Pixabay CC0 Public Domain. Jupiter Fund Manager compra Merian Global Investors por 469 millones de euros
Jupiter Fund Management is to acquire Merian Global Investors for £370 million ($476.5 million), in a deal that will boost its fixed-income and emerging markets capabilities.
A jointnews release said the deal, which is expected to complete July 1, will add £22.4 billion to Jupiter’s AUM, for a combined assets under management of £65.2 billion.
The 100% acquisition will be financed through the issue of new Jupiter shares to Merian shareholders. Following completion of the deal Merian’s largest shareholder, TA Associates Management, will own about 16% of the enlarged firm and key Merian management will own about 1%.
The deal is subject to Jupiter shareholder and regulatory approval. Once completed, the firm will operate as Jupiter.
Merian’s investment team will join Jupiter, according to the release.
“The addition of Merian is compelling for all stakeholders. With this acquisition, our business will benefit from an increased capacity to attract, develop and retain high quality talent, backed by further investment in our platform and technology. In turn, we will be able to offer a wider choice of strongly performing active investment strategies to our clients, while shareholders will benefit from a highly earnings accretive deal delivered through substantial cost synergies,” Andrew Formica, CEO of Jupiter, said in the news release.
Mark Gregory, CEO of Merian, added: “Jupiter is a great strategic and cultural fit with our business. It has a market leading brand with a clear focus on high conviction, active asset management which is entirely consistent with our own. I believe the enlarged business will be more strongly positioned to offer greater choice and investment performance to clients and continue to meet clients’ ever-evolving needs.”
The U.S. stock market rallied into the third week of January then dropped sharply at month end as fears that the spreading coronavirus (nCoV) would reduce growth in China and eventually other countries. U.S. stocks closed flat for the month while Chinese markets were closed for the final week of the Lunar New Year. Earnings releases are in full swing and the U.K. has left the EU. The world waits.
Our firm’s research theme for the next decade is saving Planet Earth, helping people and creating potential…saving the planet by reducing/eliminating plastic and focusing on the impact of climate change and on companies that are finding new solutions. Renewables, including wind, solar, battery storage and building infrastructure for transmission are the areas we want represented by some portfolio companies.
One of the Gabelli stock ‘picks’ in BARRON’s 2020 Roundtable Part 3 published in the January 27 issue that is directly impacting climate change is Orange, Connecticut based sustainable energy company Avangrid Inc. (AGR). AGR has a regulated utility business with a growing $10 billion rate base that provides a tailwind to earnings and a rising dividend.
The second part of AGR is the Avangrid Renewables business, a major factor in solar and wind that owns and operates a portfolio of renewable energy generation facilities across America. In December, Connecticut awarded an Avangard partnership a 20-year contract to provide 14% of the state’s electricity with renewable energy. Spanish utility Iberdrola (IBE), owns over 250 million of the 310 million AGR shares outstanding and is a potential catalyst for an M&A deal.
Another Gabelli BARRON’S ‘pick’ is clean energy project operator NextEra Energy Partners (NEP), which is also an attractive opportunity in renewables.
We feel there should be a greater need for companies to allocate capital in the new year, as opportunities present themselves, there will be a headwind for more deal activity.
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.
Oliver Röder, courtesy photo. Erste AM nombra a Oliver Röder nuevo director de Ventas Institucionales
Erste Asset Management has appointed Oliver Röder as head of institutional sales, since the beginning of February 2020.
He is now responsible for all institutional sales activities across Erste Asset Management.
This appointment brings the Institutional Sales team of Austria, Germany, and International under his direction. He is also in charge of managing and coordinating the according activities in the Central and East European countries. In this position, he reports to Wolfgang Traindl, member of the Board of Directors of Erste Asset Management.
Heinz Bednar, CEO: “Oliver Röder has convinced us with his strategic ideas about ways of expanding the institutional business of Erste AM further. His international track record and his years of experience are crucial elements of success for this business segment, which is very important to us.”
