Fund Managers Increase Liquidity in the Most Pessimistic Investment Environment of the Year

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Investor optimism is declining as the year progresses. It is not surprising, given that the idea that economic growth will weaken as a result of the decisive actions of central banks is increasingly widespread.

This sentiment has become evident in the latest monthly survey of fund managers conducted by Bank of America (BofA). Investor sentiment deteriorated in May, reaching its lowest point of the year. The reason is precisely that there are more investors expecting an economic downturn: 65% believe this scenario is the most likely, compared to 63% the previous month.

The most immediate consequence has been an increase in the position of liquidity, which now stands at 5.6%, up from 5.5% the previous month. Liquidity has been above the 5% threshold since November 2021.

The weakening expectations for China also do not contribute to optimism. Now, 55% anticipate a strong rebound in China, down from 83% in April. This sentiment extends beyond portfolios, as the percentage of investors overweighting the Chinese stock market decreases from 30% to 24%. In fact, this represents the lowest overweight position in this asset since December 2022.

Fund managers continue to closely monitor the actions of the Federal Reserve, 61% believe that the Fed has completed the cycle of interest rate hikes, and a large majority, 43%, expects a cut in the interest rate at the January meeting next year. However, a third of the respondents still believe that there will be further interest rate hikes in the US.

As for the main negative events, the spending ceiling emerges in May as one of the biggest “tail risks”: 8% point to this event as a possible negative scenario for the markets.

A credit crunch combined with a global recession once again tops the list of investor concerns, although with slightly less intensity this month, as 33% mention this event. It is closely followed by high inflation coupled with further interest rate hikes, with 29% expressing this view.

The fear of a credit crunch and a global recession prompted an increase in portfolio exposure to fixed income: 14% overweight this asset, the highest level since March 2009. Sector rotation is also accelerating.

The positioning in growth sectors (technology and discretionary consumption) compared to financials (banking and insurance) increased by 12 percentage points in May, reaching the highest level since August of last year. The last time the survey showed such a rapid shift from financials to growth was in November 2007.

Pictet Asset Management: Slim Pickings Outside Emerging Markets

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As spring blooms in the northern hemisphere, the green shoots of economic recovery appear to be emerging. This after months of stubborn inflation and banking sector turmoil.

Unfortunately, however, there aren’t yet enough of those green shoots to convince us to shift from the cautious stance we have maintained since the end of last year. Economic prospects are still highly uncertain, particularly in the developed world thanks in large part to sticky inflation.

Moreover, corporate earnings estimates are being revised down, as we predicted. We continue to forecast flat earnings per share growth for 2023 in developed markets, which is now largely in line with consensus, but we believe expectations for the years to come are still too high. We therefore remain underweight developed market stocks and upgrade global bonds to overweight.

Our global business cycle indicators are still firmly in neutral territory; they are some way off from turning positive.

We still believe the US can avoid a recession, but its growth prospects aren’t especially bright in the medium term. GDP grew by just 1.1 per cent in the first quarter on an annualised basis – around half the pace that economists had expected.

There are some green shoots: our US lead indicator had shifted into positive territory for the first time in nearly a year, while housing activity, which tends to lead the economic cycle, has picked up from 10-year lows. But we believe that a definitive positive shift is still some way off given the lag in the transmission of tightening monetary policy, which has taken longer to work through the economy than in previous cycles. Consumption growth and non-residential investment will surely slow, while core inflation remains stubbornly high.

Our indicators for Europe are equally downbeat; we believe the region is several months behind the US in the cycle. Recent rate hikes won’t be felt in economic activity for another few months, although solid domestic demand should act as a buffer.

The picture is brighter for emerging markets. First quarter GDP data showed Chinese growth back near potential, fuelled by a rebound in private demand, especially in services. We expect excess savings – worth some RMB5 trillion – to be drawn down over the next two years, giving a significant boost to consumption.

Property markets also look healthier: construction has rebounded from September lows, floor space is increasing, and mortgage rates have fallen 150 basis points from their peak. China’s trade balance has also markedly improved, driven mainly by trade with the ASEAN economies. Our analysis shows that exports are now 63 per cent above pre-crisis levels, led by shipments of electric vehicles.

Our liquidity indicators are positive for emerging market assets but contain red flags for developed market equities. China’s central bank remains in easing mode, encouraging the flow of money and credit into the economy and thus creating supportive conditions for riskier assets.

