Every hour of every day, parents are “teaching” their children about finances, among many other things, with their own behavior. That’s what Stephanie Mackara, President & Principal Wealth Advisor of Charleston Investment Advisors and author of the new book “Money Minded Families”, points out in a press release.
In her view, if you make a habit of spending unconsciously or irresponsibly, you run the risk not only of creating your own negative financial situation, “but also of passing your financially unhealthy behavior onto your children”. To teach kids healthy spending and saving habits that will prepare them for life, Mackara recommends practicing 4 financial principles:
1. Saving = freedom
“Many people opt out of saving when given the choice, either because they just don’t think they can afford to, or they don’t have a clear understanding of how savings will provide them with choice and freedom,” Mackara says. The solution for her is to think of it not as saving, but as purchasing freedom.
2. Model the behavior you want your kids to learn
“Every day brings opportunity to show children and young adults about the simple process of spending, saving, and investing, and also to demonstrate the values that guide your choices”. Mackara recommends to live in a place where you spend and save thoughtfully, where your behaviors and thinking about your finances contribute to your personal well-being, and “where anything is possible”.
3. Don’t rely on government or corporations to dictate what your retirement will look like
In her view, the financial foundation of the United States is no longer stable and the only way to fix it for the future generations is to “take charge and DIY (do it yourself)”.
4. Financial literacy is no longer optional
“We must shift our thinking from allowing our children to take minimal personal responsibility and acquire limited financial knowledge, to consciously increasing the level of education they receive relative to financial matters”. Mackara points out that the next few generations don’t have the luxury of waiting until age 50 or 60 to pay attention to their financial wellness and money management habits.
All in all, she thinks American citizens must become more conscious of their financial journey before, during, and after retirement. “We must work toward living a life of financial mindfulness and wellbeing in order to better enjoy our present lives as well as our future retirements”, she concludes.
Credicorp has made changes to its management leadership this August. Juan Pablo Galán takes on the position of Country Head Colombia, while Luis Miguel González undertakes a new challenge as part of the Board of Directors of Credicorp Holding Colombia.
Carlos Coll (current COO of Credicorp Capital Advisors and Ultralat) will act as interim CEO of Ultralat in Miami.
It is expected that in a few months Felipe García, current Head of Capital Markets at the regional level, will additionally become Country Head of Credicorp Capital US (which includes the RIA -Credicorp Capital Advisors- and the Broker Dealer -Ultralat Capital Markets and Credicorp Capital Securities that are in the process of merging-).
According to a press release, under the leadership of Galán, Credicorp Holding Colombia, a Holding company of the Credicorp Group that is regulated by the Colombian Financial Superintendence, will take a new and more commercial approach, with the aim of promoting the development of its businesses and contributing to the fulfillment of the firm´s strategies in the country.
Eduardo Montero, CEO of Credicorp Capital said: “I welcome Juan Pablo to this new stage for the organization, congratulate him on this new role he is assuming and give him all the confidence in this endeavour.”
Galán has more than 25 years of experience in the financial sector, having held important roles as MD at Corredores Asociados, CEO of Alianza Valores and, for the last 4 years, as CEO of Ultralat in Miami. He has a BA from CESA (Colombia) with an MSc in Investment Banking and International Markets from the University of Reading – Henley Business School (England).
According to Jon Mawby, Head of Investment Grade Credit at Pictet Asset Management (Pictet AM), investors need to rethink the way they manage risk in their fixed income portfolios. Coming from a decade of double-digit US bond yields in the late 70s and early 80s, the “Total Return Fund” era started in the late 80s and during the last 35 years has benefited from the counter-cyclical monetary policies exercised by the Federal Reserve. In more than three decades, US government and corporate bond yields have experienced lower highs and lows. This has been largely driven by the monetary policy response implemented by Alan Greenspan, Ben Bernanke, Janet Yellen, and Jerome Powell, former and current Chair of the Federal Reserve Board, through a series of financial crises.
More recently, all the stimulus that has been pumped into the system to fight the coronavirus crisis, -the successive cuts in interest rates, the unlimited QE and the several lending programs that were announced back in March-, has left US bond investors facing close to zero or negative yields. This is a hugely different environment in which traditional bond investment can lead to losses in capital or in purchasing power, hence the need of investors to reevaluate the way they manage their fixed income portfolios.
