EFG International has recruited Adrian Kyriazi as Regional Business Head for Continental Europe and Switzerland, with effect from 14 July. He will be a member of both the EFG International and EFG Bank Executive Committees, subject to regulatory approval.
Adrian Kyriazi will take over responsibility for Switzerland from John Williamson, CEO, EFG International (who assumed regional business responsibility for Switzerland during the second half of 2013, on a temporary basis) and for Continental Europe from Alain Diriberry, Chairman, Private Banking Geneva and market co-ordinator for CEE and Africa.
Adrian Kyriazi was previously with Credit Suisse, where from 2010-14 he was Managing Director, Market Group Head for Greece, CEE/Poland. Previously he spent nineteen years at HSBC in a variety of different roles, including: Managing Director, Private Banking and Co-CEO, HSBC Private Bank, Monaco; CEO of West Coast Region, USA, HSBC Private Bank; and CEO of Global Practices (encompassing wealth and tax advisory, corporate finance, and family office), HSBC Private Bank.
John Williamson, CEO, EFG International: “I am very pleased that Adrian Kyriazi is joining us as Regional Business Head, Continental Europe and Switzerland. He brings extensive private banking and client management experience across a range of markets and disciplines, providing a compelling fit for EFG. He is also a proven business leader, well equipped to develop our Continental European and Swiss businesses in a coordinated fashion.”
Adrian Kyriazi, Regional Business Head, Continental Europe and Switzerland: “I am excited to be joining EFG International. It is a strong and dynamic business, with a clear focus on private banking, and a clear commitment to delivering profitable growth. I am convinced there is significant potential to grow, and I am really looking forward to working with the EFG leadership team to make this happen.”
CC-BY-SA-2.0, FlickrMark McGoldrick, managing director de Concept Capital Markets. Hedge Fund Association nombra nuevos codirectores para su chapter de Nueva York
The Hedge Fund Association (“HFA”) announced the appointments of Mark McGoldrick, Managing Director of Concept Capital Markets, and Greg de Spoelberch, Director of Marketing and Operations at Opalesque, as the New York Chapter‘s Regional Co-Directors. McGoldrick and de Spoelberch will lead HFA in the region and help produce member educational programs and events. They will serve alongside McGladrey Partner Sal Shah, Regional Director for both the HFA’s Northeast Chapter and Connecticut Chapter.
McGoldrick has been a Managing Director at Concept Capital Markets since August 2011 following the firm’s acquisition of Alaris Trading Partners, an introducing brokerage he founded in February 2006. Earlier in his career, he worked at UBS Securities in prime brokerage.
“I am honored to be appointed by the HFA as Regional Co-Director for the New York Chapter,” said McGoldrick. “I look forward to helping enhance the organization’s frequent programs that aim to educate, connect and accelerate success for HFA members in the largest hedge fund city in the world.”
De Spoelberch has been with Opalesque since 2009, initially as Head of Product Development until 2011 before he was appointed Director of Marketing and Operations. He also serves as Producer of Opalesque TV, interviewing top “Legends and Leaders” in the alternative investment industry.
“As Regional Co-Director for the HFA’s New York Chapter, I am eager to help enhance business and professional development programs for our members,” said de Spoelberch. “In the years ahead we plan to boost the HFA’s already frequent member events in New York City, and foster best practices and new business development opportunities for all of our members.”
“I want to welcome Mark and Greg to their new leadership roles as HFA’s Regional Co-Directors for New York,” said Shah. “I look forward to working alongside them to plan high-quality member events for New York and more broadly, the Northeast. Their experience in the industry will allow us to take the organization’s activities in the region to the next level.”
Shah heads the HFA’s Northeast and Connecticut Chapters, and Foley Hoag Partner Robert Sawyer also serves as the HFA’s Regional Chapter Director for Boston.
“As Chairman of HFA, I am pleased to announce new leadership positions for two very well-respected individuals in the hedge fund industry,” said David Friedland, President of Magnum U.S. Investments. “Mark and Greg will play a vital role in augmenting the HFA’s efforts in the New York Region.”
