Pixabay CC0 Public Domain. Allianz GI se une a la iniciativa One Planet Asset Managers
Recognizing the role investors play as a catalyst to finance the transition towards a low carbon economy, Allianz Global Investors has announced that it is joining the One Planet Asset Managers (OPAM)initiative.
This project was launched in 2019 to support the members of the One Planet Sovereign Wealth Funds (OPSWF) in their implementation of the OPSWF Framework. The OPSWF Network comprises 43 of the world’s largest institutional investors with over 36 trillion dollars in assets under management and ownership.
By joining OPAM, Allianz GI commits to actively collaborate within the OPSWF Framework and to engage with other key actors, including standard setters, regulators and the broader industry to further the Framework’s objectives. The goal is to accelerate the understanding and integration of the implications of climate-related risks and opportunities within long-term investment portfolios through sharing of investment practices and expertise with the members of the OPSWF and publication of relevant research.
“Partnering with clients to tackle the most pressing sustainability issues and create a better future for all is at the heart of what we do. We are proud to be the first German investor to be joining the OPAM. We are committed to advance the understanding of the implications of climate-related risks and opportunities within long-term investment portfolios through the sharing of investment practices”, commented Tobias Pross, CEO.
In this sense, he pointed out that Allianz GI looks forward to contributing to the work of the One Planet Initiatives given their experience in climate finance through their “investment process, strong stewardship policy, and investment solutions that contribute positively to the alignment of an asset owner’s portfolio to a low carbon economy”.
This new commitment comes as, recognizing the urgency to tackle climate change, the firm is accelerating its sustainability drive. In fact, they announced earlier this year their commitment to supporting the climate transition via exclusions in coal production and coal-based energy production. Besides, Allianz GI is a member of the Net Zero Asset Managers initiative and supports the goal of net zero greenhouse gas emissions by 2050 or sooner. It is also an original member of the EC’s Technical Expert Group (TEG) on Sustainable Finance and co-founded the Climate Finance Leadership Initiative.
Pixabay CC0 Public Domain. Allfunds y ConsenSys colaboran para aplicar la tecnología de Allfunds Blockchain más allá del sector de los fondos de inversión
The Allfunds-ConsenSys partnership reaches a new milestone: ConsenSys will commercialize Quorum Subscription with Allfunds Privacy, a new commercial offering that makes it possible for enterprises to leverage the innovative privacy features developed for the Allfunds Blockchain platform.
In February 2021, both firms announced a partnership to combine ConsenSys Quorum with the power of the Allfunds Funds Industry Platform in order to radically streamline the global fund distribution industry by enabling instant, reliable, secure communication among industry actors. This new launch opens the possibility to apply the privacy enhancements beyond the original Allfunds Blockchain Fund Industry use case.
In a press release, Allfunds and Consensys have revealed that selected consulting firms, as well as technology and blockchain companies have been testing alpha versions of the solution to understand the possibilities opened up by this new privacy approach, that contributes to the continued development of the Enterprise Ethereum ecosystem.
Quorum Subscription with Allfunds Privacy is a new commercial private transaction management solution that further expands the permissioning and privacy features of the Quorum suite and provides a new privacy model. It is based on patented technology created by Allfunds Blockchain, that is from now on maintained and commercially supported by ConsenSys.
Allfunds Blockchain, the dedicated software company focused on developing solutions not only for Allfunds and its clients but for the entire fund Industry, has built a “holistic and trailblazing” blockchain platform using its patented technology to transform technologically the fund industry. The firms point out that Quorum Subscription with Allfunds Privacy solves “major concerns” about data governance in blockchain ecosystems. Allfunds Blockchain is already collaborating with main industry players around the world to be fully prepared for a non-paper-driven industry.
“We are very proud about this new milestone. The most important thing in a blockchain initiative is clearly the technology, and having a leading firm as ConsenSys commercializing our technology beyond the Fund Industry is the best example to demonstrate how robust is our value proposition. Helping to solve the main data governance challenges in blockchain networks with this new privacy approach, contributes without doubt to the continued development of the Enterprise Ethereum ecosystem”, said Rubén Nieto, Managing Director of Allfunds Blockchain.
