Foto cedidaMatt Christensen, director global de Sostenibilidad e Inversión de Impacto de Allianz GI. . Allianz GI crea una unidad dedicada a las inversiones de impacto en los mercados privados
To enhance its commitment to impact investing, Allianz Global Investors (AllianzGI) has announced the creation of a dedicated Private Markets Impact unit within its Sustainable investment platform. This new area will be led by Matt Christensen, Global Head of Sustainability and Impact Investing.
The Private Markets Impact unit combines existing equity and debt investing expertise with a newly created impact measurement and management capability. The firm has revealed in a press release that this 12- strong unit, which will be overseen by Christensen, will complete the Sustainability platform created in 2021 to push the boundaries of sustainability for its clients.
Three impact teams
Martin Ewald, Lead Portfolio Manager, heads the Private Equity Impact Investing team, which seeks to invest in real assets and private companies that contribute to solve global environmental and/or social issues. He is currently responsible for EUR 500 million committed through the Allianz Impact Investment Fund and AfricaGrow initiative, and also the Emerging Market Climate Action strategy (EMCA) launched at COP26 by AllianzGI in cooperation with the European Investment Bank.
In this sense, AllianzGI reveals that with a target size of EUR 500 million, EMCA will invest in climate-focused investment funds and projects active in emerging markets and developing countries, with a focus on climate mitigation, climate adaptation, and access to electricity.
Meanwhile, Nadia Nikolova, Lead Portfolio Manager,is heading the Development Finance & Private Debt Impact Investing team, which currently invests in de-risked sustainable loans in emerging and frontier markets. The team brings together the expertise from the AllianzGI Private Credit platform with an impact investing lens. It focuses on building partnerships with Development Finance Institutions and Agencies, Donors and commercial investors to mobilize private capital for sustainable development, and already raised over USD 2 billion since 2017.
Also announced at the recent COP 26, the team manages the vehicle for the recently announced Managed Co-Lending Portfolio Program (MCPP) between Allianz and the International Finance Corporation (IFC), a member of the World Bank Group. “The new program, MCPP One Planet is the world’s first cross-sectoral portfolio of emerging-market loans aligned with the Paris Agreement”, the company explains.
In addition, AllianzGI announced the creation of an Impact Measurement & Management team, led by Diane Mak, and the launch of an impact framework to facilitate the due diligence and selection of investments that contribute to material and positive impact. The approach supports rigorous measurement and management of impact over the lifecycle of the investment to ensure that impact is being delivered. Diane Mak joined AllianzGI in August from Y Analytics where she oversaw TPG Global’s impact assessments and management activities.
“Impact investing is fast-growing out of its niche. Investors want to see a positive change for the planet while generating a return, and impact investing offers a solution to these twin goals. The future growth trajectory of impact investing depends on asset managers demonstrating how the impact can be measured and reported. Our new Impact Measurement & Management approach enables us to measure impact in private equity and debt investments and will allow us to develop further our offering according to the best standards”, said Christensen.
Pixabay CC0 Public DomainEl año más alcista para el M&A. Toro
2021 was a great year for the U.S stock market and economy. Stocks were up for the month, 4th quarter and year and posted their biggest three year gain since 1999. The strength of the S&P 500’s rally is reflected in its 70 record-high closes during the year, second only to 77 in 1995 back to 1928. The U.S. economy staged a strong recovery as rising demand offset supply chain and microchip disruptions, rising prices, labor shortages, and the drag of mutating COVID-19 infections on the services industries. More economic reopening’s, the consumer wealth effect, and inventory rebuilds bode well for 2022.
The above consensus jump in the core U.S. inflation rate took the FOMC by surprise and pushed the 10-year U.S. Treasury note yield up 60 basis points on the year to 1.51%, the most since 2013, when the yield rose 127 basis points to 3.03%. On May 22, 2013 Fed Chair Bernanke announced the start of a reduction of its quantitative easing bond buying and sparked the bond market’s ‘taper tantrum.’.
Chinese President Xi Jinping focused on the need to keep a “strategic focus” in his 2022 New Year address: “We must always keep a long-term perspective, remain mindful of potential risks, maintain strategic focus and determination, and ‘attain the broad and great while addressing the delicate and minute’.”
M&A activity remained vibrant in the fourth quarter of 2021, totaling $1.5 trillion, the sixth consecutive quarter that M&A exceeded $1 trillion and the second largest quarter ever. The strong fourth quarter brought full year M&A activity to $5.9 trillion, the strongest year on record and an increase of 64% compared to 2020 levels. Excluding SPAC acquisitions, which totaled $600 billion, or 10% of activity, 2021 M&A activity totaled $5.3 trillion, still the strongest year for mergers on record. We believe the drivers remain in place for continued robust deal activity in 2022 and beyond.
