Foto cedidaBeatriz Barros, nueva responsable de distribución en el área de Américas de AXA IM.. AXA IM nombra a Beatriz Barros de Lis responsable de distribución en el área de Américas
AXA Investment Managers has announced in a press release the appointment of three senior executive leaders to support “the ongoing robust growth and performance” of the Americas Institutional, Wholesale, and Sub-Advisory businesses. Strengthening the sales and distribution team in the region,Beatriz Barros de Lis -previously Country Head for Spain and Portugal- has been named Head of Client Group Americas.
After 11 years at the helm of AXA IM Spain and Portugal, as part of her new role, Barros de Lis will lead the North America and Latin America Sales and Distribution team, both onshore and offshore, across Institutional, Wholesale, and Sub-Advisory. She will lead an experienced Sales and Client Service team, many of whom have significant tenure both at AXA IM and in the industry overall.
She was previously Country Head for Spain and Portugal, AXA IM, since 2010. Prior to that, she was managing director for the Spanish and Portuguese markets at Alliance Bernstein (AB). She is also currently a director at AXA Funds Management SA in Luxembourg. A graduate in Economics, she has worked in the asset management industry since 1994.
A single structure for Spain, Portugal and Italy
In addition, AXA IM has organized the sales areas to simplify and optimize its structure. As they have explained, the initiative stems from the decision taken last year to integrate the Client Group teams in Germany and Switzerland under what was called the DACH Group. The asset manager has pointed out that the success of this experience has driven this new regional approach for the sales teams.
Thus, the Western Europe area will combine France, Belgium and Luxembourg, while the Northern Europe hub will encompass the United Kingdom, the Nordic countries and the Netherlands. Within this new sales structure, the Southern Europe region will be created and will include Spain, Italy and Portugal, taking advantage of the synergies generated by the combination of skills and resources of the different team. It will be led by Pietro Martorella, until now Country Head of AXA IM Italy.
Other key appointments
Furthermore, Florian Bezaulthas been named Head of AXA IM Americas and Regional CFO Americas, after more than a decade of leadership roles within AXA Group. His primary responsibilities will focus on CFO leadership and strategy, and he will report to Godefroy de Colombe, Global Chief Operating Officer,and Jean-Christophe Menioux, General Secretary and CFO. Bezault assumes the responsibilities of his predecessor, Marcello Arona, who was recently appointed CEO AXA IM UK & AXA IM GS. Bezault has been with the AXA Group since 2008 and has held previous roles in Corporate Finance and Investor Relations at AXA’s Headquarters in Paris before joining AXA Mexico as Deputy Director of their Health Insurance Operations.
Meanwhile, José Manuel Fernández, Senior Sales Manager, joined AXA IM Mexico recently from Grupo Financiero Monex to support the firm’s continued commitment to clients in Mexico. In this role, he will report to Salvador Moreno, Head of Sales, AXA IM Mexico. Fernández brings over 20 years of industry sales experience, joining AXA IM from Grupo Financiero Monex where he was a Director of Sales in their asset management division focused on defined contribution and defined benefit plans.
AXA IM in the Americas is continuing to grow its third-party business across asset-classes and client segments throughout the region. “These new executive appointments support this business momentum throughout the U.S, Latin America and Mexico, with an emphasis on continued future growth and in support of new clients being on-boarded throughout the region”, has highlighted the asset manager. Its investment teams and strategy remain unchanged as a result of these announcements.
Pixabay CC0 Public DomainRotación cíclica. Rotación
U.S. equities were higher in May, as markets hovered around all-time highs. The pro-cyclical rotation continued as much of the outperformance for value stocks was driven by financials, industrials and materials. Rising inflationary fears as well as stretched valuations among growth stocks has investors evaluating what multiples they are willing to pay.
With over 40% of Americans fully vaccinated and COVID-19 cases down precipitously since the start of the year, government restrictions have eased to support the start of the economic reopening. People are longing for the in person connections and experiences that have been so lacking for the last year, and we can see the light at the end of the proverbial tunnel of COVID-19.
