Internacional archivos - Page 209 of 506

Life After the Italy Referendum: What Now?

As Fabio Balboni, European Economist at HSBC expected, Matteo Renzi‘s resignation as Prime Minister following the rejection of the constitutional referendum on 4 December did not lead to a snap election. The Italian president appointed the former Foreign Affairs Minister, Paolo Gentiloni, as Prime Minister. He believes Gentiloni’s caretaker government, supported by broadly the same parliamentary majority as Renzi’s, will have a narrow mandate, focussing on three key issues, before taking Italy to elections (likely in Q2 2017, in their view):

Re-align the electoral laws for the lower and upper house. There are conflicting views among parties on what the optimal law should look like, and the Constitutional Court’s hearing on the current law for the lower house, on 24 January, will also dictate the timetable. He expects the electoral law(s) will end up being a slightly softer version of the Italicum, effectively favouring some form of coalition government after the election (which would make it harder for the populist Five Star Movement to form a government on its own).
Address the challenging situation of the banks, and in particular the imminent recapitalisation of Monte Dei Paschi di Siena. Balboni thinks this process will end up with some form of direct government intervention, with the bail-in of equity and bondholders (though retail investors will be refunded). A possible bigger injection of money, to provide a safety net for other banks facing a similar situation in the future, is also possible, though might present bigger legal issues, in their view.
Respond to a possible call by the European Commission for an additional 0.1-0.2% of GDP fiscal austerity in 2017. This could happen when the final 2016 deficit outturn is communicated by Eurostat early next year (likely, March). But with a caretaker government in place and the prospects for imminent elections, he thinks Brussels will have a light-touch approach.

However, at least for now, the HSBC team does not think Italy’s euro membership is at stake.

Roberto Barragan Joins Manhattan West Asset Management

| For Gabriela Huerta | 0 Comentarios

Manhattan West Asset Management has added an ESG focused Private Equity Fund to its offerings. Roberto Barragan, former CEO of VEDC (Valley Economic Development Center), joins as Shareholder and Senior Managing Director to oversee the Fund.

Manhattan West’s new Fund, Manhattan West ESG Fund I, will provide financing and credit solutions for minority owned businesses across the United States.

“Access to capital severely limits the establishment and expansion of minority-owned businesses. By focusing on credit and debt structures with collateral ranging in size from $500,000 to $2,000,000, we will seek to eliminate those access barriers,” said Barragan. “My business lending experience and extensive relationships with financial institutions nationwide will allow our team at Manhattan West to deliver impactful CRA and ESG investments to our institutional clientele.”

Barragan led the VEDC to national prominence as a highly regarded and industry leading small business lender originating millions annually in small business loans to minority borrowers. Under his leadership and innovation, the VEDC increased its assets by over 700 percent in the last six years and lent millions to women and minority business owners. Additionally, he redefined how African American and Latino entrepreneurs can access capital through partnerships with financial institutions and corporations and launched numerous business programs including Business Opportunity Funds in Chicago and New York, the National African American Small Business Loan Fund, the Women’s Small Business Risk Mitigation program, the National Micro Finance Fund, and many others.

Barragan expanded VEDC’s portfolio to a national platform with loan funds in Los Angeles, Chicago, Las Vegas, Reno, Salt Lake City, Miami and the New York Tri-State area. Under his direction and leadership during a 21-year career, the VEDC helped thousands of businesses succeed.

“Roberto’s arrival at Manhattan West signifies our commitment to a strategic imperative of the firm,” said Lorenzo Esparza, Manhattan West Asset Management CEO. “One of our main objectives is to deploy investment capital for causes that will have a profoundly positive social impact. We are excited to welcome Roberto to Manhattan West where he will purposefully advocate the vision we set forth.”

Manhattan West is a Latino owned financial service firm, one of the few in the country providing full service investment management for private clients and institutions.

