Sophie del Campo, Managing Director, Natixis Global AM, Iberia, Latin America and US Offshore. Courtesy photo. Natixis GAM Announces Completion of DNCA Finance Acquisition
Natixis Global Asset Management recently announced the completion of the acquisition of DNCA Finance (DNCA), expanding its list of global affiliates and strengthening its position in European retail markets
As an affiliate of Natixis Global Asset Management, DNCA, a well renowned European investment management company, will have access to Natixis Global Asset Management’s centralized global distribution capabilities. DNCA will immediately broaden its European footprint, entering new markets including Spain and expanding its business in Germany and Switzerland. DNCA will maintain its independence while over time expanding its global presence as an affiliate of Natixis Global Asset Management.
DNCA has seen important growth in the last 2 years, tripling its assets from €5 billion to €16.5 billion today. Through the acquisition, DNCA will maintain its independent management approach and will offer institutional and retail investors expertise in European equities, long only and absolute return, multi-asset, convertible bonds and euro-zone bonds.
“The combination of DNCA’s proven track record, solid investment performance, controlled risk profile and strong brand name will make a substantial contribution to the further expansion of Natixis Global Asset Management’s multi-affiliate model and our strategy of growing the business in the European retail marketplace,” said Pierre Servant, CEO of Natixis Global Asset Management and member of the senior management committee of Natixis in charge of Investment Solutions.
“As an affiliate of Natixis Global Asset Management we will be able to replicate the success that we have had in France and Italy over the past 15 years and step up our international expansion. We believe that Natixis’ centralized global distribution platform will help us develop our retail and institutional business and provide investors with a range of simple and understandable funds that deliver results that strengthen their portfolios,” said Eric Franc, CEO of DNCA Finance.
Place Vendome, Paris.. Carmignac Adds US-Oriented Global Expertise in Communications, Media, Internet and Information Technology
As part of the ongoing recruitment drive conducted over recent years, Carmignac is once again boosting its fund management team with the arrival of a senior fund manager, David Older.
David Older will work in London, commencing on July. Working alongside Edouard Carmignac, he will be in charge of global fund exposure to Communications, Media, Internet and Information Technology. David will also contribute to generating investment ideas for other Carmignac funds.
Edouard Carmignac, Founder of Carmignac : “Thanks to David Older joining our team alongside our analyst Tim Jaksland, we are significantly increasing our investment expertise in Communications, Media, Internet and Information Technology stocks, four key sectors in our current positioning that will shape tomorrow’s world. We are also gaining considerable experience in alpha generation and long-short management, which will help us generate performance under all market conditions and give us the complete range of risk management expertise.
The ability to manage market risks has become a hallmark of Carmignac’s management style, particularly in 2002, 2008 and 2011 in Carmignac Patrimoine. This risk management culture has gradually permeated all the Carmignac family of funds, becoming an integral part of our brand, henceforth Carmignac Risk Managers. The complexity of financial markets is such that managing risks, now more than ever, represents a vital aspect of long-term asset management, aimed at helping our clients grow their savings. Carmignac is relentlessly endeavouring to enhance its expertise in this area.”
David Older, 45 years old, spent the past 12 years at SAC Capital/Point72 Advisors in New York, most recently as co-Sector Head of the Communications, Media, Internet and Technology vertical. Prior to this, Mr Older was an Investment Banking Associate in the Communications and Media group at Morgan Stanley. He gained an MBA at Columbia University, New York, following a BA from McGill University in Montreal.
Claude Ewen. Courtesy Photo. Columbia Threadneedle Investments Appoints Sales Director in Luxembourg
Columbia Threadneedle Investments announces the appointment of Claude Ewen as Sales Director Luxembourg with immediate effect.
In his role, Claude will be responsible for broadening and deepening relations with Luxembourg-based professional investors. Claude will report to Prosper van Zanten, Country Head for the Benelux.
