthew Coombe and Patrick Menerey have joined the Firm. Based in Los Angeles, Coombe and Menerey will report directly to Michael Davis, a Managing Director and the Head of the U.S. Private Bank for the West Coast region.
With more than 10 years of industry experience, Coombe joined the Firm as a Director and Private Banker. He was most recently a Senior Vice President for Comerica Bank’s Wealth Management Division, where he covered ultra-high-net worth families in Los Angeles. Coombe earned a B.A. in Economics from the University of Southern California, and is a CFA charterholder.Menerey joins the Firm as a Vice President and Private Banker. Previously, he was a Vice President and Private Banker in Comerica Bank’s Wealth Management Division in their Orange County office. Menerey began his career at City National Bank in Los Angeles as an underwriter and Private Banker. He earned a B.A. in Economics from the University of Michigan.Coombe and Menerey are two of DeAWM’s latest hires in their push to expand their local presence on the West Coast. In February of this year, the Firm hired Brandt Daniel as a Managing Director and Private Banker. Daniel also joined from Comerica Bank’s Wealth Management Division, where he managed the Orange County and San Diego Private Banking teams.
In the investment team, Deutsche Asset & Wealth Management has hired Deepak Khanna as Head of U.S. Large Cap Value Equities, effective July 16, 2014. Khanna will be responsible for managing investment strategies focused on U.S. large cap value stocks. His appointment further strengthens DeAWM’s equity investment team in the Americas. Among other hires, in April 2013 the firm added a U.S. Head of Small and Mid Cap Value Equities team led by Richard Glass. Khanna, a Managing Director, will be based in New York and will report to Owen Fitzpatrick, Head of US Equity. He joins from Lord, Abbett & Co., where he was a portfolio manager of large cap value and multi cap value strategies.
The Miami Finance Forum (MFF), South Florida’s leading financial services networking organization convened some of South Florida’s top leaders in the finance and tech industry to discuss the past and future of IPOs and M&As in the tech sector.
The sold-out crowd of over 60 participants that formed part of MFF’s “Lunch & Learn” series met at Morton’s Steakhouse in Brickell to hear views from players involved in the IPO and M&A markets. Participants gained valuable insight provided by expert speakers Celine Armstrong, managing director of investment banking and product management at S&P Capital IQ, and Cyrus F. Lam, managing director of technology at KPMG Corporate Finance, LLC, who led the presentations. Paul Berkowitz of Greenberg Traurig moderated the discussion.
“According to S&P Capital IQ Research, current economic fundamentals and strong global liquidity are making for a healthy M&A environment this year. Q1 2014 saw a significant increase in the number of IPOs over the same period in 2013, with healthcare and technology among the most prominent sectors for issuance,” said Celine Armstrong, who has spent 14 years in the Investment Bank industry. She is currently responsible for leading strategy and product development, as well as global coordination for Investment Banking and capital markets within S&P Capital IQ’s Product and Content organization.
According to Cyrus Lam, whose work focuses primarily on the technology sector, “The U.S. has led the world’s technology M&A activity, maintaining market share in both volume and value. Investors are paying premium valuations for technology market leaders, such as What’s App, Viber and Beats.” Cyrus brings significant cross-border experience having worked in KPMG’s Corporate Finance Practice in India, the United Kingdom and the United States.
“It was a pleasure to participate in Thursday’s event,” stated Paul Berkowitz. He added, “The presence of so many people from both the enterprise and financing sides further proves the importance of Miami in the business community of the Western Hemisphere.” Berkowitz has over 40 years of experience working in a wide range of industries, both domestically and internationally.
Among the organizations that supported the event were S&P Capital IQ, a multinational financial information provider and a division of Standard and Poor’s, and international law firm Greenberg Traurig.
The MFF is a not-for-profit organization supporting the growth of South Florida’s network of finance and investment professionals. It is dedicated to expanding the knowledge base and professional practices of its members, while ensuring that the region continues to attract and retain its top talent. Its membership roster is comprised of professionals experienced in private equity, hedge funds, venture capital, commercial banking, investment banking, wealth management, law, accounting and other related professional-services industries. Since its founding in 2006, the MFF has been known for its event series, including its panel discussions, private roundtables and happy hour mixers.