Lastly, Madeline Murray, Product Lead at Consensys Quorum, stated that their partnership with Allfunds will further facilitate global blockchain adoption for the fund’s industry and “enrich the ecosystem” with technical innovations suitable for advanced privacy use cases. “Privacy is a core element of the ConsenSys Quorum stack and collaborating with industry stakeholders will help produce the most sophisticated blockchain architecture for our partners”, she added.
The 715 billion dollar impact-investing market is poised for rapid expansion driven by surging investor demand, government green-growth initiatives and supportive regulation, according to a recent analysis by NN Investment Partners (NN IP).
While impact investing is still a niche compared with the broader 35.3 trillion dollar sustainable-investment market, momentum has built since the adoption of the UN SDGsand the signing of the Paris Climate Agreement in 2015. However, the asset manager points out that investors need to be wary of ‘impact washing’ as the sector grows.
“From a fundamental point of view, looking at the type the companies our impact funds invest in, the outlook has never been better. There can always be cyclical headwinds, but structurally there’s tremendous growth”, says Ivo Luiten, Lead Portfolio Manager Impact Equity at NN IP, who believes there are three sectors to watch: healthcare, technology and ‘green’ industrials.
Healthcare
The US spends about 18% of gross domestic product (nearly 4 trillion dollars a year) on healthcare. Companies that can help reduce that bill are in demand: for example, innovative high-tech medical devices can improve patient outcomes and cut treatment costs; the life-sciences segment (firms that develop and manufacture pharmaceuticals, biotechnology-based medicines and a range of other products) is also growing fast because of the increasing focus on the prevention of disease.
The firm admits that picking winners in the drug-development space can be tough, but it highlights that many suppliers to this market, such as clinical research organisations and life-science equipment manufacturers, offer “interesting investment opportunities”.
Technology
Another sector turbo-charged by the pandemic in NN IP’s view is information technology, with digitalization accelerating around the world: “Software producers have high operating leverage and rapid revenue growth, alongside strong competitive advantages such as pricing power and a loyal customer base. They tend to have a high percentage of subscription revenues”.
Companies that service physical infrastructure also present “substantial opportunities” as governments roll out plans to spend as much as 10 trillion dollars to upgrade or replace decaying and obsolete facilities and systems, and green development plans bring long-term spending on new types of infrastructure.
The analysis points out that the cybersecurity sector is also expanding rapidly, as companies race to protect themselves against the sort of high-profile breaches that have accelerated in recent years. The shift to remote working and transition to the cloud are changing the way companies protect their digital assets, with an ongoing transition to a multi-location approach capable of covering employees who work from home. NN IP believes that this challenge requires new solutions such as the zero-trust or perimeterless security model predicated on the concept that devices shouldn’t be trusted by default, even within a corporate network
“The skyrocketing popularity of digital payment apps and decentralized finance will also create plenty of investment opportunities. Agile, disruptive payment processors are on course to create so-called closed-loop payment and loan networks (payment ecosystems that circumvent the traditional banking system and enable users to get loans that wouldn’t be possible through standard channels)”, they add.
‘Green’ industrials
The urgency behind efforts to tackle climate change is intensifying in the run-up to 2030, the target date for the UN’s 17 Sustainable Development Goals. Companies building solutions to reduce emissions and speed the transition to sustainable energy are “particularly well placed” to benefit from ongoing global policy and regulatory changes, such as China’s drive to decrease pollution and the EU’s waste and recycling initiatives. “The industrials sector is a good place to look for firms that are helping companies and consumers to shrink their carbon footprint”, the asset manager says.
In its opinion, innovative companies are also contributing to the drive for a more circular economy, which involves extending the lifecycle of products, reducing waste and reusing materials wherever possible to create further value.
“Companies tackling the proliferation of plastics are a key area of opportunity, with new technologies such as chemical recycling being developed to complement traditional mechanical methods. Firms that are helping lower emissions and develop recycling solutions in heavy-emitting industries such as steel and cement are also making strides”, Luiten comments. In this sense, hydrogen power and carbon capture and storage are in their early stages, “but remain sectors to watch”.
Aware of impact washing
NN IP notes that impact washing (misleading marketing claims about a company’s actions or a financial product’s real-world impact) is something “to be aware of”. The related issue of how to measure impact also looms large, and more robust key performance indicators, as well as a standardized reporting framework, will be essential to addressing this issue.
