Marc Pinto, courtesy photo. Janus Henderson Investors prepara la salida de Marc Pinto de cara a su jubilación en abril de 2021
After more than 26 years at Janus Henderson and 34 years in the industry, Marc Pinto is retiring from Janus Henderson Investors and the mutual fund industry, effective April 2, 2021.
As part of a robust succession planning effort for all their investment teams, the company is pleased to announce Jeremiah Buckley will assume primary portfolio management responsibilities for the Growth & Income strategy and the equity portion of the Balanced strategy, effective April 2, 2021.
“Both Marc and Jeremiah were instrumental in building the foundation of the successful effort that generated compelling risk-adjusted returns for our clients over many years. Given the lengthy transition period, Jeremiah’s 22 years of experience and their many years of partnership, we expect this to be a seamless evolution”. Ignacio de la Maza said in an emailed statement.
In connection with this transition, David Chung, Industrials Sector Lead and Research Analyst of the Centralized Research team, has been appointed Assistant Portfolio Manager on the Janus Henderson Balanced strategy and Janus Henderson Growth & Income strategy, effective June 30, 2020. The company stated that there are no changes to either the Fixed Income sleeve of the Balanced strategy or the Growth & Income strategy, nor to either strategy’s investment process or philosophy.
“I want to thank Marc for his many contributions to Janus Henderson and our clients over the past 26 years. He is an excellent investor and an exceptional leader. He and his team demonstrated their skill by delivering strong results for clients across several of our strategies over many years. Marc will continue working with the team through his retirement on April 2, 2021, which is a reflection of his professionalism and commitment to our clients.” Wrote de la Maza.
“I have the utmost confidence in the continuing investment team, whose investment process, philosophy and team approach remain unchanged. We are fortunate to possess significant professional depth and robust transition plans which are designed to respond to naturally occurring personnel changes without significant disruption to our clients or our business. This should result in an orderly transition for clients.” De la Maza concluded.
Foto cedidaKeith Skeoch, former CEO Standard Life Aberdeen.. Stephen Bird sustituirá a Keith Skeoch como CEO de Standard Life Aberdeen
Stephen Bird joins Standard Life Aberdeen as chief executive-designate, effective July 1, replacing Keith Skeoch later in the year.
Following a handover period, and subject to regulatory approvals, Bird, who was most recently CEO of global consumer banking at Citigroup, is expected to replace Skeoch as Group CEO by Sept 30.
Skeoch will retire from the board of directors of the firm in September, after five years as group CEO and 14 years as a director. He will spend the remainder of his contract — until June 2021 — as non-executive chairman of the Aberdeen Standard Investments Research Institute. The ASIRI is the firm’s macro research unit.
Bird “is an inspiring leader with a great track record and experience in leading businesses to harness digital technology to improve both productivity and the client and consumer experience,” Sir Douglas Flint, chairman, said in the release. “This, coupled with his ability to create valuable partnerships and guide businesses through periods of major change, means that he is well placed to build on the strong foundations we have at SLA.”
Stephen Bird said: “I am delighted to be joining Standard Life Aberdeen as its next Chief Executive. This is a company with a great history, a strong brandand an exciting future. The current crisis has highlighted the importance of active asset managementas well as building greater resilience into personal financial planning. SLA’sleading asset management, platforms and wealth capabilities give great scopeto help clients and customers navigate these challenges; thisis what attracted me to the company. I am looking forward to working with my new colleagues tocreate a better future for all our stakeholders.”
Standard Life Aberdeen, which has £544.6 billion ($671.6 billion) in assets under management and administration, was formed in 2017 following a merger between Standard Life and Aberdeeen Asset Management. The group is made up of two businesses: The £486.5 billion money manager Aberdeen Standard Investments and Standard Life. Mr. Skeoch was CEO of insurer Standard Life prior to the merger. The group has a strategic partnership with insurance firm Phoenix Group, which acquired Standard Life Assurance in 2018.
Valerio Schmitz-Esser, courtesy photo. Credit Suisse AM amplía su gama de ETFs con dos nuevos fondos de renta variable que invierten en small cap y en el sector inmobiliario
Credit Suisse Asset Management has launched two additional ETFs. The CSIF (IE) MSCI USA Small Cap ESG Leaders Blue UCITS ETF and CSIF (IE) FTSE EPRA Nareit Developed Green Blue UCITS ETF. The two funds are trading on SIX Swiss Exchange, Deutsche Börse, and Borsa Italiana.
