Increased Savings Set to Be Lasting Legacy of Pandemic as Investor Confidence Soars

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Pixabay CC0 Public DomainAutor: nattanan23.. El aumento del ahorro será el legado de la pandemia mientras la confianza del inversor se dispara

A greater focus on saving and financial wellbeing are set to be among the lasting legacies of the pandemic even as investor confidence soars, the last Schroders Global Investor Study has found.

The flagship study, which surveyed over 23,000 people from 32 locations globally, found that almost half of investors (46%) will now save more once restrictions have been lifted. Although this sentiment is strongest among investors aged 18-37, this more measured approach also flows through to investors’ retirement outlooks, with 58% of retirees globally now more conservative in terms of spending their savings, while 67% of those yet to retire now want to save more towards their retirement.

Despite the challenges brought by the pandemic, Schroders points out that investor confidence has soared to its highest level since the study began in 2016, with average annual return expectations over the next five years expected to be 11.3%, an increase on 10.9% predicted a year ago.

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A focus on financial wellbeing

The study also shows that almost three-quarters (74%) of investors globally have spent more time thinking about their financial wellbeing since the pandemic, with self-purported ‘expert/advanced’ investors the most engaged. Geographically, this change was most pronounced in Asia with investors in Thailand, India and Indonesia sharing this view strongly.

This means that investors globally are now more likely to check their investments at least once a month (82%), compared with 77% of investors in 2019. Besides, over the course of 2020, 32% of investors globally saved more than they had planned to. Unsurprisingly, this was driven by decreased spending on non-essentials, such as eating out, travel and leisure.

In this sense, over a third (38%) of investors in Europe had saved more than planned, followed by those in Asia (28%) and the Americas (27%). Of those who were unable to save as much as planned, 45% globally cited reduced salaries/work income as the key reason, “which reflects the great challenges caused by the pandemic”, says Schroders.

Cause for optimism

The analysis reveals that investors in the USA, Netherlands and the UK are set to be the most likely to increase spending once their respective lockdowns have lifted. At the other end of the scale, the most cautious investors were based in Japan, Sweden and Hong Kong. 

Furthermore, investment confidence is being driven by investors who class themselves to be ‘expert/advanced’ with return expectations of 12.8%, compared with 8.9% for self-purported ‘beginner/rudimentary’ investors. In this sense, those in the Americas were the most bullish, expecting annual total returns of 12.5% over the next five years, followed by those in Asia (12.3%) and slightly more cautious investors in Europe (9.7%).

“The pandemic has heightened our sense of uncertainty and challenged our ability to process risk, making many of us feel more anxious and out of control. These sentiments can clearly be seen in the results of our survey, with investors increasingly focused on saving, monitoring retirement contributions and checking their investments more frequently”, commented Stuart Podmore, a behavioural investment insights specialist at Schroders.

In his view, despite the “huge challenges” we have encountered, it is encouraging to see that the pandemic has acted as a catalyst for promoting a stronger focus globally on generic financial planning and wellbeing. “Although this is a global study, we all share common wants and needs, and financial security is a key focus for all of us. At the same time, we need to exert caution over the investment returns we expect over the coming five years, as the outlook shared by many investors – and in particular those who believe themselves to be experts – is exceptionally optimistic”, he added.

Podmore believes that the past 18 months have taught us that “the future remains difficult to predict” and a “measured, consistent and patient” approach to investing, focused on long term objectives and probable outcomes, is likely to stand investors “in better stead”.

Health: Five Lessons From the Pandemic

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The Covid-19 pandemic exposed the strengths – and the weaknesses – of health systems around the world. The Pictet-Health Thematic Advisory Board has identified five lessons that the industry can learn from the experience, which open up new opportunities for both businesses and investors.

  1. Embrace the benefits of digital

In the first few months of the pandemic, tele-health appointments surged to 78 times their pre-Covid levels, accounting for almost a third of outpatient visits. Although in-person visits have resumed with the lifting of restrictions, digital appointments are still around 38 times more prevalent than before the pandemic, suggesting that tele-medicine is very much here to stay.

Remote psychiatry is experiencing especially strong growth, with around half of all consultations now digital. Advisory Board members also highlighted the value and convenience of tele-health for follow-up appointments and reviews of test results.