Claude has over 10 years’ experience in the Luxembourg financial market. He joins Columbia Threadneedle Investments from Fidelity Worldwide Investment where he had been senior sales manager since October 2009. Before that, Claude was portfolio manager for several years at Lux- Investment Advisors (now BCEE-Asset Management) where he contributed to the strategic and tactical asset allocation of UCITS funds and discretionary client portfolios and where he had responsibility for the analysis of the energy, commodities, industrial and utilities sectors. Claude started his career in 2000 at Banque et Caisse d’Epargne de l’Etat, Luxembourg as client relationship manager. He graduated from Louis Pasteur University of Strasbourg with a Master in Economics and Business Management.
Gary Collins, Head of Wholesale Distribution for EMEA and Latin America at Columbia Threadneedle Investments, said: “I am delighted to welcome Claude Ewen to our Benelux team. Claude has spent several years building and nurturing relationships with Luxembourg-based professional investors. We look forward to benefitting from his experience and insight as we grow and harness our presence in this market, significant both in its own right and as a central decision-making hub in Europe”.
. Allfunds Bank Hires Simon Shapland to Head UK & Ireland
Allfunds Bank has hired Simon Shapland to head its office for UK and Ireland. The company is Europe’s largest mutual fund platform with over €200 billion (£142Bn) under administration and has recently recognised by asset managers for having the best potential to support their distribution strategies.
Simon Shapland was until recently, the Managing Director for the UK & Middle East of RBC Investor and Treasury Services. He has significant experience in international sales as well as general management and strategy expertise and he has a demonstrable record of accomplishment of delivering revenue growth across a diverse and complex client base spanning multiple geographic locations. He has board level experience gained from membership of senior executive committees.
After a decade at RBC and RBC Dexia Investor Services, where he undertook a number of senior roles, Shapland took responsibility for the company’s UK branch overseeing some 350 staff and managing strategic relationship management in the day-to-day account management function.
At Allfunds Bank, Simon Shapland will report to Gianluca Renzini, Allfunds bank’s Deputy General Manager and he will lead the London office that today administers over £15 billion of assets. This announcement ratifies the consolidation of the UK operation, which is becoming a key business engine of the platform’s great performance.
Gianluca Renzini, Allfunds Bank’s Deputy General Manager, said:“Simon Shapland has significant experience in funds administration and is very well-placed to take forward our UK business to the next stage. We continue to believe our UK and Irish business will be one of the main drivers of growth of Allfunds Bank over the coming decade”.
Javier San Félix, new Head of the Retail Bank in Santander UK / Photo: www.santander.com. Javier San Félix Appointed Head of the Retail Bank in Santander UK
Banco Santander’s Board today approved a series of management and organisational changes which further simplify the Group’s corporate structure and enhance its internal governance: in the Board of Directors, Ignacio Benjumea, General Secretary and Secretary of the Board, will leave his executive role and will become an external Board Director. Juan Rodriguez Inciarte, has resigned from the Board for personal reasons and will leave his role as Senior Executive Vice-President in December this year.
In the Senior Management space, Jaime Pérez Renovales, Senior Executive Vice-President, has been appointed General Secretary and Secretary of the Board effective September 1st. He will lead the newly-created Division of General Secretariat and Human Resources, which will integrate the areas of Legal and Tax and all the areas which were under the former division of Human Resources, Organisation and Costs. Pérez Renovales is a highly accomplished professional who is returning to the Group following a period of 3.5 years in the public sector. Jesús Cepeda, Senior Executive Vice-President and until now Head of Human Resources, Organisation and Costs, will leave his role on September 1st.
Rami Aboukhair, Senior Executive Vice-President of the bank with extensive expertise in retail banking in Spain and the UK, has been appointed country head for Santander Spain, replacing Enrique García Candelas, who will become Vice Chairman of Santander Totta (Portugal) following his great work in Spain.
Javier San Félix has been appointed Head of the Retail Bank in Santander UK, reporting to Nathan Bostock, CEO of Santander UK. Ángel Rivera, Senior Executive Vice-President, has been appointed Head of the Retail and Commercial Banking Division.