Amid concerns about ramping inflation, the Fed hinted that it may soon be time to begin a discussion on tapering the $120 billion/month asset-purchase plan, with indications that the debate could begin as soon as the June FOMC meeting.
The M&A market highlighted the scarcity value of companies with strong market positions. Accommodative capital markets and the easing of COVID-related restrictions are also providing support for would-be acquirers contemplating their strategic direction. Performance was bolstered by overbids and deals that made significant progress towards regulatory approval. M&A Activity remained vibrant with more than $490 billion announced deals globally, bringing year-to-date deal volume to $2.1 trillion, an increase of 90% over 2020 activity.
Recent trends in convertible issuance continued in May. We saw improved pricing with investors pushing back on aggressive terms. Even with better terms for investors, the global convertible market is a fast and inexpensive way for companies to raise capital. We anticipate the current pace of issuance to continue which would make 2021 another year of global convertible market expansion and diversification. Global convertibles were down a bit for the month, driven by the rotation from growth to value and continued underperformance of some of the more aggressively priced issues from January and February.
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552 Class I EUR – LU0687944396 Class A USD – LU0687943745 Class A EUR – LU0687943661 Class R USD – LU1453360825 Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648 Class I EUR – LU1216601564 Class A USD – LU1216600913 Class A EUR – LU1216600673 Class R USD – LU1453359900 Class R EUR – LU1453360155
GAMCO CONVERTIBLE SECURITIES
GAMCO Convertible Securities’ objective is to seek to provide current income as well as long term capital appreciation through a total return strategy by investing in a diversified portfolio of global convertible securities.
The Fund leverages the firm’s history of investing in dedicated convertible security portfolios since 1979.
The fund invests in convertible securities, as well as other instruments that have economic characteristics similar to such securities, across global markets (but the fund will not invest in contingent convertible notes). The fund may invest in securities of any market capitalization or credit quality, including up to 100% in below investment grade or unrated securities, and may from time to time invest a significant amount of its assets in securities of smaller companies. Convertible securities may include any suitable convertible instruments such as convertible bonds, convertible notes or convertible preference shares.
By actively managing the fund and investing in convertible securities, the investment manager seeks the opportunity to participate in the capital appreciation of underlying stocks, while at the same time relying on the fixed income aspect of the convertible securities to provide current income and reduced price volatility, which can limit the risk of loss in a down equity market.
Class I USD LU2264533006
Class I EUR LU2264532966
Class A USD LU2264532701
Class A EUR LU2264532610
Class R USD LU2264533345
Class R EUR LU2264533261
Class F USD LU2264533691
Class F EUR LU2264533428
Disclaimer: The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
Foto cedidaVirtual Investment Summit con Thornburg. VIS
At a time when interest rates are at historic lows while stock markets are trading at record highs, there are many questions creeping into investors’ minds: Are there still interesting opportunities to invest in fixed income, or should investors start to consider rotating their portfolios? What assets should they choose in order to maintain a good risk diversification? Thornburg IM asset managers Miguel Oleaga and Lon Erickson participated in the Funds Society’s Virtual Investment Summit series with the Bull vs Bear Summit panel, to offer insights into their investment philosophy and evaluate where they are currently finding investment opportunities.
Should I reduce my fixed income exposure and add more risk to my portfolio?
The poor performance of fixed income assets against a backdrop of a persistent search for yield is raising many questions for investors about how to position their portfolio in the coming months to address risks such as inflation, but also to benefit from the post-Covid economic recovery. Lon Erickson acknowledges that this is a complex context given that rates remain very low, but he urges investors to never lose sight of what the role of fixed income in a portfolio should be, “given that it is basically an asset class in which you invest looking for hedging against other riskier assets, such as equities.”