Oliver Röder (47) has been Director of Erste AM in Germany since 2016 – a position which he will maintain. Previously, he worked for other international houses in International Sales. He holds a degree in Bank Management and earned an MBA from Ashridge Management College. He is member of Deutsche Vereinigung für Finanzanalyse und Asset Management e.V. (DVFA; German Association for Financial Analysis and Asset Management) and Certified Investment Analyst (CIIA).
Pixabay CC0 Public Domain. Amizut termina el año con el mejor resultado de su historia y eleva su objetivo para 2020
Based on the first preliminary results on the Group’s activities and the first forecasts on 2019, Azimut expects to close 2019 with the best consolidated net profit in the history of the Group, ranging between 360 and 370 million euros.
The cumulative dividends distributed to shareholders over the 5 years of the plan, including what will be proposed to the BoD convened for March 5, 2020, will be at least 7,8 euros per share. As a consequence, the average payout throughout the plan will be greater than 90%, well above the envisaged target, resulting in a cumulative average yield of 44%. With this latest result, all targets indicated in the 5 year business plan have been achieved for the third consecutive time since 2004.
In 2019 the Group recorded 4.600 million euros of Net Inflows, bringing total assets to exceed 59.000 million euros (vs. the 50.000 million euros plan and + 16% compared to the end of 2018). Furthermore, the target set for International AuM at the end of the plan has also been fully achieved and exceeded.
In fact, at the end of 2019, the AuM from non-domestic businesses reached 29% of Total, against the 15% budgeted in the plan. EBITDA from the international operations in 2019 is estimated to be between 50 and 55 million euros (ca. + 53% compared to 2018).
Thanks also to the above results, the Group estimates under normal market conditions, to achieve a net profit of at least 300 million euros in 2020, raising its initial range of 250-300 million euros indicated during the Investor Day of June 4, 2019. This positive delta is expected to be reached thanks to growth across all business lines: distribution in Italy, alternatives and International activities.
The alternatives project continues to progress well. After the success of the largest Italian event dedicated to private markets (Azimut Libera Impresa EXPO), net inflows on products launched in the last quarter of 2019 stands at c. 450 million euros, bringing the total AuM in the private markets space to exceed 1.000 million euros.
Pietro Giuliani, Chairman of the Group, comments: “In 2019 we generated a net weighted average performance to clients of c.+ 8.5%, above the Italian industry. There is no better way to celebrate Azimut’s 30 year anniversary: all targets of our latest five-year business plan have been successfully completed for the third consecutive time.
We expect 2019 to close with a net profit between 360 and 370 million euros, marking a new historical record for the Group. Also our share price closed 2019 with a record: + 128% performance during the year, making Azimut the best performing stock amongst FTSE MIB members. The trust we receive every day from customers and shareholders makes us confident to continue with the same pace also in 2020, and achieve a net profit of at least 300 million euros.
Our international business has seen another sharp increase in 2019, with AuM accounting for almost 30% of total assets and an expected EBITDA of 50 to 55 million euros. Lastly, we are satisfied with the launch of the first products in the private markets area, democratizing this asset class and allowing us in just a few months to exceed € 1 billion of AUM in this segment.”
Pxfuel CC0. Climate Change and Planet Earth, Focus Theme for the 2020s
The U.S. stock market finished at an all-time high in December to end a strong quarter and an outstanding year. The advance reflected U.S. consumer confidence and spending built on the wide availability of jobs, rising incomes and easier financial conditions. Steady consumer spending supports moderate economic growth and is a buffer against the trade related manufacturing malaise.
Events to unfold during 2020 include trade war dynamics, the U.S. presidential election, and the rapidly evolving interconnectivity of Climate Change with our Planet and People and its effect on investment policy and sustainable profits.
Our focus theme for the 2020s is Climate Change and Planet Earth. We have integrated the analysis of environmental impacts into our broader investment process and seek to identify companies whose businesses may be threatened over a long time horizon by one of the three W’s – weather, water and waste. More importantly, we are looking for companies that will benefit from increased investment toward discovering solutions for today’s urgent environmental issues.
