Photo courtesyFrom left to right: Jimmy Ly, Tigris Investments CEO; José Castellano, President of Tigris Investments; and Conchita Calderon; Manuel Sanchez Castillo; Miguel Cebolla; & Jose Santamaria y Partners of Zink Solutions.
Tigris Investments, founded by Jimmy Ly (CEO) and José Castellano in Miami, and Zink Solutions, a large asset management firm created by Conchita Calderón, Miguel Cebolla, Manuel Sánchez Castillo and José Santamaría, have launched Tigris Alternative Investments (Tigris Alts), to expand their capabilities in the alternative investments business.
As they have explained, this is a new company that combines the experience in global distribution and product development of Tigris Investments, with the experience of Zink Solutions, which brings a solid and unique set of capabilities that translates into the identification and selection of the best investment ideas.
Both companies believe that investing in alternative assets requires a more disciplined approach to ranking and selecting managers so that qualified investors can benefit over the long term. In addition, alternative investments are non-traditional asset classes that are relatively less transparent in nature and more difficult for the general investor to access. To address these challenges, Tigris Alts’ approach and process will leverage the expertise and track record of its team, mirroring the way sophisticated investors analyze and invest in this asset class.
Regarding the companies, it highlights that Tigris Investments is focused on providing dynamic investment strategies to investment professionals and asset managers around the world. The purpose of its founders, Jimmy Ly and Jose Castellano, is to identify independent and consultative strategies and programs to suit an evolving and highly sophisticated investment community. Its ecosystem includes extensively vetted asset management partners, as well as opportunities related to consulting, technology and marketing solutions.
Zink Solutions was founded by Conchita Calderón, Miguel Cebolla, Manuel Sánchez Castillo and José Santamaría, who bring together more than 100 years of experience in the financial industry. Zink Solutions is oriented to achieve independent solutions to the needs of ultra high net worth individuals and family offices.
First American Financial Corporationsettlement and risk solutions for real estate transactions and the leader in the digital transformation of its industry, today released the November 2022 First American Real House Price Index (RHPI).
The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels.Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.
“In November 2022, the RHPI increased by 60 percent on an annual basis. This rapid annual decline in affordability was driven by two factors — a 7.6 percent annual increase in nominal house prices and a 3.7 percentage point increase in the average 30-year, fixed mortgage rate compared with one year ago. Even though household income increased 3.5 percent since November 2021 and boosted consumer house-buying power, it was not enough to offset the affordability loss from higher mortgage rates and still-strong nominal house price growth,” said Mark Fleming, chief economist at First American.
“The loss of affordability has prompted buyers to pull back from the market, putting downward pressure on prices. While still elevated by historical standards, nominal house price appreciation has slowed considerably since early 2022. Nationally, annual nominal house price growth peaked in March 2022 at nearly 21 percent, but has since decelerated by more than 13 percentage points to 7.6 percent in November,” Fleming added.
“Real estate dynamics are local, yet nearly every market in the country during the pandemic was characterized as a seller’s market. Wherever you turned, multiple-offer bidding wars were the rule, not the exception,” said Fleming. “However, as house prices adjust to the reality of higher mortgage rates, the pace of adjustment will vary significantly by market.”
Real Estate is Local, Again
Nominal house prices declined from their recent peaks in 37 of the top 50 markets we track in November. The market with the biggest decline was San Francisco, where nominal house prices peaked in April 2022, but have since declined by nearly 10 percent as the housing market rebalances. San Jose, Calif. follows closely behind, as nominal house prices have declined 7.8 percent from the recent peak in March 2022, said Fleming.
“However, house prices have only recently hit their peaks and have yet to decline in markets such as Louisville, Ky., Kansas City, Mo., Hartford, Conn., and several others. Of course, repeat-sales price indices, such as the one used in this analysis, are based on the prices from closed sales, which are a lagging indicator of price changes in the housing market because the contracted prices for these closed sales were agreed to months earlier,” added Fleming.
Overvalued Markets Correcting Faster
Many of the markets with the largest price declines from peak, such as San Francisco, San Jose, and Phoenix, are also some of the more overvalued markets, meaning the median existing-home sale price exceeded house-buying power in these markets,” said Fleming.