The asset manager points out that fixed income may not be providing returns given the current IRR and spread compression, but it is still a source of income generation and helps to diversify risks: “We will continue to see an environment of continued volatility in which fixed income can cushion the swings.”
The asset manager believes that at present, there are still opportunities in the fixed-income universe, but we need to analyze them on a case-by-case basis. “It’s not just about adding things to the portfolio, you need to have the will and the skills to dive into the asset class and be able to select bonds on an individual basis,” he says.
One of the segments in which Erickson is currently finding the most value is in leveraged loans, an asset he sees as “a high yield product that trades at a floating rate rather than offering a fixed interest rate.” He is also finding ideas in investment themed around consumption, particularly the U.S. consumer, where he invests through ABS and in certain parts of the non-agency-backed mortgage market: “Consumers have been very prudent about taking on debt and also have been paying off the loans they already had, so it’s a sector that is well covered, backed by fiscal stimulus and the Fed and we’re now seeing jobs recovery.”
The manager insists that his and his team’s current stance at Thornburg IM is conservative, because they believe that risk is not being well rewarded, especially in high yield: “We are investing in the whole capital structure, but we prefer to stay in the higher quality, senior tranches. We have the flexibility to invest in subordinated debt and other residual parts of the market, whenever we deem it necessary, if we see that we can get double-digit returns, but always with an investment thesis to back it up,” he insists.
In EM, the manager has a preference for those countries that have strong export-based economies versus those based on domestic demand, which have been hit harder by the delayed reopening after the pandemic. “There are some countries with very high rates, such as Egypt, which offers very interesting real rates on its local bonds.”
Where are the opportunities in equities?
Miguel Oleaga is “very bullish” on equities, stating that “there are still attractive and compelling valuations”, especially if companies are analyzed over a long time horizon, although he warns that valuations have rallied a lot over the last 18 months, especially in the U.S. and specifically in the technology segment. “If we wanted to reduce exposure to the US we would probably find software companies in other regions that are the darling of the markets, such as names linked to the services sector or the Internet, which still enjoy market favor despite the correction we have seen this year in this name class.”
The asset manager explains that at Thornburg, “we go further and look at other parts of the U.S. economy, especially the more cyclically exposed parts, which tend to look more attractive even despite the bullishness they have already experienced in the first five months of this year.” Oleaga highlights the positive impact of the monetary and fiscal stimuli applied in the country, because “they are helping a large part of the economy to recover better and more efficiently than before the crisis.”
Meanwhile, the manager talks about the opportunity represented by the reopening of economies globally, given that not all countries are doing so at the same speed, which is generating inefficiencies that can be exploited in their fund: “There are many economies that are still suffering greatly from Covid, and this is reflected in the fact that the prices of the leading companies in these markets are not being representative of their true value”, such as India, for example. These opportunities are encouraging the asset manager to reduce their exposure to the U.S. in favor of these markets.
Miguel Oleaga warns against buying stocks simply because they are trading cheaply, rather than carrying out a detailed fundamental analysis to determine the intrinsic value of companies: “When we take a step back and look at how the market has evolved over the last decade, some of the companies that have proved to be a bargain did not look cheap, as has happened with some US technology names. But if you had the resources to delve deeper and understand the fundamentals of the business and its growth drivers and why it was better positioned than others, then you could see that it was a bargain with respect to its intrinsic value,” something that is now being repeated, as many technology companies have corrected on the stock market, but this slump does not represent a good time to buy across the board for the sector.
Is now a good time to start investing in equities?
Miguel Oleaga’s answer to this question is a resounding yes: “For an investor who is willing to accept higher volatility and the higher risk associated with investing in equities in exchange for a source of income, now is a relatively attractive time”.
The expert draws attention to a third element of yield generation, the dividend situation: “Right now there are a number of companies that are well positioned in terms of cash flow generation and their ability to pay dividends. In a sign of conservatism, many of these companies reduced or cut their dividends last year to make sure they had enough cash flow and maintained a very strong balance sheet at a very uncertain time. As a result, there are a number of names that have restarted their dividend policy. One of the catalysts we can spot is to find these names that can afford to pay dividends and bring them back up to historic levels,” he concluded.