According to Luiten, while these challenges remain, they also create opportunities for asset managers and banks to boost transparency on how they measure the real-world impact of their investments. “True impact funds that seize this opportunity will set themselves apart as the market develops over the next five years”, he concludes.
Wikimedia CommonsAna Botín, presidenta de Banco Santander durante la celebración de The Global Summit 2015.. Ana Botin
Euromoney has recognized Santander as the world’s best bank for financial inclusion in its “Global Awards for Excellence 2021”, highlighting the group’s efforts to make financial services more accessible.
The magazine has distinguished the company’s efforts to financially empower individuals and entrepreneurs through a range of programs in Latin America, Europe and the US, as well as the work Santander has done more broadly to help people, especially the elderly, adopting digital channels through the pandemic.
“In the last three years we have financially empowered 6 million people, with the goal to empower 10 million by 2025. The impact can be life changing: from supporting entrepreneurs in setting up new businesses through our micro finance programs, to helping individuals who want to build confidence in using digital banking. This is critical to creating inclusive, sustainable growth, and I am delighted that Euromoney has recognized the efforts and innovations of our teams across the world”, said Ana Botín, Santander Group executive chairman.
Different initiatives
In a press release, the bank has informed that its initiative Santander Finance for All seeks to support financial inclusion to help people get access to the financial system, offer them finance to set up and grow micro-businesses, and enhance their resilience through financial education. The strategy “targets the unbanked and underserved”; individuals and SMEs who face difficulties obtaining credit; have limited financial understanding; or are in financial distress.
One of those initiatives is Superdigital, Santander’s flagship 100% digital platform for making payments in Brazil, Mexico, and Chile. It leverages the rapid growth in smartphone adoption and improved network coverage in Latin America to increase financial inclusion in the region. The platform is expanding its services to reach five million active customers by 2023 across seven markets in Latin America.
Besides, Santander has specific microfinance programs to provide financing for micro entrepreneurs. Although named differently (Tuiio in México, Prospera in Brazil, Uruguay and Colombia, and Surgir in Perú), all have same goal: to support microentrepreneurs set up and grow microbusinesses with credit and other products such as microinsurance Thanks to these initiatives, Santander has supported 1.2 million micro-entrepreneurs in Latin America, out of which 70% were women.
The magazine has also recognized that, during the pandemic, the bank has been especially vigilant in supporting elderly or vulnerable customers and ensuring they can access financial services, contacting them proactively to help build confidence in using digital banking services. It also produced simple step-by-step videos and guides for online and mobile banking.
In August, Santander was also recognised as the most innovative bank for its financial inclusion initiatives by The Banker, a Financial Times magazine.
Financial Innovation of the Year
Santander has also won the Financial Innovation of the Year award for its role as joint lead manager advising European Investment Bank in the first-ever digital bond on a public blockchain multi-leader led. It was a 100 million euros and 2-year maturity bond, placed with key market institutional investors.
The transaction used Ethereum, a public blockchain protocol, and it was a milestone for Santander’s CIB Digital Solutions Group (DSG). Santander CIB created the unit at the beginning of 2021 to partner with global coverage and product teams to provide comprehensive support in the digital acceleration of customer’s business. It also produces added-value digital products and financing structures to help Santander’s clients in the digital acceleration of their business.
Euromoney magazine has been a leading publication in international finance for 50 years. Its Awards for Excellence were established in 1992 and are the global benchmark for the banking industry.
Pixabay CC0 Public Domain. Las finanzas se mantienen como una de las opciones profesionales preferidas entre los jóvenes
CFA Institute, the global association of investment professionals, has recently released the results from a survey it conducted on the career outlook of more than 15,000 current university students and recent graduates aged 18-25 from 15 markets. Globally, 58% of respondents still feel confident about their future career prospects in the wake of the COVID-19 pandemic.
“Traditionally stable fields, such as finance, remain attractive for graduates navigating these uncertain times”, the report points out. In fact, respondents across all 15 markets ranked this sector as one of the top five most valuable majors for finding a career. Overall, graduates felt that medicine/science was most stable and attractive, followed by healthcare and then education.
“Students and recent graduates are more flexible and confident about their prospects than ever. The pandemic forced many grads to reassess their expected career paths, and they have displayed remarkable resilience despite the circumstances. It is now incumbent on companies to adapt to the new realities, such as hybrid workplaces, in order to attract and retain the young talent we need to help lead us out of the pandemic”, said Margaret Franklin, CFA, President and CEO at CFA Institute.