BNY Mellon Investment Management has announced that Joseph Moran has been named Head of Private Bank and Registered Investment Advisor Distribution, a newly created position, with responsibility for distributing Dreyfus mutual funds and other BNY Mellon financial services in North America.
Moran reports to Kim Mustin, BNY Mellon Investment Management’s head of North American distribution, who joined BNY Mellon in April.
“While this is not a new channel for us, it is an important market given its growth trajectory and our product and servicing offerings,” Mustin said. “Our association with Pershing, combined with our list of illiquid and liquid alternatives, enables us to be a unique partner to this segment of the market,” Mustin continued. “This move shows our intention to be more visible and engage more fully with this segment. It also will focus our future product development and service offerings for this audience.”
A 20-year financial services distribution expert, Moran joins BNY Mellon from Oppenheimer where he headed Wealth Management distribution since 2010. Moran spent most of his career at DWS Investments / Deutsche Asset Management, where he held a series of progressive sales management leadership positions, including their Retirement Plan Services area, and ultimately led their Financial Institutions Group. Recognized as a leader and innovator, Moran was a member of the CEO Advisory Committee to drive performance with new ideas, new strategies, and change initiatives. Moran began his career as a financial advisor with Metropolitan Life. Moran has Series 24, 7, 6 and 63 licenses and received his B.A. from the University of Dayton.
“BNY Mellon Investment Management’s operating model, consisting of multiple autonomous institutional investment boutiques, allows us to meet the growing needs of our clients seeking unique investment solutions,” Mustin said. “Joe’s relationships and experience within the Private Bank and RIA market will enable us to accelerate our efforts in this area. We are delighted to add Joe’s results-proven experience to drive our business forward.”
Real estate (RE) is an obvious target for investors searching for yield and is therefore outperforming other asset classes. The latest monetary developments have made ING IM decide to reduce our overweight position in global RE. Regionally, they increased our position in the Eurozone and cut our overweight in the UK.
The asset manager remain positive for RE, as fundamentals in developed markets are improving and the search for yield is expected to stay with us for a while. This is especially the case in the Eurozone, thanks to persistently easy ECB policy.
Regional performances in real estate year-to-date
Real estate outperforms other asset classes
Being an obvious target for investors searching for yield, real estate (RE) equities have outperformed other asset classes and sectors this year. Besides capturing an attractive dividend yield, real estate investors have also some optionality on a broadening economic recovery.
Rate hike speculation could throw a spanner in the works
However, the ride might become a bit more bumpy as speculation about when and which central bank will tighten monetary policy first may impact bond yields. The sharp rise in 10-year bond yields in May and June 2013 – particularly in the US and the UK – which was triggered by Ben Bernanke’s “taper talk” is still fresh in investors’ minds. The rise in yields caused a sharp correction in real estate equities.
Bank of England likely to be the first mover
The UK central bank is expected to be the first mover. This was confirmed by Bank of England (BoE) Governor Carney on June 12, when he stated that the first BoE rate hike “could happen sooner than markets expect”. This went not unnoticed by the UK real estate market which corrected immediately (see graph). This might be a prelude of things to come when monetary policy is being tightened. On top of that, the BoE last Thursday announced some (modest) measures to try prevent a booming (London and South East England in particular) housing market threatening financial stability in the future.
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Hispania Activos Inmobiliarios has acquired a 90% stake in ONCISA for an amount of 80.2 million euros, by means of the subscription of a capital increase. ONCISA is the real estate company of Grupo de Empresas de la ONCE (“Grupo ONCE”) and its Foundation (“Fundación ONCE”) and owns 46,416 m2 of office space, distributed in 9 assets, 8 located in Madrid and 1 in Malaga. The implied valuation of the portfolio after the capital increase is 120.4 million euros, including debt.
This transaction has been made in the context of a wider collaboration agreement signed between Grupo Azora -Hispania’s investment manager- and Fundación ONCE. This agreement sets the basis for collaboration in projects related to people with disabilities and their inclusion in society and in the corporate world, as well as on improving their accessibility to goods and services.
