Foto cedidaEuan Munro, CEO de Newton, parte de BNY Mellon IM. . Euan Munro, nombrado nuevo consejero delegado de Newton
Newton Investment Management (Newton), part of BNY Mellon Investment Management, announced in a press release the appointment of Euan Munro as its chief executive officer (CEO), subject to Financial Conduct Authority (“FCA”) approval in the UK.
Munro will join Newton on June 23 and will report to Hanneke Smits, CEO of BNY Mellon IM. With an investment career that spans three decades, most recently, he was CEO of Aviva Investors and a member of the global executive committee for seven years. Under his leadership, Aviva Investors was transformed into a leading UK asset manager with total assets under management growing significantly. Prior to this, Munro was head of global multi-asset and fixed interest investing at Standard Life Investments.
Commenting on the appointment, Smits claimed to be “delighted” that Munro is joining the firm, as he is “an exceptional leader” with a proven track record in the investment industry. “His investment credentials and extensive experience leading one of the UK’s larger asset managers with a presence in the institutional, intermediary and retail markets, are highly relevant to Newton and we look forward to warmly welcoming him soon”, she added.
Munro recognized that this is an exciting time to be joining Newton, as, in his view, it’s a global asset manager full of talented people, high quality investment solutions and a strong heritage in responsible investment. “I’m looking forward to building upon this strong foundation and continuing to enhance Newton’s investment offering to help clients achieve their goals”, he said.
Andrew Downs will continue as Newton’s interim CEO until Munro joins the company and receives approval from the FCA, and then will resume his role as chief operating officer. Downs assumed the role of interim CEO in August when Smits began her transition to CEO of BNY Mellon Investment Management.
Preqin predicts that the alternatives industry will hold 17.16 trillion dollars by the end of 2025, wich means a Compound Annual Growth Rate (CAGR) of 9.8% and an overall 60% increase.
In its research series Future of Alternatives 2025, the firm points out that private equity and private debt will be the biggest drivers of growth, respectively increasing their assets by 16% and 11% annually. In that sense, private equity will be the fastest-growing asset, coming to account for around half of the total alternatives industry by the end of 2025, increasing up to 9.11 trillion dollars. Meanwhile, private debt will go from 848 billion dollars at the end of 2020 to 1.46 trillion.
Other asset classes are predicted to see slower growth, but all are set to expand in size over the next five years. For example, real estate assets will grow from 1.05 trillion dollars to 1.24, while hedge funds will increase from 3.58 trillion dollars to 4.28 in the same period.
Regionally, Preqin reveals that Asia-Pacific will be a key driver of global growth: with assets under management focused on the region increasing by a CAGR of 25%, they are set to hit almost 5 trillion dollars by the end of 2025. That said, North America will still hold half of total global alternatives and in five years it will have 8.6 trillion dollars in assets.
“Private markets are a core part of the investment landscape, and have seen an incredible rate of growth in size and influence in recent years. The fundamentals are strong: alternatives funds keep offering investors strong, uncorrelated long-term returns, even through the sustained low-interest rate environment and volatile market cycles of recent years”, says David Lowery, Head of Research Insights at Preqin.
Investors in turn have been committing more and more capital to alternatives, and, in his view, this is unlikely to slow in the coming years. “In fact, our model shows that growth will continue, buoyed by an uptick in private equity activity and booming participation in Asia-Pacific. It’s a very exciting time to be a part of the industry”, he concluded.
Foto cedidaCaroline Gibert is Head of ESG at Flexstone Partners. Flexstone Partners Appoints Caroline Gibert as New Head of ESG
Flexstone Partners, an affiliate of Natixis Investment Managers, has appointed Caroline Gibert as Head of ESG to further enhance its sustainability approach. In this newly created role, Gibert will lead Flexstone Partners’ ESG strategy at both a firm and portfolio level, responsible for strategy, policies, data collection, reporting, and processes.
In a press release, the asset manager explained that they follow an inclusive approach with a diverse and value-driven team dedicated to tackling social, environmental and governance issues. “In 2020, we worked on a concrete approach to reinforce our ESG engagement and new thinking on how to use responsible investment to benefit both our clients and company as a whole”, commented Gibert.
Flexstone Partners employees has selected four Sustainable Development Goals in order to guide its role as a “citizen firm”. Above all, its aim is to continue contributing to the protection of the environment (goal 13); promote social equality and opportunity (goals 4 & 5); and enhance diversity and inclusion (goal 8).
The firm has also reshaped its proprietary ESG analytical and reporting tools to implement an active approach throughout its investment process. “Our mission is to deliver attractive risk adjusted long term performance to our clients. The objective of ESG integration is to enrich our mission by making sure all portfolio managers and underlying companies are well-placed to develop a sustainable business model”, said Eric Deram, Managing Partner at Flexstone.