Like the existing Credit Suisse Asset Management ETFs, the new products are being launched under the Credit Suisse Index Fund (IE) ETF ICAV umbrella. With US small caps and global real estate, the funds offer exposure to two interesting and promising segments. Both new ETFs bear the label “Blue”, which stands for Credit Suisse Index Funds without securities lending, and both fit into the strict Credit Suisse ESG framework.
The CSIF (IE) MSCI USA Small Cap ESG Leaders Blue UCITS ETF gives access to a broadly diversified portfolio of US small-cap stocks with market capitalizations below USD 10 bn. The eponymous benchmark index screens the investment universe for environmental, social, and corporate governance performance and thereby represents approximately 50% of the US small-cap opportunity set.
The CSIF (IE) FTSE EPRA Nareit Developed Green Blue UCITS ETF invests in a global portfolio of environmentally friendly real estate stocks and real estate investment trusts (REITS). In a low-yield environment, listed real estate combines stable rental income with long-term protection against inflation.
Since Credit Suisse Asset Management launched a new range of exchange-traded funds (ETFs) in March 2020, these products have already surpassed USD 2 bn in assets under management.
Credit Suisse Asset Management made its return to the ETF market on March 16, 2020. Since then, their ETFs have raised more than USD 2 bn and are fast becoming an integral part of a broader range of 98 index funds with USD 104 bn (as at May 31, 2020) in combined assets.
“Our long-standing experience in index funds has given us the requisite know-how to succeed in ETFs,” said Valerio Schmitz-Esser, Head of Credit Suisse Asset Management Index Solutions. “The efficiency of our processes and the precision of our techniques make our ETFs ideally positioned to take full advantage of the potential in this segment.”
The stock market rebound from the March lows continued in May, as investors focused on the beginning of the end to COVID-19 induced lockdowns as well as advances in potential treatments or vaccines for the virus. Mega cap technology companies continue to lead the charge as society has relied on the emphasis of digital technology, from the comfort of their own homes.
The impacts of the virus have created unprecedented levels of disruption throughout the world. The current confrontational dynamics between the U.S. and China, election year uncertainties, and worries over a virus “second wave” will likely prevail through year-end. For now, the Phase One US-China trade deal remains intact despite social unrest in Hong Kong and President Trump’s accusations over the World Health Organization’s relationship with China. Time will tell if that stands.
Monetary and fiscal policy dynamics are in place to encourage more consumer spending and assist parts of the economy affecting the “BOTL” (banks, oil, travel, & leisure) stocks. U.S. political discussions continue on the topic of more coronavirus relief, as U.S. jobless claims exceeds 40 million.
Merger Arb returns in May were bolstered by deals that closed, progress on deals in the pipeline, and the continued normalization of merger spreads. Regulators and advisers around the world have successfully transitioned to working remotely and continue to advance and approve transactions, evidenced by approvals granted in May. Economies have begun the process of reopening and consumers are adapting to a “new normal.” While our focus remains on selecting current deals with the highest likelihood of success, we are seeing green shoots of future M&A activity, with numerous reports of companies evaluating acquisitions. Deals that closed in May totaled about 15% of the fund’s assets, and we were busy deploying the cash received in outstanding deals.
As economies begin to open, the uncertainties associated with the impacts of the virus will slowly surface. Ultimately, we believe that investors will reward strong companies with healthy balance sheets and positive free cash flows in order to lead the economic recovery.
Column by Gabelli Funds, written by Michael Gabelli
__________________________________
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
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. La UE regula las plataformas de crowdfunding y crea un nuevo servicio de gestión de carteras de préstamos
Financial professionals, including investment advisers, wealth managers, broker/dealers, and financial planners, expect US stock returns to climb back from steep losses to finish the year down just 3.6%, according to findings of a survey published by Natixis Investment Managers. Despite seeing losses as high as -34% within the first few weeks of the crisis, financial professionals saw losses moderate to as little as -10% by the end of April.
The survey showed that 51% of financial professionals globally saw initial volatility caused by the coronavirus crisis as driven more by sentiment than by fundamentals. Optimistic the market will continue to right itself in the second half of the year, financial professionals’ main concern is the uncertainty of what happens next, including how investors handle it.
Between March 16 and April 24, 2020, Natixis surveyed 2,700 financial professionals in 16 countries, including 150 financial professionals in Mexico, and found that, globally, respondents forecast a loss of 7% for the S&P 500 and a loss of 7.3% for the MSCI World Index at year end. Their 2020 return expectations more closely resemble the modest declines seen in 2018 than in 2008, when the S&P plunged 37% and the MSCI posted a loss of 40.33%. In the US market, the outlook is more optimistic, but elsewhere, financial professionals are notably more pessimistic about stock performance in their own markets, with those in Hong Kong, Australia and Germany all projecting double digit losses for the year.