The Americas Is Poised to Continue to Attract Strong Real Estate Investment Flows in 2017

| For Fórmate a Fondo | 0 Comentarios

Despite various sources of uncertainty and related bouts of financial market volatility weighing on the minds of investors over the course of 2016, commercial property proved to be a preferred destination for investment dollars in the third quarter in the Americas region, says Jonathan Geanakos, President, Americas Capital Markets, JLL. With record amounts of capital raised, driven by a search for higher-yielding investments in a low-yield world, and underpinned by solid performance in property market fundamentals, investment into Americas real estate increased in the third quarter.

According to the Americas Market Perspective, Q42016 recently published by JLL, total office, retail, industrial and hotel volumes grew to US$77 billion during the period, an increase of one percent from the third quarter of 2015. This reversed the year-on-year declines in the first two quarters of 2016 as investors had been displaying somewhat elevated caution amid more turbulent financial markets. Total volume in the Americas has declined 10 percent, to $207 billion year-to-date. Although in the United States, overall volume increased one percent year-over-year to US$71 billion in the third quarter, and for the year-to-date period has decreased a little more than 10 percent, to $193 billion.

Trading volumes increased in U.S. office markets during the third quarter, as private equity and overseas investors remain very active in pursuit of office product. Primary markets including Los Angeles and Boston have experienced notable increases in volume year-to-date, as fundamentals strengthen and investors anticipate further income gains over the next few years. It should be noted, though, that increases in activity were not consistent across geographies – in fact, in select markets, such as Chicago and Houston, office volume thus far in 2016 has notably been lower than in 2015.

Mexico saw an increase in sales activity in the third quarter, while volumes in Canada, for combined office, were down approximately five percent, retail, industrial and hotel transaction volume, year-over-year, reaching approximately US$4 billion. Still, total transaction activity in Canada has increased six percent for the year-to-date period. The hotel market was particularly active, and we continued to see an uptick in foreign investors actively buying in the Canadian market, notable for the nation’s traditionally strong domestic REIT and pension fund ownership landscape. Meanwhile, in Mexico, total transaction volume had a relative surge to over US$1 billion during the third quarter, which was more than triple that seen in the same period one year earlier. Activity was fairly diversified by sector. Year-to-date, volume in Mexico is up by approximately one-third. Investment volumes in Brazil continued to be historically light during the third quarter, as they have been for all of 2016 to date.

Given the significant weight of capital awaiting investment in real estate, the generally increasing institutional and private equity allocations to the asset class, as well as sturdy underlying property market fundamentals in most markets, the Americas is poised to continue to attract strong investment flows in 2017.

New Survey Reflects Lack of Women and Minorities in Senior Investment Roles at Venture Capital Firms

| For Gabriela Huerta | 0 Comentarios

Although women comprise nearly one-half (45 percent) of the total venture capital workforce, few are in investment decision-making positions, according to a new report released today by the National Venture Capital Association (NVCA) and Deloitte. Based on the findings of the first ever NVCA-Deloitte Human Capital Survey conducted by the Deloitte University Leadership Center for Inclusion, women represent 11 percent of investment partners or equivalent on venture investment teams.

Racial minorities are also significantly underrepresented across the VC industry, according to the survey. By race, the report found that non-white employees comprise 22 percent of the venture capital workforce, including Black employees at 3 percent and Hispanic or Latino employees at 4 percent.

In addition to assessing the demographic makeup of the venture industry, the NVCA-Deloitte Human Capital Survey gauges the adoption of talent management practices and diversity and inclusion programs at venture firms, as well as the extent to which those programs lead to more diverse teams.

“The survey results reinforce what we already know, which is that the venture industry is not representative of the overall population of the U.S. Transparency is a powerful force for change, and we now have a clear benchmark by which we can measure progress to create a more inclusive venture capital industry,” said Bobby Franklin, president and CEO of NVCA.

“For the first time, we have a comprehensive picture of the industry as well as a better understanding of existing programs to support diverse teams. Research shows that diverse teams make better decisions and, with this baseline measurement in hand, we now turn to developing the tools and resources that will empower all venture firms to take action,” Franklin said.