2021 proved to be a somewhat lackluster year for convertibles globally. After record performance over the past few years, convertibles finally took a breather, resetting valuations and terms. While new issuance continued to be strong this year, some of it was at unattractive terms. Those large issues that came with no coupons and premiums in excess of 50% tended to underperform and drag the market with it. Finally, convertibles have traditionally been favored by growing companies and the rotation from growth to value played a role. With rising interest rates, growth valuations started to seem a bit excessive and while convertibles outperformed their underlying equities as they moved lower, performance relative to the broader equity markets was disappointing.
Looking forward, we are optimistic for our market this year. First, 2021 was a bit of a reset. The market rejected some of the excessive terms and with growth valuations coming back down to earth, we are starting to see some attractive values amongst the carnage. While rising rates may force some growth valuations lower still, they set the table for more attractive issuance in the future. Rising rates have traditionally been good for the market, with convertibles moving higher each of the last 10 times we have seen a 100 bps increase in 10 year treasuries. While there may be more interest rate sensitivity this year, the majority of the market will still be driven by underlying equities.
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To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552 Class I EUR – LU0687944396 Class A USD – LU0687943745 Class A EUR – LU0687943661 Class R USD – LU1453360825 Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648 Class I EUR – LU1216601564 Class A USD – LU1216600913 Class A EUR – LU1216600673 Class R USD – LU1453359900 Class R EUR – LU1453360155
GAMCO CONVERTIBLE SECURITIES
GAMCO Convertible Securities’ objective is to seek to provide current income as well as long term capital appreciation through a total return strategy by investing in a diversified portfolio of global convertible securities.
The Fund leverages the firm’s history of investing in dedicated convertible security portfolios since 1979.
The fund invests in convertible securities, as well as other instruments that have economic characteristics similar to such securities, across global markets (but the fund will not invest in contingent convertible notes). The fund may invest in securities of any market capitalization or credit quality, including up to 100% in below investment grade or unrated securities, and may from time to time invest a significant amount of its assets in securities of smaller companies. Convertible securities may include any suitable convertible instruments such as convertible bonds, convertible notes or convertible preference shares.
By actively managing the fund and investing in convertible securities, the investment manager seeks the opportunity to participate in the capital appreciation of underlying stocks, while at the same time relying on the fixed income aspect of the convertible securities to provide current income and reduced price volatility, which can limit the risk of loss in a down equity market.
Class I USD LU2264533006
Class I EUR LU2264532966
Class A USD LU2264532701
Class A EUR LU2264532610
Class R USD LU2264533345
Class R EUR LU2264533261
Class F USD LU2264533691
Class F EUR LU2264533428
Disclaimer: The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
Pixabay CC0 Public Domain. Los bancos centrales se enfrentan a un dilema
Inflation at a level not seen for a long time makes it possible: the topic monetary policy tightening has moved onto the agenda again. In the US, the Fed has begun reducing securities purchases – so-called “tapering”. And in some emerging markets, as well as in Norway, New Zealand and South Korea, key interest rates have already been raised. The European Central Bank (ECB), on the other hand, is being coy and hesitant. However, the markets do not really believe that the ECB will stand still for a longer period of time.
Will monetary policy gradually become more “normal” again – in the sense of balanced, with interest rate reactions upwards as well as downwards? Or is it more likely that, after tentative attempts at tightening, the first signs of displeasure from shareholders and stakeholders will lead central bank to reverse the monetary-policy course again?
Unfortunately, the latter is to be feared. The reason is the foreseeable costs and braking effects of higher interest rates. On the one hand, monetary tightening and the associated rise in real interest rates entail the risk of an unintentionally severe economic slowdown. On the other hand, this could have a massive impact on the financial markets: There, the long-standing central bank actions have seriously interfered with pricing mechanisms, overriding them in large parts of the bond market and leading to misallocations and overheating tendencies via the portfolio channel. Withdrawal of the drug “cheap money” therefore threatens turbulence. And last but not least: Global debt, which is getting out of hand, would no longer be financeable “for free”; fiscal woes would dominate.
Not so long ago, central bankers would probably have said “so what?” in view of such risks and acted within their focused mandate to maintain price stability. In the meantime, however, the regime has changed. Sustained action is therefore less likely: monetary watchdogs are unlikely to be prepared to face these consequences.