Ongoing volatility remains the top risk to portfolio performance and market outlook. Two-thirds (69%) of professionals globally cite volatility as a top concern, followed closely by recession fears (67%). Almost half (47%) say uncertainty surrounding geopolitical events poses a risk to their portfolios. In a dramatic shift in risk concerns from previous years surveys, a fifth of respondents (19%) expressed concern about low yields, while liquidity issues were also cited by 17% of those surveyed.
Resetting expectations: Hard lessons and teachable moments
After a 12-year run in which the S&P 500 delivered average annual returns of nearly 13%, and fresh off record highs in January and February, the magnitude of losses caused by the coronavirus pandemic was swift and stunning. Never mind that nearly half of financial professionals (47%) agree that markets were overvalued at the time; eight in 10 (81%) believe the prolonged bull market had made investors generally complacent about risk. And as long as the markets are up, 49% of respondents say their clients resist portfolio rebalancing.
The survey found:
67% of financial professionals think individual investors were unprepared for a market downturn (63% in Mexico)
75% (72% in Mexico), suspect investors forgot that the longevity of the bull market was unprecedented, not the norm, historically
76% -67% in our country- think individual investors, in general, struggle to understand their own risk tolerance, and the same number say clients don’t actually recognise risk until it’s been realized
“The market downturn – and expected recovery – serves as a lesson in behavioural finance, even if learned the hard way through real losses and missed goals,” said Dave Goodsell, Executive Director of Natixis’ Center for Investor Insight. “Investors got a glimpse of what risk looks like again, and it’s a teachable moment. Financial professionals can show their value by talking with clients in real terms about risk and return expectations, helping them build resilient portfolios and how to keep emotions in check during market swings.”
Nearly eight in 10 financial professionals (79%) globally and in Mexico, believe the current environment is one that favours active management. For those who embrace volatility as a potential buying and rebalancing opportunity, it’s another teachable moment for portfolio positioning and active management. Almost seven in 10 advisers, both global and in Mexico, agree investors have a false sense of security in passive investments (68%) and don’t understand of the risks of investing in them (72%).
Financial professionals are responding to new challenges managing client investments, expectations and behaviour. Under regulatory, industry and market pressure, their approach is changing on all fronts: investment strategy, client servicing, practice management and education. In a series of upcoming reports, the Natixis Center for Investor Insight will explore in-depth how financial professionals are adapting.
John Surplice. John Surplice sustituirá a Jess Taylor como responsable de renta variable europea de Invesco
Invesco has announced that Jeff Taylor will retire from his role as Head of European Equities at the end of 2020, after almost 20 years in the role and 23 years at Invesco. Taylor will hand over leadership responsibilities to John Surplice, his co-manager on the Invesco European Equity Fund (UK).
John will work alongside Jeff for the rest of the year as co-head of the team and will assume the role of Head of European Equities from 1 January 2021. The investment strategy and process across the portfolio will remain unchanged.
Jeff Taylor said: “I’m fortunate to work with very talented and experienced investors who are all focused and committed to delivering the best outcomes for our clients. In planning for a successor, it was crucial to ensure consistency in our investment philosophy and process. John shares my vision for the portfolio and team and has a deep understanding of our clients’ ambitions, as well as strong leadership qualities. I look forward to working with John and the rest of the team for the remainder of the year.”
Stephanie Butcher, Chief Investment Officer said: “We would like to thank Jeff for his dedication to clients over the years and his role in building a team of highly talented and experienced investment professionals. He has always placed a huge amount of importance on nurturing talent and supporting career progression and his leadership has ensured that there is great strength and depth across the European Equities desk. I would like to add my personal thanks for all the support he has given me over the many years I have worked with him. John’s broad contribution to the team, his investment insights and strong relationships with clients make him a natural successor to Jeff, and I look forward to working with him in the leadership role in the future.”
John has been with Invesco for 24 years, as a core member of the European Equities team and has worked with Jeff for the majority of that time. He co-manages several funds, including the Invesco European Equity Fund (UK) with Jeff as well as the Invesco Pan European Equity Fund with Martin Walker.
Further strengthening the team
With John taking on additional responsibilities, Invesco also announces the appointment of James Rutland to the European Equities team. James joined Invesco as a fund manager in early June and will co-manage the Invesco European Opportunities Fund (UK) alongside John.
