Mapfre Acquires 51% of La Financiere Responsable’s Share Capital

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Photo courtesyJosé Luis Jiménez, Mapfre Chief Investment Officer

Mapfre AM has acquired a further 26% equity stake in French ESG specialist mutual fund boutique La Financière Responsable (LFR), taking its total holding to 51% as it targets growth of SRI derived strategies and seeks to boost its international footprint into the French fund market.

The Group previously acquired 25% of LFR in 2017 to adopt its proprietary ESG-focused stock selection process, which aligns with Mapfre AM’s strategic approach to responsible investment and economic, social and environmental (ESG) commitments. At the time, this was the first transaction involving a Spanish asset management company buying into a foreign firm in the industry.

The deal secured MAPFRE AM access to an exclusive strategy and methodology for selecting investments and applying ESG criteria to new products, as well as to the rest of the Group’s range of funds and balance sheet.

Business upsides flowing from that initial stake and the positive ongoing relationship between MAPFRE AM and LFR has led to growing the stake.

José Luis Jiménez, Mapfre Chief Investment Officer, commented: “Since 2017, we have been committed to sustainable investment, and LFR has nearly 25 years of such experience in this industry. In the past five years, we have jointly launched SRI products, which have the peculiarity of having their own methodology for the final selection of the securities that make up the funds’ portfolios, something that is highly appreciated by our clients.”

An example of synergies seen at the product level is the Mapfre AM Inclusión Responsable fund, which has been cited by the United Nations Global Compact as an example of best practice. The fund’s portfolio encompasses those companies most committed to labour inclusion of people with disabilities.

Another is the Mapfre AM Capital Responsable fund. Qualified as an EU Sustainable Finance Disclosure Regulation (SFDR) Article 8 mutual fund and holding a ‘Label ISR’ from the labeling scheme supported by the French government, it recently was awarded a Five-Star rating from Quantalys, the independent fund data and analysis provider.

LFR, which has assets of nearly 650 million euros, will maintain operations with its customers and retain the brand.

Olivier Johanet, President of La Financière Responsable, commented: “Since 2017, the Mapfre and LFR teams have been working together in order to develop an excellent relationship and cooperation that benefits the clients of both companies. We very much welcome this closer relationship, which is a very important step in broadening the scope of our partnership.”

Mapfre AM is renewing its confidence in the current teams at LFR to continue to build its investment capacity and grow in the European market with institutional investors, IFAs and other asset managers.

Polen Capital Opens Hong Kong Office to Expand Emerging Markets Capabilities

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Polen Capital announced the expansion of its Emerging Markets franchise, hiring LGM’s core Emerging Markets and China  Equity investment teams. The agreement sees an additional six investment  professionals joining Polen Capital, bringing the expanded franchise to now include six strategies and 10 investment professionals, based in London and Polen’s newly launched Hong Kong office.  

The LGM teams, which were previously part of Columbia Threadneedle Investments, will enhance Polen’s capabilities and expertise in emerging markets and China as clients increasingly seek exposure to these markets. Polen will onboard and rebrand the team’s core emerging markets  strategies and products including Emerging Markets Growth, China Growth and Emerging Markets Small Company Growth.  

“Our expansion into Asia, and emerging markets overall, represents an attractive opportunity for Polen and our clients that will increase our exposure, people and capabilities in the fastest growing  parts of the world,” said Stan Moss, CEO of Polen Capital. “The LGM team is aligned with Polen  strategically and culturally, and mirrors our client-centric focus on long-term outcomes. Having a  consistent, sustainable operating model and robust, centralized infrastructure will support the  team’s ability to do what they do best.” 

This expansion reunifies a historically effective team as several members of Polen’s Emerging  Markets Growth team joined Polen from LGM. It also marks a meaningful expansion of its global  research capabilities, now with on-the-ground professionals in Hong Kong, enhancing Polen’s ability  to identify companies that can deliver sustainable, above-average earnings growth.  

“We are excited our former LGM colleagues are joining us here at Polen. The team brings deep experience and a long track record building concentrated, quality growth portfolios in emerging  markets, which aligns well with Polen’s focused investment philosophy,” said Damian Bird, Head of  the Polen Emerging Markets Growth team. “Broadly speaking, most investors are vastly  underexposed to emerging markets. We think their long-term economic growth potential will fuel  attractive investment opportunities for the foreseeable future, and we are pleased to offer clients  best-in-class emerging markets capabilities.”