Wharton Research Data Services (WRDS), a data research platform and business intelligence tool for corporate, academic and government institutions worldwide, announced the winners of the Wharton-WRDS Best Paper Award in Empirical Finance. The 2014 Best Paper Award winners, Raghuram G. Rajan, Governor of the Reserve Bank of India and Distinguished Service Professor of Finance at the Booth School of Business at the University of Chicago, and Rodney Ramcharan, Chief of Financial Studies at the US Federal Reserve Board, explored bank failures during the agricultural collapse of the 1920s, leading up to the Great Depression.
The award for their paper, Financing Capacity and Fire Sales: Evidence from Bank Failures, was presented to the researchers on June 17 at the Western Finance Association (WFA) conference. WRDS, a part of the Wharton School of the University of Pennsylvania, provides instant access to over 200 terabytes of data across Accounting, Banking, Economics, Finance, Insurance, Marketing and Statistics disciplines, making it the gold standard business intelligence tool for over 30,000 users in 33 countries.
“WRDS believes that highlighting excellence in financial research strengthens the field and we are honored to sponsor this Best Paper Award,” said Robert Zarazowski, Senior Director of WRDS. “Expanding current knowledge and pushing the boundaries of learning and analysis is at the heart of what we do at WRDS. We congratulate this year’s winners for finding new ways to examine a historic financial collapse and in turn shed new light on our most recent financial crisis.”
Rajan and Ramcharan set out to explore whether bank failures lead to contagion, causing shocks throughout the larger banking and financial sectors due to reduced liquidity and asset devaluation. During the 2008-09 crisis, policy debates focused on the merits of the US government bailing out failing banks. To examine this question the researchers looked to the 1920s – when most banking was highly localized due to restrictions and outright prohibitions on interstate banking and when banks were left to fail. For the first time, research shows credible evidence that types of liquidations and fire sales do feature significantly in financial crises.
“This WRDS Best Paper Award is a terrific honor and we are really pleased to have our work acknowledged in this way,” said Rodney Ramcharan. “It’s always gratifying to have an opportunity to discuss and share original research, and we are grateful to WRDS for supporting this award and creating a venue to expand the conversation about the real world impacts of federal bank policies.”
Global X Management has announced that its suite of income producing ETFs has achieved several key milestones in assets under management. The Global X SuperDividend ETF crossed the $1 billion threshold, while the Global X SuperDividend U.S. ETF, the Global X SuperIncome Preferred ETF, the Global X MLP ETF and Global X MLP & Energy Infrastructure ETF (MLPX) each reached $100 million in assets.
SDIV, launched in August 2011, tracks the Solactive SuperDividend Index, providing exposure to 100 equal weighted companies that are among the highest dividend yielding stocks around the globe. U.S. securities account for 23 percent of the fund, while Australia and the U.K. represent 20 percent and 10 percent respectively. The fund has a 12-month dividend yield of 6.06%. The 30 Day SEC Yield (as of the most recent month end) is 5.85%.
Global X added SPFF in 2012 and DIV in 2013 to provide additional tools to investors looking to access alternatives to fixed income with high yield potential. SPFF equal weights 50 of the highest paying preferred stocks listed in the US and Canada, while DIV equal weights 50 of the highest yielding US dividend payers.
The strong inflows into the three funds come at a time when persistently low interest rates have made alternatives to fixed income securities, such as dividend stocks and preferred shares, attractive to investors.
“In this low and uncertain interest rate environment, we believe exposure to global dividend payers can provide key diversification to income-oriented portfolios,” said Jay Jacobs, research analyst. “Our SuperDividend™ ETF provides access to a class of dividend payers that have traditionally been overlooked by the market.”
Global X is a New York-based sponsor of exchange-traded funds that facilitates access to investment opportunities across the global markets. With $3.8 billion in managed assets as of May 2014, Global X offers income-oriented, international, and alternative exchange-traded funds.
Following years of sharp increases to wages and real estate prices, has China become too expensive? To answer this question, Andy Rothman, Investment Strategist at Matthews Asia, makes a proposition: start with lunch.