According to consultancy McKinsey, in the US alone, as much as USD250 billion of current healthcare spending could be shifted to virtual or near virtual care. The advantages include the possibility of getting closer to the patient, particularly in areas where traditional health provision is lacking, as well as significant cost savings and even benefits to the environment due to the reduced need for journeys. (In the UK, for example, NHS estimates that use of its app services has eliminated 22,000 car journeys each month.3)

However, for tele-health to maximise its growth potential, significant investment in digital infrastructure is necessary.

Beyond tele-health, the pandemic also highlighted the importance of machine learning and AI in tackling health problems. After all, it was data scientists– rather than epidemiologists – who were responsible for crunching data from 2.5 million app users to identify the loss of your sense of smell and taste as key Covid symptoms.

By centralising and unifying health records, there is the potential to better monitor and anticipate problems, both at the level of individual patients and whole regions where extra resources may be needed.

As well as playing a key part in diagnostics, Advisory Board members expect that data will be key to future drug development and clinical trial design. However, barriers to entry are high. Companies with scale and therefore access to large datasets (such as claims data for big insurance providers) are at an advantage. Many of the new digital health companies that have recently listed via initial public offerings still need to prove that their business models can reach that scale and turn a profit.

  1. Prevention can be better than cure

With Covid proving particularly problematic for people with underlying health conditions (known as comorbidities), society has become more attuned to the need to embrace healthier lifestyles.

A more balanced, less highly-processed diet, doing more exercise, spending time in less polluted environments and reconnecting with nature are becoming more popular among both young and old.

All of which means the health industry should see growth in demand for healthy foods, personal care and hygiene, and services linked to healthy lifestyles.

  1. Don’t underestimate need for hospitals and nurses

The pandemic also brought into sharp relief the importance of having enough physical resources – be that doctors, nurses or intensive care beds. It highlighted great disparities in capacity, even within the developed world.

While Germany averages 48 intensive care unit (ICU) beds per 100,000 population, the US has 14 and Japan has fewer than five (see Fig. 1). There are similar disparities in numbers of doctors and nurses too. Within, Europe, for example, Norway scores relatively high on both counts, while Portugal has some of the lowest numbers, according to data from the European Observatory on Health Systems and Policies.

In the first wave of the pandemic, countries with more extensive hospital provision – such as Austria and Germany – performed much better, Advisory Board members noted. Could the pandemic spell the end of the trend of downsizing hospitals – and even lead to the construction of new ones?

Of course, hospitals need staff, and that is another major problem. Nursing is seen increasingly as an unattractive job, offering low pay and low social recognition. This needs to change. In the US, around a third of nurses are planning to leave their posts in direct patient care; in Europe similar trends are at play. Well-funded community care provision could help fill some of the gaps.

Data can help here, too. If data analysis predicts that there will be fewer nurses, that gives you the opportunity to better prepare and address the problem.

  1. Private and public must work together

Another key lesson was that health clearly needs more investment – politicians have realised that without a functioning health system a country cannot have a functioning economy. Yet, there is a limit to how much of that money can come from the public purse, particularly as government debt levels are already elevated and as economic growth is slowing. Indeed, research by Advisory Board members shows that historically government health spending has tended to decrease after a crisis.

Fortunately, the pandemic provided a template of how businesses, governments and academics can work together towards a common goal – particularly in the development of vaccines. However, it also exposed some potential problems and shortcomings, as highlighted by the scandals over unsuitable personal protective equipment (PPE) and an ineffective “track and trace” system in the UK.

  1. Supply chains are crucial

Supply chains are a major challenge for the health industry. The Covid-related interruptions to global trade highlighted the problem, and the current surge in inflation has only served to underscore the importance of stock levels and supply chains.

Even med-tech is not immune to supply issues, as illustrated by recent problems in the procurement of semiconductors, which are essential components of connected devices and implants.

A major re-think is due and is already underway. Firms across the health industry are looking to increased the flexibility and responsiveness of their supply chains – which can often be achieved by harnessing high quality data and using new technologies. As part of this effort, many companies are also broadening the range of suppliers they use and, in some cases switching manufacturing plants to home soil (onshoring) or to countries nearby (near-shoring), both of which reduce reliance on lengthy supply chains.