In the last few weeks, the following Senior Executive Vice Presidents have also resigned from their roles: Remigio Iglesias (Head of Recoveries); Juan Andrés Yanes who will be replaced as Head of Strategic Alliances by Juan Manuel San Román; Luis Moreno (Head of Private Banking); and José María Espí (Director of Internal Control and Risk Assessment).
The Board of Directors, Santander Spain
Two years ago all the Group’s businesses serving customers in Spain were consolidated under Santander Spain to establish a clear separation between the functions of this unit and the corporate center. Today they are announcing a further step in the process of strengthening Santander Spain by creating a Board to oversee it. This will bring its governance structure in line with the Group model which exists in other country subsidiaries. This Board will monitor and supervise the activities of Santander Spain, including its policies and strategies, risk, human resources and senior management appointments as well as a number of control and monitoring tasks.
The Board of Directors of Banco Santander has appointed Rodrigo Echenique, Vice Chairman of the bank, in the additional role as Chairman of the Board of Santander Spain. The Board of Santander Spain will have at least one third independent directors with the Country Head of Spain (Rami Aboukhair) as a permanent member. The Group has also appointed to the Board of Santander Spain, Ignacio Benjumea, Angel Rivera (Head of the Retail and Commercial Bank Division), José María Nus (Chief Risk Officer), José García Cantera (CFO), Carlos Barrabés, Javier Monzón and Gonzalo Alonso-Tejuca, the last three of whom are independent directors.
According to the bank, the new corporate structure will facilitate work and increase both competitiveness and focus on adding value to the Group’s core local country businesses; and the number of divisions has been reduced from 15 to 10 in the last six months and with today’s changes the number of senior executive vice-presidents is reduced by 7 (or 23%). “We are enhancing the Group’s internal governance with the creation of a board for Santander Spain”. Ana Botín, Santander’s Group Executive Chairman, said: “These changes complete the management team which José Antonio Álvarez and I began restructuring in 2014. To achieve our vision to be the best retail and commercial bank for our people and customers, and to continue to generate sustainable growth we must simplify and make our organisation more competitive”.
“Our goal in making these changes is to have the best qualified professionals in the right roles and progress towards becoming a bank that is Simple Personal and Fair for our people, customers, shareholders and communities”, Ana Botín said.
Josep Oliu, Chairman of Sabadell. UK Authorities Give Green Light to Acquisition of TSB by Sabadell Group
The UK authorities (PRA and FCA) have approved the bid by the Sabadell Group, announced on 17 April 2015, to acquire all of the shares of TSB Banking Group plc which is based in Britain.
With this acquisition, the Sabadell Group is taking a leap forward in its strategy of expanding into other countries, which is one of the pillars of its Triple strategic plan for 2014-2016 (Transformation, Profitability and Internationalization). After the TSB acquisition, 22% of Sabadell’s assets will be located outside Spain, compared with 5% at present.
Josep Oliu, Chairman of Sabadell, says: “Today marks the beginning of a major project. This is a milestone that enables us to enter a market with vast opportunities. We do so in partnership with a well-positioned challenger bank with a prestigious brand backed by a long tradition.
“Furthermore, TSB has a highly professional management team which is successfully delivering its business plan and which is committed to growing TSB further still as part of the Sabadell Group. TSB will enable us to increase our international footprint and diversify our business activities. It’s a major opportunity.”
Paul Pester, CEO of TSB, says: “The deal with the Sabadell Group is a major vote of confidence in TSB. With the extra firepower and fresh perspective of Sabadell, TSB will be stronger and even better placed to build on its position as Britain’s challenger bank. Being part of the Sabadell Group will help TSB bring more competition to the UK market more quickly and help us break the stranglehold the ‘Big Five’ banks have had for far too long.
“TSB and Sabadell have similar values. Both have heritages that date back to the nineteenth century and proud histories of focusing on and supporting hard working local people and businesses.”
The experience accumulated by the Sabadell Group in integrating numerous successful bank acquisitions to date and its extensive knowledge of customer service, particularly in personal and SME banking, will play a key role in generating value in this new phase.