“I recently moved to San Francisco to join Matthews Asia after living in China for more than 20 years. So when I made my first trip back to Shanghai in April, I was eager to visit my favorite neighborhood noodle joint, a short walk from my house there.
I had been experiencing a bit of sticker shock in the U.S. so it was comforting to find that a fantastic (and large) bowl of beef noodle soup still cost only about US$1.50 (9 renminbi). Keep in mind, this is a fairly labor-intensive meal—the beef is stewed with the broth and simmered for hours, and the hand-pulled noodles are made right there in the middle of the small restaurant. There’s no way to find a bargain like that in any part of San Francisco.
But what can a visit to a noodle shop tell us about the macroeconomy? Well, the restaurant’s beloved bowls of beef noodle soup are not products traded internationally and, therefore, the cost should be driven to a significant degree by wages in the domestic economy”.
Chinese exporters are also managing to deal with higher costs, both by improving productivity and by moving up the value chain. This is evident from the rising share of U.S. imports from China. Since the end of 2004, the renminbi (RMB) has appreciated by 41% in real effective terms, and the minimum wage in Dongguan (a key export-processing center in southern China) rose by 196%. What has been the impact on the competiveness of Chinese exports? In 2004, Chinese goods accounted for about 13% of all products imported to the U.S. (while Mexico’s share was about 10.5%). Despite sharp increases in wages and in fuel costs, as well as the benefits of the North American Free Trade Agreement, China remains competitive today, even compared to Mexico. Last year, China’s share of U.S. imports for goods rose to about 19%, while Mexico’s share was about 12%.
“China is no longer the cheapest place to manufacture such items as shoes, toys and textiles, but it remains competitive for higher value-added machinery . . . and of course, there are those delectable hand-pulled noodles.”
Photo: Fabio Rodrigues Pozzebom/ABr - Agência Brasil. Dilma, Lula and What Comes After the World Cup
As all eyes turn to Brazil this month for the World Cup, Threadneedle’s Latin America fund manager Daniel Isidori reflects on the current pressures on the country and his portfolio positioning in Brazilian stocks:
In 2006 when Brazil won the right to host the World Cup that kicks off on Thursday, the government hoped it would showcase the progress the country is making to becoming an economic giant. Back then the economy was growing by 4 to 5% a year powered by high commodity prices and domestic consumption. However, economic growth has faltered in recent years. Commodity prices remain well below the peaks reached in the middle part of the last decade, while domestic demand has been softening with consumers now weighed down by high levels of debt.
The run up to the World Cup has also highlighted widespread dissatisfaction among Brazilians. Protesters have taken to the streets of many Brazilian cities to attack the government for the perceived high cost of preparations for the World Cup and the 2016 Olympics, which will be hosted by Rio de Janeiro, calling for the authorities to place more priority on education, health and transport. President Dilma Rousseff, who is seeking re-election in October, has sought to deflect criticism, saying that the World Cup will spur growth.
The economy could certainly do with a lift with GDP expanding by just 0.2% from the previous quarter in the first three months of 2014, while economic growth in the last quarter of 2013 has been revised down to 0.4%. Slowing economic growth in China, Brazil’s top trading partner, weighed on prices for key commodities like iron ore and soybeans as well as demands for these exports. Moreover, the central bank has been raising interest rates since early 2013 to bear down on inflation with the benchmark Selic rate now standing at 11%. Consumer prices have risen by about 6% a year since 2010.