In an exchange of traditional behavioural patterns, the principle of reverse authoritativeness has now become established for the relationship between monetary policy and financial markets. Central banks are increasingly responding to the signals and needs of the capital markets rather than the other way round. The result is an asymmetrical policy: rapid and significant interest rate cuts, but only very hesitant and small interest rate increases, if at all.
How could it have come to this? The seeds for this development were sown with the worldwide deregulation and liberalisation of financial markets in the 1980s and 1990s. There is scientific evidence that this led to the birth and subsequent decoupling of the financial-market cycle from the business cycle. What is more, it is now clear that the former even dominates and lives about twice as long as the latter. Moreover, history teaches us that deep recessions and sustained deflationary scenarios result – if at all – from the bursting of asset bubbles.
If one wants to pinpoint the starting point of the change of heart to a specific date, the Fed’s reaction to the 1987 stock market crash can be considered a fall from grace. That was the first time that the central bank explicitly responded to falling stock prices. Wall Street later created a new term for this: the “Greenspan Put”. However, financial dominance really took off after the great financial crisis of 2008. Since then, the reaction pattern has been perfected. In this context, the ECB adopted the PFFC regime: “preserve favourable financing conditions”. And since the middle of this year the euro central bank has been regularly publishing a Survey of Monetary Analysts (SMA), in which it asks market participants for detailed information on when they expect the ECB to take which action. This feeds the suspicion of who is a cook and who is a waiter these days!
Against this backdrop and with a view to the question posed at the outset as to whether monetary policy will return to “normal”, the central banks thus find themselves in a dilemma. At present, no real departure from the aggressively relaxed approach that has been in place for years is to be expected. And this despite the formation of bubbles and sentiment-related exaggerations in sub-markets. Just think of the almost 70% weighting of US equities in the global index, real estate markets, cryptos, SPACs (Special Purpose Acquisition Companies) or meme phenomena.
For investors, this has three implications: First, more than ever, diversification is of utmost importance for any forward-looking investment strategy. Secondly, the same applies to agile active portfolio management, which includes a dynamic risk strategy. Both requirements may seem old-fashioned to investors, but they remain imperative. Thirdly and finally, income strategies are advisable in view of the low interest-rate environment that is likely to persist for a long time to come. In equities, these can be implemented by focusing on dividends, for example.
Ultimately, this triad is certainly primarily a reminder of traditional, conservative investment principles. However, monetary policy is currently upside down – keywords: financial dominance and the fight for rather than against inflation. Not to mention the Modern Monetary Theory (MMT). Its ultimate consequence would be the loss of central banks’ institutional independence, which would be deeply regrettable. In view of this threatening backdrop, the aforementioned reconsideration seems very suitable for at least putting one’s own capital investment on a solid footing.
Column by Ingo Mainert, CIO Multi Asset Europe at Allianz Global Investors
Foto cedida. Axel P. Lehmann sustituye a Antonio Horta-Osório como presidente de Credit Suisse
Uncivic behavior during the hardest moments of the pandemic is not only taking its toll on politicians, but also on top executives of large companies. The clearest example has been the case of Antonio Horta-Osório, who has resigned from his position as chairman of Credit Suisse Group in view of his behavior during the COVID-19 quarantine.
According to Spanish news agency Europa Press, an investigation by the bank’s Board of Directors has shown that Horta-Osório violated the COVID-19 quarantine rule on more than one occasion. “I regret that a number of my personal actions have led to difficulties for the bank and compromised my ability to represent the bank internally and externally. I therefore believe that my resignation is in the interest of the bank and its stakeholders at this crucial time. I wish my colleagues at Credit Suisse every success for the future”, the executive said in a statement released by the company.
Consequently, Credit Suisse Group has appointed Axel P. Lehmann as the bank’s new Chairman effective immediately. The bank believes that under his leadership, the Board and the Executive Board will continue to execute Credit Suisse’s strategy, driving forward the transformation of the bank.
“We respect António’s decision and owe him considerable thanks for his leadership in defining the new strategy, which we will continue to implement over the coming months and years. Axel Lehmann as the new Chairman, with his extensive international and Swiss industry experience, is ideally suited to drive forward the strategic and cultural transformation of the bank. We wish Axel every success in his new role and António all the best for the future”, commented Severin Schwan, Vice-Chairman and Lead Independent Director of the Board of Credit Suisse.
Following his appointment, Lehmann has taken office as Chairman. The Board will also propose him for election as Chairman at the upcoming Annual General Meeting on April 29, 2022. Lehman thanked the Board for the trust it has placed in him and looks forward to working even more closely with the Board and the Executive Board.
“We have set the right course with the new strategy and will continue to embed a stronger risk culture across the firm. By executing our strategic plan in a timely and disciplined manner, without distraction, I am convinced that Credit Suisse will demonstrate the renewed strength and business focus needed to generate sustainable value for all of our stakeholders”, he added.