James joins Invesco after more than five years at Schroders, where he was a key member of the European Equities team and had co-managed successful European portfolios since 2016 (Schroders ISF European Alpha Focus and Schroder ISF European Opportunities). Previous to that he had worked on the sell side and in investment banking. He brings with him a total of 12 years of industry experience as an analyst and a fund manager.
Commenting on his appointment John said: “I look forward to continue working with Jeff for the rest of the year and thank him for all his support during our time spent working together. The personal development of the team has always been high on his agenda and it will continue to be high on mine. I would also like to welcome James to the team, he has a thorough knowledge of European stocks which should benefit our clients and the team as it continues to strengthen its skillset and expertise.”
Pixabay CC0 Public Domain. Eaton Vance Management lanza Calvert ESG Leaders Strategies, una gama de fondos de renta variable para inversores institucionales y profesionales
Eaton Vance Management has launched Calvert ESG Leaders Strategies, a new series of equity separate account strategies for institutional and professional investors offered by Calvert Research and Management, a subsidiary of Eaton Vance.
The Calvert ESG Leaders Strategies are co-managed by Jade Huang and Chris Madden, vice presidents and portfolio managers at Calvert. The strategies invest in the common stocks of selected companies with leading environmental, social and governance (ESG) characteristics as determined by Calvert. Calvert serves as the investment adviser to the strategies.
Calvert ESG Leaders Strategies are:
Calvert U.S. ESG Leaders
Calvert Tax-Managed U.S. ESG Leaders
Calvert Global ex.-U.S. Developed Markets ESG Leaders
Calvert Tax-Managed Global ex-U.S. Developed Markets ESG Leaders
Calvert Global Developed Markets ESG Leaders
Calvert Tax-Managed Global Developed Markets ESG Leaders
Calvert Emerging Markets ESG Leaders
The Calvert ESG Leaders Strategies seek to invest in companies that are leaders or emerging leaders in ESG factors that Calvert believes are material to long-term performance. The investment process has three primary components: stock selection, portfolio optimization and corporate engagement. The strategies seek to use corporate engagement to strengthen how portfolio companies manage material environmental and social exposures and governance processes and to enhance investment returns.
“Calvert’s proprietary, industry-leading research system enables us to identify companies that are leading their peers in managing financially material ESG risks, and which may be poised to take advantage of business opportunities based on their knowledge of and commitment to meaningful ESG practices,” said John Streur, president and chief executive officer of Calvert. “Financial materiality is a critical component of ESG analysis. We believe understanding the connection between sustainability factors and business success sets these companies apart and positions them to maneuver efficiently and effectively in an evolving world.”
Calvert ESG Leaders Strategies employ a dynamic investment approach that leverages quantitative and qualitative analysis and a risk-managed portfolio construction process, while seeking to effect positive change.
“In developing the strategies, we conducted a quantitative review of ESG leaders’ past performance,” said Ms. Huang. “The results indicate that companies that achieved top ESG scores in financially material factors have historically produced stronger financial performance than those with weaker ESG scores. Additionally, we found that by optimizing the portfolios, we could position the strategies to achieve positive environmental and societal impact by increasing exposure to companies with healthier environmental footprints and better gender diversity.”
The U.S. spring stock market rally extended with a solid gain in May as a gradual ending of various virus lockdowns, a nascent world economic recovery, and rising expectations for a COVID-19 vaccine remedy fueled the advance. The unprecedented U.S. and world fiscal and monetary policy backdrop, confrontational dynamics between the U.S. and China, bankruptcies, presidential election year uncertainties, worries over a virus ‘second wave’ in the U.S., and Hong Kong social unrest will likely prevail through year end. We expect government spending initiatives on infrastructure and transportation soon.
Monetary (hypersonic) and fiscal policy dynamics are largely in place to jump start consumer spending and the hardest hit parts of the economy as reflected by the BOTL stocks (Banks, Oil, Travel and Leisure), which have paced the recent market surge. We echo, “how bad is bad, how long will bad last, how good will good get” and “which stocks have discounted the bad and have a bright future?” For our value investing, we use the Gabelli Private Market Value (PMV) with a Catalyst™ stock selection process to spot stocks selling below intrinsic value.