“If housing is appropriately valued, house-buying power should equal or exceed the median sale price of a home. Many of the markets where house prices have not yet declined, such as Louisville, Ky. and Kansas City, Mo., are still considered undervalued, meaning house-buying power exceeded the median existing-home sale price in November. There are exceptions to this relationship, but generally it seems that the most overvalued markets are correcting the fastest,” added the First American’schief economist.
The Silver Lining
While price changes vary by market, there is one trend that bodes well for all top 50 markets – much of the homeowner equity gained during the pandemic remains. For example, in both San Francisco and San Jose, house prices increased by 31 and 29 percent from February 2020 to their respective peaks in 2022. Kansas City and Hartford gained 48 and 40 percent from February 2020 to their respective peaks in 2022. “As the housing market rebalances, price declines will continue across many markets, but those declines would have to be substantial to erase all of the equity gains accumulated by homeowners over the last few years,” said Fleming.
As private capital assets grow, a wider variety of managers—both legacy alternative manager firms and traditional managers looking to distribute alternatives—will need to focus on fund domiciliation. Jurisdictions where managers can demonstrate substance, offer a strong regulatory environment, provide sophisticated service providers, and a strong support structure will be critical for managers seeking geographical expansion, according to Cerulli’s latest white paper, Fund Domicile Selection: Enabling Global Alternative Asset Growth, sponsored by Guernsey Finance.
Globally, alternative investments are in a “goldilocks” moment. Since year-end 2018, global private investment assets have almost doubled, increasing 92% and posting double digit increases each calendar year through 2021. Global alternative investment markets reached $8.7 trillion as of 3Q 2022 and hedge funds held another $3.6 trillion as of 2021.
“There is no question that alternative product development and distribution plans are critical to asset managers that are seeking to raise capital from a variety of client types, across different segments and geographies,” states Daniil Shapiro, director.
As U.S. firms develop and deploy alternative capabilities internationally, they will need to decide where to domicile their offerings (e.g., Cayman Islands, Guernsey, Luxembourg), which investor segments to target, and how to structure their funds to gather international capital. “The strengths and weaknesses of each jurisdiction mean that firms may well be best suited by a nimbler jurisdiction other than the larger (in terms of AUM and number of funds) ones,” states Shapiro.
While firms take different approaches to domicile selection, common to all is a tremendous focus on tax implications for investors and seeking out stable yet flexible limited liability legal regimes.
“Tax law is key for pass-through structures as alternative investment managers want to make sure that taxes are paid but not for every jurisdiction the firm is in. In other words, the focus is on avoiding double taxation of dividends and optimizing returns,” says Shapiro. 60% of research participants exclusively reference the tax function as a key influence point.
The success of firms looking to gather capital from international investors is reliant on myriad service providers. External counsel, fund administrators, and accountants are critical and provide valuable guidance and input. Human capital within domiciles as well as the orientation of that workforce toward financial services should be taken into close consideration. “As labor markets remain exceptionally tight, firms would do well to ensure their service providers have access to a stable labor pool able to support their offerings,” comments Shapiro.
For U.S. managers considering raising capital beyond their home turf, the white paper highlights best practices including investor consideration, regulation support, outlines what to look for from service providers, and consideration for specialized needs (e.g., listing options, sustainability). According to Shapiro, “Managers are already contending with the uncertainty of raising capital in new markets. They want to be mindful to avoid other external pain points such as overly stringent regulators and understaffed service providers.”
“This comprehensive research report is essential reading for U.S. alternative asset managers. The international investor audience for private capital and alternative strategies continues to grow exponentially so the right decision on where to domicile funds is more important than ever,” states Rupert Pleasant, Guernsey Finance Chief Executive.
Insigneo announced the affiliation of Angel L. Colina as Managing Director, Financial Advisor along with Stephanie M. Cabrera, Senior Registered Client Associate. The team will be based in the firm’s Miami, Florida headquarters.
Colina brings over 20 years of experience in the financial industry, most recently at Morgan Stanley’s Coral Gables office since 2012.
Colina has a proven track record of success, managing a book of over $350 million that include ultra-high net worth private clients, business owners and institutions from Latin America, Caribbean, and the United States.
Javier Rivero Insigneo’s President, and COO said, “I am excited to welcome Angel and Stephanie to the Insigneo family as they transition their business to what I consider the future of global wealth management”.
