Italian group Banca Finnat Euramerica has launched a new Luxembourg-based asset management branch called Natam Management Company.
The subsidiary has received a “dual permission” from Luxembourg market authorities.
Banca Finnat said the Natam project was aimed at serving internal as well as external clients such as third-party intermediaries and institutional investors.
The company runs the New Millenium Sicav launched in the 90’s that comprises 14 sub-funds
Banca Finnat’s deputy general manager and president of the group’s Sicavs Alberto Alfiero has been appointed president of Natam.
Sante Jannoni, a lawyer specialising in Italian and Luxembourg financial law and senior management member of a number of professional and financial entities in Luxembourg, will serve as the company’s CEO.
Invesco PowerShares, a leading global provider of exchange-traded funds (ETFs), part of Invesco, has listed the PowerShares US High Yield Fallen Angels UCITS ETF on London Stock Exchange, and on additional European stock exchanges.
The PowerShares US High Yield Fallen Angels UCITS ETF tracks the Citi Time-Weighted US Fallen Angel Bond Select Index, which is based on the Citi US High-Yield Market Index, with the same composition requirements around credit quality, maturity, and issue size. Bonds must have a minimum rating of C by S&P and Ca by Moody’s, and a maximum rating of BB+ by S&P and Ba1 by Moody’s to be eligible.
“Fallen angels” bonds which were previously rated investment-grade but were subsequently downgraded to high-yield are eligible for inclusion in the index and will be held in the index for a period of 60 months from inclusion provided they continue to meet the inclusion criteria. If a bond exits and then re-enters the index, the inclusion period would reset.
Bryon Lake, Head of Invesco PowerShares – EMEA, says: “With the ‘fallen angel’ phenomenon there are two things going on that are pushing the bond price down. First leading up to the downgrade you tend to see prices begin to drop as investors position themselves for the downgrade. Secondly, after the downgrade there are large asset owners, usually institutional in nature, that are forced to sell what were investment grade bonds but are now high yield due to their strict mandated rules. This forced selling creates a phenomenon where the bond can become oversold, which creates an opportunity to buy the bonds at their existing market value. This overselling – more often than not – is followed by a rebound in the bonds prices, potentially creating a unique opportunity and in a number of instances the bond even returns to investment grade.”
Lake continues: “In addition, because Invesco PowerShares is focused on being a leader in the smart beta space, there is a design element to the index that differentiates this ETF from other such investments. By using a time-weighted methodology the index emphasises the bonds that were most recently downgraded, which is logical in the context of a ‘fallen angel’ strategy vs say market cap weighting, and also could enhance the return of the ETF by more acutely capturing the ‘fallen angel’ phenomenon.”
Unlike traditional indices, where constituent weights are based on market value, the Citi Time-Weighted US Fallen Angel Bond Select Index aims to capture the price dynamics over the potential rebound period by using a time-weighting function that allocates higher weights to bonds that have more recently become ”fallen angels.” Issuers’ weights are capped at 5% and constituents’ time-based weights are capped at five times their respective market value-based weights to help manage concentration risk.
Arom Pathammavong, Global Head of Citi Fixed Income Indices, commented: “Leveraging insights from Citi’s research teams, we continue to expand our family of indices in order to offer market participants unique opportunities to meet diversification needs and further enhance their portfolios. For the Citi Time-Weighted US Fallen Angel Bond Select Index, we examined the price movements of fallen angel bonds which showed that prices of these bonds tend to recover from the dip of the downgrade over a 30-60 month period. The index will hold these fallen angel bonds for up to 60 months while applying an innovative time-based weighting methodology that aims to capture the price rebound effect of these bonds.”
The ETF has also been listed on the Irish Stock Exchange, the Borsa Italiana, the Deutsche Börse, the Euronext Paris, and the SIX Swiss Exchange.