In contrast, the rate hikes delivered by US and European central banks are now starting to weigh heavily on the cost and availability of credit, causing a marked reduction in liquidity. With more tightening likely, conditions could worsen.Private liquidity – that provided by banks and other private sector lenders – was weakening even before the March bank failures and has now deteriorated further. Net interest margin pressures, tighter lending standards and the likely introduction of more stringent regulatory measures are curbing banks’ willingness to lend (see Fig. 2). Euro zone bank lending has come to a standstill, while in the US it’s slowed to just 1.5 per cent of GDP, compared to an average of 4 per cent in both regions in 2022.

 

We remain confident in the prospects for emerging market stocks and bonds but don’t share the same enthusiasm for developed market equities.

 

Opinion written by Luca Paolini, Pictet Asset Management’s Chief Strategist

Discover Pictet Asset Management’s macro and asset allocation views.

Man Group appoints Robyn Grew as next CEO as Luke Ellis announces retirement

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Man Group announces that Luke Ellis has informed the Board of his decision to retire and that Robyn Grew will be appointed as the next CEO of Man Group.

She will take over from Luke as CEO as of 1 September 2023, at which time she will also join the Man Group Board as an executive director. While she will relocate to the UK following her appointment, she will continue to spend a substantial proportion of her time in the US, given the firm’s presence there. Ellis will continue as CEO and remain an executive director of the Company until 1 September 2023 to ensure an orderly transition and oversight of the Company’s 2023 interim results.

Grew is currently President of Man Group and a member of the Senior Executive Committee, based in the US. She has significant operational and financial services experience as well as a strong track record of demonstrating strategic vision and leadership. During her 14 years at Man Group, Robyn has managed the solutions business, overseen trading and execution as well as acted as Group COO, Head of ESG and General Counsel. Her wide-ranging responsibilities, spanning from investment divisions, risk and technology to legal, infrastructure and operations, have provided her with broad experience and a deep understanding of the business. She has been integral to the firm’s global strategic expansion and oversaw the reorganisation of Man Group’s corporate structure in 2019 to better align it with the global footprint of the business. She has also spearheaded the firm’s diversity programme, Drive.

Before joining the firm in 2009, Grew held senior positions at investment banks Barclays Capital and Lehman Brothers as well as at LIFFE, the largest futures and options exchange in London – since renamed the ICE Futures Europe. These roles saw her based for periods of time in New York, London and Tokyo giving her broad, global experience.

In line with best practice and its roles and responsibilities, the Nomination Committee of the Board has continually reviewed and discussed Board and executive succession plans. This has included identifying potential internal successors for the CEO role and, with the assistance of an external executive search firm, undertaking a thorough preparatory external benchmarking exercise. Following Luke’s decision to retire, the Board was pleased to be able to implement its succession plans and immediately approve the appointment of Robyn as the Company’s next CEO.

“It is an absolute honour to be taking on the role of CEO at Man Group. During more than a decade working at the firm, it has developed into a world leading, technologically brilliant, active investment firm with a fantastically collegiate culture. I look forward to building on that to ensure the firm remains positioned at the forefront of active investing, attracting top talent and delivering for our clients and shareholders alike. Luke has been an incredible ally and mentor to me and I am excited to be able to follow in his footsteps into this new role,” Robyn Grew said.

Luke Ellis commented: “It has been a privilege to be CEO of Man Group and it is easy to want to stay on forever when you are leading such a great team of people. However, I feel that now is the right time to pass the reins to the next custodian of this firm and having worked with Robyn for well over a decade I could not be more thrilled at her appointment. Robyn is truly exceptional and I know that the firm will continue to go from strength to strength under her leadership and that of the highly talented team around her.”

“Luke has had a long and distinguished career in the City, leading several organisations before he landed at Man Group. He has been a fantastic, visionary leader, inspiring the firm to reposition itself for the future and working closely with his leadership team to oversee a period of tremendous growth. He has also played a significant part in developing a great culture that makes Man Group such a wonderful place to work. The fact that we have been able to make an appointment internally for his successor is a reflection of the highly talented team that he has developed around him. We thank him for his leadership of the firm over the past seven years and wish him the very best for his retirement,” John Cryan, Chair, Man Group, commented.