First quarter earnings season is in the books and second quarter numbers are now becoming more visible every day with July starting the second quarter earnings season. So far, stocks have rallied sharply from the March lows with the U.S. markets leading the way over foreign stock indices. However, the overall stock market appears to be discounting current monetary and fiscal policies. Though deal activity has been suppressed by recent events, we expect M&A to pick up for small, mid-sized and microcap companies as the economy progresses. As oil prices crashed so did the related stocks. Potential deals await – stay tuned.
Chairman Powell and the Fed have done a terrific job responding to the complex pandemic. One tool used by other central banks the Fed has not used is a negative policy interest rate, so we were encouraged to hear New York Fed President John Williams say on May 28th, at Stony Brook University in Long Island, “I don’t think negative rates is something that makes sense given the situation we’re in because we have these other tools that can be used…that I think are more effective and more powerful to stimulate the economy.”
Column from Gabelli Funds, written by Michael Gabelli
__________________________________
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
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 DomainLifeofbreath. Lifeofbreath
U.S. equities took a roller coaster ride on economic recovery hopes vs a second wave of virus fears during June that ended on the plus side for both the month and the second quarter, which scored the best return since the 4th quarter of 1998.
On June 8th, the National Bureau of Economic Research, a private economic research group recognized as the arbiter for determining the start and end dates of U.S. business cycles, announced that its Business Cycle Dating Committee “has determined that a peak in monthly economic activity occurred in the U.S. economy in February 2020. The peak marks the end of the expansion that began in June 2009 and the beginning of a recession. The expansion lasted 128 months, the longest in the history of U.S. business cycles dating back to 1854.”
Fed Chair Powell concluded his June 30 testimony saying: “We understand that the work of the Federal Reserve touches communities, families, and businesses across the country. Everything we do is in service to our public mission. We are committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible.”
If U.S. growth continues to recover from here, the current recession may turn out to be one the sharpest and shortest on record. Some of the near term catalysts that will likely determine whether the U.S. economy has entered a sustainable expansion include the sequence of results during the second quarter (June better than May better than April), the leading indicators traceable to the all-important service sector, the phase 4 stimulus bill estimated at one trillion dollars, infrastructure spending, employment dynamics, a COVID-19 second wave and vaccine progress, China’s economy, and November U.S. Presidential Election dynamics with a focus on corporate and individual tax rates.
Column by Gabelli Funds, written by Michael Gabelli
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
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.
After one of the worst months in stock market history, equities rebounded sharply in April, with the S&P 500 posting its largest monthly gain since January 1987 as it began to discount a phased-in reopening the economy, the massive monetary and fiscal policy response, and some encouraging COVID-19 treatment developments. The snap-back in the market is, however, fairly concentrated, with mega cap technology stocks being the prime beneficiaries. Most small capitalization companies and businesses with any exposure to “BOTL” (banks, oil, travel & leisure) continue to trade at prices significantly lower than pre-crisis levels.
The impact of COVID-19 continues to take its toll on the US economy. Since mid-March, over 30 million Americans have filed for unemployment. The continued economic shutdown has pressured more companies to lay off or furlough employees. The ramifications of strict stay-at-home orders from state officials has forced many companies to suspend financial guidance for 2020 as they reassess their businesses. As lockdown measures ease, government officials and economists are hopeful that a large portion of these temporary unemployed Americans will be able to quickly return to paid employment.
The Fed has responded by expanding its balance sheet, with estimates that it could exceed $12 trillion by the end of the year. Congress continues to fund the coronavirus support package in order to replenish money for the Paycheck Protection Program (PPP) as well as ramp up testing for COVID-19.
Only time will tell whether the revival in the market is too optimistic and how severe any “second wave” of COVID-19 may be. In these unusual times, we remain hopeful that advancements in COVID-19 testing and treatments (and eventually a vaccine) will allow the economy to at least partially recover and operate in a greater capacity in the near-term. We continue to believe that strong companies with healthy balance sheets and positive free cash flows will be able to withstand these times of economic uncertainty.
Looking specifically at merger arbitrage for April, closed deals bolstered performance and other transactions made significant progress towards closing. These positive dynamics spurred investor confidence across the current pipeline of deals. While pending deal spreads remain wider than pre-COVID levels, they have narrowed from levels experienced in March. We are still encountering attractive opportunities to selectively deploy capital where there are clear paths to closing and we are highly confident of a deal’s success. While April was an expectedly quiet month for new deal activity, a number of new deals were announced in May, including Alexion’s acquisition of Portola Pharmaceuticals for $1.4 billion and A Menarini’s acquisition of Stemline Therapeutics for $700 million.
Column from Gabelli Funds, written by Michael Gabelli
__________________________________
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
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.
