Juan Garcia. Juan Garcia se incorpora a Eaton Vance como especialista Offshore
Eaton Vance recently announced Juan Garcia is joining the company as offshore specialist for North and South America, working in concert with Vince Leon, director of offshore sales, to bring timely solutions in varied market environments.
To Eaton Vance, Juan brings more than 10 years of industry experience, most recently with the MFS Offshore team. He previously worked for Fidelity Investments and Suntrust Bank as Financial Representative,and for Easthampton Savings Bank as Customer Service Representative.
Juan Garcia holds an MBA with honors from Jack Welch Management Institute at Strayer University, a Certificate in Financial Planning by Boston University and a BBA, Management, by theUniversity of Massachusetts, Amherst. Originally from Mexico, Juan now resides in Boston with his wife.
Willis Group Holdings and Towers Watson today announced the signing of a definitive merger agreement under which the companies will combine in an all-stock merger of equals transaction. Based on the closing prices of Willis and Towers Watson common stock on June 29, 2015, the implied equity value of the transaction is approximately $18 billion. The transaction has been unanimously approved by the Board of Directors of each company. The combined company will be named Willis Towers Watson.
Upon completion of the merger, terms of which are detailed below, Willis shareholders will own approximately 50.1% and Towers Watson shareholders will own approximately 49.9% of the combined company on a fully diluted basis.
The combination of Willis and Towers Watson brings together two highly complementary businesses to create an integrated global advisory, broking, and solutions provider to serve a broad range of clients in existing and new business lines. The combined company will have approximately 39,000 employees in over 120 countries, and pro forma revenue of approximately $8.2 billion and adjusted /underlying EBITDA of over $1.7 billion for the twelve months ended December 31, 2014.
John Haley, Chairman and Chief Executive Officer of Towers Watson, said, “This is a tremendous combination of two highly compatible companies with complementary strategic priorities, product and service offerings, and geographies that we expect to deliver significant value for both sets of shareholders. We see numerous opportunities to enhance our growth profile by offering integrated solutions that leverage Willis’ global distribution network and superb risk advisory and re/insurance broking capabilities to deliver a more robust set of analytics and product solutions across a broader client base, including accelerating penetration of our Exchange Solutions platform into the fast growing middle-market. We also expect to realize substantial efficiencies by bringing our two organizations together, and have a well-defined integration roadmap to capitalize on identified savings, ensure the strongest combination of talent and practices, and realize the full benefits of the merger for all of our stakeholders.”
Dominic Casserley, Willis CEO, said, “These are two companies with world-class brands and shared values. The rationale for the merger is powerful – at one stroke, the combination fast-tracks each company’s growth strategy and offers a truly compelling value proposition to our clients. Together we will help our clients achieve superior performance through effective risk, people and financial management. We will advise over 80% of the world’s top-1000 companies, as well as having a significant presence with mid-market and smaller employers around the world.”
Transaction delivers key strategic and financial benefits such as powerful global platform for profitable growth; Accelerates growth in exchange market; Expands international profile; Strong financial profile; and highly achievable cost synergies.
Upon closing of the transaction, James McCann will become Chairman, John Haley will be Chief Executive Officer and Dominic Casserley will be President and Deputy CEO. The new company’s board will consist of 12 directors total – six nominated by Willis and six by Towers Watson, including Towers Watson’s and Willis’ current CEOs. Additionally, Roger Millay will be CFO.
Dominic Casserley and Gene Wickes from Towers Watson have been chosen to oversee the Integration
The transaction is expected to close by December 31, 2015, subject to customary closing conditions, including regulatory approvals, and approval by both Willis and Towers Watson shareholders.
Cerulli Associates’report entitled European Fund Selector 2015: Securing a Place on the Buy List has found that buyers value transparency of process above all else-including performance.
Fund selectors told Cerulli that since the financial crisis good communication has become even more important, not just for continuous updates, but also to provide granular information. New research showed that fund buyers ranked investment process as the top factor in selection, followed by access to a portfolio manager. And they ranked performance third on the list.
“A well-run investment house should be transparent and accountable, therefore it should have no qualms about giving access to fund managers, to allow selectors to question their decisions or to clarify market events,” said Barbara Wall, Europe research director at Cerulli and one of the report authors.