In addition, Cryan added: “I know I speak for the entire Board when I say what a pleasure it is to be able to announce Robyn Grew as the next CEO of Man Group. Robyn is a dynamic, strategic leader with deep operational and commercial expertise, who knows the firm inside-out and is the perfect fit to take the firm on the next phase of its journey”

Emerging Managers Plan to Invest in Headcount and FinTech for Faster Growth in 2023

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Alternative investments FinTech Dynamo Software  released the results of a new survey, Trends, Challenges, & Insights from Leading Emerging Managers. The findings come on the heels of two additional pieces of Dynamo-led primary research, an October 2022 survey of Limited Partners (LPs) and asset allocators and a February 2023 survey of General Partners (GPs).

Throughout March 2023, Dynamo surveyed leaders across the global Emerging Manager marketplace. Participants represented a diverse set of funds, including private equity, venture capital, hedge funds, corporate development, real estate, fixed income, small-cap public equity, and private credit.

“The Emerging Managers we surveyed have a clear vision for moving quickly from scrappy upstarts to industry titans,” said Dynamo Software CEO Hank Boughner. “Despite the market’s ebbs and flows, they are aggressively pursuing healthy returns and hunting for both unicorns and camels.”

The research, contextualized in the Dynamo Frontline Insight Report, uncovered several noteworthy investment, talent and technology strategies being deployed by leading Emerging Managers today.

Top Talent Priority for Growth

To be successful in a tough economic climate, Emerging Managers are prioritizing the acquisition of top talent. Survey participants named “increased internal headcount” as the top area of investment to drive fundraising efforts over the next 12 months.

Like their larger GP counterparts, Emerging Managers do not seem likely to source fee revenue for additional dollars to pay top talent. The same percentage (88%) of GPs Dynamo polled in February and Emerging Managers polled in March indicated their fee structure would remain the same over the next 12 months.

Rather, cost reduction appears to be the go-to-strategy. “Creating efficiencies and optimizing workflows,” “overall cost” and “empowering the whole team to leverage tech” topped the list of reasons Emerging Managers are implementing technology. Operationally, “removing manual data tasks and introducing automated workflows” ranked as the top priority.

FinTech Strategy

Following “increased internal headcount,” two other key areas for investment were “third-party data providers” and “technology platforms.”

“It was validating to learn that Emerging Managers see value in FinTech and data partners,” said Boughner. “It’s what drives our team to iterate continuously and rapidly, as there are new types and sources of data available each day. In close consultation with our clients, we identify and integrate that data rapidly. Perhaps as importantly, we invest in development that facilitates the smoother flow of data throughout the Emerging Manager’s tech stack, which is getting higher by the minute.”

Given the prioritization of data and FinTech, it’s no surprise that Emerging Managers indicated they will not pull back on their tech budgets. In fact, more than half (51%) expect tech budgets to increase over the next 12 months. Another 48 percent said their budgets would stay the same.

The three solutions that received the most votes for future inclusion in the Emerging Manager tech stack were “fundraising and marketing” solutions (No. 1 most popular), “deal management and CRM” (No. 2) and “investor relations” solutions.

Weighing Investors’ ESG Focus

With Deutsche Bank, Bloomberg, and PWC all similarly projecting ESG assets to exceed $100 trillion in five years, more than four out of 10 (43%) Emerging Managers surveyed by Dynamo expect investors will increase ESG and DEI reporting expectations over the next 12 months.

This may be due to the type of investor Emerging Managers are finding success with, beyond the go-to institutional investors. Over the last 12 months, a significant number of Emerging Managers raised the most capital from the private wealth segment, with 32 percent raising the most from high-net-worth individuals and 21 percent raising the most from family offices.

“Institutional investors will continue to be a core category of investment in Emerging Managers, but as more disclosure requirements come about and the barriers to obtaining data gets lower, private investors will receive more benchmarks and be empowered to ask more questions,” explained Danielle Pepin, Dynamo’s Head of Product, Portfolio Monitoring and Valuation. “Although the layers of fiduciary duty and external accountability are fewer for private wealth, progress against targets still needs to be reported, and these targets increasingly include non-financial metrics. Family offices, especially, are eager for data to demonstrate the success of their ESG- and DEI-focused investments.”

Still, investors trusting Emerging Managers with their money are exercising caution when it comes to early opportunities. Just 13 percent of those investors are willing to allocate more than 75 percent of their capital to new investment vehicles. About six in 10 investors (58%) will allocate no more than 25% of their capital to new vehicles.