Importantly, the survey findings also indicate that the presence of a human capital strategy, as well as talent programs, such as recruitment or mentorship, drives greater diversity on VC teams. This data will help guide the future programs of NVCA.

“The fact that the NVCA is examining D&I through in-depth analytics gives them the opportunity to identify target areas they want to focus on rather than a more ‘peanut butter’ approach which we know is a failed strategy,” said Christie Smith, PhD managing principal, Deloitte University Leadership Center for Inclusion & Community Impact, Deloitte LLP.

“What’s key for the future success of venture firms is instilling a culture of inclusion and implementing human capital programs and policies that foster and enrich the composition of a diverse and inclusive talent model that encourages individuals to be their authentic selves in their careers,” said James Atwell, national managing partner, Technology & Emerging Growth Company practices, Deloitte & Touche LLP. “Our survey indicates that firms that have a human capital strategy have a higher percentage of female and minority employees overall, and we know that having a diverse workforce can improve business performance. Addressing diversity and inclusion in the workplace is a tremendous opportunity for venture capital firms.”

Women in Venture Capital

While women comprise 45 percent of the venture capital industry, findings show significant differences by firm size, location and investment focus. In general, the smaller the firm, the smaller the percentage of women on teams. For firms with five team members or fewer, women comprise 29 percent. For firms with 6-20 team members, women represent 41 percent of the workforce. In firms with 21 or more team members, women comprise 47 percent of team members.

According to the survey findings, women are consistently overrepresented in administrative functions and underrepresented in investment functions. Women comprise 95 percent of administrative roles, 75 percent of investor relations, communications or marketing roles, yet only 15 percent of investment professional roles. Looking specifically at investment partners or equivalent on investment teams, women comprise only 11 percent.

Minorities in Venture Capital

Racial and ethnic minorities comprise a smaller proportion of the venture workforce than women overall. According to survey findings, non-white employees comprise only 22 percent of the venture industry. However, not all ethnicities have the same experience in venture capital. Black employees comprise 3 percent of the venture workforce, Hispanic or Latino employees 4 percent, and Asian/Pacific Islander employees 14 percent.

By role within their firms, Black team members comprise 2 percent of investment professionals; 3 percent of finance roles; 3 percent of investor relations, communications or marketing roles; 4 percent of administrative roles; and 5 percent of operations positions. Further, 2 percent of senior positions across all functions are filled by Black team members, compared to 4 percent of junior positions.

Looking specifically at investment partners or equivalent, survey results found no Black investment partners in the sample. However, it is important to note that while the firms in our sample did not report any Black partners, this does not equate to a zero number of Black investment partners working across the industry.

Impact of Talent Strategies

Survey findings show a strong correlation between the existence of human capital strategies at venture firms and representation of women and minorities at those firms. Firms that have a human capital strategy have an average of 54 percent female and non-white employees overall, while firms without a human capital strategy have an average of only 41 percent female and non-white employees.

Moreover, findings suggest that the existence of a human capital strategy translates to better representation of women in senior positions across all functions. Firms with a human capital strategy have 4 percentage points more women in leadership than those without a strategy, firms with a diversity strategy have 10 percentage points more women in leadership than those without a strategy and firms with an inclusion strategy have 7 percentage points more women in leadership than those without a strategy. Similarly, firms with a human capital strategy have 13 percentage points more minority employees than those without, firms with a diversity strategy have 12 percentage points more minority employees than those without and firms with an inclusion strategy have 14 percentage points more minorities than those without.

Examinations of relationships between formal mentorship and recruitment programs and the representation of women in senior leadership positions at venture firms revealed that firms with formal mentorship programs have 16 percentage points greater representation of women in leadership and firms with formal recruitment programs have 9 percentage points greater representation of women in leadership.

Read the full report here.

Climbing the Wall of Worry – A Look Ahead to 2017

| For Gabriela Huerta | 0 Comentarios

In the latest edition of Global Outlook Standard Life Investments look ahead to 2017, and how its ‘House View’ is positioned in the light of a supportive monetary and fiscal landscape.