Finally, the pandemic highlighted the need to adopt an integrated approach to health (the “One Health” concept) beyond human health due to its inter-dependencies with animal and ecosystem health. This may help decrease the incidence of future zoonotic events, as well as improving the quality of the food we eat and the air we breathe.

 

Opinion written by Lydia Haueter, Senior Investment Manager for Pictet Asset Management’s Thematic Equities team.

Discover more about Pictet Asset Management’s expertise in thematic investing.

 

Pictet Asset Management: Summer Rally Already a Distant Memory

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The surge in stock markets that accompanied the summer heatwave is, we believe, over. From here on in, conditions are likely to be much less friendly. As a result, we maintain our underweight stance on equities and our neutral position on bonds, balanced by an overweight in cash.

The summer rally came as falling oil prices boosted hopes the US Federal Reserve could engineer a soft landing for the US economy.  Further lifting investor sentiment were data testifying to the US’s economic resilience.

Yet there are reasons to believe the stock market recovery has run its course. Oil prices are rising again. And even if inflation has peaked, it is looking sticky. Business and consumer surveys, meanwhile, are turning gloomy even though central banks are likely to ignore these until they feed through to hard economic data. At the same time, valuation and sentiment indicators no longer offer compelling cases to hold riskier assets (see Fig. 2).

To turn more positive on riskier assets, we’d need to see several developments unfold at more or less the same time.

First, a steeper yield curve. That would suggest strong economic growth down the line; it is also a prerequisite for bull markets. Second, a bottoming of downward revisions to corporate earnings forecasts and to leading economic indicators. Third, technical indicators giving unequivocal ‘oversold’ signals for  equities, and cyclical stocks in particular. And finally – for bonds – that the currency monetary tightening cycle is sufficient to get inflation back to central banks’ targets.

Our business cycle indicators point to more inflation surprises and a sustained loss of momentum in economic growth indicators. We have again cut our global GDP forecast for the current year, to 2.5 per cent from 2.9 per cent, largely as a consequence of weakening US data.

We now expect the US economy to grow by just 1.6 per cent this year, from 3 per cent previously. Although leading indicators have been weakening across most regions and sectors, we anticipate both the euro zone and the US will narrowly avoid recession over the coming quarters. Indeed, US survey evidence and hard data increasingly look at odds with one another, with retail sales remaining resilient, unemployment at 50-year lows and residential investment as a percentage of GDP hitting new post-global financial crisis highs.

The euro zone economy outperformed during the first half of the year thanks to pent-up demand following the removal of Covid restrictions, but the latest numbers are less encouraging. The recent surge in European gas and electricity prices is a particular worry. The UK, meanwhile, is clearly sliding into a recession while inflation continues to rip higher, posing an intractable dilemma for the Bank of England. On the other hand, Japan remains a bright spot as do emerging economies, particularly in Latin America.

Our liquidity scores remain negative, with conditions particularly tight in both the US and the UK. Developed market central banks are making policy more restrictive by both raising interest rates and through quantitative tightening (QT) measures that contract their balance sheets – our central bank liquidity gauges show their worst readings since at least 2007. We expect global QT of some USD1.5 trillion this year, equivalent to a 1 percentage point increase in interest rates, which would unwind half of Covid-era monetary stimulus. At the same time, the pace of private credit creation is starting to slow.

Our valuation scores show that following their rally, equities are again looking expensive, while bonds are cheap to fairly valued. For global stocks, year-ahead price-to-earnings ratios have risen by a lofty 15 per cent since mid-June, reducing their appeal. Another negative comes in the shape of  corporate earnings, whose growth we believe is running out of steam; we forecast a below-consensus 2 per cent growth in profits for 2022, with risks on the downside if economic growth weakens further. Our valuation models favour emerging markets, materials, communications services, UK bonds, the Japanese yen and the euro and finds as particularly expensive commodities, US equities, utilities, euro zone index-lined bonds, Chinese bonds and the dollar.