Gibert will be supported by a working group with interdisciplinary responsibilities to ensure a consistent ESG integration across the firm. They have set three concrete objectives have been set: to produce dedicated ESG reports to each client and a Global ESG report; to reach a target for women to represent 40% of the investment teams by 2030; and to become a neutral carbon company by 2050. “We will also work actively and take part in initiatives in the investment industry to drive changes and find new ways of investing capital”, concludes Gibert.
The asset manager highlighted that the appointment is a new step in its “ESG journey”. Giber’s new function will come in addition to her current role of head of investor relations and business development, working hand in hand with Flexstone’s clients to adapt dedicated ESG reports to their own values and guidelines.
Wells Fargo´s Wealth & Investment Management is exiting its international segment business to focus on the resident client, as well as Americans abroad for reasons related to foreign or military service, as confirmed by the firm to Funds Society. This change affects Wells Fargo Advisors (its brokerage), Wells Fargo Private Bank, and Abbot Downing.
“We understand this is a difficult change for our international-focused advisors (located in its Miami, NY, Texas and California offices) and this business will take many months to exit,” said Shea Leordeanu, SVP of Communications at Wells Fargo.
She also mentioned that the firm “will work very directly with all affected advisors about their individual options,” adding that they will continue to focus on providing their clients excellent service during this transition, “and will work directly with advisors so they can assist their clients with a smooth transition of their accounts out of the company in a manner that is consistent with regulatory expectations.”
According to an internal memo cited by other news outlets, advisors have until next September to close accounts that do not comply with residency requirements, and they will not be able to open new accounts after January 19th.
“Wells Fargo is focused on meeting our regulatory requirements, managing risk, and simplifying operations across the company. We are also committed to focusing on our core businesses. For Wells Fargo Advisors, Wells Fargo Private Bank, and Abbot Downing, our core business focus is serving clients who primarily reside in the U.S. We will also continue to service accounts for active duty U.S. military and U.S. government employees who may be stationed abroad,” she stated.
Pixabay CC0 Public Domain. BNP Paribas manifiesta su intención por adquirir el 100% de Exane
FE fundinfo has announced in a statement the acquisition of the consulting and research house CSSP (Center for Social and Sustainable Products AG) to expand its ESG capabilities.
Specifically, the fund data and technology provider has acquired all of CSSP’s share capital, including its yourSRI.com platform which provides ESG screening and labels on thousands of funds. As part of the deal, CSSP founders Oliver Oehri and Christoph Dreher will co-head the ESG product group at FE fundinfo.
“At a time when ESG investing and reporting is rapidly becoming the major consideration for the investment industry, our acquisition of CSSP will enable us to expand upon our driving principle of connecting and supporting the global fund industry, through both a deep understanding of the market and the provision of clear, accurate and transparent data and reporting“, said Philipp Portmann, Head of Business Development & Strategy at FE fundinfo.
In his view, Oehri’s and Dreher’s vision of how important ESG investing will become, alongside their ambition to support investors to make better informed decisions, “clearly matches” their own.
The transaction will bring another important capability to FE fundinfo’s existing range of services, which help fund managers and distributors access accurate data and fulfill their regulatory obligations. The firm highlights that, as ESG due diligence requirements and reporting standards become more formalized in 2021, including the forthcoming introduction of the sustainable finance disclosure regulations (SFDR) across Europe from March 2021, they will continue to work with clients to meet these changes.
Meanwhile, Oehri and Dreher claimed to be “delighted” to be joining the FE fundinfo team at a pivotal moment in the evolution of ESG investing. “The reporting on extra-financial criteria has gained in importance in recent years and investors are rightfully asking for multi-dimensional risk assessments at portfolio level to effectively measure the corresponding exposure. Our services and bespoke solutions, that have been trusted by hundreds of clients, provide a holistic overview of the ESG profile”, they added.
Foto cedidaGuy Wagner, director general de BLI.. Banque de Luxembourg unifica sus unidades de gestión de activos
BLI – Banque de Luxembourg Investments, the asset manager of Banque de Luxembourg, and Conventum Asset Management, fund management company for third-party fund initiators and also subsidiary of the bank, have announced in a press release that they are combining their activities with effect from 1 January 2021.
This operation means that BLI will manage the 60 employees that constitute the workforce of the two entities, under the leadership of Guy Wagner, its Managing Director. Services to third-party fund initiators will be offered by BLI under the Conventum TPS (Third Party Solutions) brand.
“The merger of the two companies will enable us to enhance our expertise as a portfolio management company and provider of services for third-party funds, and share the necessary investments to strengthen our operational, technical and control systems,” explained Wagner.