But fund managers seem not to have grasped this concern yet and, as they did last year, rated performance as the top prerequisite to win business. They also rated poor fund performance as the primary sacking offence.
And despite access to portfolio managers having gained so much importance for selectors in the past year, this criterion ranks only eighth out of the 11 selection-winning factors that fund managers were asked to rate.
The dissonance between what selectors want and what fund managers think selectors want raises questions: Are fund managers not listening to their clients? Or are selectors not clear enough? Whatever the reason for this divergence in outlook, fund managers must find the best way to bridge the difference.
“Investment management is changing from a box-ticking exercise into a service, making fund managers partners, not just executors of a strategy,” said Angelos Gousios, an associate director at Cerulli and one of the report’s authors. “This change implies more work and the allocation of more resources to client meetings, but it is also a positive development that will lead to higher standards in the market,” he added.
Photo: Hernán Piñera. Itaú Unibanco To Approve the Merger With Corpbanca in Extraordinary General Meeting
Itaú Unibanco last Friday announced that the merger between Banco Itaú Chile and CorpBanca, pursuant to the Transaction Agreement which was disclosed to the market through a notice of material fact dated January 29, 2014, was approved by the shareholders of CorpBanca in the Extraordinary General Meeting held that day.
Therefore, as controlling shareholder of BIC, Itaú Unibanco will approve the Merger in BIC’s Extraordinary General Meeting to be held tomorrow, June 30, 2015.
As previously disclosed, the Merger shall be implemented as a merger of BIC with and into CorpBanca, resulting in an ownership by Itaú Unibanco of 33.58% of the shares of the merged bank.
Considering the approval of the Merger by the shareholders of CorpBanca and BIC, the transaction shall now be analyzed by the competent regulatory authority in Chile, the Superintendencia de Bancos e Instituciones Financieras (“SBIF”). The approval by SBIF shall be in addition to the other necessary regulatory approvals already obtained from the competent regulatory authorities in Brazil, Colombia and Panama, being the involved parties’ intention to conclude the Merger by early January 2016.
The conclusion of the Merger shall benefit the shareholders of BIC and CorpBanca since it means the creation of one of the strongestfinancial institutions of Latin America, with approximately US$ 48 billion in assets, a total credit portfolio of approximately US$ 33 billion and approximately US$ 28 billion in deposits; It will bring together a larger customer service network, with 226 branches in Chile and 172 branches in Colombia; There will be an improvement in funding costs and leverage capacity of Level 1 capital; and there are annual synergies estimated in US$ 100 million before taxes after the conclusion of the integration of the banks.
The Merger is aligned with Itaú Unibanco’s commitments with long-term creation of value and sustainable performance and with its Latin America expansion strategy, consolidating its leadership position in such market, especially by establishing a stronger presence in Colombia’s banking sector.
Foto: Christian Pérez
. El FMI lanza concurso de ensayo para estudiantes de universidades peruanas
The International Monetary Fund (IMF), in collaboration with the government of Peru, has invited undergraduate and graduate students at Peruvian universities to participate in an essay contest on the theme “Shaping Peru’s National Agenda: A Youth Perspective.” The contest, which is open to university students in all fields of study, is an opportunity for youth to articulate their vision for Peru’s emerging national agenda, the challenges that must be overcome in order to realize that vision, and the methods necessary to achieve it. Candidates must structure their essays around one of the following six priority areas for Peru: macroeconomic stability and sustainability, productivity and innovation, education, gender, environment, and infrastructure.
“We are delighted to announce this essay contest for students in Peru, as it provides an important opportunity to encourage youth to engage with issues of importance to their country. Peru has experienced significant social and economic growth in recent decades. However, much remains to be done. It is thus essential for us to understand the perspective of youth on key challenges relating to social and economic policy,” stated Alejandro Werner, Director of the Western Hemisphere Department at the IMF.
The contest is being hosted as part of the “Road to Lima” campaign, a joint initiative between the IMF and the government of Peru leading up to the Annual Meetings of the World Bank and the IMF in Lima from October 9 to 11, 2015.
Entries (which should not exceed 1,500 words) must be submitted by Sunday, August 2, 2015. The finalists will be invited to participate in the Youth Dialogue seminar during the Annual Meetings in Lima in October 2015, and the first and second place winners will also be invited to participate in the Spring Meetings of the IMF and World Bank Group in Washington in April 2016.