Our technical indicators show that trend and sentiment signals for riskier assets have largely normalised, having been negative during the fist half of the year. Despite the summer rally, sentiment indicators are neutral with the exception of utilities and euro zone high yield bonds, which look overbought. Speculative positioning in S&P 500 stocks is close to a record short. But while surveys show continued bearishness, that’s declining, and flows into equity funds have turned positive again.

Asset allocation

We maintain our underweight in equities amid concerns about global growth and our neutral position on bonds as inflation looks to be stickier than expected.

We reduce risk in our equities portfolio by downgrading Chinese stocks to neutral and the consumer discretionary sector to underweight.

We keep a defensive stance by maintaining our overweight in Treasuries and safe-haven currencies. We are underweight European sovereign and corporate bonds and the Chinese renminbi.

 

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

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

 

 

Why It Pays To Stay Agile in an Age of Low Interest Rates

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Pixabay CC0 Public Domain. A medida que los mercados vuelven a la normalidad, las opciones de la Fed podrían ser claves

Last year, during the most acute phase of the Covid-19 crisis, the world’s major central banks intervened on an unprecedented scale – cutting interest rates, buying government bonds and providing massive liquidity. Sovereign bond yields reacted by sinking to historic lows: -0.9% on the 10-year German Bund and 0.5% on 10-year US Treasuries.

With a brisk – albeit uneven – economic recovery underway across much of the world, and yields well above their recent low point, some commentators believe global rates have turned a corner. The argument goes that the four-decade bond bull market, which has pushed yields steadily lower, is now over. A resurgence of growth and inflation means that materially higher rates are inevitable.

Though it is tempting to think that the recent climb in bond yields heralds a change of regime, we think this view is mistaken. While rates may rise somewhat from here, there is ample evidence that they will remain extremely low against all historical measures. Indeed, multiple factors suggest interest rates will stay “lower for even longer,” based on both long-term economic trends and more recent developments. Rethinking portfolios to account for this outlook should be an urgent priority for investors.

Slower growth is suppressing interest rates

To take the longer-term factors first, the forces that have propelled a 40-year bull market in government bonds – and the accompanying decline in developed-world interest rates (see Chart) – seem far from exhausted. Until they are, it is premature to call a decisive turn.

Two key factors have helped drive rates lower: a decades-long deceleration in economic growth and inflation, as well as falling long-term inflation expectations. Nominal bond yields track nominal GDP closely. As growth slows, interest rates and bond yields tend to moderate. In this context, a given rate of interest represents an equilibrium that balances demand for capital to invest and the supply of savings available to meet that demand. Slower growth tends to suppress investment demand for investment capital and therefore puts downward pressure on interest rates.

Graf 1Allianz GI

Demographics mean the world is “drowning” in savings

Increased longevity across the developed world has tipped the demographic balance, reducing the size of working populations relative to older generations, helping create a worldwide glut of savings that is seeking a home in safe assets, notably bond markets.

There are also fewer places to put these savings to work. This is because of a long-term transition in developed economies from capital-intensive industry and manufacturing towards capital-light, services-oriented businesses, which have lower investment needs.

Slowing productivity growth has reinforced this trend by reducing long-term rates of economic expansion, again suppressing demand for investment capital. The result is an abundance of capital and a relative shortage of opportunities to invest it, leading to downward pressure on interest rates. All these factors are long-term in nature and firmly entrenched – none of them is likely to reverse imminently.

Debt is at record levels

The world has accumulated a vast amount of debt – public and private – in the years since the global financial crisis, and especially since the Covid-19 crisis. Massive debt burdens, albeit easily financeable at very low interest rates, tend to suppress future growth by diverting cash from productive investment to servicing debt. They also make borrowers more vulnerable to unexpected increase in interest rates.

With debt levels in major developed economies at record levels, central banks face a daunting challenge. Any significant rise in interest rates could render huge swathes of existing debt unsustainable and destabilize governments and financial markets. As a result, financial repression – where inflation is consistently higher than interest rates – becomes a necessary tool of monetary policy to ensure borrowers’ debt burdens remain sustainable. But it creates challenges for investors who are hunting for yield to protect their savings.

In effect, the center of gravity in central banking has shifted. Policies such as quantitative easing (QE), experimental a decade ago, are now routine. Far from seeking an exit from current policies as soon as possible, central banks are now more likely to stress the dangers of providing too little support to the economy, rather than providing too much.