The challenges faced by investors today
In Pictet AM’s opinion, after the Global Financial Crisis, the starting point for asset allocators of a traditional 60/40 portfolio is largely misguided. This is broadly driven by the fact that global government bonds in traditional fixed income portfolios were considered a vehicle to store value that offered a reasonable yield and that, in a wider portfolio context, had lower or negative correlation to risk assets. These three characteristics allowed traditional fixed income funds to deliver attractive returns and diversified risk across a wider risk asset portfolio over several cycles.
US 10-year Treasuries and many other government bonds in developed markets are now offering yields below the 1% threshold. At this level, government bonds have a limited upside and a potentially large downside risk if economies move from a deflationary to an inflationary environment. Therefore, investors can no longer rely on the traditional model to produce the same risk-return characteristics going forward.
This leaves investors with essentially two traditional choices in terms of long-term asset allocation, equity like risk assets (corporate credit, direct equity, or private equity) and cash. Hence, even though investors may not realize it, portfolios that follow this traditional 60/40 asset allocation mix are by design riskier than historical models will predict. This applies both generally to risk asset portfolios and more specifically to credit and fixed income products.
The macro drivers
The Fed has cut rates from 2,5% down to 0%, but the compressions in corporate bond yields came from 150 basis points to 75 basis point, this is quite little to cushion investors from the volatility around the credit markets. Hence, investors need a different way to think about how they manage risk in their fixed income portfolios.
In Mawby’s opinion, investors need to be a bit contrarian and value driven. They can no longer rely on their government bond exposure to offset the equity like risk exposure in their portfolios. Investors now need to think about managing fixed income in a more proactive way, it is no longer enough to have some degree of credit and equity risk long to effectively diversify a portfolio.
What are the investment implications of the COVID 19 crisis?
This crisis leaves some opportunities to explore. It has created dislocations in price, generating potential opportunities to pick up companies with strong balance sheets at attractive valuations. At the current levels, selected corporate hybrids and out of the money convertible bonds offer attractive opportunities. But investors need to remain highly selective in primary markets amid a deluge of corporate issuance. Additionally, the intervention of central banks continues to distort investment grade credit curves while US Treasury bonds volatility has recently receded back to pre-crisis levels.
On the other hand, there are many risks that need to be considered. There are ‘cheap’ value traps given associated with solvency, downgrade, and default risks. The path to emergence from lockdown remains mixed and fraught with potential obstacles for some industries, particularly for those associated with the service sector, like restaurants and airlines.
Meanwhile, dispersion is increasing across the credit market- there is a need to retain optionality in the form of risk overlays and downside protection, as there is still potential for further liquidity challenges in credit. This claims for an up in quality stance across both US and Europe.
Particularly, one of the areas that Pictet AM is a bit more cautious on is the subordinated debt in the financial sector, the Additional Tier 1 hybrids bonds could be affected by potential regulatory risk and this could have a ripple effect for coupons and dividends.
Given this backdrop, managing volatility is going to be especially important in the next 6 to 18 months in terms of navigating another downturn. When looking back in time, crises seem to be occurring in 18 to 24 months cycles – Sovereign debt crisis in Europe in 2012, taper tantrum in 2013, oil crisis in 2014 and 2015, Brexit in 2015, “Trumpflation” in 2017 etc.-, as intervention and rhetoric are driving more and more the alternation of increased volatility periods with other periods of yield and volatility repression. This gives an advantage to investors that think about volatility in a less traditional way.
Broader portfolio themes and opportunities
Starting with the “Powell pivot”, as the last monetary stimulus package launched by the Federal Reserve has become known, the new measures have brought interest rates back to 0 and have followed a QE program at unprecedented levels. In turn, these actions have created distortions and mispricing opportunities that can be exploited by investors, especially in convertibles, corporate hybrids, and QE eligible bonds. On the other hand, they have also created agency issues in the corporate sector related to historically low rates.
In addition, there are also opportunities driven by the increase of volatility, as uncertain environments create dispersion and dislocation in prices that can be released if investors think about risk in a proactive way.
Then, looking at high yield and idiosyncratic positions in the portfolio, sources of yields can be added when they make sense, selecting names with limited cyclicality, event-driven names, and rising stars (companies that are deleveraging their balance sheets and considered as credit upgrade candidates).