Apex Group Appoints New Head of Dallas Office

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Pamela Goldminz, Head of Apex Dallas Office

Apex Group announces the appointment of Pamela Goldminz as Dallas Office Head.

Following organic growth and acquisitions in the Texas market, Apex Group is now one of the largest independent fund services providers by headcount in the State, according to the company’s release.

Goldminz joined Apex Group in Dallas in 2022, following the acquisition of Texas-based SandsPoint Capital Advisors LLC a provider of advisory and consultancy services to alternative asset managers, with specialism in the Real Estate market. Outsourced services include Fund Administration, Property Administration, Investment Accounting, Portfolio Analysis, Treasury Services & Expense Processing, and are supplemented by Consulting and Strategic Advisory across projects and business processes.

She was Managing Director at SandsPoint, having held senior roles during her nine years at the firm in Dallas and Irving, TX. She has over 20 years of experience in private equity, real estate and the financial services industry. Working for both private equity firms and private equity service organizations over the course of her career has given her a unique perspective and level of understanding of clients’ needs and challenges, along with the viable solutions to fulfil those needs.

Her previous experience includes JPMorgan Alternative Investment Services and JPMorgan Partners. Goldminz started her career in audit at KPMG and Ernst & Young.

Pamela Goldminz, Office Head, Dallas at Apex Group comments: “I look forward to leading Apex Group’s Dallas team as we continue to value our client relationships, supporting our long-term clients, and bringing our single-source solution to new clients. We continually evolve our solutions, to ensure that we can support our clients through one efficient and convenient relationship throughout their continued success and growth.”

Euronext Launches a Proposed Public Offer for Allfunds

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Allfunds Group plc confirms that it has received an unsolicited, indicative and conditional public offer proposal from Euronext N.V. for the entire issued and outstanding share capital of Allfunds Group plc at an offer price of EUR 8.75 for each Allfunds Group plc ordinary share payable as follows: EUR 5.69 in cash plus 0.04059 new Euronext N.V. shares.

Under the proposal, the number of new Euronext N.V. shares for each Allfunds Group plc ordinary share would be set by reference to the 1 week volume weighted average price of Euronext N.V. shares on the last trading day before the date of formal announcement of the offer in order for the price per Allfunds Group plc ordinary share to be EUR 8.75.

In addition, as part of the proposal, Euronext N.V. would also pay to Allfunds Group plc shareholders who tendered their shares in the offer a ticking fee per Allfunds Group plc share, corresponding to 5.5% per annum applied to the offer price from the date of the formal offer announcement to the earlier of: (i) the first settlement date of the offer (both inclusive); and (ii) 31 March 2024 (both inclusive). Under the proposal, the ticking fee would be payable in cash, Euronext N.V. shares or a mix of cash and Euronext N.V. shares at Euronext N.V.’s option.

Allfunds Group plc has been informed by Euronext N.V. that Euronext N.V. has been in discussions with Hellman & Friedman and BNP Paribas, together owning 46.4% of Allfunds Group plc’s share capital, to obtain their support for the offer. Allfunds Group plc has not been party to such discussions.

The Allfunds Group plc board is currently evaluating the offer proposal, which would be subject to a number of conditions. There can be no certainty that any transaction will be forthcoming nor as to the terms on which any such transaction may occur.

Further announcements will be made if and when appropriate.

This is a public announcement by Allfunds Group plc pursuant to section 17 paragraph 1 of the European Market Abuse Regulation (596/2014) and article 5, paragraph 1 of the Dutch Decree on Public Takeovers.

This public announcement does not constitute an offer, or any solicitation of any offer, to buy or subscribe for any securities.

 

Barclays Appoints New Co-Heads of Investment Banking

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Barclays announced that Taylor Wright and Cathal Deasy have been appointed Co-Heads of Investment Banking, effective 27 March and subject to regulatory approvals.

In their new roles, Mr. Wright and Mr. Deasy will jointly manage the business across coverage and product groups and will be tasked with deepening client relationships and dealmaking efforts around the world. They will report to Paul Compton, Global Head of Barclays’ Corporate & Investment Bank and President, Barclays Bank Plc, and will join the CIB Management Team.