Lastly, after his resignation, Horta-Osório highlighted that he has worked hard to return Credit Suisse to a successful course, and I claimed to be proud of what they have achieved together in his short time at the bank. “Credit Suisse’s strategic realignment will provide for a clear focus on strengthening, simplifying and investing for growth. I am convinced that Credit Suisse is well positioned today and on the right track for the future”, he concluded.
Foto cedidaLarry Fink, CEO de BlackRock.. Larry Fink ve clave el “capitalismo de stakeholders” y la sostenibilidad para navegar en el nuevo entorno que deja la pandemia
Larry Fink, CEO of BlackRock, has published his annual letter to the CEOs of the companies around the world in which the firm invests on behalf of its clients. As every year, this missive seeks to encourage business leaders to manage companies with a long-term mindset that offers shareholders consistent returns over time.
Fink points out the importance of “stakeholder capitalism”, which, for him, is not about politics: “It is not a social or ideological agenda. It is not “woke.” It is capitalism, driven by mutually beneficial relationships between you and the employees, customers, suppliers, and communities your company relies on to prosper. This is the power of capitalism”.
He believes in its ability to help individuals achieve better futures, to drive innovation, to build resilient economies, and to solve some of our most intractable challenges: “In today’s globally interconnected world, a company must create value for and be valued by its full range of stakeholders in order to deliver long-term value for its shareholders. It is through effective stakeholder capitalism that capital is efficiently allocated, companies achieve durable profitability, and value is created and sustained over the long term. Make no mistake, the fair pursuit of profit is still what animates markets; and long-term profitability is the measure by which markets will ultimately determine your company’s success”.
The CEO also highlights that the pandemic is “dramatically accelerating” how technology is reshaping life and business, has deepened the erosion of trust in traditional institutions and has exacerbated polarization in many Western societies. “This polarization presents a host of new challenges for CEOs. Political activists, or the media, may politicize things your company does. They may hijack your brand to advance their own agendas. In this environment, facts themselves are frequently in dispute, but businesses have an opportunity to lead. Employees are increasingly looking to their employer as the most trusted, competent, and ethical source of information – more so than government, the media, and NGOs”, he adds.
In this context, Fink arguments that “it’s never been more essential for CEOs to have a consistent voice, a clear purpose, a coherent strategy, and a long-term view”. That is why he encourages them to put their company’s purpose at the foundation of their relationships with stakeholders in order to achieve long-term success.
“Employees need to understand and connect with your purpose; when they do, they can be your staunchest advocates. Customers want to see and hear what you stand for as they increasingly look to do business with companies that share their values. And shareholders need to understand the guiding principle driving your vision and mission. They will be more likely to support you in difficult moments if they have a clear understanding of your strategy and what is behind it”, he says.
A new world of work
In the CEO’s view, no relationship has been changed more by the pandemic than the one between employers and employees: “As companies rebuild themselves coming out of the pandemic, CEOs face a profoundly different paradigm than we are used to. Companies expected workers to come to the office five days a week. Mental health was rarely discussed in the workplace. And wages for those on low and middle incomes barely grew”.
That’s why companies not adjusting to this new reality and responding to their workers do so at their own peril. “In addition to upending our relationship with where we physically work, the pandemic also shone a light on issues like racial equity, childcare, and mental health – and revealed the gap between generational expectations at work. These themes are now center stage for CEOs, who must be thoughtful about how they use their voice and connect on social issues important to their employees. Those who show humility and stay grounded in their purpose are more likely to build the kind of bond that endures the span of someone’s career”, Fink adds.
Besides, his letter shows that new sources of capital are fueling market disruption as over the past four decades, there has been an explosion in the availability of capital. “Young, innovative companies have never had easier access to capital. Never has there been more money available for new ideas to become reality. This is fueling a dynamic landscape of innovation. It means that virtually every sector has an abundance of disruptive startups trying to topple market leaders”, he says.
In his view, CEOs of established companies need to understand this changing landscape and the diversity of available capital if they want to stay competitive in the face of smaller, more nimble businesses. That’s why BlackRock wants to see the companies they invest in for their clients evolve and grow so that they generate attractive returns for decades to come. “We too must be nimble and ensure our clients’ assets are invested, consistent with their goals, in the most dynamic companies – whether startups or established players – with the best chances at succeeding over time”, he insists.