She finds “encouraging” to see that many graduates still view finance as a stable and attractive career path; however, they currently don’t see the industry as making a positive social impact. “This issue is only going to increase in importance, and industry leaders need to make sure we are on the front foot in educating students about the positive impact an investment career can have for people and our planet,” Franklin concluded.
The survey shows that a majority of graduates believe their future career will be as good or better than their parents’ generation, despite the pandemic. Findings showed that those studying accounting and finance were particularly confident, with 80% believing their prospects are as good or better than their parents’ generation, compared to three quarters (75%) of respondents overall.
Skills and insecurities
Another primary concern for students is developing work-related skills during degree programs and after graduating. Those surveyed shared personal insecurities about this, with a quarter of respondents saying they feel underqualified for the job they want, and 22% saying they do not feel ready for the working world.
When approaching the current complex job market, students and graduates see value in further education. Nearly nine in 10 respondents feel that upskilling and post-graduate qualifications are important in the current job market, and 57% believe postgraduate qualifications/professional certification will give them an edge when looking for a job.
Working in an industry that makes a positive societal and environmental contribution ranks very important to recent graduates, with nearly nine in 10 respondents saying it’s an important part of their career choice. For CFA Institute, of concern is that only 8% of respondents consider a career in investment management as one in which they could make a positive environmental and societal impact. This finding shows that, to retain talent, the sector must do more to educate students around the positive impact they could have in an investment industry career.
“Graduates may be unaware of the remarkable global trend towards environmental, social and governance (ESG) investing and the career opportunities a specialism in sustainability and ESG could offer them in the investment industry. We need to show them that investment careers can be rewarding well beyond the traditional attraction of higher salaries,” commented Peter Watkins, who leads the University Affiliation Program at CFA Institute in Europe, Middle East and Africa.
Foto cedida. Aegon AM amplía su equipo de Inversión Responsable con tres nuevos especialistas
Aegon Asset Management has announced that Andy Woods, Curtis Zappala and Jamie McAloon will be joining its Responsible Investment team, bringing the number of specialists in this division to 17.
Based in the UK, Andy Woods arrives as a responsible investment manager, supporting the Equities and Multi-Asset investment platforms. His primary responsibility will be the voting activities and related engagements with companies within Aegon AM’s portfolios. Previously, he headed up the Institutional Voting Information Service of the Association of British Insurers.
The firm has also appointed Curtis Zappala as a responsible investment associate. Based in the United States, his focus will be on ESG integration and engagement, supporting the fixed income investment platform. Prior to his new role, Zappala was a member of the sustainability team at United Parcel Service (UPS). He has also held various sustainable-related positions at SunShare and Growth International Volunteer Excursions.
Finally, Jamie McAloon joins as a responsible investment associate, supporting the Equities and Multi-Asset investment platforms. Also based in UK, McAloon will be primarily responsible for supporting the sustainable range of products with analysis of existing and potential holdings, according to Aegon AM’s sustainability research framework. He joins the business from Abrdn, where he was a Private Equity Finance Analyst.
“We have built a comprehensive responsible investment approach, with a 30-year history of investing in this area. The three new appointments allow us to continue our work, broadening our expertise, knowledge and skills base. I’d like to welcome Curtis, Andy and Jamie to the team and look forward to the fresh perspective and enthusiasm they will bring”, commented, Brunno Maradei, head of responsible investment at Aegon AM.
Foto cedidaDe izquierda a derecha: Honor Solomon, nueva responsable del Canal Minorista de EMEA de AB, y Mike Thompson, recién nombrado responsable Global de Desarrollo de Negocio y Estrategia de Renta Fija.. AllianceBernstein refuerza su equipo para EMEA fichando a Honor Solomon y Mike Thompson
AllianceBernstein (AB) has strengthened its EMEA product and client leadership with the appointment of two high-profile industry figures in London. In a press release, the firm revealed that Honor Solomon will join the firm as Head of Retail EMEA and Mike Thompson will lead AB’s global Fixed Income business development strategy.