So, it is not surprising that even though a powerful rebound in economic activity is likely, this year and next, all indications are that monetary policy will remain loose. The US Federal Reserve is expected to taper its bond purchase program very gradually, with no rate increase likely before 2023. In the euro area, monetary policy will remain extremely loose. All this strongly suggests that the most likely outlook in developed economies is for many more years of historically low interest rates that will keep returns from safe assets close to zero.

Portfolio implications

How should investors react? It has rarely been harder to generate reliable income. Equally, preserving the purchasing power of money in an age of financial repression is a constant headache. And if investors venture beyond traditional assets in search of extra yield, how should they diversify and manage risk?

  • Think of allocations as a barbell

Investors should view their choices as a “barbell” that spans two groups of assets: those suited to preserving capital (including sovereign bonds, credit and cash alternatives) and those designed to generate capital growth and income (including emerging-markets bonds, equities and private-markets assets such as infrastructure equity and debt and private credit.) They can then choose from a range of multi-asset solutions that combine elements from each group to target a range of outcomes.

  • Staying agile is key

The past few years have illustrated a key feature of today’s investment markets: how rapidly conditions can shift. Accordingly, the optimum mix of assets will naturally need to shift in response. This calls for a highly dynamic approach to positioning that rapidly switches asset allocations within the portfolio as the economic conditions evolve to preserve the benefits of diversification and ensure agile risk management.

  • Consider permanent portfolio changes

Some changes in portfolios could be more permanent. This points to a future in which the balance of traditional equity/fixed income portfolios will shift decisively towards equities: a conventional balanced portfolio of 70% bonds and 30% equities may move towards a 50:50 position, for example. A more aggressive 60:40 portfolio might shift to 80% equity and 20% fixed income, or even 100% equities with an equity-risk hedge overlaid. It also suggests that allocations to private-market assets intended to generate capital growth and additional yield will increase substantially. They may reach 20% in a typical institutional multi-asset portfolio.

The forces that have driven interest rates steadily towards zero over the past four decades are still at work and will remain dominant for the foreseeable future. Against this background, the way investors approach asset allocation must change, and their approach to risk management and diversification must become far more agile to navigate an era when market conditions can be changeable.

A column by Franck Dixmier, Global Chief Investment Officer for Fixed Income at Allianz Global Investors; and Ingo Mainert, Chief Investment Officer of Multi Asset for Europe

Some Optimism in the Convertible Securities Space

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Despite positive performance through mid-month, U.S. equities dipped lower in August as investors remain cautious regarding inflation and rising rates. The initial strength in equities to begin the month signaled some hope that inflation may have peaked, but concerns over weaker company guidance, an emerging energy crisis and current geopolitical tensions caused stocks to sell off by month-end. While recent economic data signals a looming recession, earnings have been resilient, the labor market remains strong and share buybacks are approaching an all-time record for the year.

The Russia-Ukraine war, which now has lasted over six months, continues to negatively impact the global economy. Since Russia invaded Ukraine in late February, the U.N. Refugee Agency estimates that over 7 million Ukrainians have become refugees and moved to neighboring countries. Currently, Europe’s largest nuclear power station, Zaporizhzhia, is Russian-occupied and has become a fighting ground between both sides. Combat around the nuclear power plant has created fears over the heightened risk of a nuclear disaster.

On August 26, Fed Chairman Jerome Powell indicated during his Jackson Hole speech that he expects the central bank to continue to raise rates in a way that may cause “some pain” to the U.S. economy. The Fed remains committed to attacking inflation which approaches its highest level in more than 40 years. Looking ahead, the next FOMC meeting is September 20-21.

Performance in the Merger Arbitrage space in August was supported by deals that made significant progress towards closing, like Avast, which received clearance from the U.K. CMA following an extended antitrust review; and, Nielsen Holdings plc, in which the acquirers reached an agreement with Nielsen’s largest shareholder to ensure the shareholder approval is successful. There were many noteworthy deals that closed including Vifor Pharma AG, SailPoint Technologies and Turning Point Therapeutics. Deals announced in August are providing a robust pipeline, Vista Equity Partners acquisition of Avalara for $8 billion, Pfizer’s acquisition of Global Blood Therapeutics for $5 billion, and Amgen’s purchase of ChemoCentryx for $3.5 billion.