The members of the European Parliament, with a 602 votes to 4, and 12 abstentions, have rejected draft regulatory technical standards aiming to provide a framework to packaged retail investment and insurance-based products (Priips). According to them, the draft regulation, is so “flawed and misleading” it could make retail investors losing money instead of protecting them.
The European Fund and Asset Management Association (EFAMA) stated in a press release that they welcome today’s adoption of the European Parliament Motion for a Resolution on the Commission Delegated Regulation (EU) No 1286/2014 on key information documents for PRIIPs, which:
objects to the Commission delegated regulation
calls for a postponement of the application date of the PRIIPs Regulation
EFAMA firmly believes that the PRIIPs KID is a powerful instrument to ensure that consumers receive the right information before making their investment choices. Asset managers know how important it is that investors and their advisers are given meaningful, comprehensible and comparable information to make sound investment decisions. It is therefore crucial to get the PRIIP KID right the first time around to ensure consumers find it helpful before making their investment choices.
Asset managers have long argued that the draft RTSs, as endorsed by the European Commission, will not achieve the intended objective to make the KID helpful to consumers. They will at best confuse investors, at worst mislead them.
The European asset management industry is absolutely convinced that the RTSs must be amended in a satisfactory way to serve their purpose for consumers. They need to be amended to solve flaws – and the key ones are allowing past performance so the investor can see if the asset manager has met its objectives in the past, and fixing the inaccurate calculation methodology of transaction costs. Investors must have the basic facts of what their investment will bring in terms of risks and costs. This is fundamental in terms of trust and confidence from consumers.
“We trust today’s adoption will result in amended RTSs that will help and inform consumers. The current draft RTSs do not.” EFAMA said.
Peter De Proft, EFAMA Director General, commented: “We want to be crystal clear. EFAMA would not like to reopen discussions on the PRIIPs Level 1 Regulation, save for a postponement of the Regulation’s application date. What is crucial now is to get the Level 2 right – and this means appropriately amending the draft RTSs, while leaving untouched the letter and spirit of the Level 1 Regulation.”
But timing is of essence, and EFAMA has also welcomed the EP’s call to the EC to consider a delay in the applicate date of the PRIIPs Regulation.
Alexander Schindler, EFAMA President, commented: “Market operators will apply the rules and want to do so appropriately. This is our wish and our intention. However, legal unclarities and flaws in the rules do not make this objective feasible. The premise to do this is to know the final rules, and to have sufficient time to implement them. There is only one reason why we find a delay absolutely essential, and this is because it is materially impossible and simply unrealistic for product manufacturers and distributors to meet the 31 December 2016 deadline. We would suggest a delay of 12 months. We urge the Commission and the European Supervisory Authorities to follow suit to today’s call from the European Parliament and begin the process of amending the RTSs, and we trust they will consider the concerns of investors and asset managers”.
Foto: Cory M. Grenier
. UBS y Rent The Runway Foundation lanzan una iniciativa para incrementar el número de mujeres emprendedoras de alto impacto y crecimiento
Rent the Runway Foundation and UBS recently announced the second year of Project Entrepreneur, a venture competition and educational program designed to provide women entrepreneurs nationwide with the tools to build high-growth, high-impact businesses.
“We’re thrilled to continue our partnership with UBS to give women with big dreams the tools they need to create high-growth companies,” said Jennifer Hyman, CEO and Co-founder of Rent the Runway. “We were so inspired by last year’s Project Entrepreneur participants and the incredible momentum the three winning companies have experienced since completing the accelerator program. We can’t wait to give more incredible women-founded companies the resources they need to scale and achieve high impact.”
Project Entrepreneur’s venture competition is open to women entrepreneurs who intend to build high-growth businesses that are in the prototype or beta stages, or that may have their first paying customers. The top 200 applicants in the competition will be invited to attend the two-day PE Weekend Intensive in New York City on April 7th and 8th, where they will receive targeted support for their companies. The weekend will culminate in a live pitch competition where 12 finalists present to a judging panel of successful entrepreneurs and investors. Three winning teams will receive a cash prize of $10,000 each and a spot in a five-week accelerator program hosted at Rent the Runway’s New York office.