In her role, Solomon will oversee strategy, management and distribution for AB’s fast-growing EMEA retail business, and will be charged with building on the considerable growth of the retail offering across the region in the last two years. In this sense, the firm has seen the AUM in its EMEA retail business increase by 47% since the start of 2019 – including strong momentum and inflows into its UK-based OEIC range since its launch in March of last year. She will join the firm in Q1 2022, and will report to Onur Erzan, Head of Global Client Group.
Solomon joins from Legal & General Investment Management (LGIM), where she spent seven years as Head of Retail Distribution, helping to build the firm’s retail offering into one of the UK’s largest. Prior to this, she led BlackRock’s London Discretionary Team, with responsibility for the firm’s relationships with banks and intermediaries. She began her career with Merrill Lynch, where she spent four years in its investment banking division across Paris, New York and London
Meanwhile, Thompson will assume the role of Global Head of Fixed Income Business Development & Strategy, and will be responsible for driving growth and brand-building efforts for AB’s high-performing fixed income range worldwide. He joins from ICG, a leading UK-based alternative asset manager, where he was global head of the Financial Institutions Group and European Head of Marketing and Client Relations.
Prior to ICG, Thompson had a 15-year career at PIMCO, where he was head of Asia ex-Japan and previously head of third-party distribution in Europe. His prior experience also includes large fixed-income managers Western Asset Management and Franklin Templeton. Thompson will join AB in December.
“Bringing Honor and Mike aboard is a clear signal of the ambitions we have for both our EMEA business and our global fixed income franchise, and our intent to capitalize on the growth we have seen in both over the last few years”, said Onur Erzan.
In his view, to be able to attract talent “of their calibre” is confirmation of AB’s status as a brand of choice for both clients and leading industry talent. “We are delighted to welcome them both to the firm, and we are confident that they will help to lift our retail and fixed income franchises to new levels”, he concluded.
Foto cedidaHuw Davies, gestor de fondos adjunto para su equipo de bonos estratégicos de retorno absoluto de Jupiter AM.. Jupiter nombra a Huw Davies gestor de fondos adjunto para su equipo de bonos estratégicos de retorno absoluto
Jupiter AM has strengthened its Strategic Absolute Return Bond (SARB) team with the appointment of Huw Davies as Assistant Fund Manager of Fixed Income. He joined the firm in the summer of 2020 following the company’s acquisition of Merian Global Investors, where he started his previous role as Investment Director of Fixed Income in the same team.
In a press release, the asset manager has explained that Huw will now report directly into Mark Nash, Head of Fixed Income Alternatives, and will work alongside Assistant Fund Manager James Novotny, strengthening the resource dedicated to Jupiter’s alternative fixed income offering.
Following the Merian acquisition, the team’s flagship portfolio, the Jupiter Strategic Absolute Return Bond (ICVC) fund, has been incorporated into the firm’s offering. This vehicle looks to deliver positive total returns uncorrelated to bond and equity market conditions, with stable levels of volatility. Powered by its flexible approach to navigating volatile fixed income markets, the fund has delivered 18.23% over three years and 20.4% over five. The fund is Jupiter’s first footprint in the alternative fixed income space and has added a new dimension to the its existing Alternatives business.
In addition to Huw’s appointment, the company has also announced that it is strengthening the client-facing support offered to its flagship fixed income strategy with the promotion of Matthew Morgan to Investment Director, Fixed Income and Multi-Asset. Having joined Jupiter in 2019 as Product Specialist on its Multi-Asset strategy, in his new position he will co-ordinate the activities of the team of Investment Directors across the company’s £15.3 billion Fixed Income and £1.1 billion Multi-Asset ranges, leading a growing team of strategy specialists.
“Since the onset of the Covid pandemic, the policymaking landscape has dramatically changed. Fiscal spending is unlikely to disappear anytime soon as inequality and global warming issues are addressed. Central banks will remain supportive but will take more of a backseat, while ensuring that banking systems are in good health to support the recovery”, said Mark Nash.
In his view, this reflationary environment will see higher growth and higher inflation, with yields rising. “A more ‘absolute return’ approach will be needed to achieve positive returnsfrom fixed income, and I am pleased to be welcoming Huw to the team at this important time in for the strategy”, he concluded.