“In their expanded and new roles, Taylor and Cathal will make a formidable team as we continue to progress building a resilient and diversified Corporate and Investment Banking franchise,” commented Compton. “Our strategy is fundamentally grounded in delivery for clients, and their leadership will best prepare Barclays for the coming decade of investment banking.”

Mr. Wright joined Barclays in 2019 as Co-Head of Americas Equity Capital Markets. He was appointed Global Co-Head of Capital Markets in July 2021, with shared oversight of and responsibility for the Leveraged Finance, Investment Grade Debt, Securitized Products, and Risk Solutions, Equity and Equity-linked businesses. Mr. Wright previously worked at Morgan Stanley.

Mr. Deasy was most recently Global Co-Head of M&A, and EMEA Co-Head of Investment Banking and Capital Markets, at Credit Suisse. During his tenure, he oversaw significant re-focusing and growth within M&A, particularly in Europe, where he was instrumental in leading some of the investment bank’s most important relationships. Prior to this, Mr. Deasy worked at Deutsche Bank and Merrill Lynch.

The Unified Managed Householding Is a Key Focus for Advisors in 2023

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As fee-based financial advice combined with financial planning becomes the industry standard for wealth managers, financial advisors must find new ways to differentiate their practice. According to the latest Cerulli Edge—U.S. Advisor Edition, aggregating client relationships on the household level is one way to achieve this objective, improving the client experience by creating more efficient tax outcomes and greater opportunities for portfolio customization.

The potential benefits of householding and the stronger outcomes it can create are apparent to wealth managers. According to Cerulli, 22% of wealth managers said consolidating to a unified managed household (UMH) is a significant priority, with half reporting it as a moderate priority for their firm moving forward. This comes as wealth managers continue to shift toward fee-based assets and away from transactional brokerage relationships and consolidate accounts from multiple sources.

The UMH is steps beyond the account-level aggregation of the unified managed account (UMA) and considers not just the client’s financial picture, but also that of their entire household. The UMH takes all assets, accounts, and holdings from a household and coordinates them to ensure the best possible financial return across the household.

“Householding gives financial advisors an additional opportunity for customization best suiting the needs of their clients while adding the tax savings clients desperately crave,” says Matt Belnap, associate director. “Advisors who can implement a household level view have a better chance of standing out from their peers and retaining client assets,” he adds.

The crux of the UMH is asset location, algorithmically determining the best place to allocate client assets. “This builds upon something many advisors already do in an ad hoc manner; for example, placing income-producing securities in qualified accounts to minimize taxes,” says Belnap. “By systematizing this process, and by combining that with other strategies such as tax-loss harvesting and intelligent rebalancing, householding through a UMH can create better outcomes for clients,” he concludes.

Dynasty Financial Partners and BridgeFT Announce Strategic Partnership for API WealthTech

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Dynasty Financial Partners (“Dynasty”), announced that has chosen BridgeFT’s WealthTech API as its primary custodial data partner to power Dynasty’s integrated wealth technology offerings across the Dynasty Network. BridgeFT is a cloud-native, API-first wealth infrastructure software company that enables financial institutions, FinTech innovators, and registered investment advisors to deliver better, data-driven outcomes for their clients.

In conjunction with this partnership, Dynasty and select Dynasty affiliates will make a strategic minority investment in BridgeFT.

“We are honored that the team at Dynasty has committed so deeply to our technology and our company,” said Joe Stensland, Chief Executive Officer of BridgeFT. “Dynasty has a reputation for transforming the way advisors use technology that matches our own. We are excited to support and grow with the leading wealth technology and integrated services platform in the industry.”

BridgeFT will be responsible for custodial data aggregation to fuel the technology of all Dynasty’s integrated partners. BridgeFT’s WealthTech API is the industry’s first WealthTech-as-a-Service platform offering a single, open API to trade-ready, multi-custodial data, analytics, and applications.

WealthTech API removes the need for individual data feeds from a range of custodians and back-office providers, allowing wealth management firms and FinTech companies to create differentiated, next generation wealth management applications.