Sustainability and ESG
Regarding sustainability, Fink highlights that they focus on it not because they’re environmentalists, but because they are “capitalists and fiduciaries” to their clients. “That requires understanding how companies are adjusting their businesses for the massive changes the economy is undergoing. As part of that focus, we are asking companies to set short-, medium-, and long-term targets for greenhouse gas reductions. These targets, and the quality of plans to meet them, are critical to the longterm economic interests of your shareholders. It’s also why we ask you to issue reports consistent with the Task Force on Climate-related Financial Disclosures (TCFD): because we believe these are essential tools for understanding a company’s ability to adapt for the future”, he reveals.
In his opinion, divesting from entire sectors – or simply passing carbon-intensive assets from public markets to private markets – will not get the world to net zero. “Foresighted companies across a wide range of carbon-intensive sectors are transforming their businesses, and their actions are a critical part of decarbonization. We believe the companies leading the transition present a vital investment opportunity for our clients and driving capital towards these phoenixes will be essential to achieving a net zero world”, he says.
In this sense, he thinks that governments need to provide clear pathways and a consistent taxonomy for sustainability policy, regulation, and disclosure across markets. They must also support communities affected by the transition, help catalyze capital for the emerging markets, and invest in the innovation and technology that will be essential to decarbonizing the global economy. “When we harness the power of both the public and private sectors, we can achieve truly incredible things. This is what we must do to get to net zero”, the letter says.
Lastly, Fink points out that just as other stakeholders are adjusting their relationships with companies, many people are rethinking their relationships with companies as shareholders. “We see a growing interest among shareholders – including among our own clients – in the corporate governance of public companies”, he concludes.
Pixabay CC0 Public Domain. BNP Paribas AM refuerza su plataforma de activos privados con la integración de BNP Paribas Capital Partners
BNP Paribas Asset Management has finalized the integration of BNP Paribas Capital Partners, its specialized alternative multi-management platform including private asset fund solutions, as well as funds of hedge funds and UCITS-compliant hedge funds. The firm thus strengthens its private asset strategy by combining the resources of BNP Paribas Capital Partners, FundQuest Advisor and the multi-asset teams into a single division.
In a press release, the asset manager explains that this decision is in line with its strategy of accelerating the development of its private asset investment strategies. Following the signing of the acquisition of Dynamic Credit Group in September 2020, the integration of BNP CP further strengthens its Private Debt & Real Assets investment division, bringing its assets under management to more than 20 billion euros (22.77 billion dollars).
The closing of this transaction will also allow BNP AM to expand its scope to new market segments within private debt, benefiting from BNP CP’s successful development in recent years in specialized debt and impact private equity fund solutions. The fund of hedge funds business will join the already well established Multi Asset, Quantitative & Solutions business led byDenis Panel. This will extend the coverage of its multi asset and FundQuest Advisor teams to liquid alternative funds.
“BNP Paribas Capital Partners’ private asset fund investment activities, focused on impact private equity and specialized debt, are very complementary to the direct investment strategies developed within PDRA since 2017. With the addition of this multi-management expertise, and the recent acquisition of Dutch mortgage specialist Dynamic Credit Group, our private investment platform offers investors an unrivaled breadth and significant scale of private investment solutions with assets under management totaling more than EUR 20 billion”, commented David Bouchoucha, Head of PDRA.
Meanwhile, Denis Panel, Head of MAQS, highlighted that the combination of resources coming from BNP Paribas Capital Partners, together with FundQuest Advisor and their multi asset teams “shows BNP Paribas Asset Management’s strong commitment to supporting and developing its absolute return fund of funds business.“
Pixabay CC0 Public DomainMuriel Danis, directora global de Plataformas de Producto y Soluciones Sostenibles de la división de Banca Privada Internacional (IPB) de Deutsche Bank .. Deutsche Bank ficha a Muriel Danis como directora global de Plataformas de Producto y Soluciones Sostenibles
Deutsche Bank’s International Private Bank (IPB) announced this week the appointment of Muriel Danis as Global Head of Product Platforms & Sustainable Solutions, effective March 14, 2022.
In this newly created role, Danis will be responsible for the continuous development of Deutsche Bank’s product and services platforms across the IPB’s client segments and will “ensure robust governance across regions”. The firm clarified in a press release that this will include responsibility for trading and capital markets governance, funds, alternatives and accounts, cards and payments products as well as supporting the development of the IPB’s sustainable solutions in line with the commitments laid out at the Sustainability Deep Dive in May 2021.
“Muriel Danis’ appointment is testament to our business’ ability to attract leading industry talent to our fast-growing product platform and reflects our ambition to become the house of choice for clients who wish to make positive social change. Her role will be a significant driver as we pursue delivery of the IPB’s ESG targets”, said Claudio de Sanctis, Global Head of the IPB and CEO EMEA.