Further information on the contest is available at this link
KKR Credit recently announced the launch of a pan-European platform that aims to support banks in managing their exposures to non-core and under-performing assets by improving the performance and value of the businesses which underpin the exposure.
The platform is intended to provide long-term capital and operational expertise to businesses to help them stabilize and grow, creating value for all stakeholders. The platform will be structured so that the participating banks share in the upside of the recovery in performance of the businesses and the value of the related assets on the banks’ balance sheet.
There are €1.9 trillion of non-performing and non-core assets, including €1.2 trillion of non-performing loans, sitting on the balance sheets of European banks. These assets are capital intensive and are ultimately restraining the growth of the banks, companies and economies in which they both operate. KKR Credit’s solution is directed toward helping to unlock bank lending and rebuild companies, supporting local and national economies in turn.
The launch of this platform is a continuation of KKR’s commitment to investing in industry across Europe and will be funded by commitments from certain funds managed or advised by KKR or its affiliates. Since 1996, KKR has invested in more than 100 major companies across industrial sectors in Europe, representing approximately $25 billion in invested long-term capital.
Johannes P. Huth, Head of KKR Europe, Africa and Middle East, said: “This is about supporting banks in managing specific exposures, including non-core and underperforming corporate loans, real estate and shipping. It will allow banks to share in the upside of the recovery in performance and value of those assets over time. It is the combination of our operational expertise and our ability to provide fresh long-term capital to the underlying businesses that allows us to offer this innovative solution to banks. The evolution of bank strategies in response to changing regulation has created a real opportunity for such an approach.”
Mubashir Mukadam, KKR’s European Head of Special Situations, said: “In our Special Situations business, we have substantial experience investing in debt and equity positions and working with companies in need of financial and operational restructuring. With this platform, we plan to continue that successful line of investment. The platform has already commenced work in Italy, working with UniCredit and Intesa Sanpaolo. The banks’ exposures to a selected portfolio of assets selected by the banks and KKR Credit – initially worth up to 1 billion Euros – will be transferred to a vehicle managed by the platform. The Italian platform is built in open architecture allowing other banks to join and include their own exposures. Besides Italy, we are evaluating opportunities in a number of other selected European countries in the near-term.”
OppenheimerFunds recently announced it has fully staffed its team covering Registered Investment Advisors (RIAs), as the firm focuses on further deepening and strengthening its relationships in this critical market.
“RIAs represent a growing and extremely important client segment for OppenheimerFunds,” said Matt Straut, the firm’s Head of the RIA Channel. “We’ve assembled a talented team that has the deep industry experience and client-centric approach to provide RIAs with investment and thought leadership content. This allows OppenheimerFunds to assist RIAs in growing or running a more efficient practice.”
Kyle Najarian and Keith Watts have joined OppenheimerFunds as Senior Advisor Consultants for the West and Southeast regions, respectively. Most recently, Kyle was at Wells Fargo Asset Management, where he was responsible for working with RIAs in their West territory. Keith was at Hatteras Funds, where he worked with advisors across the Southern United States.
Dan Jarema has been promoted to Senior Advisor Consultant from Regional Advisor Consultant, and will be responsible for working with RIAs in the Midwest territory. In addition, Rico Castelda has moved from the firm’s National Division to become a Regional Advisor Consultant on the RIA team, supporting coverage in the Midwest and Southeast regions.
“Matt and his team have the extensive knowledge of the business that enables them to deliver the full range of our resources and capabilities to the RIA community,” said John McDonough, Head of Distribution at OppenheimerFunds.
With the new additions and changes, the RIA team is as follows:
Director of Custodial Platforms Mike Sussman
Senior Advisor Consultants: James Concepcion, Mid-Atlantic; Mike Dennehy, Northeast; Dan Jarema, Midwest; Brian McGinty, Mountain West; Kyle Najerian, West; and Keith Watts, Southeast
Regional Advisor Consultants: Rico Castelda, Southeast and Midwest; Seth Guenther, West and Mountain West; and Matt Trimble, Northeast and Mid-Atlantic
Client Service Manager Izaak Mendelson
OppenheimerFunds, a leader in global asset management, is dedicated to providing solutions for its partners and end investors. OppenheimerFunds, including its subsidiaries, manages more than $240 billion in assets for over 13 million shareholder accounts, including sub-accounts, as of May 31, 2015.