Pixabay CC0 Public Domain. BlackRock amplía su alianza con iCapital Network para mejorar el acceso de los gestores de patrimonio a los mercados no cotizados
Following PIMCO, PGIM and Allfunds, BlackRock is the latest firm to extend its strategic agreement with iCapital Network, in this case to increase accessibility to private market investments for wealth managers. The partnership will focus on the distribution of global private market funds.
In a press release, the asset manager has highlighted that the combination of its private market investment products and iCapital’s proven technology and solutions “will streamline the operational and administrative complexities faced by wealth managers seeking to distribute private market investments to their clients”.
BlackRock’s product offerings will include private equity, private debt, and real assets, across geographies, including a broadening array of ESG-integrated strategies. The investment products will be available to wealth managers across EMEA, Asia-Pacific and LATAM. The new offering will leverage iCapital’s AIFMD-compliant feeder fund structures and innovative technology platform to digitalize every aspect of the subscription and investor servicing process including capital calls, distributions, transfers and performance reporting for wealth advisors and their clients. iCapital’s technology will sit seamlessly alongside that of eFront, enabling BlackRock to fully service the operational and administrative needs of both wealth and institutional clients.
This latest collaboration addressing the international wealth management industry expands an existing commercial relationship between the two companies. BlackRock is a long-standing strategic investor in iCapital and currently employs its technology to streamline access for BlackRock’s North American private market offerings to the wealth management community
“We are delighted to be expanding our trusted partnership with iCapital Network. This collaboration will allow us to deliver on our strategic priorities of broadening access to BlackRock’s alternative investment strategies, accelerating the distribution of our private market strategies internationally, and enabling our wealth management partners to scale their own distribution efforts,” said David Lomas, Global Head of BlackRock Alternatives Specialists.
In this sense, the asset manager has pointed out that, while the global market for alternative investments stands at over 10.7 trillion dollars, with growth of 9.8% forecast by 2025, individual investor allocations have historically lagged those of institutional investors. However, they expect that, over the next several years, individual investor appetite will increase driven by a persistently low interest rate environment, diminished return expectations in public markets, and demand for greater diversification in portfolios to counterbalance higher market volatility.
Lawrence Calcano, Chairman and CEO of iCapital Network, claimed to be “honored” to partner with BlackRock on this initiative, which builds on years of collaboration between their firms and supports the expansion of its leading-edge private market offerings across EMEA, APAC and LATAM. “We are committed to optimizing the alternative investing experience across the industry so advisors can better serve their clients”, he added.
The collaboration will also create a suite of education tools to help wealth advisors and their clients understand and evaluate the role of private market strategies as part of their total portfolio.
Lastly, Marco Bizzozero, Head of International at iCapital Network, commented that their mission is to solve the fundamental challenges of investing in private markets for individual investors. “iCapital’s solutions support asset and wealth managers in broadening client access to the growth and diversification opportunities of private markets. BlackRock is a global leader, and we are delighted to support their ambition in alternative investing by facilitating access and emphasizing education”, he concluded.
Over the past years, JP Morgan Asset Management has focused on enhancing the efficiency of its U.S. Offshore business to best position the firm to continue delivering first-class service to their clients.
With this in mind, the firm has announced that John Oestreicher, Client Advisor for the U.S. Offshore business, is taking on additional responsibility to serve as National Sales Manager for U.S. Offshore, reporting to Giuliano De Marchi, Head of JP Morgan Asset Management in Latin America.
In this role, John will oversee the U.S. Offshore business, while continuing to lead field coverage with wirehouse clients in the Florida region. “John has been a fundamental part of the U.S. Offshore business buildout and success and we are thrilled the business will continue to benefit from his leadership. He will be partnering closely with the broader J.P. Morgan Asset Management team to bring innovative solutions to the region”, says Giuliano De Marchi.