All of the assets within the ONCISA portfolio are of high quality and excellently located: those in Madrid are all in highly consolidated areas, in the surroundings of the M-30 ring road, and the building in Malaga is located next to the historic city centre.
In a separate deal, closed last 27th of May of 2014, Hispania acquired -from a third party- two floors of the Murano building for an acquisition price of 4.4 million euros. The rest of the Murano building already belonged to ONCISA. These two floors have been contributed as part of the capital increase subscribed by Hispania – completing the ownership of 100% of the building- along with a cash contribution of 75.8 million euros, making up the full price of 80.2 million euros for the acquisition of the 90% stake.
The success in the completion of this transaction has been significantly influenced by the fact that Grupo Azora, Grupo ONCE and Fundación ONCE share common social interests with a special concern for the promotion of a strong social responsibility across all of their respective company practices.
“This new deal of Hispania in the office market in Madrid fits perfectly with our investment strategy. The association with Grupo ONCE and its Foundation represents a great opportunity to develop new joint corporate initiatives. The agreement signed with Fundación ONCE is an important step for Azora in terms of corporate social responsibility and we are really committed with the opportunity of collaboration that will derive from this relationship”, said Concha Osácar, Board Member of Hispania.
On the other hand, the Chairman of Grupo ONCE y its Foundation, Alberto Durán, has shown his satisfaction for the closing of this transaction because it will allow the group to reinforce other areas of corporate activity in which they are already working and which are more conducive to the creation of employment for people with disabilities, “which is the identity sign and origin of our companies”, he added.
Alberto Durán has highlighted that the collaboration with Grupo Azora will extend during the coming years thanks to the collaboration agreement signed between Fundación ONCE and Grupo Azora, “which foresees, among other things, the integration of up to 75 people with disabilities”.
After this transaction, Hispania has already invested a total amount of 205.7 million euros since it listed on March 14th 2014: 120.35 million euros in offices, in 11 assets with a total GLA of 64,622 m2 (46,416 in the ONCISA portfolio and 18,206 in the 2 buildings in Les Glòries, Barcelona), 63.8 million euros in residential in 213 dwellings in Parque Diagonal del Mar, in Barcelona, and 21.5 million euros in hotels in the Hotel Guadalmina in Marbella, Málaga.
Photo: kuhnmi. Credit Suisse Sells its Wealth Management Business in Italy to Banca Generali
Credit Suisse Italy and Banca Generali have announced that they have reached an agreement for the sale to Banca Generali of the Italian affluent and upper affluent private banking operations of Credit Suisse Italy.
The transaction will entail the sale of the business line including, inter alia, the agency contracts of about 60 financial advisors of Credit Suisse Italy, accounting for a current total portfolio of over €2 billion AUM. Consideration for the sale will fall within a range of €47 to €50 million and will be determined on the effective date of the transaction, planned for November 2014. Taking advantage of favourable market conditions, with rates at a low, Banca Generali will finance the acquisition primarily through debt, with the remainder in cash. The transaction is subject to prior authorisation by the Bank of Italy, as well as satisfaction of the additional contractually established conditions.
Through this acquisition, Banca Generali aims to meet the growing demand for qualified investment advice in Italy by speeding the development of its network of financial professionals and private bankers, who are compatible and well matched with their colleagues at Credit Suisse in terms of their profiles, portfolio size and geographical positioning. Through the deal, Banca Generali will further reinforce its presence in strategic areas in Italy.
Credit Suisse is expediting the implementation in Italy of its global strategy of focusing its asset management business on entrepreneurs and large families who can benefit from its integrated advisory model with both asset management and investment banking advice.
The CEO of Banca Generali, Piermario Motta, commented: “We are extremely satisfied with the agreement reached with Credit Suisse. This deal is a further step forward in the extraordinary growth process on which we have embarked in Italy. I am proud to have the opportunity to welcome to Banca Generali a group of colleagues with a strong track record from a highly prestigious international company. They will help us reach our investors with increasingly broad, effective coverage.”