Danis has over 22 years of experience across Global Markets and Private Banking, most recently at HSBC in London as Global Chief Operating Officer in the Wealth Management division’s Products and Investment Groups. Prior to that, she held an array of roles, including Global Head of Advisory, as well as Global Head of Product Management and Business Development. She was also a Director in the Family Office Partnership, Middle East and Africa in Dubai. Before joining HSBC, she had a number of positions within Credit Suisse’s Private Bank and Global Markets divisions.
Foto cedidaMario Aguilar, estratega de carteras senior en Janus Henderson Investors. . Mario Aguilar se incorpora a Janus Henderson como nuevo estratega de carteras senior
Janus Henderson Investors is bolstering its Portfolio Construction and Strategy team with the hiring of Mario Aguilar as Senior Portfolio Strategist. In this newly-created role, he will support clients in the Latin American, US Offshore and Iberian markets.
Aguilar, who assumed the role on 1 December 2021, will be based in London and report to Adam Hetts, Global Head of Portfolio Construction and Strategy Group. The asset manager has revealed in a press release that in his new position he will serve as “a crucial partner” to clients by delivering actionable investment strategy insights through customized portfolio analytics and proprietary thought leadership, across all asset classes.
Janus Henderson has highlighted that Aguilar brings “a wealth of industry experience” having joined fromAllspring Global Investments (formerly Wells Fargo Asset Management), where he was an EMEA Client Relations Director since 2013. In that role he had multi-asset product coverage responsibilities for EMEA and Latin American clients, engaging with those clients in a variety of formats including individual client portfolio consultations, group presentations, and providing investment and market commentaries. Prior to that, he worked as a Client Services Director at Markov Processes International where he was an expert on their flagship portfolio analysis software.
The Janus Henderson Portfolio Construction and Strategy (PCS) team performs customized analyses on advisor portfolios, providing differentiated, data-driven diagnostics, and publishes proprietary asset allocation and macro insights. The firms points out that through guidance from the PCS team, “advisors can build more resilient client portfolios through deep performance/risk model analysis and unique investment perspectives”.
Aguilar’s appointment brings the headcount of the PCS team to a total of 12 people covering Janus Henderson clients across US, US Offshore, LatAm, and EMEA.
“I am delighted to have Mario onboard to offer clients in Latin America, US Offshore and Iberia the specialist knowledge of our PCS team. We are dedicated to growing our private bank network in these regions and the value propositions that the PCS team will be able to offer advisors will be invaluable in helping them to deliver results in line with their investors’ long-term objectives. We are confident that the combined technical expertise of Mario, PCS technology and the local expertise of our sales colleagues on the ground will result in a superior client experience”, said Ignacio de la Maza, Head of EMEA Intermediary & LatAm said.
Meanwhile, Adam Hetts, Global Head of Portfolio Construction Strategy, commented that Aguilar is “a critical addition” to their growing global team: “He brings a tremendous mix of local expertise and global investment acumen that is ideally suited to our clients’ needs in the Latin America, US Offshore, and Iberia markets”.
In his view, thanks to this addition, Janus Henderson and their sales colleagues are deepening their client relationships in these “key strategic markets” by delivering an even wider array of customized portfolio construction insights and market perspectives. “Mario brings unique perspective to how we can best apply our global team’s resources to his local markets, and we are all very excited for what he will accomplish on behalf of our clients”, he concluded.
Foto cedidaPhilippe Couvrecelle, consejero delegado y fundador de iM Global Partner.. Philippe Couvrecelle, consejero delegado y fundador de iM Global Partner
iM Global Partnerannounced in a press release that its Luxembourg-based Oyster fund range has changed its name to iMGP Funds. The decision is part of “an extensive rebranding effort” in response to its accelerated company growth and a renewal of its corporate vision.
“At the heart of the rebranding initiative, is a change of the company’s Oyster fund range to iMGP Funds”, the firm added. Specifically, the US funds changed their name on 16th December 2021 and the Luxembourg-based SICAV on January 10th.
The worldwide investment manager highlighted that 2021 was “a milestone year” for its business, as it broadened its asset management network with two new partners:Richard Bernstein Advisors who joined in July 2021 andAsset Preservation Advisors in September 2021. In its view, both have provided clients with access to “an even wider selection of distinctive high-quality funds”.
The firm also acquired 100% of the Litman Gregory wealth management and funds businesses, strengthening its US distribution footprint and capabilities. Consequently, iM Global Partner’s assets under management almost doubled in 2021 from US$19.6 billion in December 2020 to US$38 billion in December 2021 and staff numbers grew from 50 to 115.