The asset manager pointed out that this merger will strengthen its positioning by “capitalizing on the combined skills, expertise and systems of Conventum Asset Management and BLI”. It also revealed that their ambition is to continue to develop a full range of offers within two key business lines: portfolio management services and investment fund management company services for third-party initiators.
Michèle Biel, Director of Conventum Asset Management, highlighted that by pooling the resources of both companies, the new entity will enable them to combine their respective expertise in the best interests of or current and future clients. “The teams’ formidable experience will be the foundation for the development of our business in a constantly-evolving market and regulatory environment”, she added.
The surge in demand for thematic funds in Europe last year is set to continue, according to the latest research of Cerulli Associates “The Cerulli Edge—Global Edition”. This demand will specially grow in 2021 and 2022 in those strategies focused on water, biotechnology, and technology.
Net flows into sector-themed equity products during the first 10 months of 2020 amounted to 89 billion euros (108 billion dollars), more than triple the net sales for 2019. Meanwhile, assets under management amounted to 512.4 billion euros at the close of October 2020.
“The consensus of managers operating in Europe is that broad themes relating to technology and sustainability will prevail in the aftermath of COVID-19 and longer term,” says Fabrizio Zumbo, associate director, European asset and wealth management research at Cerulli.
Some 84% of the ETF issuers in Europe that responded to the survey expect “significant or moderate demand” for thematic ETFs in the next 12 to 24 months. Over the first 10 months of 2020, technology-related themes were the most popular, attracting 28 billion euros or 32% of net inflows, followed by healthcare at 15%, and renewable energy or climate change at 12%.
Sustainability and technology first
Cerulli’s research shows that ETF issuers in Europe expect growth in demand over 2021 and 2022 to be strongest for sustainability-related themessuch as water and biotechnology, closely followed by technology. Almost all the managers that responded to the survey (92%) expect demand for water-themed ETFs to increase over the next two years. Combined active and passive assets in the water-themed sector have achieved a compound annual growth rate (CAGR) of 23% over the past five years.
The firm believes that asset managers can source new opportunities from working closely with technical experts in fields such as biotechnology and healthcare to ensure that specialist funds are able to capitalize on areas of potential growth.
“Technology themes, which include artificial intelligence, cybersecurity, and 5G networks, are expected to continue to attract high demand, in part due to the success of mass remote working, which is likely to continue to an extent post-pandemic. Some 84% of our survey respondents believe that technology-themed ETFs will experience an increase in demand in the next 12 to 18 months,” said Zumbo.
In his view, investors are becoming more comfortable with using thematic ETFs for diversification and to express their investment objectives: “a reflection of how the product set is evolving”, he points out. In addition, several asset managers interviewed by Cerulli in Europe highlighted that thematic funds are generally easier to sell to end clients because the attached compelling narratives make the products easier to understand.
This year will see major changes that will be highly supportive of the green bond market in Europe: the European Union’s Green Bond Standard will be published, the EU will issue green bonds for an estimated amount of 225 billion euros and several governments will start issuing this asset class. As such, NN Investment Partners estimates in a press release that the global green bond market will grow by 300 billion euros in 2021 to 1 trillion.
The asset manager believes that the EU Taxonomy and the Green Bond Standard will be the first driver of the green bond market surge in 2021, stemming from the EU’s Sustainable Action Plan to finance sustainable economic growth. In its view, the standard and the finalization of the first version of the new taxonomy will have “a long-term positive impact on the integrity and transparency of the EU green bond market and will act as the blueprint for regulation in other regions”, because it will:
Further standardize and professionalize the rapidly maturing green bond market
Raise knowledge levels on whether economic activities are environmentally friendly and how they can transition to become more sustainable
Give investors an increasingly detailed overview of what they are investing in, enabling them to make better-informed choices
Give issuers more guidance how to identify green assets or activities
Therefore, the firm believes that this legislation could be regarded as “a catalyst for the global green bond market growth”, encouraging lagging sectors such as industrials to come forward with a green bond issuance. Currently, the market is dominated by financials, utilities and government-related issuers.
“These new regulations herald what could be a watershed decade for climate change mitigation, with Europe leading the way via its target to be carbon-neutral by 2050. ESG and green finance are really entering the mainstream. The pandemic has created a positive boost too, as a lot of countries clearly need more funding, and with green ambitions stronger than ever the green bond market will be widely viewed as a major opportunity”, says Jovita Razauskaite, portfolio manager for green bonds at NN IP.
Additionally, the asset manager expects the green bond market developments will be spurred by several countries that plan to issue their inaugural green bonds in 2021, including Italy, Spain, the UK, Denmark, Ukraine and Slovenia. Also, repeated issuers such as the Netherlands, France and Germany will come back to the market with an ambition to tackle climate change. “All in all, the pipeline of government green issuances is extensive and significantly larger than in previous years”, they pointed out.