Also during this transition, the company is making additional changes to better align its U.S. offshore efforts: Estefania Chuecos, Client Advisor for the U.S. Offshore business, will expand her coverage of the Florida region, working closely with John with the wirehouses and all independent clients.
Carlos Brussa, Client Advisor for the U.S. Offshore business, will expand his coverage to include Northern California, in addition to his Texas and western U.S. territories. “The U.S. Offshore market represents a significant opportunity and our U.S. Offshore business is coming off a record year in 2020. We are very well positioned to serve our investors with a focus on expanding our client base and deepening existing relationships”, reinforces De Marchi.
Foto cedidaYves Perrier, consejero delegado de Amundi.. Amundi firma con Société Générale el acuerdo marco para la compra de Lyxor
There has been a slight change of plans in one of the most prominent deals of the second quarter of the year: the acquisition of Lyxor by Amundi. According to a statement released last week, both fund managers have already signed the framework agreement for this purchase.
This announcement comes earlier than expected. Initially, it was estimated that the transaction would be completed by February 2022, but Amundi has now announced that it is expected to be completed by the end of 2021. However, it is still subject to prior approval from the competent regulatory and competition authorities.
“Great news: the Lyxor – Amundi deal is signed. This key milestone is achieved much ahead of the planned schedule. We will now be seeking the various regulatory approvals which are the final prerequisite to closing the transaction. No doubt Lyxor and Amundi teams will continue to move forward with the same great spirit and at the same great pace”, commented Lionel Paquin, CEO of Lyxor AM, in his LinkedIn account.
The transaction, which was announced last April and will amount to 825 million euros (around 1 billion dollars), would enable Amundi to accelerate the development of its ETF business and complement its offering of actively managed funds, in particular investment solutions in liquid alternative assets and advisory services.
Meanwhile, certain activities of Lyxor have been excluded from the scope of the transaction and will be retained by Société Générale. In particular, the structured asset management solutions business targeting Societe Generale’s global clients and the asset management activities dedicated to savings solutions and carried out for Société Générale (branch networks and private banking), such as the structuring of savings solutions, fund selection and the supervision of the Group’s asset management companies.
Foto cedidaVirginie Maisonneuve, nueva directora global de inversiones de renta variable en Allianz GI.. Allianz GI nombra a Virginie Maisonneuve nueva directora global de inversiones de renta variable
Allianz Global Investors has appointed Virginie Maisonneuve as its new Global CIO Equity. She will succeed Steve Berexa who will retire at the end of 2021.
In a press release, the asset manager explained that Maisonneuve will join the team this week and will be based in London following a move back from Singapore in the Autumn. As the asset class lead and CIO for Equity, she will report to Deborah Zurkow, Global Head of Investments.
Allianz GI highlighted that she brings with her a 30 plus year track record of performance, team leadership and innovation in the field of investments. She has previously held portfolio management and CIO positions for companies including Eastspring, Pimco, Schroders, Clay Finlay, Batterymarch, State Street Research and Martin Currie in various parts of the world including Singapore, New York, Boston, San Francisco and London. During this time, she has pioneered investing in areas such as China, “Quanta-mental”, Thematics, ESG and Climate Change.
“Allianz GI has a broad and significant Equity platform, with recognised capabilities across investment styles and geographies. When it came to finding a successor to Steve, we sought someone of the highest calibre to ensure that our investment capability and offering develops ahead of the market. Virginie fits the bill perfectly: her breadth of experience, record of highly relevant innovation and global, forward looking outlook means she is strongly positioned to help us in the development of our client offering – in Equity but also as part of the leadership team of the firm”, commented Zurkow.