“In the last few years, iM Global Partner has cemented its status as a market leader in distinctive fund products. We experienced over 90% growth in assets under management last year. This growth reflects the increased recognition that asset managers must provide transparent funds that perform competitively on a risk adjusted basis”, commented Philippe Couvrecelle, CEO and Founder of the company.
In this sense, he believes that this announcement provides them with “the unique opportunity” to ensure their brand becomes synonymous with quality: “Our brand reflects the strength, sustainability and flexibility of our investments solutions”.
Couvrecelle explained the announcement demonstrates the confidence his team has in the company’s future and lays the groundwork for further expansion which will be demonstrated in 2022. He added that the firm plans to reach $60-65 billion in 3 to 4 years and $150 billion in 2030, with 4-6 new partners by 2023/2024.
“The iMGP Funds range illustrates the diversity of our high-performing team of top-notch asset managers spread throughout the world. At iM Global Partner, our clients know that our brand stands for quality – we search the world to find the most capable fund managers with the tenacity and innovation to achieve investment returns in any market environment. Therefore, we are confident that 2022 will be another good year for iM Global Partner and particularly iMGP Funds,” he concluded.
Foto cedidaValérie Baudson, consejera delegada de Amundi.. Ser líderes europeos en ETFs y una línea de negocio de soluciones alternativas líquidas: así es la apuesta de Amundi tras la compra de Lyxor
After six months of preparatory work andthe completion of the acquisition of Lyxor, Amundi explained this week the strategic benefits for its business and growth plans. Three key ideas were the focus of the press conference: to be the leader in the European ETF market, to have a platform of liquid alternative investment solutions and to add new skills and talent to its team.
“The acquisition of Lyxor is another important step in the deployment of Amundi’s strategy. It elevates Amundi to the top position among European ETF providers and enriches our active management offering with a leading position in liquid alternative assets. Amundi is fully prepared to be the partner of choice in these areas of expertise for both retail and institutional clients in Europe and Asia, and to continue its growth in two promising markets,” said Valérie Baudson, CEO of Amundi, during her presentation.
The head of the asset manager explained that the integration of both companies will generate synergies in terms of annual costs of 60 million euros before tax (68 million dollars), the full impact of which is expected to be visible in 2024. By the same date, Amundi’s CEO estimates synergies in terms of annual current income to be €30 million (34 million dollars). “The integration process will be carried out progressively over the next two years with several stages: IT migration, legal mergers, creation of a new organization,” she clarified.
Founded in 1998, Lyxor has more than €140 billion in assets under management and advice. In addition, the asset manager is a major player in the ETF market with €95 billion under management, making it the third largest player in Europe with a market share of 7.7%.
Regarding the active management business, “Lxyor has developed a recognized expertise in active management, with €45 billion under management, in particular through its leading alternative platform. Thanks to this acquisition, Amundi benefits from strong levers to accelerate its development in the ETF segment, which is currently experiencing rapid growth, as well as complementing its active management offering, particularly in liquid alternative assets, as well as advisory and OCIO capabilities, and fiduciary management,” Baudson emphasized.
Commenting on the roadmap, Lionel Paquin, CEO of Lyxor, added: “Lyxor joins Amundi with remarkable business momentum across all franchises and fully committed to ambitious new development goals. Driven by a pioneering spirit they have always shared, the Amundi and Lyxor teams will now work as one to build for their clients an even stronger and more innovative leader.”
ETFs, smart beta and indexed solutions
As highlighted by Fannie Wurtz, global head of ETFs, Indexing and Smart Beta business, “the acquisition of Lyxor will propel Amundi’s passive platform to the position of Europe’s leading ETF provider.” Overall, the combined ETF business represents more than €170 billion in assets under management, representing a 14% share of the UCITS ETF market for Amundi.
She also argues that the new expanded ETF range will provide investors with “efficient access to one of the largest and most comprehensive ranges of UCITS ETFs available on the market”. This range of more than 300 products includes some of the most attractive strategies, especially in ESG, weather, thematic investing, emerging markets and fixed income.
“In a market where size and scale are key, Amundi’s passive platform, bolstered by more than €282 billion, is an important step in cementing Amundi’s unique positioning as the European partner of choice in passive management for retail and institutional clients around the world. The Amundi Passive platform has set itself the target of increasing its assets under management by 50% by 2025,” she added.