“Entrepreneurs are the driving force behind job creation and economic growth in this country,” said Lori Feinsilver, Head of Community Affairs, UBS Americas. “And yet women remain underrepresented in the founder landscape. Our goal this year is to continue leveling the playing field for all innovators so that everyone has the opportunity to realize the impact of their work.”
In select markets, Project Entrepreneur will also offer free educational summits at which attendees will be able to workshop their business ideas with successful, entrepreneurial women and hear from Rent the Runway co-founders, Jennifer Hyman and Jenny Fleiss, Melissa Ben-Ishay of Baked by Melissa, Rachel Sklar of TheLi.st, and Shan-Lyn Ma of Zola, among many other leaders and experts.
Registration for these summits will be available at projectentrepreneur.org. Summits will take place as follows:
Custom House Global Fund Services, a leading independent hedge fund administration specialist, has expanded its presence in China with the official opening of a Shanghai office. In addition, the firm has hired Sunny Huang as a Relationship Manager who will be responsible for new business development and the collaboration between clients and the firm.
“Our continued growth in China supports investor’s desire to gain immediate access to a financial services centre perfectly suited to meet the demands of those who are looking to venture into the global financial markets,” said Mark Hedderman, CEO, Custom House Global Fund Services. “With a considerable amount of wealth generated in China over the recent years, investors are looking to diversifying into global investment opportunities, amid concerns of future lower domestic growth and threat of potential currency devaluation.”
“We are excited about the opening of our new office and having Mrs. Huang on board to strengthen our partnership with our valued clients and provide a local presence for quality fund administration solutions to clients in the Shanghai region managing offshore funds,” said Tony Kan, Managing Director of Custom House Fund Services Hong Kong Ltd.
“Harvest Wealth Management has been working with Custom House since May 2015. In the past year, Custom House helped set up our overseas investment platform in the Cayman Islands and acted as the fund administrator for five funds launched on the platform. The efficiency, resourcefulness and client focused professionalism they have demonstrated are truly superb and beyond our expectations. Custom House has become one of our go-to partners when conducting our business overseas,” said Thomas Huang, Deputy CEO of Harvest Wealth Management. Harvest Wealth Management Limited is the subsidiary of Harvest Fund Management Limited. Both companies are regulated by China Securities Regulatory Commission.
Before joining Custom House, Huang was a client advisor assistant at UBS AG in Hong Kong where she was responsible for the day-to-day administration of onboarding clients and providing updates on their portfolios. Huang holds a Master of Finance (Investment Management) from Hong Kong Polytechnic University, PolyU and a Bachelor of Economics from East China Normal University in Shanghai. She will report to Allen Li, Director of the Hong Kong office.
Foto cedida. Schroder Real Estate nombra a John Chantrell como responsable del mercado inmobiliario asiático
Schroder Real Estate has appointed John Chantrell to the newly-created role of Head of Asian Real Estate. John will be responsible for the Real Estate strategy and investments across the Asia Pacific region as well as developing the business.
John brings with him thirty years of experience in property and has previously held a number of senior posts at companies such as Advance Funds Management, Colonial First State Global Asset Management and Novion Property Group. He has a strong track record as an active investor in Australia with responsibility for over AUS $8bn in transactions, as well as experience with investors in a number of large commercial real estate markets in the region including Tokyo, Korea, Hong Kong, Singapore and mainland China.
John will report to Duncan Owen, Global Head of Real Estate, and will be based in Hong Kong.