Looking to the medium-term, there is a probability that at some point the narrative could shift as lookdown emergence continues. The possibility of developed markets seeing double digit growth is a potential bullish catalyst for risk assets and is something the team will be monitoring closely. Therefore, it is important to keep a close eye on data releases and how they shape sentiment in the short-term.
Conclusion
Downside risks have increased, and fixed income portfolios have become riskier by design. In Mawby’s view, traditional fixed income strategies will no longer deliver what investors need from their asset allocation when they need it. Hence, it is necessary to rethink risk and how to navigate the cycle. Moreover, central bank and investor actions have distorted the playing field, that is why fixed income investors need to consider a contrarian and value driven stance, to get advantage of volatility when it occurs and to get what they want out of bonds: diversification, downside protection and income.
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to risks and uncertainties that could cause actual results to differ materially from those presented herein.
Important notes
This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation. Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.
For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
Pictet Asset Management Inc. (Pictet AM Inc) is responsible for effecting solicitation in North America to promote the portfolio management services of Pictet Asset Management Limited (Pictet AM Ltd) and Pictet Asset Management SA (Pictet AM SA).
In the USA, Pictet AM Inc. is registered as an SEC Investment Adviser and its activities are conducted in full compliance with the SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref. 17CFR275.206(4)-3.
Stocks moved slightly higher in June as investors remain optimistic over the benefits of a reopening economy. However, a growing number of COVID-19 hotspots in several US states has threatened the momentum of a recovering economy and created concern over the potential resurgence in recovering states. Information technology stocks continued their success from previous months and consumer discretionary companies benefited from encouraging data from auto suppliers and homebuilders.
Tensions continued to rise between the relationship of the United States & China. Uncertainty exists between key Chinese diplomats and US officials over their trade-agreement commitments. Investor attention is increasingly turning to the upcoming US presidential election between President Trump and the presumptive Democratic nominee, Joe Biden.
The Fed had signaled their objective to continue supporting an economic recovery. Both Congress & the White House expressed their intentions for another round of stimulus funding. The potential for expanded unemployment benefits, tax cuts or industry-specific stimulus could provide direct aid to households and help jumpstart the economy.
As investors eagerly wait for more news in regard to a vaccination, markets have been volatile and fragile during this bumpy recovery. We continue to use this volatility as an opportunity to buy attractive companies, which have positive free cash flows and healthy balances sheets, at discounted prices, and seek companies that can both withstand continued economic fallout from the pandemic as well as thrive when it ends.
In the Merger Arbitrage world, returns in June were largely driven by completed deals, as well as continued progress on deals in the pipeline. Notably, we have seen some spreads revert to pre-COVID levels. We are retaining some dry powder, but we continue to deploy capital in situations that present the highest likelihood of success and certainty of value.
We are seeing early signs of a return to deal making as we move beyond the air pocket created by COVID-19. The Federal Reserve and other central banks have unleashed unprecedented liquidity that should provide an accommodative market for new issuances and M&A. CEOs and Boards of Directors continue to seek ways to create shareholder value in an increasingly global marketplace, while competing with disruptors and a consumer base that is shifting online at an increased pace. This includes both M&A and financial engineering, which can spur deal activity. We previously mentioned that Grubhub and Uber were in deal discussions, which led to two separate transactions in the food delivery space, propelled by the evolving consumer environment: Grubhub/JustEat and Uber/Postmates.
Column by Gabelli Funds, written by Michael Gabelli
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
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 cedidaMina Lazic, new Relationship Manager at AIS Financial Group. Mina Lazic, new Relationship Manager at AIS Financial Group
AIS Financial Group has hired Mina Lazic as new Relationship Manager. The firm announced in a press release that she will report directly to Samir Lakkis, founding partner.
Lazic has 12 years of work experience as Global Markets Sales, working in investment banks in London. In her last role, she was Executive Director in Nomura, responsible for Cross-Asset Sales for Russia and CIS. Previous to that, she spent 8 years with Société Générale, selling FX, Rates, Credit, Flow and Structured products to FI clients in CEE, Russia, CIS, Greece, Cyprus and Austria, among others.