Giorgio Riccucci, Head of Private Banking Market Area Italy, Credit Suisse, stated: ”I am highly satisfied with the agreement reached with Banca Generali, a strategic acquirer with which we share the same values, along with a high degree of proficiency and experience in best serving our clients with dedication. This deal, along with the recent acquisition of Morgan Stanley’s private banking operations in Italy, will allow us to actively pursue our project of focusing on HNWI and UHNWI clients. In the UHNWI segment alone, we recorded inflows of assets under management of over €1 billion in the first six months of 2014. We will continue in this direction. We have planned significant investments of both an organic and non-organic nature. I would also like to thank all of my colleagues who have contributed to the development of Credit Suisse’s private banking business in Italy. I am certain they will find Banca Generali to be a cutting-edge partner with which to continue their professional growth in the long term.”
China Qing Dynasty Flag 1889. Matthews Asia Awarded QFII License to Invest in China’s A-Share Market
Matthews Asia has been awarded a Qualified Foreign Institutional Investor (QFII) license by the China Securities Regulatory Commission (CSRC) and a US$100 million quota from the Chinese State Administration of Foreign Exchange (SAFE).
The award of a QFII license and quota enables the firm to invest, on behalf of its clients, up to US$100 million directly into China’s domestic securities market, including the market for China A-shares. Currently, direct investments into this market by foreign investors can only be made with a QFII license and quota. The quota will be made available to funds managed by the company, including its US-domiciled open-ended equity mutual fund family, Matthews Asia Funds.
China’s A-share market is the fifth largest public equity market in the world. It consists of over 2,300 companies totalling approximately US$2.6 trillion in market capitalization1 and offers investors the opportunity to invest directly into a growing market of companies that are benefiting from China’s economic transformation. The breadth and depth of the market also presents a much bigger pool of investment opportunities compared to Chinese companies listed on the H-share market in Hong Kong or the B-Share markets in Shanghai and Shenzhen.
The A-share market is considerable, but Matthews Asia believes that significant improvements in corporate governance standards are still required. The firm believes this supports the need to conduct extensive due diligence on prospective investments and highlights the value of taking a long-term active management approach.
Matthews Asia is a specialist investment manager located in San Francisco. With US$26.6 billion in assets under management as of June 30, 2014, the firm focuses on long-term investing solely in Asia.
Daniel Diaz. Foto: Linkedin. Dani Díaz Leaves JP Morgan and Joins Credit Suisse as a Senior Banker
According to information provided to Funds Society by sources familiar with the appointment, Daniel Diaz Torroba has joined the ranks of Credit Suisse as a senior banker serving UHNW clients in Latin America.
With over 17 years experience in the private banking industry, he joins the Swiss institution, from JP Morgan, where he has worked for almost five years as executive director specializing in high net worth families and institutional clients. Previously, Diaz held various positions in private banking and investment banking in such well-known firms as UBS and CITIBANK.
Diaz has a degree in Business Management and Administration from the University of Navarra and has an MBA from Darden Graduate School of Business.
Foto: Mattbuck. Beamonte Investments entra en Kiwii Capital, una startup mexicana dirigida a pymes
Beamonte Investments together with its affiliates, “Beamonte”, a leading private investment firm in Boston, announced that it has invested in Kiwii Capital SAPI, a Mexico City start-up dedicated to providing factoring to SMEs. Kiwii was launched in late 2013 by the Mexico team of Beamonte Investments, but just recently finalized funding.
With Kiwii, Beamonte Investments opens its first operation as a company builder in Latin America. The format turns the typical startup formula on its head by identifying robust business models, selecting them as projects, and then getting the best entrepreneurs to partner with to implement them. Beamonte Investments offered the seed capital as well its global network to ensure proper financing. Beamonte has significant experience managing non-banking financial institutions in Mexico, having managed approximately 150 million US dollars in credit assets in the country.
Kiwii Capital is run by Salvador Gaytan, a veteran of commercial banking. “I’m thrilled to be part of this project with Beamonte Investments because the product that we offer helps SMEs to manage their cash flow to grow to the next level. In Kiwii we work with companies with Annual Sales between MXP 15 million to 70 million that provide products or services to large corporations.”