Neil Matheson, Market Strategist, highlights that 2016 has been typified by uncertainty in areas such as politics, US interest rates, China and European banking which has spurred many investors to build up high levels of cash. However, despite commentary being dominated by these downside risks, risk assets have been quietly moving higher.

Standard Life Investments believes this rally, which has been seen across credit, equities and global real estate, has been driven by an improvement in the global cycle and a move towards ‘pro-growth’ policies across many of the major economies. As we head into 2017 global monetary conditions are supportive of growth, and there is now active discussion about fiscal easing globally.

Neil commented: “Against this more supportive backdrop in 2017, we anticipate only moderate returns from government bonds, and find better value in credit, particularly higher yielding credit. We also see opportunities in hard currency emerging market debt, as long as there is not a significant rise in US-led protectionism. In equities, although valuations appear high if considered in isolation, they still look cheap if viewed on a yield basis relative to government and corporate bonds. Across equity markets, the US looks the most dependable but it also commands the highest valuation. When it comes to emerging markets it will be important for Chinese policy to remain supportive, the Fed to ‘go slow’ and the Trump administration not to deliver any trade shocks. Meanwhile, in Europe and Japan, we are expecting support from stable-to-slightly weaker exchange rates. At long last authorities appear to ‘get it’ that continued, sustained expansion is required to get the world out of the stop-and-go cycle it has been stuck in since the Great Recession. Markets have only begun to anticipate these developments – assuming of course that political tail risks do not cause undue levels of market volatility.”

“As long as the US President-elect avoids a disruptive increase in trade protectionism, this should reinforce the improvement in global growth, inflation and corporate earnings trends that were already underway before the US election, and was supporting the rotation towards a heavier equity and lighter government bond exposure in the House View.” He concluded.

For the full December Global Outlook research follow this link.

BNY Mellon IM Unveils Global Leaders Fund

| For Gabriela Huerta | 0 Comentarios

BNY Mellon Investment Management has launched the BNY Mellon Global Leaders Fund, investing in global companies with dominant business models, enduring growth potential and strong cash flow generation.

The fund is managed by global equity manager Walter Scott & Partners, fully owned by BNY Mellon, and aims to achieve long term capital growth through a bottom up, fundamental, investment approach.

It will consist of a portfolio of 25 to 30 of the world’s most innovative and market leading global companies. The strategy will be biased towards large cap companies ensuring sufficient liquidity.

The fund is registered in all standard BNY Mellon Global Funds European jurisdictions including Denmark, France, Germany, Italy, Switzerland, the Netherlands and Spain.

Minimum investment is €5000, $5000 or £5,000 depending on the share class.

“Walter Scott has an outstanding long term track record and is renowned for its rigorous and proven approach to global equity investing. In an environment which is likely to become more challenging, Walter Scott believes markets will become more discerning and quality will be rewarded,” said Matt Oomen, head of International Distribution at BNY Mellon Investment Management. “We are delighted to offer investors a concentrated, benchmark agnostic, outcome driven portfolio which aims to harness the power and stability of the biggest and best run global businesses.”

As of 30 September 2016, BNY Mellon IM had $1.7trn (€1.57trn) in AUM.

BlackRock to Invest in iCapital Network

| For Gabriela Huerta | 0 Comentarios

BlackRock will lead iCapital’s next funding round. Frank Porcelli, Chairman of BlackRock’s US Wealth Advisory business, will join iCapital’s Board of Directors and will work closely with the organization as a strategic advisor.

Individual investors remain significantly under-allocated to alternative investments relative to institutional investors, but are increasingly exploring the critical role alternatives can play in state-of-the-art portfolio construction. iCapital’s online platform facilitates access to private investment opportunities through an independent origination and due diligence process that prioritizes quality offerings from an array of top managers, and provides an end-to-end technology solution automating the unique subscription, administration and reporting processes of alternative investments.