The conditions for an increase in global deal activity in 2020 are now in place. Strategic corporate buyers need deals to grow their top and bottom lines and industry consolidations are a catalyst for transactions. The value of announced deals was $3.8 trillion globally in 2019, down slightly from 2018, per Dealogic. Cross-border deals dropped 25%, but U.S. ‘mega’ deals topped the overall list and U.S. M&A was up 6% to $1.8 trillion boosted by the giant UTX/RTN deal. Trade, economic, and Brexit headline risks are fading, rates are low, and private equity shops now have about $2.4 trillion in cash for M&A, per Prequin. As a footnote, patient Unzio got their 5,100 yen ask price from buyout firm Lone Star. Activist investors were catalysts for 2019 deal activity and boardroom changes as 464 U.S. companies were targets through mid-December per Activist Insights. We expect M&A activity to pick up for small, mid-sized and microcap companies during 2020 as strategic and private equity buyers take a closer look at the attractive intrinsic values versus the market prices of these companies. We have consistently applied our fundamental-value stock selection process since 1977 and believe the recent trend toward value will broaden during 2020.
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. It’s the Age of Asia When it Comes to Passport Power
As we enter the new decade, Asian countries have firmly established their lead on the Henley Passport Index, the original ranking of all the world’s passports according to the number of destinations their holders can access without a prior visa. For the third consecutive year, Japan has secured the top spot on the index — which is based on exclusive data from the International Air Transport Association (IATA) — with a visa-free/visa-on-arrival score of 191. Singapore holds onto its 2nd-place position with a score of 190, while South Korea drops down a rank to 3rd place alongside Germany, giving their passport holders visa-free/visa-on-arrival access to 189 destinations worldwide.
The US and the UK continue their downward trajectory on the index’s rankings. While both countries remain in the top 10, their shared 8th-place position is a significant decline from the number one spot they jointly held in 2015. Elsewhere in the top 10, Finland and Italy share 4th place, with a score of 188, while Denmark, Luxembourg, and Spain together hold 5th place, with a score of 187. The index’s historic success story remains the steady ascent of the UAE, which has climbed a remarkable 47 places over the past 10 years and now sits in 18th place, with a visa-free/visa-on-arrival score of 171. On the other end of the travel freedom spectrum, Afghanistan remains at the bottom of the index, with its nationals only able to visit a mere 26 destinations visa-free.
Dr. Christian H. Kaelin, Chairman of Henley & Partners and the inventor of the passport index concept, says the latest ranking provides a fascinating insight into a rapidly changing world. “Asian countries’ dominance of the top spots is a clear argument for the benefits of open-door policies and the introduction of mutually beneficial trade agreements. Over the past few years, we have seen the world adapt to mobility as a permanent condition of global life. The latest rankings show that the countries that embrace this reality are thriving, with their citizens enjoying ever-increasing passport power and the array of benefits that come with it.”
As ongoing research shows, these benefits are extensive. Using exclusive historical data from the Henley Passport Index, political science researchers Uğur Altundal and Ömer Zarpli, of Syracuse University and the University of Pittsburgh respectively, have found that there is a strongly positive correlation between travel freedom and other kinds of liberties – from the economic to the political, and even individual or human freedoms. Altundal and Zarpli observe that “there’s a distinct correlation between visa freedom and investment freedom, for instance. Similar to trade freedom, countries that rank highly in investment freedom generally have stronger passports. European states such as Austria, Malta, and Switzerland clearly show that countries with a business-friendly environment tend to score highly when it comes to passport power. Likewise, by using the Human Freedom Index, we found a strong correlation between personal freedom and travel freedom.”