Lazic started her career in Merrill Lynch as Equity Derivative Sales and she holds a Masters in Finance and a Bachelors in International Economics and Management Degree from Bocconi University in Milan, Italy.
AIS currently distributes over 1 billion dollars a year in structured products and is now broadening its business line, distributing third-party funds. With offices in Madrid, Geneva, Bahamas and Panama, the company will look to partner with those managers who want to outsource their sales force and “benefit from the knowledge and experience” that they have in the region.
Foto cedidaLuther Bryan Carter, new Head of Global Emerging Markets Debt at HSBC Global AM. HSBC Global AM nombra a Luther Bryan Carte responsable de deuda global de mercados emergentes
HSBC Global Asset Management announced the appointment of Luther Bryan Carter as Head of Global Emerging Markets Debt, effective immediately. Based in London, he will report to Xavier Baraton, Global CIO Fixed Income, Private Debt and Alternatives.
The asset manager explained in a press release that in his new role, Carter will be responsible for the management of the global EMD team, investment process and portfolios, after the completion of due diligence and regulatory approval. “While taking immediate oversight responsibility for all investment decisions, his first initiative and focus will be on deepening the country research function”, they added.
Carter will take over from Nishant Upadhyay, who will remain with the firm and will focus on fixed income investment platform projects. The firm thanked Nishant for his contributions to the business since joining in 2016.
Xavier Baraton, Global CIO Fixed Income, Private Debt and Alternatives, said: “Bryan has a strong track record in the industry and will play a leading role in strengthening our EMD investment process. Global EMD remains our key capability and Bryan’s appointment is testament to our commitment to managing these assets with the skill, expertise and stewardship that our clients expect.”
Bryan has nearly 20 years’ industry experience, most recently as the award-winning lead portfolio manager for EMD at BNP Paribas Asset Management, where he hired and led a team of 16 professionals and significantly increased the firm’s EMD asset base. Prior to joining BNP Paribas, he worked at Acadian Asset Management, T Rowe Price and as an economist at the US Treasury Department.
HSBC Global AM stated that Carter has “strong ESG credentials” having developed and implemented an innovative ESG process for EMD at BNP Paribas. Since 2014, he has been deeply involved in the Emerging Markets Investors Alliance, a leading global non-profit network of institutional investors committed to advancing sustainable social and economic development in emerging markets.
Foto cedidaJulian Ide, new Head of EMEA Distribution. Julian Ide, nuevo responsable de distribución para EMEA de Franklin Templeton
After announcing the acquisition of Legg Mason a couple months ago, Franklin Templeton has stablished the new structure of its global distribution team. Adam Spector will become Head of Global Distribution, overseeing global retail and institutional distribution, including marketing and product strategy, and will be reporting to President and CEO Jenny Johnson. Subject to completion of the firm’s acquisition of Legg Mason (expected on Friday, July 31) Spector will assume this new role effective October 1, 2020.
Spector currently serves as Managing Partner of Brandywine Global Investment Management, LLC, a specialist investment organization within Legg Mason, and will retain that role. Brandywine Global’s brand, investment independence and dedicated client service model will remain unchanged, stated Franklin Templeton on a press release.
Prior to his role as Managing Partner, Spector led Brandywine Global’s Marketing, Sales and Client Service organization. Before joining Brandywine Global in 1997, Spector was a director in the international investment management group for SEI Investments and the co-founder of a start-up in Prague.
Franklin Templeton’s new distribution model is organized into four regions: United States; Asia Pacific; Europe, Middle East, Africa; and Americas ex-U.S.; with more functions that were previously centralized now aligned to the regions. The four regional heads will report to Spector. Until he begins his new role, Johnson and Jed Plafker (recently appointed to a new role as EVP, Global Alliances and New Business Strategies) will continue to co-lead the company’s corporate-level distribution efforts.
“Bringing together the complementary strengths of the two firms (Franklin Templeton and Legg Mason) will allow us to create a more balanced and diversified organization that is competitively positioned to serve more clients in more places”, said Spector.
Julian Ide, Head of EMEA Distribution
Franklin Templeton also announced the appointment of Julian Ide as Head of EMEA Distribution. Edinburgh-based, Ide will remain as CEO of a specialist investment organisation of Legg Mason, Martin Currie. He will report to Spector.