In this sense, Maisonneuve is succeeding Berexa, who has been Global CIO Equity since 2015. As part of the succession planning, he will remain at Allianz GI until the end of 2021, at which point he will retire following 24 years with the firm. Under Steve’s leadership, they have developed cutting edge collaboration tools for fundamental research as well as sponsoring the development of AI-based portfolio decision support.
Allianz GI manages 160 billion euros in Equity portfolios for retail and institutional clients around the world. Its Equity platform includes significant franchises in Global and European Growth; China Equities; Tech, including AI; Thematic Investing including a growing range of SDG-aligned funds; and very well-established systematic strategies. All investing is active, and all of it ESG risk assessed.
Pixabay CC0 Public Domain. Los activos financieros no han ido a la par con la economía real desde el inicio de la pandemia
Almost half (45%) of the 6.000 members that CFA Institute has globally believe that equities in their respective markets have recovered too quickly and they expect a correction within the next one to three years. The survey “COVID-19, One Year Later – Capital Markets Entering Uncharted Waters” by the association follows the analysis of member sentiment reported in 2020.
The report shows that market volatility appears to be a lesser issue in 2021 compared to a year ago. While 26% of members surveyed reported that market volatility had forced their firm to reconsider asset allocation choices in April 2020, only 18% responded in the same way in March 2021.
“Respondents believe that equities have recovered too quickly, as it could show that CFA Institute members believe there is a disconnect between economic growth fundamentals and capital markets caused in part by monetary stimulus, which could be corrected in a not-too-distant future of less than three years. To me, it also indicates to authorities that monetary stimulus is not a simple or linear lever to pull given the complexity of the economic and financial ecosystem; there will be unintended consequences to consider in the future”, said Paul Andrews, Managing Director of Research, Advocacy and Standards at CFA Institute.
The proportion of respondents who believe that equities are fairly valued is low in all regions (between 2% and 16%). In North America (the United States, in particular), they are more worried about a correction than Europeans (50% vs 40%), which can be explained by the pace of equity markets’ recovery in both regions since March 2020.
Meanwhile, respondents in emerging markets appear more optimistic that equities in their own market and in global emerging markets will gradually stabilize in line with the real economy, which is not a view they share for developed market equities. The survey points out that many perceive that global developed market equities are more overvalued than those in global emerging markets, “likely due to the variations in monetary stimulus and government relief programs enacted in different parts of the world”.
Of the 6,040 global respondents, their position on volatility has changed markedly from a year ago, possibly attributable by CFA Institute to the decisive actions of authorities to tame potential market dislocation through policy intervention and monetary stimulus. In March 2021 28% of respondents were investigating the potential impact from market volatility, in comparison to 42% in April 2020. Meanwhile, 48% of respondents now think volatility did not have a material impact on their activity or that of their firm (32% in April 2020).
Lastly, the proportion of respondents who indicated that volatility has had a significant impact fell from 26% to 18% globally. Further analysis suggests that emerging markets across all regions have experienced the effects from market volatility more significantly, as they did not benefit from the same level of government support as seen in advanced economies. Respondents in Africa (37%), Latin America (29%), Middle East (38%), and South Asia (33%, including India and Pakistan) continue to show a more significant impact from volatility on their investment processes and asset allocation choices.
Pixabay CC0 Public Domain. Allfunds y iCapital Network® firman una alianza estratégica para mejorar el acceso a la inversión alternativa en mercados privados
Allfunds has announced in a press release a strategic partnership with iCapital Network, which will now provide private market investment opportunities complementing the sub-advisory solutions currently available to the Allfunds global distributor network.
Through the partnership, Allfunds distributors and their individual investors, along with small institutional investors, will be able to leverage iCapital’s technology and fund solutions to access a broad range of private market funds from premier managers across geographies and strategies –including private equity, private debt, and real assets– with lower minimum investment levels. The private market funds will be available through Allfunds Connect to Allfunds distributors, including major commercial and private banks, from over 60 different countries.