Kiwii Capital is specifically designed to serve small and middle market family-owned operating enterprises in Mexico. Kiwii offers Factoring with terms of 30, 60 and 90 days, helping small businesses to stabilize their cash flow. In factoring, the underlying assets are the seller’s accounts receivable, which are purchased by the factor at a discount. The remaining balance is paid to the seller when the receivables are paid to the factor, less interest. Kiwii will be raising USD 15M in the next 12 to 18 months .
Luis Felipe Trevino, Managing Director of Beamonte and Chairman of the Board at Kiwii Capital commented, “We are exited to build a company from the ground up. As with any other in our portfolio, Kiwii is going to receive our support, advice, network and expertise, but our team members will help Salvador to run the day to day operations. Over time, we will attract talent to grow the company to the next level.”
Foto: Dan Smith, Adrian Pingstone, Yann, Alexandra Studios. Compiled by Anonymous101. What the ECB’s Decision Means for Emerging Markets
The European Central Bank (ECB) introduced three measures aimed at loosening monetary policy further and at supporting lending to non- financial companies. These measures will not only address the deflationary concerns which policy makers are worried about, but also help boost domestic demand, growth, as well as external demand for imports, which will directly benefit emerging market countries. The three measures in more detail are:
1.Refinancing rate: It reduced its main refinancing rate, at which it lends the majority of liquidity to the banking system, by 0.10% to 0.15%.
2.TLTRO: It introduced targeted longer-term refinancing operations (TLTRO). This will enable ECB bank counterparties to initially borrow up to 7% of their loans to the euro-zone non-financial private sector, excluding mortgages.
3.QE: Last, but by no means least, the ECB announced that it would “intensify preparatory work” on a scheme promoting the purchase of asset-backed securities, a form of quantitative easing (QE).
What do these measures mean for emerging markets?
According to Peter Eerdmans Co-Head of Emerging Market Fixed Income and Werner Gey van Pittius Co-Head of Emerging Market Fixed Income at Investec AM, there are four key points:
1. Impact on emerging market central bank policy makers
Central bank policy makers from Mexico to China, Turkey to Hungary have been more dovish taking into consideration not only their domestic economic circumstances but also the prevailing global rate policy of the major central banks. The expectations for easier monetary policy in the euro zone have maintained the global trajectory of ample monetary liquidity among the major central banks.
2. Domestic growth in emerging markets
Lower domestic interest rates and cheaper funding for corporates and governments amid contained inflationary pressures should further boost domestic growth across the regions. This has been a particular long-term aim of politicians and policy makers who wish to rebalance their economies and diversify away from the traditional focus on exports to developed economies. Our view remains that these efforts will take some time to rebalance, and in the meantime exports will continue to be the largest driver of growth.
3. Trade and exports
As well as suppressing domestic interest rates, another benefit from global liquidity is an increase in growth and trade, which eventually drives emerging market exports.
So far, the picture on world trade seems quite favorable for emerging markets. The question remains, however, what impact would the ECB’s recent moves have for trade with Europe, and which regions in particular are likely to benefit from that.
4. Ample global liquidity, low volatility and search for yield
The last, but by no means least, impact of ECB policies on emerging markets is the continuation of ample liquidity. This has taken volatility levels to lows not seen since before the great financial crisis.
Ample liquidity, low volatility and a clear trajectory by central banks to keep monetary policy accommodative have accentuated the search for yield across global markets. We continue to see demand for yield and particularly for emerging market yield, which offers attractive valuations, stronger fundamentals than developed markets, and positive real yields. The one caveat is that historically these periods of sub-normal volatility have not lasted more than two to three years, but, in our view, policy makers are still a few years away from raising concerns on liquidity given benign inflationary pressures and output gaps.
In conclusion, Investec AM expects he latest ECB moves not only to maintain the increasing demand for exports from emerging markets, but also to boost growth dynamics within emerging economies through more dovish central bank policies, as well as improving market sentiment through ample liquidity, clear communication and low volatility.