The asset manager explained that “using his vast experience in the investment management industry”, Ide will play a leading role in further developing their distribution strategy and unlocking opportunities for growth in the EMEA region.
“I am delighted to be taking up my new role. Franklin Templeton is one of the world’s largest global asset managers with a strong investment focus, extensive value-add client partnerships and robust track records across many equity and fixed income asset classes. I am excited by the vision of the senior leadership team and the innovative culture to deliver an ambitious agenda in EMEA”, Ide commented.
The asset manager insisted that the core facets of Martin Currie will remain unchanged: “Martin Currie will continue to have investment independence as well as institutional distribution and client service independence. The Martin Currie brand will continue as a strong presence in active equity management and the group will continue to look for ways to innovate, to improve its alpha generating capabilities and service to clients”.
Continental Europe and Latin America
They also revealed that Paris-based Michel Tulle will continue to oversee distribution efforts in Continental Europe. He will be further supported by Stefan Bauer, Country Head in Germany; Michele Quinto, Country Head in Italy; Patrick Lutz, Country Head in Switzerland; Javier Villegas, Head of Distribution Iberia; Bérengère Blaszczyk, Head of Distribution France and Benelux and Mats Eltoft, Head of Distribution in the Nordic region.
Furthermore, Hugo Petricioli, will remain as Country Head for Mexico and Central America. He will continue to report to Andrew Ashton, CFA and Managing Director Head of Americas ex-US Distribution, which includes Canada, Latin America and Americas Offshore. Ashton will take on additional responsibility for marketing and product strategy across the region, and he will also report to Spector.
Johnson, CEO of Franklin Templeton, said that the acquisition of Legg Mason will establish them as “one of the world’s largest independent asset managers, with approximately $1.4 trillion in assets under management globally”.
Gramercy Funds Management announced in a press release that Mohamed A. El-Erian has been appointed Chair of the firm. El-Erian has been an investor and Senior Advisor to Gramercy since April 2019.
His work with the firm has focused on global macroeconomic themes and their implications for emerging market investments. “This has permitted Gramercy to strengthen the top-down framework that supports and augments its institutionalized bottom-up investment analysis in emerging markets”, stated the firm.
In this new position, El-Erian will provide the investment team with global, regional and country perspectives on economic, market and geopolitical developments; and will offer insights on global investment trends and their impacts on EM asset classes. El-Erian will also help to decode economic and policy developments, focusing on their potential emerging markets effects. Lastly, he will advise on developing macro themes that influence individual trades and on specific investment issues, including multi-asset allocations.
“Over the last year, Mohamed has made a material contribution to our business. In this new role, he will further help ensure that Gramercy realizes its mission of having a positive impact on the well-being of our clients, portfolio investments and team members,” said Robert Koenigsberger, Managing Partner and CIO of Gramercy Funds Management.
In his view, El-Erian is a “perfect fit” for Gramercy as he is one of the “most brilliant” top-down decoders of macro themes, an investor who can transform those themes into investible ideas and he has long shared their “passion” for Emerging Markets.
For El-Erian it has been “a real joy and honor” to work with Gramercy over the last 16 months in an area he is “very passionate” about. “Having gotten to know well the team and investors, my already-high respect and admiration for the firm has only grown. As such, I am excited to take on this new role, particularly at a time when we are all looking to navigate the unusual uncertainty caused by the COVID-19 shock,” he said.
“Gramercy is exceptionally well positioned to be at the forefront of innovative solutions to the myriad of challenges facing both investors and issuers in emerging markets, impacting the people they serve and employ”, he added.
El-Erian is President-elect of Queens’ College, Cambridge University and Chief Economic Advisor to Allianz. Prior to that, he was CEO and Co-Chief Investment Officer of PIMCO (2007-2014), which he originally joined in 1999 to lead its emerging markets portfolio management team. He served as Chairman of the Global Development Council under President Obama, spent 15 years at the International Monetary Fund, and was CEO and President of the Harvard Management Company.
Gramercy is a dedicated emerging markets investment manager based in Greenwich, CT with offices in London and Buenos Aires. The $4.75 billion firm was founded in 1998.
Foto cedidaFrom left to right: Chris Stapleton, Andrés Munho y Santiago Sacías. Man Group Announces a Distribution Partnership with the AMCS Group
Man Group, the active investment management firm, announced the appointment of the AMCS Group (“AMCS”) as its third-party distribution partner focused on the US offshore and Latin American wealth markets.