Looking ahead: an increasingly pragmatic approach to migration
While the latest results from the Henley Passport Index show that globally, people are more mobile than ever before, they also indicate a growing divide when it comes to travel freedom, with Japanese passport holders able to access 165 more destinations around the world than Afghan nationals, for example. Analysis of historical data from the index reveals that this extraordinary global mobility gap is the starkest it has been since the index’s inception in 2006.
The impact of these and other key developments is analysed in depth in the 2020 edition of the Henley Passport Index and Global Mobility Report — a unique publication that offers cutting-edge analysis and commentary from leading scholars and professional experts on the latest trends shaping international and regional mobility patterns today.
Commenting in the report, Dr. Parag Khanna, bestselling author and the Founder and Managing Partner of FutureMap in Singapore, notes: “Migration, as with almost everything else, is a function of supply and demand — and, increasingly, it is accepted that more migration creates more demand, stimulating much needed economic growth. As the world economy heads into a synchronized slowdown, we must view migration as part of the solution, not the problem.”
Khanna points out that with the USChina trade war showing no signs of decelerating, Western investment has shifted out of China towards Southeast Asia, bringing a new wave of foreign talent into ASEAN countries that have encouraged greater migration through streamlined visa policies. Thailand’s strong upward movement in the Henley Passport Index’s rankings over the past year is a clear illustration of this emerging trend; benefitting from mutually reciprocal visa waivers, the country has climbed three spots in the past year and now sits in 65th place, with a visa-free/visa-on-arrival score of 78.
Middle Eastern countries have also made strong gains as part of overall efforts to boost trade and tourism. The UAE and Saudi Arabia each climbed four places, while Oman climbed three. Saudi Arabia is now in 66th place, with citizens able to access 77 destinations around the world without a prior visa, while Oman sits in 64th place, with a visa-free/visa-on-arrival score of 79. Despite these positive regional developments, Dr. Lorraine Charles, Research Associate at the University of Cambridge’s Centre for Business Research, warns that migration and mobility trends in the Middle East are largely driven by conflict, which looks set to continue in 2020. Citing deepening conflicts in Libya, Syria, and Yemen, and with renewed anti-government protests in Egypt, Iraq, and Lebanon, Charles notes that “forced displacement will most likely continue to dominate migration and mobility patterns within the Middle East.”
Brexit, talent migration, and the gap between policy and rhetoric
Following the Conservative government’s landslide victory in the UK late last year, the future of mobility and travel freedom between Britain and the EU remains uncertain. Madeleine Sumption, Director of the Migration Observatory at the University of Oxford, says, “The Conservative government has promised an ‘Australian-style’ points-based system that would be more liberal than current policies towards non-EU citizens, though still much more restrictive than free movement. As with all big migration policy changes, what this will mean for actual levels of mobility, however, remains extremely difficult to predict.” Noting that the looming threat of Brexit has potentially made Britain a less attractive destination for EU citizens, Sumption points out that net EU migration to the UK fell by 59% between 2015 and 2018.
Prof. Simone Bertoli, Professor of Economics at Université Clermont Auvergne (CERDI) in France, says that while countries around the world insist that they are taking steps to attract “the best and the brightest”, a rather different picture is currently emerging: “When it comes to talent migration, a worrying gap between policy and rhetoric has been opening up over the past year. The sluggish improvement of labor market conditions after the 2008 crisis, and the concomitant rise of nativist political parties, is reinforcing the perception of immigration as a threat rather than as an opportunity.”
Citizenship-by-Investment countries retain strong positions
Going into the new year, countries with citizenship-by-investment programs continue to consolidate their positions on the index. Malta sits in 9th place, with access to 183 destinations around the world, while Montenegro holds on to 46th place, with a visa-free/visa-on-arrival score of 124. In the Caribbean, St. Kitts and Nevis and Antigua and Barbuda secure 27th and 30th spot, respectively.