Rivero added “I had the pleasure of working many years with Angel at Wells Fargo Advisors and know the caliber of clients he manages as a top-notch advisor. I could not be happier to join forces again and help fuel his future growth during this exciting time in his career.”
At Insigneo, the team will leverage the technology of the newly launched ALIA platform for onboarding and multi-custody capabilities, while taking advantage of the open architecture the firm provides. They will also be able to expand their client base and offer a more holistic approach to managing client’s global wealth leveraging the multi-family office capabilities.
Jose Salazar, Insigneo’s US Market Head said, “We are thrilled to welcome Angel to our team. His extensive experience and proven success in the industry will be a valuable asset as we continue to expand our business model in key markets across the US.”
Colina added, “I am excited to join the Insigneo team and look forward to leveraging the firm’s customized solutions and client-first service to provide a fully integrated, best-in-class independent wealth management platform to my clients.”
VIZIBILITY has entered into an agreement with Banco Sabadell, Miami Branch to digitalize their investment portfolio. VIZIBILITY facilitates the best insights to monitor, research, and execute Structured Products, according to a press release from the company.
Banco Sabadell, Miami Branch is implementing an all-in-one platform developed by VIZIBILITY that allows for the management, operations, and analysis of Structured Products. This new agreement is part of the ongoing effort of Banco Sabadell, Miami Branch to stay at the forefront of alternative investments, the statement said.
Aurelien Vicart, Managing Director of VIZIBILITY said: “Today’s private bank professionals seek premium technology to access a broader range of services to reach the full potential of their business, we are thrilled to be elected as a tech provider for Banco Sabadell, Miami Branch, with VIZIBILITY they will enhance meaningfully their structured product business experience for advisors and their clients”
At VIZIBILITY we are committed to help financial professionals to understand and manage successfully structured investments. We are a business-data-driven company, so we are agile to the market needs.
Daniel Gamba, nuevo presidente de Northern Trust Asset Management (NTAM)
Northern Trust announced today that Daniel Gamba will serve as Northern Trust’s new President of Asset Management (NTAM), effective April 3. He will join Northern Trust’s Management Group and report to Chief Executive Officer Michael O’Grady.
Gamba joins Northern Trust from BlackRock, Inc., where he spent 22 years and served as co-head of Fundamental Equities and as a member of BlackRock’s Global Operating, Portfolio Management Group Executive and Human Capital committees. Gamba has broad-based global experiences across fundamental active, systematic and index products. He has led investment, distribution and product teams with a track record of driving businesses through growth and change.
Committed to diversity and inclusion, Gamba is also the Founder and Co-Chair of Somos Latinx & Allies Employee Network at BlackRock.
“Daniel has a unique set of experiences well suited for the continued growth of Northern Trust Asset Management, with a track record of delivering strong results,” O’Grady said. “I am confident that under Daniel’s leadership, working in close collaboration with NTAM’s executive team and his partners on Northern Trust’s Management Group, our business will continue to grow and deliver best-in-class investment solutions and services to our clients.”
Gamba is the past Chair of the Board of Governors for the CFA Institute, the 190,000-global member association that serves investment management professionals.
He served as a Board Director for the Council of Urban Professionals whose mission is to connect, empower and mobilize the next generation of diverse business and civic leaders. He earned a bachelor’s degree in industrial engineering from Universidad Catolica del Peru and an MBA in finance and economics from Northwestern University’s Kellogg School of Management, where he served on the Board of its Alumni Association for four years.
The Financial and International Business Association (FIBA) announces the launch of a new certification program for wealth management professionals. As the wealth management business continues to grow, its professionals must demonstrate high-level skills in a wide variety of disciplines.
This two-level certification is designed to provide professionals from financial institutions with a strong foundation in financial markets and the products and services they offer.
Funds Society readers will be able to include the promotional code FS200 and receive a $200 discount.
The Certified Wealth Management Associate (CWMA) online course provides an introduction and overview of the business of international wealth management, as well as an in-depth review of financial markets and instruments, wealth management products, operational and regulatory requirements and the concepts of wealth planning.
This course is ideal for new entrants to the business, such as junior relationship managers, as well as customer service staff, compliance, operations and audit professionals, and industry regulators.