“The Dynasty Network of independent RIAs is connected by our integrated WealthTech platform, and our partnership with BridgeFT will allow us to enhance the world-class tools at our advisors’ disposal to best advise their clients’ complete financial lives,” said Ed Swenson, Chief Operating Officer at Dynasty. “BridgeFT brings Dynasty speed of execution, reduced cost, and a turnkey architecture that will allow us to scale more efficiently. We are excited to partner with and invest in a company that moves at the speed of Dynasty’s pace of innovation.”

As part of Dynasty’s investment, Frank Coates, Dynasty’s Chief Technology Officer, will be joining BridgeFT’s Board of Directors. Prior to joining Dynasty, Coates served as Co-President of Data and Analytics for Envestnet Inc. Prior to Envestnet, Coates co-founded and was CEO of Wheelhouse Analytics, which was acquired by Envestnet in 2016.

Love or Money? Housing Costs Impact Romantic Decisions

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Moving in with a romantic partner is a big step, and one that shouldn’t be taken lightly. However, when it comes to taking the next step in their relationship, 63% of people who have moved in with a romantic partner said that their decision was impacted by finances and/or logistics. Realtor.com® and HarrisX surveyed 3,009 consumers to highlight how today’s expensive housing market is impacting people’s love lives.

“Living with a romantic partner might bring a couple closer together, but it can also magnify potential issues in a relationship,” said Clare Trapasso, executive news editor, Realtor.com®. “While the idea of splitting the rent or mortgage can be very attractive, it’s important to have tough conversations with your partner and think through how living together will work before you take the plunge.”

Younger respondents were significantly more likely to be persuaded by money/logistics with 80% of Gen Z and 76% of Millennials saying that one or both of these things were a factor in moving in with a romantic partner. This is compared to 56% of Gen X, 44% of Baby Boomers who said the same thing.

Will you be my… roommate?
Unsurprisingly, among those who factored finances and/or logistics into their decision to move in with a partner, Gen Z respondents (56%) – who have faced notoriously high housing costs in their lifetime – were the most likely to say that saving money by splitting the rent/mortgage was a contributing factor. Additionally, 70% of all respondents who have moved in with a partner reported that they were able to save money by moving in.

A significant percentage of respondents who have moved in with a partner moved into a home that one person already rented (37%) or owned (21%), while 30% decided to start fresh with a new rental and 9% took the leap directly into buying a home together.

Don’t go breaking my heart
Not all relationships work out and living with a partner isn’t always easy. Forty-two percent of people who have moved in with a romantic partner ended up regretting the move.

“When you’re renting or purchasing real estate together, it’s important to make sure you’re both financially protected,” said Trapasso. “For example, if you’re buying a home together as an unmarried couple, it may be a good idea to chat with a real estate attorney first to figure out what would happen with the home in the event that you broke up.”

Will you accept this contract?
Nearly a third (31%) of survey respondents who have moved in with a partner signed a contract outlining what would happen in the event of a break-up. Younger respondents were significantly more likely to have signed a contract, with 54% of Gen Z and 47% of Millennials doing so. This suggests that younger generations might be more financially and/or legally savvy and understand the importance of protecting their investments.

Methodology
The survey was conducted online from Feb. 1-4, 2023 among 3,009 adults in the U.S. by HarrisX. The sampling margin of error of this poll is +/- 1.8 percentage points and larger for subgroups (including those who have moved in with a partner at +/- 2.3 percentage points). The results reflect a nationally representative sample of U.S. adults. Results were weighted for age by gender, region, race/ethnicity, and income where necessary to align them with their actual proportions in the population.

Tigris Investments and Zink Solutions Create Tigris Alts to Reinforce their Commitment to Alternative Investments

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Photo courtesyFrom left to right: Jimmy Ly, Tigris Investments CEO; José Castellano, President of Tigris Investments; and Conchita Calderon; Manuel Sanchez Castillo; Miguel Cebolla; & Jose Santamaria y Partners of Zink Solutions.

Tigris Investments, founded by Jimmy Ly (CEO) and José Castellano in Miami, and Zink Solutions, a large asset management firm created by Conchita Calderón, Miguel Cebolla, Manuel Sánchez Castillo and José Santamaría, have launched Tigris Alternative Investments (Tigris Alts), to expand their capabilities in the alternative investments business.

As they have explained, this is a new company that combines the experience in global distribution and product development of Tigris Investments, with the experience of Zink Solutions, which brings a solid and unique set of capabilities that translates into the identification and selection of the best investment ideas.