The deal, worth 1.7 billion pounds (2.35 billion euros), to be paid for entirely in cash has a neutral impact on the Sabadell Group’s CET1 ratio. Sabadell believes that Lloyds Banking Group’s contribution of up to 450 million pounds (about 622 million euro) is expected to be more than sufficient to meet the implementation costs of the IT migration onto Sabadell’s platform.
Further, the Group estimates technology synergies of approximately 160 million pounds before taxes (about 221 million euro) in the third full year after completion of the Offer.
. T. Rowe Price Expands Relationship Management Team for Spain and Portugal
T. Rowe Price, the $772.7bn global independent asset manager, has appointed Pedro Masoliver to its client management team in Spain. He will report to Alfonso del Moral the Headof Relationship Management for Spain and Portugal in support of the firm’s drive to increase its share of the intermediary markets in Europe.
Mr. Masoliver joins T. Rowe Price from GBS Finanzas, a multi-family office where he was an Analyst. Prior to that, he was a Senior Fund Analyst at Allfunds Bank, investing consultant department between 2007 and 2012. This new role will see him focus on relationship management for clients in Spain and Portugal as well as supporting the sales drive in both countries.
Alfonso Del Moral, Head of Relationship Management for Spain and Portugal said “Pedro Masoliver is a great addition to the team we are building to support our growth. The experience he brings from the sell-side and as an Analyst will add to our ability to anticipated and service the needs of our clients. I look forward to working closely with him as we develop our business in Spain and Portugal.”
Photo: Julien Sanine. And What If Volatility Came Back to Town?
In the first half of 2015, investors faced a favourable environment, with crude oil prices far below the USD 110 a barrel level to many of us had become accustomed, a euro/US dollar exchange rate of USD 1.05 to USD 1.15 and – last but certainly not least – the announcement in January by the ECB of a full-blown programme of asset purchases (‘quantitative easing’). Reflecting the significance of this macroeconomic news (and the long-awaited signs of an economic recovery), valuations in many asset markets rose to historic highs – if they didn’t exceed them!
Is time for volatility to return?, asked Andrea Mossetto, senior investment specialist, Paris at THEAM, BNP Paribas IP.
After years of relatively calm and clear trends, mainly determined by the decisions of G3 central banks, 2015 might see volatility come back to town. On 3 June, after an abrupt rise in bond yields, ECB President Mario Draghi advised investors to “get used to periods of increased volatility.“
“Financial markets fluctuate in response to many factors including the economic outlook, geopolitical tensions and the policy decisions of central banks. Thus, worse-than-expected economic data and a resurgence of geopolitical concerns can quickly generate tensions and boost volatility. For this reason, monitoring the level of volatility in financial markets is of paramount importance to us”, point out Mossetto.
Isovol: An approach to mastering volatility
This is precisely what THEAM’s Isovol strategy enables BNP Paribas IP to do. By putting volatility back at the heart of portfolio management and defining the volatility of each asset in the portfolio as a fundamental criterion for asset allocating, this strategy is focused on mastering volatility and improving the participation in market trends, explained Mossetto. It bases investment management not solely on a manager’s judgments, but on a relatively simple signal: the volatility of the markets in which they invest.
Volatility-driven exposure can produce attractive results
“In terms of behaviour, in an Isovol strategy, rising markets are naturally being bought and volatile markets are underweighted. The result is a reduction in maximum losses in times of market turbulence. This explains the attractive performance of the strategy in recent years, but also an improved participation in the various uptrends. In recent years, THEAM’s Isovol management strategy has been effective in improving risk-adjusted returns”, said BNP Paribas IP´expert.
Investing in a flexible way, in a multi-asset class universe of international assets, broadly diversified via futures and index trackers, helps give investors a clear view of their exposure.
Thus, the Isovol strategy can be particularly suitable for investors seeking a straightforward and intuitive strategy targeting a stable level of volatility, without sacrificing performance.