The Certified Weatlh Management Professional (CWMP) is designed as a hybrid course, with online instruction in portfolio construction, quantitative analysis of risk and return, economics and economic indicators, as well as live seminars providing hands-on learning. As a key component of the course, participants will prepare an investment proposal based on a complex case study and current market conditions. This course is geared toward senior relationship managers and investment advisory or portfolio management staff.
It is also an opportunity for specialized operations, compliance and audit staff to gain a deeper understanding of the investment advisory process.
The CWMA is available for enrollment in January 26, 2023, and the CWMP will launch its first session in March 2023. The course was developed by a multi-disciplinary team of professionals, led by the instructor, Isabelle Wheeler, CFA.
Photo courtesyIsabel Campillo, Carmen Garcia & Cristina Rubio, Capital Strategies team
Matthews Asia announces a new distribution agreement with Capital Strategies Partners, a Madrid, Spain-headquartered global third-party distribution firm. Capital Strategies Partners will be assisting with distribution of Matthews Asia’s UCITS funds in Spain, Portugal and Italy.
Matthews Asia is headquartered in San Francisco and specializes in investing in Asia and the emerging markets. Since it was founded in 1991, the firm has used an active approach that focuses on identifying the most attractive long-term growth opportunities in these regions. With portfolios that look very different from their benchmarks, they seek to provide clients with better exposure to the regions’ diverse and rapidly changing markets.
“Matthews Asia is a specialist boutique with an excellent reputation and performance that naturally complements the other fund managers we represent. With this asset manager, we bring to our investors the possibility of taking exposure to a geographic area that is becoming increasingly important in the global economy,” says Cristina Rubio, partner at Capital Strategies Partners and head of the project.
Neil Steedman, Head of Business Development EMEA and Asia at Matthews Asia, said: “Matthews Asia has been at the forefront of providing investors with a broad range of choices to build exposure to Asia and broader emerging markets. We are thrilled to be partnering with Capital Strategies to offer our distinctive investment approach to investors in Spain, Portugal and Italy who can benefit from our long-term focus on these fast-growing markets.”
About Matthews Asia
Since 1991, we have focused our efforts and expertise within the Asia and the emerging markets, investing through a variety of market environments. As an independent, privately owned firm, Matthews Asia is the largest dedicated Asia investment specialist in the United States. With approximately US$13 billion in assets under management as of 31 December 2022, Matthews Asia employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information, please visit matthewsasia.com.
About Capital Strategies Partners
Capital Strategies Partners AV SA is a regulated private partnership and that specializes in identifying and representing best-in-class and mainly unique asset managers. Founded in 2000 and headquartered in Madrid, the firm is made up a diverse team of 34 professionals with global presence.
Photo courtesyMarty Flanagan, President & CEO at Invesco to retire on June 30, 2023
Invesco announced that Marty Flanagan, under whose strong leadership Invesco has grown to become one of the world’s leading global investment management firms, has decided to retire as President and CEO on June 30, 2023.
“During his time at Invesco, Marty’s relentless focus on understanding and meeting client needs while building a world-class investment organization has helped Invesco strengthen its global leadership position and grow its AUM from $400 billion to $1.4 trillion1,” said G. Richard Wagoner, Jr., Chair of the Invesco Ltd. Board.
Mr. Flanagan will also step down from the Invesco Ltd. Board on June 30, 2023. He will continue as Chairman Emeritus through Dec. 31, 2024, providing advice and guidance to the company.
“Under Marty’s strong leadership, Invesco has built a fully integrated firm with a comprehensive set of capabilities that enables us to meet a wide range of client needs and a well-scaled global platform that allows us to deliver a high level of service and value to clients across the globe. Throughout his time at Invesco, Marty has built an inclusive and forward-looking culture that values employees and stakeholders of the company, and has played a prominent role in business groups nationally and in Atlanta. The Board and I are extremely appreciative of Marty’s many significant achievements during his 18 years at Invesco, which will have an enduring impact on the firm’s long-term success,” added Wagoner
The Invesco Ltd. Board of Directors announces the appointment of Andrew Schlossberg, Senior Managing Director and Head of the Americas, to succeed Mr. Flanagan as President and CEO of Invesco Ltd. Mr. Schlossberg will become President and CEO of Invesco and a member of the Invesco Ltd. Board of Directors on June 30, 2023.