“The appointment, which follows a robust selection and due diligence process, marks Man Group’s first partnership in the US offshore space, and complements the firm’s existing and well-established third-party distribution model, which it has employed in Latin America for over 20 years”, stated Man Group in a press release.
AMCS will work together with Man Group’s internal sales team, including Gadi Slamovitz, Managing Director for Latin America, to deliver Man Group’s range of investment solutions to the US offshore market. “By leveraging AMCS’ deep distribution network with advisors at US banks and broker dealers that service the US offshore market, the partnership will enable Man Group to expand its distribution network and reach a broader group of global investors”, added the firm.
Man Group and AMCS will focus efforts on Man Group’s diverse range of long only and alternatives UCITS funds, managed on both a systematic and discretionary basis by Man Group’s individual investment engines, including the Man AHL TargetRisk strategy, which is a risk-balanced, multi-asset strategy that applies Man AHL’s advanced systematic techniques to a long only portfolio.
Steven Desmyter, Global Co-Head of Sales and Marketing at Man Group said that they’re looking forward to working with the AMCS Group to bring their “diverse offering” to an expanded US offshore and Latin American investor base. “Chris (Stapleton) and Andres (Munho) are industry veterans with deep knowledge of the offshore market and a thorough understanding of our products and investment solutions and we have already developed a strong working relationship with the team”.
“They are real specialists and we are confident the collaboration, managed by Gadi, will help us provide investors in this important market segment with greater access to Man Group products”, he added.
Meanwhile, Chris Stapleton, co-founder and managing partner of the AMCS Group, stated that Man Group is “a real innovator” in the investment industry and it has a lot to offer the US offshore wealth market at a time when investors are thinking deeply about capital allocations, risk management and how to diversify portfolios. “We look forward to partnering with them to increase investor access to their range of investment solutions”, he said.
Man Group is a global active investment management firm, which runs $104.2 billion of client capital in liquid and private markets, managed by investment specialists based around the world. Headquartered in London, the firm has 15 international offices and operates across multiple jurisdictions.
Headquartered on Brickell Avenue in Miami, Florida with offices in Montevideo, Uruguay, the AMCS Group was co-founded by Chris Stapleton and Andres Munho in February 2018. Latin American operations are led by Santiago Sacias. The firm specialises in building distribution networks within the US-offshore and Latin American wealth management market, and in raising assets into investment products.
With 20 years of experience in the financial market, Vinicius Bueno Lima is the new Head of Institutional Sales of Schroders Brazil. His objective will be the strengthening of the relationship with institutional clients, announced the asset manager in a press release.
Lima worked for 12 years at Itaú Asset Management as Senior Commercial Manager in the areas of Private, Distribution and Institutional Investors. At BlackRock, he was the Commercial Head for four years, focusing on the relationship with institutional investors. Subsequently, he spent a year and a half at Porto Seguro Investimentos, as Commercial Head for Institutional & Corporate Investors.
In his most recent experience, he has worked for three and a half years as Senior Commercial Manager in the relationship with institutional and corporate investors at SulAmérica Investimentos.
“We have seen growth in the institutional area, which has sought to further explore all the opportunities for diversification that the current scenario brings,” said Daniel Celano, CFA, Country Head of Schroders Brazil. “Vinicius reinforces the expertise of our local team, which is part of an international, interdisciplinary and integrated team at Schroders, to provide all the necessary support to clients in the search for the best options for their investment profiles, aiming at the best results”, he stated.
Lima holds CFP® Certification (Certified Financial Planner), Bachelor on Business Administration from Universidade Presbiteriana Mackenzie, MBA in Economics from the Financial Sector from FEA-USP and master’s in financial economics from FGV-SP.
Schroders is a global investment manager headquartered in the United Kingdom, with over 200 years of history and 25 years in Brazil. It is one of the top 25 independent managers in the country, focusing on domestic stocks, fixed income, credit and international investments. Therefore, it’s one of the five largest investors in the Brazilian stock exchange (B3), with more than R$ 14 billion under management in domestic and international assets, in addition to managing R$ 2.1 billion of Brazilian investors in fixed income, multimarket funds, shares and assets abroad.