The European Fund and Asset Management Association (EFAMA) has this week published its latest quarterly statistical release which describes the trends in the European investment fund industry during the first quarter of 2015.
The finding include that UCITS net sales surged in the first quarter of 2015 to EUR 285 billion, up from EUR 49 billion in the fourth quarter of 2014.
Long-term UCITS, i.e. UCITS excluding money market funds, also posted a steep increase in net sales during the quarter to EUR 240 billion, up from EUR 53 billion.Demand for bond funds jumped to EUR 77 billion, up from EUR 20 billion in the previous quarter. Net sales of multi-asset funds also posted a strong rise in net inflows during the quarter to EUR 101 billion, up from EUR 19 billion in the fourth quarter. Equity funds registered a turnaround in net sales to post net inflows of EUR 39 billion, against net outflows of EUR 5 billion registered in the previous quarter.
Money market funds posted net inflows of EUR 45 billion in the first quarter, against net outflows of EUR 5 billion recorded in the previous quarter.
AIF net sales amounted to EUR 17 billion in the first quarter, down from EUR 62 billion in the fourth quarter.This reduction in net sales was due to reduced net sales of multi-asset funds (EUR 21 billion compared to EUR 39 billion in the fourth quarter) and net outflows from equity funds during the quarter EUR 14 billion, compared to net inflows of EUR 2 billion in the fourth quarter. Institutional net sales increased to EUR 54 billion, up from EUR 44 billion in the previous quarter.
European investment fund assets posted growth of 12.6 percent during the first quarter of 2015 to stand at EUR 12,663 billion at end March 2015. Net assets of UCITS increased by 15.4 percent to stand at EUR 8,277 billion at end March 2015, whilst total net assets of AIFs increased by 7.8 percent in the first quarter to stand at EUR 4,387 billion at quarter end.
If we look at Net Sales by Country of Domiciliation, twenty-two countries registered net inflows in the first quarter of 2015, with six countries recording net inflows greater than EUR 10 billion.Luxembourg attracted net sales of EUR 117 billion during the quarter, registering large net inflows across fund categories. France followed with net sales of EUR 66 billion and Ireland posted net inflows of EUR 49 billion. Elsewhere, large inflows were posted during the quarter in Spain (EUR 16 billion), Switzerland (EUR 12 billion) and Italy (EUR 11 billion). Of the other large domiciles, the United Kingdom registered net outflows of EUR 9 billion during the quarter, primarily on account of large net outflows from equity funds (EUR 8 billion). Germany registered net inflows of EUR 8 billion during the quarter.
And regarding Net Assets by Country of Domiciliation, Twenty-five countries recorded growth during the quarter as net assets of UCITS reached EUR 8,277 billion at end March 2015. Of the largest domiciles, both Luxembourg and Ireland posted net asset growth of 14.6 percent during the quarter. The United Kingdom posted growth of 22.4% during the quarter. The appreciation of the pound sterling during the quarter vis-à-vis the euro of 6.6 percent played a role in the large growth of assets in the United Kingdom. France registered net asset growth of 16.8%, followed by Germany (12.3%). Elsewhere, large net asset growth of 17.7 percent was recorded in Switzerland and Spain during the quarter. Belgium also registered strong net asset growth of 17.5 percent. In Southern Europe, Italy posted net asset growth of 10.5 percent, followed by Portugal (9.3%). Greece registered a decrease in net assets of 4.9 percent during the quarter. Net assets of UCITS in Malta posted a decrease of 8.2 percent due to large net outflows from a fund during the quarter. In the Nordic region, net assets in Norway rose 13.4 percent, followed by Finland (12.6%) and Denmark (9.0%).
This report introduces a distinction between UCITS and Alternative Investment Funds (AIFs) which is based on the specific regulatory requirements of the UCITS and AIMF Directives. The new classification of EFAMA took effect from and including Q4 2014.
Photo:Tax Credits
. The Biggest Pension Policy Challenge Faced by Latin America and the Caribbean Is Low Coverage of Formal Pension Systems
The biggest pension policy challengefaced by most countries in Latin America and the Caribbean (LAC) today is low coverage of formal pension systems, both in terms of the proportion of workers participating in pension schemes and the proportion of the elderly receiving some kind of pension income. Efforts to close the coverage gap, for example, through non-contributory pensions, are therefore at the heart of the pension policy debate in the region. However, these policies might pose significant fiscal challenges in the next decades as the population ages.