Finally, the issuance of new Next Generation EU-Bonds (NGEU), of which EUR 225 billion is dedicated to environmental projects between 2021 and 2023, will significantly enlarge the supranational share of the global green bond universe. “The EU is likely to start issuing these bonds in Q2 2021 to support the national recovery and resilience plans of member countries”, highlighted NN IP.
Pixabay CC0 Public Domain. Morningstar Indexes lanza un nuevo índice de género para mercados desarrollados
Morningstar announced the launch of the Morningstar® Developed Markets ex-Japan Gender Diversity Index℠, designed to provide exposure to developed market companies exhibiting strong gender diversity policy and practices.
In a press release, the firm pointed out that investor demand for ESG has increased drastically in the last decade, driving the need for these types of indexes. In this case, it will be powered by the data and scoring methodology of Equileap, a global provider of data and insights on gender equality for investors. More specifically, the constituents of the new index are weighted according to 19 gender equality criteria, including gender balance across the workforce, the gender pay gap, paid parental leave, and anti-sexual harassment policies.
The Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with approximately 1.5 trillion dollars in assets under management as of June 2020, has adopted the index as its benchmark to invest.
“During a tumultuous year consumed by a global health and economic crisis in which research shows working women pay a disproportional toll, transparent practices and policies that advance gender representation should be top of mind for companies. We are thrilled to be working with Equileap and GPIF on a meaningful endeavor that we believe will have the potential to not only act as a catalyst to shape corporate behavior but also help investors achieve their financial goals”, said Ron Bundy, president of Morningstar Indexes.
This launch is in line with the white paper published by Morningstar and Equileap “Investing Inclusively: Building Shareholder Value Through Gender Diversity.” The report highlights that companies that foster gender diversity and create inclusive cultures are tapping into the potential of the full population and are positioned to benefit from the effects of cognitive diversity. In this sense, “they are not only advancing the cause of human rights but also have the potential to maximize shareholder value”.
The index is derived from the Morningstar Developed Markets ex-Japan Large-Mid Index, which includes large and mid-capitalization equities from the U.S., Canada, Western Europe, Israel, Australia, Hong Kong, New Zealand, and Singapore. “In addition to providing a similar risk/return profile to the broad market, it is built to provide exposure to publicly traded companies with strong gender diversity policies embedded in their corporate culture and that ensure equal opportunities to employees, irrespective of their gender”, Morningstar concluded.
Banco Santander’s board of directors has resolved to name Gina Díez Barroso as a new independent director after Rodrigo Echenique‘s departure, announced the bank in a press release. The board has also agreed to appoint Alejandro Butti as the new CEO and country head of Santander Argentina.
Díez Barroso is a Mexican entrepreneur, founder and president of Diarq Group, an architecture and design company that carries out real estate projects in Mexico and the United States. She has career of more than 20 years in the real estate and education sectors, in addition to the experience she acquired in banking as an independent director of Banco Santander Mexico. She is also the founder and president of Universidad Centro, Mexico City’s first university specializing in creative studies.
With this appointment, which will be submitted for ratification at the next general shareholders’ meeting of Santander, Díez Barroso will fill the vacancy left by Rodrigo Echenique, who will step down from his role as director after 32 years at the Santander Group. He also left his executive positions as vice chairman of the bank and chairman of Santander Spain in May 2019.
“Gina Díez Barroso has vast knowledge of the US and Mexico, two of the group’s most important markets. She will also add additional expertise in areas such as real state, banking, education, and sustainable business. Her arrival means 40% of our board will be women”, said the bank’s executive chairman, Ana Botín.
She also highlighted the “privilege and honor” it has been to work with Echenique. “He has been pivotal to the growth and success of Banco Santander over the last 30 years, from the launch of the Supercuenta in 1989 to the recent acquisition of Banco Popular”, she added.
With the addition Díez Barroso, the board of directors of Santander will continue to be made up of 15 members, 10 of whom are independent directors.
New country head for Argentina
The board has also agreed to appoint Alejandro Butti as the new CEO and country head of Santander Argentina, subject to regulatory approvals. He will report to Head of South America, Sergio Rial. Butti, who has been with Grupo Santander for over 25 years, is a member of Santander Argentina’s executive committee and, until now, headed Santander Corporate & Investment Banking (CIB) in Argentina.
“Sergio Lew, who has played an important role in driving Santander Argentina’s growth in the last two and a half years, will return to the CIB business in the United States, where he has spent a large part of his professional career and collaborated to implement a global service model with a focus on Latin America. He will remain as country head of Santander Argentina until 31 March 2021 to ensure a smooth transition”, revealed the bank in the press release.