Pixabay CC0 Public Domain. Nuveen amplía su plataforma Real Asset con dos nuevas unidades de negocio: Nuveen Natural Capital y Nuveen Infrastructure
Nuveen has announced the strengthening of its Real Assets platform, by bringing together its private real asset capabilities and launching two new business units. Its goal is to create a more streamlined proposition as investors seek to increase exposure to real assets and alternatives.
In fact, according to research conducted by the firm, over two thirds of institutional investors are planning to increase allocation to infrastructure, natural resources investments and other alternative assets, as they seek to reduce climate-related financial risk exposure and align portfolios with the transition to a sustainable low-carbon economy.
The newly structured Nuveen Real Assets platform will consist of capabilities in real estate, farmland, infrastructure, timberland, agribusiness, and commodities; which will be organized under three core pillars, including two newly launched units: Nuveen Natural Capital and Nuveen Infrastructure. These two will sit alongside Nuveen Real Estate and will be enhanced by targeted and complementary capabilities across Nuveen’s Private Impact and Commodities segments.
“We’re hugely excited to be enhancing our Real Assets proposition, which will include bringing expertise together to create the newly launched businesses. Investor demand for real assets is increasing at an extraordinary pace and by bringing together our unrivalled expertise in alternatives, we will be better positioned to respond to meet growing global investor demand for long-term sustainably managed investments. The strengthening of the platform represents the next step in our evolution in becoming the leading land-based asset manager, investing in a sustainable way for the enduring benefit of our clients and society”, commented Nuveen’s CEO of Real Assets, Mike Sales.
The company has highlighted that its sustainable investment philosophy will underpin the entire Real Asset platform’s approach, “offering investors access to alpha driven strategies that are deployed via a responsible investing lens“. Under the leadership of Mike Sales, the enhanced platform will launch in January 2022.
The three core pillars
Regarding the new offering, the company has revealed that Nuveen Natural Capital will combine Westchester Group Investment Management, Nuveen’s farmland investment business with over $7.7bn of farmland assets under management, with GreenWood Resources, which specialises in the acquisition and stewardship of forestry assets and currently manages $1.5bn of timberland assets across over 760,000 acres. Martin Davies, current CEO of Westchester Group, will lead this business unit.
As for Nuveen Infrastructure, it will combine private equity and equity-like strategies through Glennmont Partners, one of Europe’s largest renewable energy fund managers with over $2bn in assets under management, alongside Nuveen’s existing diversified private infrastructure platform and its agribusiness platform- AGR Partners. Following a 16-year period at Nuveen, Biff Ourso, will be the Global Head.
Meanwhile, Nuveen Real Estate is one of the largest real estate managers globally, with over $133bn of assets under management, and will remain under the leadership of Chris McGibbon. The business consists of six core business lines across the retail, office, logistics, housing, debt & alternatives sectors
Foto cedidaKristina Church, Head of Responsible Strategy de BNY Mellon IM.. BNY Mellon IM nombra a Kristina Church nueva Head of Responsible Strategy
BNY Mellon Investment Management has announced the appointment of Kristina Church as Head of Responsible Strategy. In her new role, she will collaborate with its investment firms, as well as its parent company BNY Mellon, in relation to their responsible and sustainable investment strategies and approaches.
In a press release, the asset manager revealed that Church will help drive BNY Mellon IM’s positioning relating to responsible investment as a provider of investment solutions, engage with clients, input on product development, contribute to public policy and related initiatives, and advise on data and reporting. Based in London, she will report to Gerald Rehn, Head of International Product and Governance at the firm.
Church joins from Lombard Odier Investment Managers where she was most recently Head of Sustainable Solutions and earlier, Senior Investment Strategist and Deputy Head of Sustainability. Prior to this, she spent a decade at Barclays Capital, latterly in its sustainable and thematic research team and formerly as Head of European Automotive Equity Research. She began her career as an accountant at Deloitte and later an automotive equity analyst in Citigroup.
“I am delighted to welcome Kristina to BNY Mellon Investment Management. She has a wealth of experience gained in different parts of the investment industry and a very strong understanding of the evolving trends in responsible and sustainable investment across various asset classes”, said Hanneke Smits, Chief Executive Officer.
She also pointed out that BNY Mellon IM’s multi-investment firm model provides clients with a “unique and relevant” range of responsible investment solutions. “Kristina will play an integral role in further positioning and articulating our approaches to responsible investment with our clients globally”, she concluded.