Perhaps unsurprisingly given this background, President Dilma Rousseff is increasingly unpopular. Moreover, financial markets have been reacting positively to her sliding poll ratings in the belief that a new president would make the changes Rousseff is unwilling to implement. Although the president remains ahead of her two main contenders, Aécio Neves and Eduardo Campos, and we still believe she will be re-elected, a poll upset now looks far more likely than just a few months ago. Both Neves and Campos are trained economists and have been successful state governors. According to the ‘Economist’ magazine both want to grant independence to the central bank, simplify Brazil’s convoluted tax system, slash the number of ministries and boost private investment in much-needed infrastructure. Rousseff’s campaign managers have sought to arrest her fall with TV adverts warning that poorer Brazilians will suffer if she loses the vote. TV adverts (which are free, and distributed according to previous electoral results), are critical in Brazilian elections given the relatively low education levels of a large proportion of the population. Rousseff has a huge advantage in that she can lay claim around two-thirds of the total advertising time allotted to the candidates. However, if Rousseff’s popularity were to plummet so low that election defeat appeared unavoidable it is possible that her immediate presidential predecessor Luiz Inácio Lula da Silva, Brazil’s most popular and influential politician, could make a comeback. Both Lula, who served as president from 2003 to 2011, and Rousseff are members of the Workers Party. But the markets would welcome another term by Lula who was a far more pragmatic president than Rousseff has proved to be.
Brazilian stocks have performed well recently on the prospect that the election result could usher in a new reformist administration. However, the medium to long-term outlook for Brazil is not particularly positive. The economic model that has served Brazil – high commodity prices and strong consumer demand – appears exhausted. Rising inflation and weak growth are also just two of the problems facing the country. The current account is widening, while power blackouts and electricity rationing may be introduced as a drought prevents Brazil from recharging its hydroelectric dams. Hydro reservoirs, which generate two-thirds of Brazil’s power, are at near-record lows. In March, when Standard & Poor’s downgraded the credit rating on Brazil’s foreign currency debt, the agency said that the risks of rationing and costs associated with the drought threatened growth and investment in the country.
Given all these problems, it might appear odd that we have recently reduced our underweight in Brazil. However, we have done so in a highly selective manner and to benefit from the rally which is linked to the possibility of a more reform-minded president taking power. In addition, generally when we research stocks, we look for a catalyst that will propel the stock higher and Brazil now has a potential catalyst in terms of a possible change of government. The Brazilian market would perform very well in that eventuality as investors bank on a new administration implementing reforms that unleash the economy’s full potential – we have seen a similar phenomenon in Mexico where a new administration is introducing wide-ranging reforms.
In terms of our portfolio, the companies most affected by the upcoming election are state owned and rather than taking exposure to all of them, we now have a small overweight in the energy giant Petrobras because it is the most liquid and the most easy for international investors to buy into. By contrast, we are avoiding utilities because they could suffer if electricity is rationed. We are also wary of certain sectors which will be negatively affected by the World Cup such as airlines and retailers as people stay close to their TV screens.
Georges Chodron de Courcel, 64, BNP Paribas’ Chief Operating Officer, will retire on September 30, 2014.
Georges Chodron de Courcel has devoted his entire 42-year career to BNP and then BNP Paribas, and has made a decisive contribution to the Group’s development, and especially to the project which eventually led to the creation of the new BNP Paribas entity.
The Board of Directors of BNP Paribas pays tribute to the career and work of Georges Chodron de Courcel, who has been one of the key players in the expansion of BNP Paribas and its businesses, especially outside France, through the various positions that he has held.
Georges Chodron de Courcel commented: “I am proud to have contributed to building this outstanding Group, which has now become one of the European leaders in its industry. I am convinced that BNP Paribas will be able to play a prominent role in the coming years”.
As a Director of several listed companies, in order to continue to fulfill his director roles while complying with the new French banking law, which limits the number of such mandates for bank corporate officers, Georges Chodron de Courcel will stand down from his role as BNP Paribas’ Chief Operating Officer on 30 June at his own request.
Photo: Miguel Virkkunen Carvalho . Comino Seeks to Expand its Business among U.S. and Latin American Fund Managers
Comino is an alternative platform for small and medium management companies who have neither the ability nor the means to compete in the big leagues. As explained by Johan Kahmn, founder of Fund Management Group (FMG), the company which owns the platform, it houses hedge funds, long-only and private equity funds, among others, all under one roof.
Likewise, Kahmn also explained that the platform provides an interesting alternative for those management companies who prefer to focus on the profitability of their portfolios rather than spend time and money on regulation, compliance, risk, and transactions. Larger companies may be able to afford the effort and money required, but not so the smaller operators who may lose attractiveness and competitiveness.