Wurtz explained that their new position will allow them to continue to grow in an industry segment that has been driven in recent years by clearer, more concise and transparent regulation, as well as the transformation towards ESG and the digitization of distribution channels. Supported by this growth experienced by the ETF universe, Amundi expects strong growth in adoption by retail investors, both through ETF portfolio models and the acceleration of the European self-directed ETF segment, especially through online platforms. “In this broad retail segment, Amundi will leverage its global firepower and deep understanding of local market specificities to partner with distributors to co-design comprehensive and fully tailored solutions, including services such as digital and training support,” the asset manager says.
In this regard, Amundi anticipates growing interest from European institutional investors who are keen to increase their use of ETFs, especially for fixed income and ESG allocation. As Wurtz clarified, the fund manager has identified a strong appetite from non-European institutions, as the UCITS ETF franchise has proven attractive. “Thanks to the group’s long footprint in Asia and its presence in Latin America, and the breadth and depth of its offering, Amundi is well positioned to establish itself as the preferred European passive provider in these regions,” she commented on what its main regions of interest will be.
Finally, the firm wants to take advantage of the high demand for ESG solutions to grow the ETF business. Its conviction is that ESG ETFs will contribute to democratizing access to meaningful investment in a cost-effective way. In this regard, Wurtz announced that Amundi’s existing product range is being strengthened with the addition of innovative products from Lyxor ETFs. “In particular, with the Green Bond and Net Zero Climate ETFs, the newly expanded range of Amundi ESG & Climate UCITS ETFs, with a market share of around 20%. Going forward, responsible investing will be the primary focus of any product launches within the platform,” she said.
In addition, in line with Amundi’s 2025 ESG Ambition plan and Net Zero commitment, Amundi ETF will aim to double the proportion of responsible ETFs – i.e. classified as SFDR 8 or SFDR 9 – available to investors, reaching 40% of the total ETF range by 2025. As announced by the fund manager, all these growth targets and projects will be led by Arnaud Llinas, who will head the Amundi ETFs business division.
New business line: liquid alternative solutions
The second key to the deal, Baudson and Wutz insisted, is to enable Amundi to create a new business area focused on liquid alternative solutions, where Lyxor has extensive expertise and a strong business. “The integration of Lyxor allows Amundi to enrich its active management capabilities with the addition of alternative investment expertise, giving investors access to innovative sources of diversification and performance for their portfolios,” the asset manager noted.
Amundi has therefore made the strategic decision to create a dedicated Liquid Alternatives business line called Amundi Alternatives, thus complementing its range of investment solutions to better serve the needs of all its clients worldwide, including institutions, private and wealth investors and asset managers.
The Liquid Alternatives business is currently valued at more than €23 billion, including the Liquid Alternatives UCITS Platform and the Dedicated Managed Account Platform (DMAP) business, which represents €16.7 billion of assets. As announced, this division will be headed by Nathanaël Benzaken.
With this decision, the asset manager reaffirms its position as a leader in alternative investment, aiming to increase assets under management on the UCITS Alternative platform by 50% by 2025 and accelerate the development of DMAP towards institutional clients internationally. “This new platform is well placed to generate resilient, long-term growth thanks to Lyxor’s historical position as a trusted partner to the best names in the global alternative investment industry, as well as to the world’s largest and most sophisticated investors,” the fund manager concludes.
Internal organization
During the presentation of this ambitious plan, Amundi’s CEO emphasized that the Lyxor team will be integrated with the current Amundi team. Thus, as of January 1, 2022, Lyxor is a subsidiary of Amundi and will be integrated into the group’s operations with significant changes to its structure.
In particular, Lionel Paquin, CEO of Lyxor, joins Amundi’s Executive Committee; and Arnaud Llinas, head of ETF and index solutions at Lyxor, assumes responsibility for the ETFs, indexing and Smart Beta business line for the consolidated perimeter within Amundi. In addition, Nathanaël Benzaken, Chief Client Officer at Lyxor, also assumes responsibility for the new Alternatives business line at Amundi. According to the fund manager, in their new roles, Arnaud Llinas and Nathanaël Benzaken will report to Fannie Wurtz, a member of Amundi’s General Management Committee.
In addition, Florence Barjou, currently Chief Investment Officer of Lyxor, will become Chief Investment Officer of Crédit Agricole Insurance, effective March 1, 2022. And Edouard Auché, Lyxor’s Secretary-General, will be in charge of the migration of Lyxor’s IT and operations to Amundi’s platform, in addition to his current duties. Finally, Coralie Poncet, Head of Human Resources at Lyxor, is in charge of leading the integration of Lyxor employees into Amundi, in addition to her current duties.
The fund manager notes that all other Lyxor businesses and country managers report to the corresponding business and country managers within Amundi. In a second phase following the legal transactions, scheduled for mid-2022, Lyxor will merge with Amundi.