“We are building the largest independent digital alternative investments platform in the industry. In BlackRock, we have an investor who understands the importance of technology’s role in the wealth management ecosystem,” said Lawrence Calcano, Chief Executive Officer of iCapital Network. “BlackRock’s decision to lead our next round of funding validates the steps we’ve taken thus far and gives us a springboard to scale the platform for future growth.”

iCapital recently announced that it has surpassed $2 billion in subscriptions from approximately 3,000 investors across more than 40 private offerings since the public launch of its platform two years ago. Its member network has expanded to include more than 1,300 users from RIA firms, private banks, independent broker-dealers, family offices and other sophisticated advisory organizations that collectively oversee more than $1.7 trillion in investable client assets.

“Based on our experience, as well as dialogue with our distribution partners, iCapital Network’s open-architecture alternatives platform solves a critical problem for high-net-worth investors and their advisors,” said Frank Porcelli, Chairman of BlackRock’s US Wealth Advisory business. “iCapital’s combination of due diligence capabilities, technology and relationships with alternative asset managers seamlessly facilitates investments in hedge funds and private equity funds, including BlackRock Alternative Investors.”

Terms of the transaction were not disclosed.

Burkhard Varnholt New Chief Investment Officer Switzerland of Credit Suisse

| For Gabriela Huerta | 0 Comentarios

Burkhard Varnholt is to become Chief Investment Officer Switzerland of Credit Suisse with effect from January 1, 2017. He will assume this role in addition to his responsibilities as Deputy Global CIO and Vice-Chairman of the Investment Committee of Credit Suisse.

As announced by the bank today, Burkhard Varnholt is to become the new Chief Investment Officer (CIO) Switzerland of Credit Suisse with effect from January 1, 2017. He will assume this role from Anja Hochberg in addition to his responsibilities as Deputy Global CIO and Vice-Chairman of the Investment Committee. In his new role, Varnholt will report both to Michael Strobaek, Global CIO and Head of Investment Solutions & Products, and Thomas Gottstein, CEO of Credit Suisse (Switzerland) Ltd. Anja Hochberg will continue in her role as Head of Investment Services and will remain a member of the Investment Committee.

The 48-year-old Varnholt rejoined Credit Suisse in November 2016, having worked for the bank from 1996 to 2006 as Global Head of Financial Products & Investment Advisory in Private Banking. From 2006 until 2014, he was Chief Investment Officer at Bank J. Safra Sarasin. Thereafter, he was Chief Investment Officer and Head of Investment Solutions Group at Julius Bär for almost two years. Varnholt holds a Master’s Degree and a Ph.D. in economics from the University of St. Gallen.

The Ageing World – Global Equity Opportunities

| For Gabriela Huerta | 0 Comentarios

The changing demographics and the ageing populations in many regions have led to top heavy societies. In the developed world the issue of changing demographic profile needs no explanation and whilst the changes happen at glacial pace they really matter.

We found some statistics about the changing global demographics eye opening:

Currently there are 20 countries with declining populations; by 2050 this is expected to be 80 countries.
In the not too distant future it is expected that all of the main economic forces in the world will see a decline in their working population apart from the US.
Germany needs 650k net migration every year for the next 20 years just to keep the workforce flat.

The changing demographics and ageing population profile of different regions has originated some new investment ideas. For global equity investing, it is important that we identify companies where there is a positive change in their business or operating environment, but the stock market valuations and forecasts are not fully reflecting the implications of such change.

Some companies are set to benefit from the changing demographics and aging populations, such as those with a core business on accommodation for the older generations and healthcare.

In the UK, it is forecast that the number of over 55’s is growing at twice the rate of the UK population average, implying that in 15 years’ time there will be approximately one third more over 55’s than there is today.