The Dividend Deluge

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Almost exactly three years ago, I penned an article titled ‘The Dividend Dilemma’. It was the depths of the Covid-induced market selloff; companies were cutting or suspending dividends left, right and center; and analysts were predicting big cuts to global dividends from which they would take years to recover. I anticipated a fall of around 30%.

Yet for all the cataclysmic predictions, payouts took just one year to bounce back. 2021 was a record-setting year for global dividends at $1.47 trillion, a mark that was bettered in 2022 at $1.56 trillion and is forecasted to be exceeded yet again in 2023 at an estimated $1.60 trillion (see Exhibit 1).

We have now gone from the dividend dilemma to the dividend deluge. With 2022 also setting a record for share buyback authorizations, the picture is clear – companies are returning record amounts of capital to shareholders.

 

The volatility we saw across asset classes last year served as a reminder that dividends are typically much less variable than earnings and can provide an important source of total return in challenging markets. Dividends also have a solid track record of keeping pace with inflation and while annual growth wasn’t quite the low double digit level that we saw inflation hit at its peak, there was less erosion in real terms than we saw in payouts from most other asset classes.

So where does this leave us now? Deep value areas of the market, characterized by companies with lower-quality earnings and high debt levels had their day in the sun last year. Such rallies tend to be sharp but also short-lived, which played out in the first quarter of this year as we saw momentum fade abruptly. Investors are likely questioning whether such companies can continue to be successful in a slowing growth (or recessionary) environment. In addition, with interest rates looking like they will be higher for longer, indebted companies will likely see more of their cashflow eaten up by interest payments, rather than being available to distribute to
shareholders.

In contrast to the riskier, deep-value end of the market, we believe a focus on ‘quality’ dividend paying companies, those with strong balance sheets and high returns on equity, can be a powerful factor over time. As shown in Exhibit 2, the top quintile of companies, based on quality1 within the MSCI All Country World Index, has significantly outperformed the wider market over time.

This quality approach will, we believe, be especially important if the harsher economic conditions that many expect come to fruition. Indeed, despite the uncertainty in the market right now, over two-thirds of the companies within a representative global equity income portfolio have increased their dividends in the first quarter of 2023.

These increases suggest companies are generating plentiful free cash flow, and returning it to shareholders is signaling, what we believe is, a healthy confidence in their financial situation.

A few examples of high dividend increases include:

What is striking about these examples is not only the magnitude of the increases but also the diversity of the companies involved, on both a geographical and sectoral basis, which implies broad-based strength.

All of this suggests we may be in a golden period for dividend investing. Companies are returning record amounts of capital to shareholders and are doing so while recording payout ratios that are below long-term averages, meaning these dividends should remain even in the face of slowing growth.

Dividend strategies themselves tend to come into their own in more choppy market environments, where income streams become an even more crucial part of total returns and a lower beta approach may offer some protection from volatility. This serves to highlight the excellent shape of global dividends and should provide equity income investors with significant opportunities – despite volatility, they remain well positioned in the market.

Piece of opinion by Mark Peden, Investment Manager of Aegon Asset Management.

AIS Financial Group Appoints Erik Schachter as Chief Investment Officer

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Photo courtesyAIS Financial Group new Chief Investment Officer, Erik Schachter

Swiss brokerage firm and third-party fund distributor AIS Financial Group has recruited a new Chief Investment Officer (CIO), Erik Schachter, to bolster its coverage of global markets.

He will report to Samir Lakkis, founding partner of the company.

Schachter brings a wealth of expertise with 10 years of experience working in Finance: Research, Equity, Trading, Derivatives and Consulting. He focused on the analysis of the international financial market to generate efficient investment portfolios. He has a profile oriented to seek opportunities through traditional and alternative financial products. He was a Portfolio Manager at a MultiFamily Office in Argentina, analyzing the international market through research and calls with fund houses to find the best investment strategy.

Geneva, Switzerland-based AIS has offices in Panama, the Bahamas and Madrid and provides brokerage, asset management and fund distribution services. AIS currently distributes more than USD 2.5 billion a year in structured products and is diversifying its business line.

The company seeks to consolidate its position and to partner with those asset managers who want to outsource their sales force and benefit from the knowledge and expertise the company has in the region.

US Banking Sector to Enter Consolidation Phase with Recent Collapses

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The US is currently grappling with the dual challenges of elevated inflation and regional banking crises, causing concerns among investors. These could potentially trigger a period of consolidation in the banking sector, said Murthy Grandhi, an analyst at GlobalData in a report.