Duncan Owen, Global Head of Real Estate at Schroders, said: “Following the successful evolution of the real estate business across the UK and continental European markets, as well as the growth of our Global Real Estate Securities capability, expansion into Asia is a natural next step. Existing clients and strategic relationships are looking to expand into Asian real estate and we see a growing number of potential clients seeking investment opportunities in the region. The strength of the Schroders brand in Asia complements and adds a competitive advantage.”
Morgan Stanley Investment Management (MSIM) announced the launch of the Morgan Stanley Investment Funds (MS INVF) Global Brands Equity Income Fund, offering an enhanced income version of the renowned Global Brands Fund.
GBEI invests in a portfolio of high quality stocks in line with that of the MS INVF Global Brands Fund. It generates income, currently targeting a yield of 4% p.a., from a combination of dividends from high quality stocks and premiums from index option overwriting. As of June 30, 2016, the MS INVF Global Brands Fund I shares delivered 10.3% net annualized total returns vs the MSCI World Net Index, which delivered 3.8% since the Fund’s inception on October 30, 2000. GBEI aims to provide investors with attractive and sustainable income while still offering long-term compounding of capital and relative downside protection.
The highly experienced International Equity team manages GBEI, supported by the Solutions & Multi Asset team, specialists in the implementation of option strategies. London-based portfolio managers William Lock, Bruno Paulson and Dirk Hoffmann-Becking are the key portfolio managers for GBEI. The International Equity team manages AuM of US$ 34 billion across its four strategies as of June 30, 2016.
William Lock, Head of MSIM’s International Equity team commented: “We believe the GBEI portfolio’s high quality bias offers a far more robust approach to income generation than that typically offered by high dividend or income funds. We focus on the underlying company fundamentals and free cash flows, which means dividends are more likely to be sustainable and growing. The companies in GBEI make a high return on capital and are capital light. This means they can afford to pay out, and keep paying out, dividends to shareholders. We would argue ours is “income, the right way”, as it offers sustainable dividends in addition to compounding of capital.”
This is a year of important milestones for the International Equity Team. In addition to the launch of Global Brands Equity Income, the International Equity Strategy celebrates its 30-year anniversary and the Global Franchise Strategy marks its 20th year. Morgan Stanley’s Global Quality Strategy, currently at US$ 7billlion, is now three years old.
Morgan Stanley Investment Management, together with its investment advisory affiliates, has more than 590 investment professionals around the world and US$ 405 billion in assets under management or supervision as of June 30, 2016. Morgan Stanley Investment Management strives to provide outstanding long-term investment performance, service and a comprehensive suite of investment management solutions to a diverse client base, which includes governments, institutions, corporations and individuals worldwide.
Lisa van Walleghem y Jim Butler III lanzan MAXIMAI Investment Partners asociandose a Dynasty Financial Partners- courtesy photo. Lisa van Walleghem y Jim Butler III lanzan MAXIMAI Investment Partners asociándose a Dynasty Financial Partners
Two leading global financial advisors – Elizabeth (Lisa) van Walleghem and Thomas J. (Jim) Butler III – with previous responsibility for managing $550 million in client assets, announced yesterday that they have left Merrill Lynch and are partnering with Dynasty Financial Partners to launch a new firm, MAXIMAI Investment Partners.
Based in Coral Gables, Florida, MAXIMAI Investment Partners is an independent boutique investment advisory firm focused on working with ultra-high-net worth entrepreneurs and families from around the world. In addition to Mr. Butler and Ms. van Walleghem, Alejandro Behrens, Daniella Viete, and Ana Bueso are joining the firm– all from theMerrill Lynch Miami Latam Complex.
The team of the new firm is multigenerational, multilingual and global – as are their clients. It provides concierge services to those entrepreneurs and families with international financial interests, and also provides a keen understanding of the entrepreneurial perspective and the Latin American experience.
“One of the main reasons that we have decided to launch MAXIMAI is our desire to build stronger relationships with our clients, their families and communities by offering objective and transparent advice unconstrained by the structure of a one-firm model,” said Ms. van Walleghem.