Discussing the increasing popularity of investment migration programs for both wealthy investors and the countries that offer them, Dr. Juerg Steffen, CEO of Henley & Partners, says: “Demand for these programs is accelerating, just as the supply has grown globally. The past year has shown that, increasingly, nations and wealthy individuals see investment migration as more than a competitive advantage. Today, it is viewed as an absolute requirement in a volatile world where competition for capital is fierce, and it’s very clear that we will see more of this in 2020.”
Banco Santander International (BSI) is carrying out a series of changes in the organizational structure of BPI, its international private banking business, which is led by Jorge Rossell.
Under the helm of Alfonso Castillo -who is adding the area of Products and Investments to his current responsibilities over Commercial and Global Private Wealth-, there are new appointments to these three areas, Funds Society was able to learn from sources familiar with the matter.
The former Products and Investments area, which was led by Javier Martín Pliego, is being divided into two units: the Products area which will be led by Isidro Fernández, who will also continue serving as Head of Alternative Investments and Funds; and the Investments area, led by Manuel Pérez Duro, until now responsible for AIS at BSISA (Switzerland and Bahamas). Martin Pliego will remain in Santander Group but is leaving the unit.
Within the internal structure of the Investments area, Carlos Ruiz Antequera is to become Chief Investment Officer, incorporating the investment stragegy team. Verónica López-Ibor will lead the Discretionary Portfolio Management team andMiriam Thaler will take on the role as new head of Investments in BSISA (Switzerland and Bahamas).
The Commercial area, under the new leadership of Eugenio Álvarez, will also experience some notable changes: Juan Araujo will be the new Regional Director for Venezuela. He will be based in Geneva. In addition, Yolanda Gargallo and Borja Echanove are to become BSI Branch Managers in New York and Houston, respectively.
With these changes, which will become effective on January 1, the entity will seek to continue growing in the European and Latin American markets. Since the beginning of 2019, Rossell – head of BPI and CEO of BSI- has been looking to boost the group’s business. He reports to both Victor Matarranz, Head of Santander Wealth Management, and to the recently appointed, Tim Wennes, CEO of Santander in the US. Wennes took on the position at the beginning of this month, after Scott Powell left the firm to become COO of Wells Fargo.
Photo: Pxfuel CC0. Stocks Are On Track for Solid 2019 Returns
The U.S. stock market started November with a sharp two-day rally sparked by a strong October jobs report that calmed recession fears. This set the stage for stocks to move higher for the month and to continue the 2019 series of record closing highs.
During the month, there were temporary sell offs from negative trade war related news but these were followed by positive headlines that moved stocks higher. On balance, improving trade negotiations, Brexit clarity, a resilient U.S. consumer and an accommodative Fed kept stocks on track for solid 2019 returns.
The M&A event catalyst for the three day pre-Thanksgiving spike in stock prices was ‘merger Monday’ when a flurry of large deals were announced including: Charles Schwab’s $26 billion transaction for TD Ameritrade, LVMH with a $16.2 billion deal for Tiffany, and drug maker Novartis in a $9.7 billion takeover of The Medicines Co. The global M&A volume wave that started in 2014, as measured in U.S dollars, continues to roll along with $2.73 trillion in 26,321 announced pending and completed transactions through November 30, 2019 versus $3.07 trillion in 30,225 deals in 2018 according to Bloomberg data.
Relatively unknown hotel operator Unzio Holdings (3258.T) was targeted with a rare domestic hostile bid from Tokyo travel agent H.I.S. Co (9603.T) in July. This catalyst has surfaced intense interest from prominent global private equity firms, banks, and hedge funds, all attracted to Unzio’s Japanese and other real estate properties selling at a discount, while also testing Prime Minister Abe’s efforts to boost shareholder returns for foreign buyers with revamped corporate governance and disclosure. The unprecedented cross-border hostile and friendly bidding war for Unizo heated up on November 24 when it said it had received six more buyout offers in addition to the deal proposed by Blackstone Group. More M&A activity to come…
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.