Looking at the convertible securities space, the primary market has slowed significantly in 2022 but is beginning to pick up with August being the busiest month of issuance year to date. Convertible terms are improving for investors with a weighted average yield of 3.3% and a premium of 30%. Structures such as this should provide a more asymmetrical return profile than we have seen from issuance in some time. We are optimistic that this issuance will continue through the fall. As we have noted, this year we have seen companies test the waters with potential deals only to pull them given the market conditions. At the end of the day these companies will still need capital to operate, and the convertible market remains one of the least expensive ways for them to raise that capital.

We see an opportunity for companies to issue new convertibles in exchange for existing issues. This could be an accretive transaction for the company while extending or laddering maturities to be more manageable. For investors, we continue to expect higher yields and lower premiums. In past downturns, the convertible market has been one of the first markets to rebound both from an issuance and performance perspective. This is because convertibles can be issued quickly and less expensively than traditional bonds or equity. The equity optionality allows investors in these issues to participate in the upside as the market recovers.

 

 

Enjoy the Pictures of the Fundraising Gala to Support Surfside Collapse Residents

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Many relevant players of Miami´s financial industry raised $ 75,000 to help those affected by the collapse of the Surfside condominium in Champlain Towers South through the GEM foundation.

During the event, which took place on September 9th at the Rusty Pelican, Michael Capponi, GEM’s President, explained to the presents about the foundation’s work.

Zulia Taub, a survivor of the collapse, also spoke.

The initial goal was $ 50,000, but with the effort of 20 firms, which supported with Diamond, Gold and Silver sponsorship, it was possible to reach 75,000.

Diamond:  Funds Society, MFS, Ninety One
Gold:         AXA Investment Managers, BNY Mellon Investment Management, Bolton Global Capital, Brown Advisory, Insigneo, Janus Henderson Investors, Jupiter Asset Management, Schroders, Thornburg Investment Management
Silver:       RWC, Natixis Investment Management, Manulife Investment Management y Franklin Templeton.

In addition, the event wouldn’t have been possible without the collaboration of José Corena, Richard Garland, Jimmy Ly and Blanca Durán from Día Libre Viajes.

Moreover, the organization has created an account in gofundme platform as a new donation channel.

 

iM Global Partner Acquires 42% of Asset Preservation Advisors

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Pixabay CC0 Public DomainAutor: Free-Photos.. iM Global Partner se hace con el 42% de Asset Preservation Advisor para acelerar su expansión en EE.UU y Europa

iM Global Partner has announced the acquisition of a strategic non-controlling stake of 42% in Asset Preservation Advisors (APA), an independent investment advisor specializing in managing high quality tax-exempt and taxable municipal bond portfolios for registered investment advisors, family wealth offices, financial advisors and institutional clients.

The asset manager has highlighted that this transaction will grow its US-based product offering and accelerate its expansion, also across Europe. Through this new partnership APA joins iM Global Partner’s extensive global asset management and distribution network, while ensuring its long-term independence for decades to come.

“We are excited to partner with APA. With 4.8 billion dollars in assets under management, APA now ranks as the fourth largest independent municipal bond specialist in the US. iM Global Partner’s success in attracting new Partners is due to its values of integrity and support for entrepreneurialism which ensure that each partner retains its autonomy and independent value proposition combined with iM Global Partner’s worldwide distribution network”, said Philippe Couvrecelle, CEO and Founder of the firm.

This is the 8th partnership that iM Global Partner has taken on in six years and is the second US partner in 2021. In July, iM Global Partner acquired a 45% stake in Richard Bernstein Advisors, a New York-based asset allocation specialist. In March this year, the firm also announced it would expand its US distribution efforts with the full acquisition and integration of California-based wealth and asset management boutique Litman Gregory.

Kevin Woods, co-CEO and CIO of APA commented that they see “an incredible opportunity” in this partnership to help continue their “strong growth” and build on their leading presence as an independent Municipal bond specialist. “iM Global Partners offered APA a unique opportunity to continue our mission to provide excellence to our clients in the same way we have for more than thirty years, and now for decades to come”, he added.