According to Mr. Butler, “Given the pace of change within global markets, we must maintain the agility to identify new developments, tap attractive opportunities around the world and deliver advanced solutions while safeguarding client assets. Independence equips us to do all this and more.”
“Lisa, Jim and their team have a strong track record working with institutions and families in Latin America, Europe and around the world on a broad array of complex financial issues. Now, as an independent financial advisory firm, they are well positioned for success in the future as they build out their business. At Dynasty, we are delighted to be partnering with MAXIMAI in expanding our Latin American and international business,” said Shirl Penney, President and CEO of Dynasty.
“One feature that distinguishes the independent wealth management segment is the ability to choose platforms and providers that uniquely meet the client’s needs, which is especially relevant for global clients,” said Javier Rivero, Senior Vice President, International Division at Dynasty. “MAXIMAI recognizes that the independent model is the future for advisors working with global clients that require a truly open platform and we congratulate them on their decision.”
The European Fund and Asset Management Association (EFAMA) in its latest Investment Funds Industry Fact Sheet, which provides net sales of UCITS and non-UCITS for June 2016. 28 associations representing more than 99 percent of total UCITS and AIF assets provided us with net sales data, highlights that:
Net inflows into UCITS and AIF totaled EUR 14 billion, compared to EUR 52 billion in May.
UCITS experienced net outflows of EUR 10 billion, down from net inflows of EUR 41 billion in May.
Long-term UCITS (UCITS excluding money market funds) recorded net outflows of EUR 10 billion, compared to net inflows of EUR 24 billion in May. Equity funds experienced a turnaround in net flows, from net inflows of EUR 3 billion in May to net outflows of EUR 21 billion in June. Net inflows into bond funds decreased from EUR 14 billion in May to EUR 8 billion in June. Multi-asset funds also recorded lower net sales in June: EUR 2 billion compared to EUR 5 billion in May.
UCITS money market funds experienced net outflows of 0.5 billion in June, compared to net inflows of EUR 17 billion in May. Cyclical end-of-quarter withdrawals of money market funds explain this development.
AIF recorded net inflows of EUR 24 billion, compared to EUR 11 billion in May, with all AIF categories recording the same or higher levels of net sales.
Net assets of UCITS decreased by 1.9% to EUR 8,135 billion in June, and AIF net assets decreased by 0.1% to EUR 5,224 billion. Overall, total net assets of European investment funds decreased by 1.2% in June to stand at EUR 13,358 billion at the end of the month.
Bernard Delbecque, Senior director for Economics and Research at EFAMA commented: “UCITS equity funds suffered a severe drop in net sales in June due to the uncertainty created by the UK’s Brexit vote. Interestingly, AIF equity funds and practically all AIF categories saw their net sales increase in June.”
The U.S. Securities and Exchange Commission has allowed BlackRock‘s mutual funds and money-market funds to borrow up to a third of their assets in total – or up to 10 percent of assets without posting collateral.
BlackRock’s “InterFund Program” is an internal program in which funds with excess client redemptions could temporarily borrow money from other BlackRock funds with extra cash.
Other firms such as Vanguard Group and Fidelity Investments have already been allowed to use similar schemes. Besides providing more flexibility, the firm explains that borrowing through the program could be less expensive than using credit lines for the borrowing fund and give higher returns than money market instruments to the lending fund.
In its June application, BlackRock noted that “At any particular time, those Funds with uninvested cash may, in effect, lend money to banks or other entities by entering into repurchase agreements or purchasing other short-term money market instruments. At the same time, other Funds may need to borrow money from the same or similar banks for temporary purposes, to cover unanticipated cash shortfalls such as a trade “fail” or for other temporary purposes.” Specifying that “certain Funds may borrow for investment purposes; however, such Funds will not borrow from the InterFund Program for the purposes of leverage.”
Lord Abbett also filed an application for interfund lending in 2015.