Comino Platform is domiciled in Malta and is aimed at small and medium fund managers with funds between 5 and 20 million dollars in assets and more. At Comino Platform, they say that a fund may be operating in the market within a period of between six to twelve weeks. Currently, there are 578 funds registered in Malta, 460 of which are funds designed for professional investors.
Gunnar Chr Detlie, Group Operations Director, explained that Comino Platform wishes to seize the opportunity of the implementation of the new regulation on investment funds launched in Europe, in order to expand its business among U.S. and Latin American operators. The regulations are quite different and one is required to meet those regulations. “The offshore jurisdictions will face problems during the next three years in trying to comply with the regulation,” said Detlie.
Meanwhile, Gill Hillevi Dahlin, coordinator for the group in Latin America, stated that multiple strategies ranging from private equity to long short, are housed under the Comino Platform. They have received requests from Brazil, Argentina, Mexico, Uruguay, and Colombia, especially from managers seeking a long-term solution which allows them to focus on the product, leaving the fulfillment of regulations to third parties.
Comino Platform currently has several funds under its umbrella and many more which are about to enter. They already have two funds in their Latin American basket: a fund of funds and one of Argentine equities, although it aims to expand that base.
Detlie emphasized that from Comino Platform they can address the needs of those management firms which, due to their size, cannot resort to large institutions, which require figures above 30 million dollars.
As for their forecasts for the period 2014/2015, they expect a successful close to the cycle because they trust that European regulations will push a number of management companies to move in their direction, so they expect to double the number of clients.
According to the platform, Malta has quietly emerged as one of the most stable and innovative finance domiciles in the EU, which it joined in 2004, later joining the Euro zone in 2008. Since then, Malta has developed into an important financial and business center. Malta has attracted investment from some of the world’s leading financial institutions, frontline multinationals and wealthy individuals. Over the years, the Financial Services Authority of Malta (MFSA) has established itself as a household name among international organizations for its pro-business government policies. In addition, a large number of double tax treaties ensure Malta’s position as a major emerging financial center in Europe.
Comino Platform, which functions as an umbrella SICAV, was incorporated in 2012 as a third party fund manager and management firm established in Malta. Comino claims to offer a more cost effective and efficient route to launch your own professional fund through a collective investment infrastructure. The platform is fully regulated by MFSA providing a one-stop shop for independent operators. The platform of fund managers is preparing to comply with AIFMD (Alternative Investment Managers Directive).
Currently Comino Platform has a team of 12 people working from Oslo, Stockholm, Malta, and London, as well as a trading team.
Foto: JJ Harrison . Como evitar la concentración de los grandes en los índices de Renta Variable con ETFs
The European Central Bank (ECB) should not now need the ‘nuclear option’ of full quantitative easing as growth returns to the Eurozone, though the door remains open for it, says Robeco’s chief economist, Léon Cornelissen.
The long-suffering Eurozone economy is improving to the point that we will soon see the end of hated austerity programs, Léon Cornelissen believes. Meanwhile, the threat of deflation that would seriously undermine a recovery is fizzling out, thanks to better growth figures, he says.
And with these two issues under control, the ECB’s main enemy may ironically now become the very strength of the euro, says Cornelissen. A strong currency is a problem because it makes exports more expensive and imports cheaper. This has a double-edged effect as it hurts Eurozone exporters, threatening the recovery, and encourages disinflation as imported goods become relatively less expensive.
“With a gradually strengthening economy, deflation is unlikely, and if it does materialize in the coming months, it is likely to be of a temporary nature,” Cornelissen says. “The policy mix in the Eurozone is also changing, with austerity on its way out, which will support the recovery further.”
Reluctance for generalized QE
The strength of recent Eurozone economic data means the ECB may be reluctant to go too far with monetary stimulus. Its stimulus measures announced last week, including a cut to the base rate, a negative deposit rate and mild refinancing programs, were well received by investors.
“The ECB did not enter into a program of generalized QE, which would have been a true ‘shock and awe’ approach, though it has left the door open for it,” Cornelissen says. “However, the ECB has repeatedly expressed frustration about the strength of the euro and this has been a clear motive behind the recent policy moves.”