Meanwhile, Jeff Seeley, Deputy CEO, US Chief Operating Officer & Head of US Distribution of iM Global Partner pointed out that given APA’s “exceptional reputation, competitive long-term performance and growing US distribution”, they believe the firm is uniquely positioned to capitalize on the increasing investment opportunities in the municipal segment, as US clients continue to seek attractive tax-exempt strategies. “Through our partnership, iM Global Partner is adding a new range of excellent strategies to our growing and diverse fixed income product set”, he concluded.

The firm has explained that this latest strategic partnership reinforces its commitment to the US market and is yet another example of its rapid expansion. In this sense, its assets under management have grown from 7 billion dollars at end 2018 to 37 billion today, more than 400% growth in just 3 years.

Regarding the details of the financial transaction, Berkshire Global Advisors acted as financial advisor for APA and Taylor English Duma acted as legal counsel. For iM Global Partner, Oppenheimer & Co. Inc. acted as financial advisor and Seward & Kissel acted as legal counsel.

 

Canada’s CI Financial Opens its U.S. Headquarters in Miami

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Captura de Pantalla 2021-09-15 a la(s) 16
. Pexels

CI Financial, a diversified global asset and wealth management company based in Toronto, has announced in a press release the establishment of its U.S. headquarters in Miami. Located in the city’s Brickell district, the office will oversee the continued development of CI Private Wealth, the brand name for its U.S. platform.

The addition of a headquarters in Florida “follows CI’s rapid wealth management expansion in the U.S.”, with the company agreeing to acquire 21 registered investment advisor firms in 19 months since rolling out a new corporate strategy.

During this period, its U.S. assets have reached 73 billion dollars and its total assets globally have grown to 254 billion dollars, up from 131 billion only 18 months ago. The asset manager has highlighted that this makes them “one of the fastest-growing asset and wealth management companies globally”.

“Miami is an incredible place to establish our U.S. headquarters and support our fast-growing U.S. business. It serves as the next logical step for our expansion plans as we work to build the leading high-net-worth wealth management platform in the country. In addition, Miami is a vibrant, multicultural city that offers a deep talent pool, an attractive location for recruiting and a very business-friendly environment”, said Kurt MacAlpine, Chief Executive Officer of CI Financial.

The office will be home to the firm’s U.S. operations and the primary location for its U.S. leadership team but its executive officers will divide their time between Miami and Toronto. CI expects to expand its presence in Miami over time as it continues to execute against its U.S. corporate strategy.

The Historic Bell of Columbus’s Santa Maria Flagship is for Sale in Miami

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Coinciding with Hispanic Heritage Month, the bell of the Santa Maria, the flagship that led Christopher Columbus’s expedition to the Americas in 1492, is up for sale in Miami. This is the only existing artifact related to the historic voyage to America and will be auctioned privately.

Discovered by the Italian naval officer and diver Roberto Mazzara in 1994 in the shores of North Portugal, the bell is considered to be at the center of an epic story filled with treasure hunting, political intrigue, and historical mystery. “Growing up with documentaries by Jaques Cousteau, I have always loved the mysteries of the seas and being a professional diver, I was able to join these two passions when the hunt for this bell was first presented to me almost 30 years ago. The auction will be a wonderful opportunity to give collectors a chance to own a unique piece of history,” said Mazzara, former officer of the Italian navy and expert in sub aquatic rescues.

The chemical and metallographic analysis of the University of Zaragoza, the archives of Indias in Seville and Simancas, and the documents that point to the Casa de la Contratación del Rey (a state entity that controlled and recorded from 1503 through the 18th century all maritime traffic between Spain and the Indies) all coincide on the origin of the bell. There is no doubt as to the authenticity of this historic gem weighing just under 31 pounds and just under 10 inches in diameter.

After the kidnapping of the bell and several legal battles, a Spanish court restored the bell to its rightful owner, Mazzara. Although the bell is considered to be “priceless”, as there is no comparable historical artifact available, it is estimated to be worth at least 100 million dollars by appraisers at Sotheby’s and Christie’s.