“The US is currently grappling with the dual challenges of elevated inflation and regional banking crises, causing concerns among investors. These could potentially trigger a period of consolidation in the banking sector. In March 2023, Silicon Valley Bank was acquired by First Citizens and Signature Bank by Flagstar Bank. Now, First Republic Bank is acquired by JPMorgan Chase,” the expert said.

On May 1, 2023, First Republic Bank, which had more than $200 billion in total assets, collapsed, following the earlier collapses of Silicon Valley Bank and Signature Bank, which serve as a stark reminder of how quickly the effects of risky decisions taken at one bank may impact the whole financial system.

First Republic Bank’s failure was attributed to its business model, which focused on catering to high-net-worth individuals and corporations and offering large loans, including jumbo mortgages, using the deposits it received. With historically low interest rates, the bank hoped to entice customers to expand into more profitable products like wealth management. As a result of this, many of the bank’s accounts had deposits exceeding the federally insured $250,000 limit, the report said.

As of December 31, 2022, the bank had uninsured deposits of $119.5 billion accounting for 67.7% of its total deposits. As of March 9, 2023, the bank’s total deposits were $173.5 billion. Following the collapse of Silicon Valley Bank on March 10, 2023, the bank experienced unprecedented deposit outflows, reaching $102.7 billion by April 21, 2023, representing a 41% outflow.

“In this scenario, other midsize banks such as Comerica, KeyCorp, PacWest, Western Alliance Bank, and Zions Bank came under pressure with their share prices falling by 26.6%, 21.5%, 67.5%, 30.3%, and 33.5%, respectively, between March 13 and May 4, 2023, and by 53%, 49%, 86%, 68.9%, and 58.9%, respectively, year-to-date. Recently, Moody’s also downgraded ratings for Zions Bank, Western Alliance Bank, and Comerica.

“For the fiscal year ended December 31, 2022, Comerica, KeyCorp, PacWest, Western Alliance Bank, and Zions Bank reported uninsured deposits of $45.5 billion, $67.1 billion, $17.8 billion, $29.5 billion, and $38 billion, respectively, accounting for 63.7%, 47.1%, 52.5%, 55%, and 53%, respectively, of their total deposits”, the text added.

“Other banks with notable high uninsured deposits include East West Bank, Synovus, Bank of Hawaii, and First Horizon Bank, with 66.7%, 51.3%, 51.9%, and 47.7%, respectively, of their total deposits.

“This high percentage of uninsured deposits points to the fragility of these banking companies and may result in a similar situation that was created by Silicon Valley Bank and Signature Bank.”

Thornburg Plans Leadership Transition

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Photo courtesyJason Brady, president & CEO de Thornburg Investment Management

Thornburg Investment Management, a global investment firm that oversees $42 billion in assets, announced that Jason Brady intends to step down later this year from his role as president & CEO and portfolio manager, as well as from the Board of Directors of Thornburg, and depart the firm.

Mr. Brady will continue in his role to allow for a smooth transition while Thornburg’s Board of Directors undertakes a search for his successor.

“Since joining Thornburg in 2006, I am proud of what we have achieved, particularly the strength of the team we have developed, and I’m grateful for the opportunity to serve as the firm’s president and CEO for nearly eight years,” said Mr. Brady.

“This is the appropriate time for a new leader to step in and I remain fully involved and engaged while the Board searches for a successor,” he added.

“I thank Jason for delivering strong results across our business and notably assembling an experienced group of world-class leaders at the organization,” said Chairman Garrett Thornburg. “Our 41-year foundation leaves us well positioned to make the next phase of our growth the most exciting in our company’s history.”

Record Debt and Soaring Interest Costs Mean Governments Face a Reckoning, but Investors Stand to Benefit

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Governments face a painful reckoning as record debt and higher interest rates mean borrowing costs will double over the next three years, according to the annual Sovereign Debt Index from Janus Henderson. This will put significant strain on taxpayers and public services, but there are opportunities for investors.

2022 and 2023 have seen dramatic changes for government finances around the world. By the end of last year, the total value of global government debt had leapt by 7.6% on a constant currency basis to a record $66.2 trillion, double its 2011 level. The US government accounted for more additional borrowing in 2022 than every other country combined.