“Andrew has a long and established track record of delivering a superior investment experience to clients, helping employees grow in their careers, and leading innovation and profitable expansion across our global business,” said Mr. Wagoner. “His leadership in the asset management industry and wide-ranging experience at Invesco position him well to bring next-generation leadership to the company and deliver for all our stakeholders.”
“I’ve worked side-by-side with Andrew throughout my career at Invesco and have found him an exceptional leader who is highly focused on delivering the best possible experience for our clients,” said Mr. Flanagan. “I have every confidence that Andrew and the Executive Leadership Team will build on our strong momentum to take the business forward.”
“Invesco has an exceptional foundation to provide investment excellence for our clients, innovate in our delivery and enhance the growth of our business,” added Mr. Schlossberg. “We have a comprehensive range of in-demand investment capabilities, a strong global footprint and outstanding talent throughout the firm. I look forward to working with the Invesco Ltd. Board, our team worldwide and Marty to ensure continued strong outcomes for our clients, employees and shareholders.”
Mr. Schlossberg has been in the asset management industry since 1996 and with Invesco Ltd. since 2001. He has served in multiple leadership roles across the company’s businesses and locations. Prior to his current position, he was based in Invesco’s UK office as Senior Managing Director, Head of EMEA (Europe, the Middle East and Africa) and Chair of the Board of Invesco UK Limited. Before the UK, he served as Head of US Retail Distribution and Global ETFs and, prior to that, was US Chief Marketing Officer and Head of Global Corporate Development. He has also held leadership roles in strategy and product development in the company’s North American Institutional and Retirement divisions.
Mr. Schlossberg is active within the financial services industry, serving on the Investment Company Institute (ICI) Board of Governors and Executive Committee. Previously, he served on the board and advisory boards of the UK Investment Association, ICI Global, TheCityUK and the Diversity Project.
Doug Sharp, Senior Managing Director and Head of EMEA, will assume an expanded leadership role as Head of the Americas and EMEA, and global responsibility for ETFs, SMAs and digital capabilities.
“Doug will work with Andrew Lo, Senior Managing Director and Head of Asia Pacific, to oversee a more globalized client-facing organization with a focus on better understanding and meeting client needs, employing both a regional and cross-regional approach,” Mr. Flanagan said.
Mr. Sharp has served as Senior Managing Director and Head of EMEA since 2019. He joined Invesco in 2008 from McKinsey & Co. and has served in multiple leadership roles across the firm, including his previous role as Head of EMEA Retail. Prior to that, he ran Invesco’s cross-border retail business and served as Head of Strategy and Business Planning and as Chief Administrative Officer for Invesco’s US institutional business.
The firm also announced that Stephanie Butcher, Chief Investment Officer, EMEA, and Tony Wong, Global Head of Fixed Income Investments, have been named Senior Managing Directors and Co-Heads of Investments. Together, Ms. Butcher and Mr. Wong will oversee the firm’s distinctive investment capabilities, building on the strength of our investment culture, processes and enterprise support model.
Ms. Butcher has served as Chief Investment Officer of Invesco’s EMEA business since January 2020, overseeing the highly regarded Henley Investment Center, encompassing equities, fixed income and multi-asset capabilities. She joined Invesco in 2003 from Aberdeen Asset Management as a fund manager on the company’s European equities team.
Mr. Wong has served as Global Head of Fixed Income Investments since March 2019, responsible for the investment process and performance, strategic direction and enterprise oversight of Invesco Fixed Income’s global organization. Mr. Wong joined Invesco in 1996 and has served in various investment roles within the fixed income organization.
Funds Society announces the third edition of the Funds Society Houston Investment Summit to be held on March 2nd, 2023 at the Intercontinental Houston Medical Center.
After listening to the investments ideas and the outlook of our sponsors, AXA Investment Managers, Janus Henderson Investors, MFS Investment Management, Manulife Investment Management and Voya Investment Management we will head to the Houston’s Livestock Show and Rodeo, where we will enjoy a rodeo show followed by Lauren Daigle’s concert from the Funds Society private suite.
Join us for a great investments retreat with a perfect mix of academics and one of the most traditional events in Texas.
If you are a professional investor and want to participate in the event, you can register through the following link.