The bell is making its debut after being kept safe in an undisclosed location in Miami since 2006. Mazzara is making this historical object, the heart and soul of the Santa Maria, available to the collectors in a private auction.

Robeco Bolsters its Sustainable Investment Teams with Portfolio Managers and Seven Analysts

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Foto cedidaRoman Boner, gestor de cartera principal de la estrategia RobecoSAM Smart Energy.. Robeco refuerza sus equipos de inversión temática sostenible con un gestor principal y siete analistas de renta variable

Robeco has strengthened its sustainable themes investment teams with the addition of eight professionals. In a press release, the asset manager has announced the appointment of Roman Boner as lead Portfolio Manager of the RobecoSAM Smart Energy strategy. The teams will be further reinforced by seven equity analysts over the coming months.

“Our Trends & Thematic investment offering has seen strong growth, and our dedication, ambition and commitment allows us to attract the best world-class professionals. The capability is now stronger than ever before and we will keep adding investment professionals to further strengthen our teams in order to help achieving our clients’ financial and sustainability goals”, said Mark van der Kroft, CIO Fundamental and Quant Equity at Robeco.

David Hrdina, Chair of the Executive Committee at Robeco Switzerland, commented that with these appointments they are sending “a strong signal” to their clients and the market that Robeco Switzerland is “the center for Sustainable Thematic Asset Management, which can attract top-tier professionals”. “We made an important step in further bolstering the investment engine in Zurich. But this step was not the last one”, he added.

Based in Zurich, Boner is an experienced thematic investment manager. He joins Robeco from Woodman Asset Management, where he built up its impact offering. Previously he was Senior Portfolio Manager at Swisscanto, where he was responsible for managing different sustainable/thematic global equity funds and co-managed sustainable multi-asset funds. He also held various positions at UBS Global Asset Management, including Portfolio Manager focused on thematic sustainable equity strategies.

Besides, Pieter Busscher has been appointed lead Portfolio Manager of the RobecoSAM Smart Mobility strategy, having served as Deputy Portfolio Manager of this strategy since its launch in 2018. He has been with the firm since 2007 and is also the lead Portfolio Manager of the RobecoSAM Smart Materials Strategy.

Robeco’s deep bench of thematic investment professionals is further enhanced by the appointments of analysts Michael Studer, Mutlu Gundogan, Sanaa Hakim, Clément Chamboulive, Alyssa Cornuz, Simone Pozzi, and Diego Salvador Barrero.

Studer will be named Senior Equity Analyst focusing on Technology. He will also be the Deputy Portfolio Manager for the Smart Energy strategy. He joins from Acoro AM, where he was an investment manager, and has 13 years’ experience as an equity analyst/investment manager, working at Julius Baer and Bank J. Safra Sarasin and other firms.

Gundogan, CFA, will join as Senior Analyst from ABN AMRO – ODDO BHF, where he was Senior Equity Analyst covering the Chemicals sector. He will focus on the Materials sector and brings over 17 years’ experience as a financial analyst. As for Hakim, she will be appointed Senior Equity Analyst for Energy Efficiency & Renewables. With 6 years of experience as an investment analyst, she joins from Independent Franchise Partners and previously she was at Capital Group.

Chamboulive will join as Senior Analyst, also focusing on the Technology sector and its role in the electrification of the transport system. He worked at 2Xideas and prior to that at Baillie Gifford, and has 7 years’ experience as an Investment Analyst. Meanwhile, Cornuz, CFA, will be named Equity Analyst for the RobecoSAM Sustainable Healthy Living Equities strategy, with a focus on Consumer-related sectors. She joins from Credit Suisse and has five years’ experience as an equity and fund analyst. Previously she was at Nordea, where she was a fundamental equity analyst for thematic funds, fully integrating ESG aspects.

Furthermore, Pozzi will become Equity Analyst focusing on Industrial Automation and Process Technologies. He joins from Alantra, where he was an equity analyst and has more than six years of experience. Lastly, Salvador Barrero, CFA, has been appointed Equity Analyst for the Energy Distribution & Renewables team. He joins from BBVA AM in Spain, where he was an ESG equity portfolio manager. He has ten years’ experience as an equity analyst/portfolio manager, working at Aviva and other firms.