Both companies believe that investing in alternative assets requires a more disciplined approach to ranking and selecting managers so that qualified investors can benefit over the long term. In addition, alternative investments are non-traditional asset classes that are relatively less transparent in nature and more difficult for the general investor to access. To address these challenges, Tigris Alts’ approach and process will leverage the expertise and track record of its team, mirroring the way sophisticated investors analyze and invest in this asset class.

Regarding the companies, it highlights that Tigris Investments is focused on providing dynamic investment strategies to investment professionals and asset managers around the world. The purpose of its founders, Jimmy Ly and Jose Castellano, is to identify independent and consultative strategies and programs to suit an evolving and highly sophisticated investment community. Its ecosystem includes extensively vetted asset management partners, as well as opportunities related to consulting, technology and marketing solutions.

Zink Solutions was founded by Conchita Calderón, Miguel Cebolla, Manuel Sánchez Castillo and José Santamaría, who bring together more than 100 years of experience in the financial industry. Zink Solutions is oriented to achieve independent solutions to the needs of ultra high net worth individuals and family offices.

House Prices Declining Fastest in Overvalued Markets

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First American Financial Corporation settlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today released the November 2022 First American Real House Price Index (RHPI).

The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.

“In November 2022, the RHPI increased by 60 percent on an annual basis. This rapid annual decline in affordability was driven by two factors — a 7.6 percent annual increase in nominal house prices and a 3.7 percentage point increase in the average 30-year, fixed mortgage rate compared with one year ago. Even though household income increased 3.5 percent since November 2021 and boosted consumer house-buying power, it was not enough to offset the affordability loss from higher mortgage rates and still-strong nominal house price growth,” said Mark Fleming, chief economist at First American.

“The loss of affordability has prompted buyers to pull back from the market, putting downward pressure on prices. While still elevated by historical standards, nominal house price appreciation has slowed considerably since early 2022. Nationally, annual nominal house price growth peaked in March 2022 at nearly 21 percent, but has since decelerated by more than 13 percentage points to 7.6 percent in November,” Fleming added.

“Real estate dynamics are local, yet nearly every market in the country during the pandemic was characterized as a seller’s market. Wherever you turned, multiple-offer bidding wars were the rule, not the exception,” said Fleming. “However, as house prices adjust to the reality of higher mortgage rates, the pace of adjustment will vary significantly by market.”

Real Estate is Local, Again

Nominal house prices declined from their recent peaks in 37 of the top 50 markets we track in November. The market with the biggest decline was San Francisco, where nominal house prices peaked in April 2022, but have since declined by nearly 10 percent as the housing market rebalances. San Jose, Calif. follows closely behind, as nominal house prices have declined 7.8 percent from the recent peak in March 2022, said Fleming.

“However, house prices have only recently hit their peaks and have yet to decline in markets such as Louisville, Ky., Kansas City, Mo., Hartford, Conn., and several others. Of course, repeat-sales price indices, such as the one used in this analysis, are based on the prices from closed sales, which are a lagging indicator of price changes in the housing market because the contracted prices for these closed sales were agreed to months earlier,” added Fleming.

Overvalued Markets Correcting Faster

Many of the markets with the largest price declines from peak, such as San Francisco, San Jose, and Phoenix, are also some of the more overvalued markets, meaning the median existing-home sale price exceeded house-buying power in these markets,” said Fleming.

“If housing is appropriately valued, house-buying power should equal or exceed the median sale price of a home. Many of the markets where house prices have not yet declined, such as Louisville, Ky. and Kansas City, Mo., are still considered undervalued, meaning house-buying power exceeded the median existing-home sale price in November. There are exceptions to this relationship, but generally it seems that the most overvalued markets are correcting the fastest,” added the First American’s chief economist.

The Silver Lining

While price changes vary by market, there is one trend that bodes well for all top 50 markets – much of the homeowner equity gained during the pandemic remains. For example, in both San Francisco and San Jose, house prices increased by 31 and 29 percent from February 2020 to their respective peaks in 2022. Kansas City and Hartford gained 48 and 40 percent from February 2020 to their respective peaks in 2022. “As the housing market rebalances, price declines will continue across many markets, but those declines would have to be substantial to erase all of the equity gains accumulated by homeowners over the last few years,” said Fleming.