Both firms have revealed that, in addition to its fund selection and structuring capabilities, iCapital will provide its digital technology solution that automates the subscription and client servicing processes of alternative investing during the entire investment lifecycle, eliminating the operational difficulties and manual, paper-based processes that advisors and their clients have historically faced when investing in private markets. iCapital’s technology will be integrated with Allfunds Connect, a digital ecosystem of tools and services across fund analysis, selection, and trading for distributors and investors.
Consequently, Allfunds distributors will benefit from the scale of its platform which provides unique and efficient access to products and solutions from private market managers which are otherwise very difficult to access. Besides, the integration of the iCapital technology “will provide distributors a seamless investment and selection experience and a true one-stop solution for their liquid and illiquid investment needs”, says the press release.
An innovative solution
“This partnership with iCapital is demonstrative of our commitment to expand our product offering into private markets with best-of-breed third-party solutions for our Allfunds Connect clients and to continue optimizing fund distribution. iCapital’s technology ensures a superior digital client experience when investing in this increasingly important asset class. iCapital is a global leader and a trusted name in alternative investing solutions and we are delighted to partner with them in bringing this innovative solution to our clients”, commented Juan Alcaraz, CEO of Allfunds.
Meanwhile, Lawrence Calcano, Chairman and CEO of iCapital Network claimed to be “enormously excited” to forge this partnership with Allfunds and support their efforts to be at the forefront of expanding access to private markets. “This partnership is emblematic of the great strides iCapital has made to provide better access, efficiency and transparency for the global wealth management industry which is increasingly seeking private market investing strategies for clients”, he added.
Lastly, Marco Bizzozero, Head of International at iCapital Network, highlighted that wealth creation is increasingly taking place outside the public market opportunities commonly available to most investors. “This unique partnership offers access to the growth and diversification opportunities the private markets can provide for banks and wealth managers to enhance client portfolios. This is a key milestone in our international expansion, and we are extremely pleased to partner with Allfunds, a recognized world leader in fund distribution, to facilitate access to a broader number of investors and advisors to private markets investment opportunities”, he concluded.
Allfunds is one of the world´s largest fund distribution platforms and wealthtech industry leaders and iCapital Network is the leading global financial technology platform driving access and efficiency in alternative investing for the asset and wealth management industries,
Pixabay CC0 Public Domain. Schroders unifica sus capacidades en activos privados bajo la marca Schroders Capital
Schroders has decided to unify its specialist private assets investment capabilities under the newly launched Schroders Capital brand, created to deliver an “enhanced service” for their clients. In a press release, the asset manager has pointed out that growing its private assets capabilities continues to be “a key strategic focus” for the business.
This has been achieved so far through a combination of organic growth and specialist acquisitions. Schroders Capital will encompass the existing range of private equity, securitised products and asset-based finance, private debt, real estate, infrastructure, insurance-linked securities and BlueOrchard (impact specialist). In light of its significant role shaping the impact investing industry over the last 20 years, this last one will maintain its independent brand identity.
“Schroders is further delivering on its growth strategy with the launch of Schroders Capital, a new brand for all our private assets businesses. It will continue to provide clients with a local approach to investing across a diversified range of private asset strategies, supported by a global perspective and the long-established Schroders busines”, said Peter Harrison, Group Chief Executive.
Meanwhile, Georg Wunderlin, Global Head of Schroders Capital, commented that this unification will promote knowledge sharing and innovation across their private assets businesses and showcase a diversified range of investment strategies for investors. “The launch of Schroders Capital will increase the visibility and strengthen the position of our private assets offering while also underscoring our ambitions as a leading player in private markets”m he added.
Schroders Capital, which manages 65 billion dollars of assets on behalf of its clients, provides access to investment opportunities managed by teams with a long and consistent track record of robust investment performance. The asset manager highlighted that each asset class within Schroders Capital will continue to maintain a high level of autonomy, while also benefiting from enhanced knowledge-sharing and collaboration with the other asset classes within the new brand and across the Schroders Group.