The OECD, the World Bank and IDB have published “Pensions at a Glance: Latin America and the Caribbean” and the key findings show active coverage is low, the type of employment is key, older people will have to rely on incomes from other than contributory pensions. The conclusion is that workers should be integrated into the contributory systems to boost pension savings and ensure pension adequacy.
Active coverage, i.e. contribution payments of workers to mandatory pension schemes, is low in LAC countries.On average in the region, only 45 in 100 workers are contributing to or affiliated with a pension scheme, a share that has not changed much in the last decades, despite significant structural pension reforms. However, some countries have expanded the share of individuals aged 65 or older receiving pension benefits, mostly by means of non-contributory pensions and special regimes for the self-employed.
The low level of contributions to pension schemes reflects a series of socioeconomic characteristics, notably education, gender and income. Educational attainment has a significant impact on the likelihood of contributing to pension systems: more educated workers are more likely to contribute than less educated workers. Gender is also important as the average labour force participation rate for women in LAC is 56% compared with 83% for men. The gender gap ranges from 20% in Bolivia, Chile, Jamaica, and Uruguay to 40% in Guatemala, Honduras and Mexico. Finally, income differences between households also have an important impact. Workers in the highest quintile of the income distribution have relatively high rates of contribution, while low-income workers rarely contribute to pension schemes. Only 20 to 40% of the middle-income workers contribute to pension schemes, making them particularly vulnerable to old age poverty risks.
A key determinant of pension coverage in LAC is the type of employment. On average, 64 out of 100 salaried workers contribute to a pension scheme in LAC compared to only 17 out of 100 self-employed workers. The size of the firm also matters. In big firms with over 50 workers, 71% of salaried workers contribute, compared with 51% in medium-sized firms (with 6 to 50 workers) and 24% in small ones (with fewer than six workers). Frequent transitions between formality, informality and inactivity generate very significant contribution gaps in workers’ careers in LAC, which will put the adequacy of future retirement incomes at risk. In almost all systems, incomplete contribution histories result in lower pension entitlements, or even ineligibility, which means that both the size of these contribution gaps and their distribution over time need to be examined.
A large share of older people in LAC will have to rely on other sources of income than contributory pensions, such as work income, assets such as housing, transfers, social pensions and informal family support. Household structure, an important factor for thewell-being of the elderly, shows that poorer older people are more likely to be living with afamily member. Most of the elderly poor in the region live in multi-generationalhouseholds suggesting that their welfare is closely tied to that of their family. Thelong-term trends of increased urbanisation and lower fertility will likely weaken these tiesin the future, which will make access to the formal pension system more important.
The role of social pensions in LAC is expanding and, in some countries, they are already a major element of the pension system. These programs have taken various forms with varying outcomes across countries. In terms of coverage and relative generosity, social pensions are most important in Guyana and Bolivia, followed by Venezuela and Brazil.
In sum, a two-pronged approach will be needed in order to deal with the coverage gap. It is important to increase formal labour market participation, especially for women, so that people can build future pension entitlements in their own right. To the extent possible, workers should be integrated into the contributory systems to boost pension savings and ensure pension adequacy. At the same time, the role for non-contributory (social) pensions is increasing throughout the region and can be a powerful tool for improving the economic well-being of the elderly. These programs should be assessed both from the perspectives of adequacy and financial sustainability as well as how they interact with other elements of the social protection system, including social assistance and contributory pensions.
OECD (2014), “Executive summary”, in OECD/IDB/The World Bank, Pensions at a Glance: Latin America and the Caribbean, OECD Publishing, Paris. Link to summary.
Laurent Auchlin, head of open architecture and executive vice president at Geneva-headquartered private bank Lombard Odier has announced his resignation.
Auchlin lead a 15 person strong team in managing a long-only fund and a fund of hedge funds, managing assets in excess of €7bn for private and institutional clients as well as family offices. His key responsibilities included manager selection, portfolio construction and asset management.
He has been with Lombard Odier for 15 years, starting off in 2000 as deputy head of fund research and multi-management before being appointed to head of open architecture in 2008. Prior to that, he worked as portfolio manager for Credit Suisse.
Philippe Baumann, deputy-head of open architecture has taken over his responsibilities on an ad-interim basis.