One of the companies looking to benefit from this changing demographic is McCarthy & Stone, a leading UK retirement home builder. According to McCarthy & Stone, it accounted for 70% of this niche privately-owned retirement accommodation in the UK, focusing on selling homes to over 55’s. The McCarthy & Stone products are priced to attract older residents wishing to downsize and release equity. The facilities are custom built for the demographic they serve and include common spaces and house managers although the accommodation still provides separate living.

When looking for opportunities in the global equity universe, it is important that we constantly meet with companies and discuss industry trends with their peers, suppliers, and other companies who serve the same end market so as to build a view on the strength of different companies’ potential customers, test our investment thesis and challenge our non-consensus angle.

From our analysis, McCarthy & Stone’s internal transformation programs are expected to lead to greater margins than the market expects. Their land bank acquisitions have been executed at better gross margins than the market believes, which is driven by higher hurdle rates set by management. It is believed that they are capable of accelerating completions above the targeted 3,000 pa.

Another interesting example is Orpea, a French listed operator of high end nursing homes with majority of the business in France currently. However, due to limited licences being granted in France, this company has focused the growth overseas, primarily in Europe but also with one early stage venture in China.

By understanding the company’s on-the-ground approach to M&A and their international greenfield expansion plans which are already in motion, we believed that sustainability of 5% M&A growth and acceleration of organic growth to above 5% from 2018 is not in consensus numbers.

Regulation around licences and the inability to do a deal to buy scale makes it hard for competition to present a large threat in their markets. There are no new licences being granted in France and besides Orpea and Korian there are no large competitors. In addition, there is a hugely inadequate stock of specialised care beds for the last stages in life. Growth opportunities therefore exist for a top end operation like this where the focus is on providing very high quality care home for the older generation.

The changing demographic profile in different regions bring challenges but also investment opportunities. Market very often is not fully appreciating the positive implications of some of those positive changes companies are undergoing – investors should focus on identifying such opportunities.

Column by SLI written by Mikhail Zverev, Head of Global Equities, Standard Life Investments

Caution Prevails Among Asian Investors

| For Gabriela Huerta | 0 Comentarios

Asia ex-Japan retail investors of all wealth tiers and age groups have become more conservative in 2016 compared to 2015, a survey conducted for the upcoming The Cerulli Report – Asian Wealth Management 2016 has shown.

Due to unsettled market conditions, Asia ex-Japan retail investors have become less patient in their investment horizons. The survey reveals the proportion of respondents with an investment horizon of three years or less rose 48.4% in 2016, from the 39.1% seen in the 2015 survey.

Generally, Asia ex-Japan investors have higher cash holdings in 2016 compared to last year. Except for India, investors in other Asian markets pared down their exposure to unit trusts, mutual funds, and exchange-traded funds.

Indian investors appeared to put more money in managed funds at the expense of investment properties. Hong Kong investors also reduced their exposure to investment properties as prices have been falling steeply in recent years, in favor of directly held bond investments.

Meanwhile, the shift from other asset classes to alternatives was muted for the past year. The survey reveals China is the only country that showed a more than one percentage-point uptick in holdings in the asset class between the 2015 and 2016 surveys.

However, Cerulli notes that alternative products in China are unlike those available in Singapore, for example. In China, alternatives tend to be in the form of structured products, whereas in Singapore, they are often more conventional liquid alternative funds. Cerulli notes that allocations to alternatives in Singapore remained steady over the period, helped by their availability to lower-wealth-tier investors.

Third, funds of funds managed by foreign asset managers have become popular in Taiwan, as they oversee seven of the top-10 funds of funds in terms of inflows year-to-date July 2016.

Evidently, Taiwanese investors are very keen for international exposure. Cerulli believes this provides foreign asset managers with the opportunity to leverage their reputation and expertise to make greater inroads onshore.

Meanwhile, as the FSC continues to tighten regulations on the offshore fund space, it will be harder for smaller, boutique foreign asset managers with niche investment products to enter the Taiwanese market.

This might have an impact on the diversity of products available to Taiwanese investors, and Cerulli notes that it will be ideal for offshore and onshore fund management to co-exist so as not to potentially stifle further product innovation.