CC-BY-SA-2.0, FlickrPhoto: Edward Dalmulder. Fresh Volatility But Renewed Confidence
Fresh volatility on bond and equity markets and- toa lesser extent- in currency trading is not all that surprising. Market volatility had been abnormally low for months as investors piled into the same strategies dictated by the ECB’s massive quantitative easing programme. Two events disrupted the calm; higher-than-expected inflation in Europe which officially marked a sharp reduction in deflation risk (and therefore visibility on the ECB’s QE campaign) and concerns over default risk in Greece or Grexit as talks got bogged clown.
Concerning fixed income, faced with bond market volatility, investors had been reassured by the ECB’s flexibility following comments from Benoít Coeuré that the bank could take advantage of swings to accelerate bond buying. But then Mario Draghi said investors would have to get used to volatility, thereby reducing hopes the ECB would try torein in market pressure. As a result, yields on the 10-year German Bund jumped 80bp between April 20 and June 9 or enough to undermine European equity markets.
At the end of April, we moved to an underweight position on European government bonds as they had become extraordinarily expensive. But the extent of the subsequent fall has led us to turn neutral. Even after this correction, European bonds are still expensive but it seems a done dealthat the ECB will stick to its quantitative easing calendar until its official end date of September 2016. This means that with negative yields on some bond market segments, there is justification for bonds to remain expensive. And generally speaking, we believe it is still too early to position portfolios for the end of quantitative easing. Moreover, we would not be surprised to see other ECB interventions ifyields should rise further as the bank wants to keep real rates neutral to negative to shore up the recovery. Against this backdrop, it makes more sense to remain neutral.
On the equity side, if the bond market correction has in fact come to an end, equity markets should rally. In so far as credit spreads remained rather stable as yields rose, the risk of equity markets being contaminated needs to be put into perspective. Earnings expectations are trending higher in the eurozone and in Japan with fewer and fewer downward revisions in the US, UK and emerging countries. And after the weak spell at the beginning of 2015, the US economy is likely to rev up again, thereby facilitating the incipient recovery in Europe and Japan. We expect upward earnings revisions to continue and help equity markets move higher. We had underweighted UK equities ahead of the elections there but a certain degree of stability has returned and we have turned neutral on the market. The thorny issue of the referendum on whether to stay in the European Union will return to centre stage next year but it is still too earlyto position portfolios to reflect this risk. All together, these developments have led us to increase European equity ratings and equity ratings as a whole.
As well as the return of Russo-Ukrainian tensions, political risk is still acute in Greece where talks are dragging on ahead of sizeable repayments to the IMF scheduled for the end of June. We are sticking with our core scenario that a favorable solution will be found as all parties have an interest in reachingan agreement.
Column by EdRAM. Benjamin Melman is Head of Asset Allocation and Sovereign Debt in Edmond de Rothschild Asset Management (France).
The data, comments and analysis in this document reflect the opinion of Edmond de Rothschild Asset Management (France) and its affiliates with respect to the markets, their trends, regulation and tax issues, on the basis of its own expertise, economic analysis and information currently known to it. However, they shall not under any circumstances be construed as comprising any sort of undertaking or guarantee whatsoever on the part of Edmond deRothschild Asset Management (France). Any investment involves specific risks. Main investment risks: risk of capital loss, equity risk, credit risk and fixed income risk. Any investment involves specific risks. All potential investors must take prior measures and specialist advice in order to analyse the risks and establish his or her own opinion independent of Edmond de Rothschild Asset Management (France) in order to determine the relevance of such an investment to his or her own financial situation.
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State Street Global Advisors (SSGA), the asset management arm of State Street Corporation, has announced the appointment of Greg Ehret as president.
Ehret is in charge of SSGA’s client facing, product and marketing, operations and infrastructure teams and will lead the execution of the non-investment aspects of strategy.
Ehret joined SSGA 20 years ago. He has held several executive positions in operations, sales and product development, including co-head of the firm’s exchange traded fund (ETF) business.
Ehret has led SSGA’s business in Europe, the Middle East and Africa (EMEA) from July 2008 to September 2012 including the purchase of the Bank of Ireland Asset Management and managed State Street’s European ETF franchise.
SSGA has $2.4trn of assets under management as of 31 March 2015.