Costs are mounting sharply. Government interest bills jumped by almost over a fifth in 2022 (+20.9% constant currency basis) to a record $1.38 trillion. This was the fastest increase since 1984 and reflected both rising rates and the swelling stock of sovereign borrowing. The effective interest rate, which includes older, cheaper borrowing, rose to 2.2% in 2022, up by one seventh, year-on-year. 

This cost continues to rise as new bonds are issued at higher interest rates and older, cheaper debt is retired. The effective interest rate in 2025 is set to be 3.8%, almost three quarters more than 2022’s level. 

This will prove very expensive for governments. By 2025, the governments around the world will have to spend $2.80 trillion on interest, more than double the 2022 level. This will cost an additional 1.2% of GDP diverting resources from other forms of public spending or requiring tax rises. The US is particularly exposed on this measure. 

On top of this come losses on central bank portfolios of QE bonds which must be filled by tax dollars, reversing the pre-2022 flow of profits on these bonds paid by central banks to government finance departments. 

Ongoing annual deficits mean debts will continue to rise, reaching $77.2 trillion by 2025. The global debt burden will rise from 78% of GDP today to 79% of GDP in 2025.

Jim Cielinski, Global Head of Fixed Income at Janus Henderson said: “The level of government debt and how much it costs to service really matter to society, affecting decisions on taxation and public spending and raising questions of generational fairness. Since the Global Financial Crisis, governments have borrowed with astonishing freedom. Near-zero interest rates and huge QE programmes by central banks have made such a large expansion in government debt possible, but bondholders are now demanding higher returns to compensate them for inflation and rising risks, and this is creating a significant and rising burden for taxpayers. The transition to more normal financial conditions is proving a painful process.

We expect the global economy to weaken markedly in the months ahead, and for inflation to slow more than most expect. The market expects the world economy to have a relatively soft landing – a slowdown in growth, but no outright contraction, except in a handful of national economies, he added. Cielinski said that believe this is incorrect.

The sheer volume of debt owed by governments, corporates and individuals nevertheless means that rates do not need to climb as far as in the past to have the same effect. The interest rate tightening cycle is nearing its end. 

Investors stand to benefit. Bonds of all maturities are likely to see yields fall in the year ahead, meaning prices will rise. Short-dated bonds offer higher yields at present because they are more closely connected to central bank policy rates. This is good for those wanting income and tolerating lower risk, but they will see less capital appreciation. The scope for capital gains is significantly greater for longer-dated bonds which we expect to perform very well in the next year as the economy comes under pressure.”

Barbara Reinhard named Chief Investment Officer for Voya Investment Management’s Multi Asset Strategies and Solutions platform

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Voya Investment Management (Voya IM), the asset management business of Voya Financial, Inc. (NYSE: VOYA), announced that Barbara Reinhard, CFA, has been named chief investment officer and head of Asset Allocation for Voya IM’s Multi Asset Strategies and Solutions (MASS) platform, effective Nov. 1, 2023.

Reinhard will succeed Paul Zemsky, CFA, who will retire at the end of 2023. Reinhard will report to Matt Toms, Global Chief Investment officer, Voya IM.

“Barbara is a seasoned investment professional with 30 years of investment experience. She is well respected both within our industry and with our clients,” said Toms. “Since joining Voya seven years ago as head of asset allocation for MASS, Barbara has been a key driver of alpha and risk management for our multi-asset platform and has both attracted and developed a strong team of talented investment professionals.

“In the nearly 20 years since Paul founded the MASS team, it has grown to over $31 billion in assets. In addition, Paul has served as a mentor to many of our employees and has been instrumental in the creation and evolution of Voya IM’s award-winning culture. I know our MASS team will build upon the success and client-centric commitment to delivering results that was started by Paul,” added Toms.

Reinhard joined Voya IM in 2016 and most recently served as head of asset allocation. She is also a portfolio manager on Voya IM’s target date and multi-asset strategies. Prior to joining Voya IM, Reinhard was a managing director and chief investment officer in Credit Suisse’s private banking division.

“We are focused on the needs of our clients and investing in our firm. Equally important, we want to prioritize the continuity of our portfolio management teams while elevating the next generation of our leaders — both of which we have done today,” said Toms.

Voya IM also announced today that Lanyon Blair, CFA, CAIA, Head of Manager Research and Selection, will join Reinhard as a named portfolio manager on the firm’s target date and multi-asset strategies. Blair joined Voya IM in 2015 and is responsible for manager research and selection activities across equity, fixed income, real estate and commodities asset classes for all of MASS’s multi-manager solutions.