He says the euro might well weaken against the US dollar because the American economy is doing much better after a poor start to the year. The most recent ISM Manufacturing Index reading for May of 55.4 (where figures above 50 represent economic expansion) means tapering of bond purchases by the US central bank will remain on track.
“Now that the US economy is showing a strong rebound after an unusually weather-related weak first quarter, we can expect more talk about the timing of the first interest rate hike in the US, and the dollar will strengthen as a consequence,” Cornelissen says.
Reluctance for generalized QE
The strength of recent Eurozone economic data means the ECB may be reluctant to go too far with monetary stimulus. Its stimulus measures announced last week, including a cut to the base rate, a negative deposit rate and mild refinancing programs, were well received by investors.
“The ECB did not enter into a program of generalized QE, which would have been a true ‘shock and awe’ approach, though it has left the door open for it,” Cornelissen says. “However, the ECB has repeatedly expressed frustration about the strength of the euro and this has been a clear motive behind the recent policy moves.”
He says the euro might well weaken against the US dollar because the American economy is doing much better after a poor start to the year. The most recent ISM Manufacturing Index reading for May of 55.4 (where figures above 50 represent economic expansion) means tapering of bond purchases by the US central bank will remain on track.
“Now that the US economy is showing a strong rebound after an unusually weather-related weak first quarter, we can expect more talk about the timing of the first interest rate hike in the US, and the dollar will strengthen as a consequence,” Cornelissen says.
“The strength of the euro has been a clear motive behind recent policy moves”
Inflation target miss overlooked
However, investors should not rule out the possibility of future QE in Europe, due to a prediction in the ECB’s 5 June rates announcement that may have been overlooked by the market, Cornelissen says. The central bank admitted in a back-door fashion that it won’t meet its own inflation target by the end of 2016, at the limit of current forecasting, when it now expects inflation to be 1.5%.
“As the ECB’s target is generally quantified as 1.75%, the central bank is explicitly admitting that it won’t fulfil its mandate over its own forecast horizon,” Cornelissen says. “This sets a remarkable precedent as far as we are aware, and clearly indicates a bias towards further easing, in this case – inevitably – generalized QE,” he says. “Nevertheless, we still think a policy switch towards generalized QE is unlikely.”
“All in all, the measures by the ECB are a mild boost for risky assets. Although it could be argued that too much attention is focused on monetary policy, and real economic progress could much more easily be reached through fiscal policy, investors will be comforted by the clear expression of commitment to QE should the necessity arise.”
Wikimedia CommonsFoto: Totya. El rally bursátil de julio y qué hacer a partir de ahora
WE Family Offices, the independent, family-focused wealth management firm serving UHNW individuals and families, announces that global investment experts Alexander Calvo and Dr. Walter T. Molano will join the firm’s Strategic Investment Committee, bringing with them extensive industry knowledge and decades of experience.
Managing partner and chair of the Committee, Santiago Ulloa states, “Together with Jean Brunel and our firm’s personnel serving on the Committee, Alex and Walter bring unique external perspectives that will add tremendous value in our work with clients.”
WE’s Strategic Investment Committee considers macro-economic factors and makes strategic and tactical asset allocation decisions to be implemented at the client portfolio level.
Alex Calvo has worked in the financial industry for more than 20 years. A recognized investment expert, he currently serves as founder and managing director of StratEdge Quant Investors LLC, a registered investment advisory firm providing analysis, investment consulting services and financial systems development. Prior to founding StratEdge, Mr. Calvo served at Franklin Templeton Investments, Inc., where he worked as director of International Fixed Income. The flagship funds he managed included Templeton Global Bond Fund and Templeton Global Income Fund, quoted on NYSE.
Dr. Walter T. Molano is a renowned investment expert and currently serves as managing partner and head of research at Intruder Capital. Prior to founding Intruder Capital, he was head of research at BCP Securities, LLC. Before his role at BCP, he served as the executive director of Economic and Financial Research at Warburg Dillon Read. Dr. Molano was also a senior economist for Latin America at CS First Boston.