Peter Stockall, courtesy photo. Peter Stockall se une a iM Global Partner, fortaleciendo su plataforma de distribución internacional
iM Global Partner, a leading investment and development platform focused on acquiring strategic investments in best-in-class traditional and alternative investment firms in the U.S., Europe and Asia, appointed Peter Stockall to lead sales in the US Offshore and Latin America region.
Peter, based in Miami, will enhance iM Global Partner’s international expansion, spearheading the business development efforts in this very important region within the Americas. He will offer US Offshore and Latin America investors access to a wide range of strategies managed by the outstanding partners of iM Global Partner, ranging from US equities to liquid alternative strategies. Peter will report to Jose Castellano, Deputy CEO and Head of International Business Development.
Castellano said: “I am delighted to welcome Peter to our international sales team to support our rapidly developing Latam and US Offshore platforms, which have already been in place for more than a year. His experience covering the Americas will be a valuable asset in helping to develop the operational distribution capability of our current and future U.S., European and Asian Partners.”
Peter has 16 years of experience working for leading asset managers. Before joining iM Global Partner, Peter was responsible for sales of the Carmignac Mutual Fund range in the US. He spent four years, between 2012 and 2016, as Offshore regional Sales Consultant for Pioneer Investments, where he was responsible for sales of offshore mutual funds and alternative investments to financial advisors across all channels in the Southeast, Caribbean, and Panama territories. Peter started his career at Merrill Lynch providing Financial Advisors with sales support and investment guidance in both New York City and Asia regions. Peter has also been part of the Oppenheimer Funds and Capital Group sales teams.
Pixabay CC0 Public Domain. Neuberger Berman crea un nuevo equipo de renta variable en Japón
Neuberger Berman announced its first Japan-based equities team, to be led by Keita Kubota, who joins as a Managing Director and Senior Portfolio Manager. The team will manage a “Japan Equity Engagement Strategy” seeking attractive returns through active engagement and constructive dialog with Japanese small/mid-cap companies in which the team invests. The strategy will be offered to both institutional and high-net-worth clients.
Kubota joins from Aberdeen Standard Investments, where he started his career over 13 years ago and most recently served as Deputy Head of Japan Equities. He was the investment director on Aberdeen Standard Investments’ Japan large cap strategy and small cap strategy, both of which were managed with an engagement strategy and offered to large institutional clients across Europe, Asia and Latin America.
Two analysts, one of whom will specialize in ESG investing, will support Kubota. Naoto Saito, joined Neuberger Berman in September as a Senior Research Analyst and has a generalist focus. Saito previously served in research roles and covered a broad range of companies across the Japanese equity market at Balyasny Asset Management, CLSA Securities and T. Rowe Price. With diverse experience as well as deep knowledge in ESG engagement, the team will seek to generate additional value by offering insights and knowledge sharing on ESG investing with portfolio companies.
“We look forward to the further expansion of ESG investing in Japan as companies have increased their awareness of corporate governance and other material factors. We think encouraging Japanese companies to improve their ESG factors through our active engagement can generate superior returns. Mr. Kubota and his team are bottom-up stock pickers with a focus on in-depth proprietary research,” said Ryo Ohira, Head of Neuberger Berman East Asia. “They are active, long-term investors who engage deeply and frequently with company management. Most importantly, Mr. Kubota has helped deliver long-term performance for his clients – which is our firm’s mission.”
Neuberger Berman has been in Japan for 15 years and currently manages over $53 billion in client assets locally having grown from $13 billion in 2015. For largely an institutional client base, the firm manages fixed income, alternatives and equity portfolios. Neuberger Berman is recognized in Japan as a leader in the ESG investing space, reflected in the firm winning the first ever Tokyo Financial Award for ESG Investing.
“We’re happy to welcome Mr. Kubota and team and know they are a fit our firm’s culture and core strengths. The group expands our global platform, bringing another long-term market perspective with a focus on active/ESG engagement in Japan, the third largest equity market in the world. We look forward to their capabilities helping client globally,” said Joseph Amato, President and Chief Investment Officer, Neuberger Berman.
