CC-BY-SA-2.0, FlickrFoto: Simon Cunningham
. Los activos en ETFs ligados a índices MSCI alcanzan la cifra record de 418.000 millones
MSCI, a provider of research-based indexes and analytics, reports that assets in ETFs linked to MSCI indexes grew more than 12 percent in the first quarter of 2015, reaching an all-time high of $418 billion. ETF providers launched 56 products based on MSCI indexes during the period, three times more than the next index provider.
The surge in demand from ETF providers for MSCI Factor Indexes continued, with 11 new ETFs launched in the first quarter, two times higher than the next index provider. These new ETFs attracted $4.4 billion in assets, or 31 percent of the total asset flows into that category.
“Following strong growth in the number of ETFs tracking our indexes in 2014, this year is off to a record-setting start,” said Baer Pettit, Managing Director and Global Head of Products. “As the industry grows in size and complexity, we intend to maintain our position as the first choice of ETF providers who are looking for both leading-edge innovation and exceptional quality.”
In first quarter of 2015, ETFs linked to MSCI Minimum Volatility Indexes, the industry’s first low volatility benchmarks, reached a record $13 billion in assets under management; Assets in ETFs tracking the MSCI USA Quality Index surpassed the $1 billion mark; And Global currency hedged ETF assets attracted $28 billion in new assets,with half of those fund flows going to ETFs linked to MSCI Currency Hedged Indexes. There are now 68 currency-hedged ETFs globally linked to MSCI indexes, more than all other index providers combined.
With over 730 ETFs tracking MSCI indexes globally, more ETFs track MSCI’s indexes than those of any other index provider.
When Paris headquartered La Française, a 48€ billion multi-class asset manager, and London-based Inflection Point Capital Management (IPCM), a specialist firm focused on Strategically Aware Investing (SAI) joined forces in early 2014, their objective was twofold:
to create La Française Inflection Point (LFIP), an asset manager specialized in SAI equity funds and
to integrate the SAI philosophy into the investment process applied by LFIP.
Today, they have reached a significant milestone.
Just one year after the signature of their strategic partnership and the creation of La Française Inflection Point, La Française has launched its first line of SAI equity funds, an extensive line covering four geographic regions: Euro, Europe, Emerging Markets and Global, representing close to 1€ billion in assets under management and offering various investment themes (a low carbon theme is work in progress). LFIP and its eight-person international investment team, headed by Laurent Jacquier Laforge (CIO), have successfully transformed the SAI concept into a hands-on and operational investment process. IPCM supplies extra-financial data on over 900 global companies that together with LFIP, they interpret and integrate with traditional financial criteria. LFIP then selects the best in class candidates for each of its funds.
Strategically Aware Investing goes beyond the analysis of traditional Environmental, Social and Governance criteria to include three additional factors that truly reflect a company’s long- term perspectives: innovation capacity, the ability to anticipate and adapt to changing trends, and a company’s positioning relative to existing global trends. With this more comprehensive analysis and the global coverage afforded by both the IPCM and LFIP teams, La Française offers truly sustainable investment solutions to strategically aware investors.
The SAI methodology, developed by IPCM, whose team includes three of the most influential environmental investors, can be applied across all asset classes. La Française and IPCM continue to collaborate on alternative SAI investment solutions and are in the process of fine-tuning an SAI methodology which will soon be applied to fixed income investment funds.
Almost two-thirds of managers polled by Cerulli said they intend to increase their sales efforts in Italy – compared with 37% of last year’s respondents. And 43.2% of managers we surveyed plan to target France – compared with just more than one-fifth of managers polled for last year’s report. More managers than last year also plan to increase sales efforts in Spain and Germany.
Competition in Europe is stiff and managers must be more strategic to sell outside their home market. So asset managers are establishing roots in selected countries.
Franklin Templeton reaped the rewards of setting up branches in Rome, Florence, Milan, and Padua. Net inflows every quarter since have been between €800 million (US$972 million) and €1.5 billion, according to Assogestioni.
“This was a shrewd strategy that paid off,” said Barbara Wall, Cerulli’s Europe research director. “Many foreign managers launched funds in Italy, trying to sell them, either from a distance or by opening a branch in Milan. But sales is a local game and success is more likely if a firm has people on the ground-and not just in Milan,” she added.
By opening branches on target territory managers can develop closer ties and enhance understanding with distributors. This is more effective than making regular presentations as part of a road trip.
Angelos Gousios, associate director with Cerulli in London, and one of the main authors of European Distribution Dynamics 2015: Preparing for a New Era, said: “In our talks with Italian wealth managers they frequently say lack of time hinders theirwork. They do not have time to go to events. Having a branch down the road where they can pop in informally and discussmarket developments over coffee is more attractive.”
Another significant advantage to having a local presence is that a manager can tailor its message according to regional variations in disposable wealth, attitude to risk, and product choices, for example.
This and several other new findings make up the fifth iteration of Cerulli’s European Distribution Dynamics 2015 report.
European Distribution Dynamics 2015: Preparing for a New Era also:
Examines the impact of low rates of return in the French market: Low returns for money market funds and euro-contract investments are gradually pushing French investors out of their liquid positions toward long-term active products.
Assesses the prospects for distribution in Germany: Fund selection centers on risk minimization and potential newcomers must adjust their message to make headway. Striking a deal with key allies in Germany is the best insurance for a newcomer to the market.
In a new white paper, BNY Mellon explores what might happen if four of the world’s largest economies all stopped floundering and started flourishing at the same time. Although the world seems resigned to an era of subdued growth, four giant economies – Japan, America, China and India – are in the midst of recovery, reform, or both.
Under Shinzo Abe, Japan now has its most stable government in almost a decade and a central bank that has twice surprised the markets with its determination to defeat deflation. In Americaunemployment has dropped surprisingly quickly as firms have added jobs at the fastest pace since the dot-com boom. China’sPresident, Xi Jinping, has consolidated power faster than his predecessor with his anti-corruption campaign and staked his personal authority on economic reform. And in India’s 2014 election, Narendra Modi won the first single-party majority in thirty years, promising to restore the country’s economic momentum.
“This is an unusual confluence of events,” says BNY Mellon investment strategist Simon Cox. “The United States is enjoying a durable recovery just as all three of Asia’s big powers boast secure, confident governments committed, at least in word, to economic reform. The region’s stars rarely fall into alignment in this way.”
This combination raises the tantalizing possibility that all four of these giant economies might fulfill their economic potential at roughly the same time. The scenario assumes that Japan’s growth revives to 2 percent a year on average for the remainder of this decade, America’s averages about 3 percent, China’s 7 percent and India’s 8 percent. “This scenario is optimistic, without being utopian,” Cox says. “It’s contrarian, without being crazy.”
If this scenario were to materialize, the consequences would be profound. China, America, India and Japan account for almost 45 percent of global GDP. They consume a similar proportion of global energy and contributed well over half of last year’s global economic growth. BNY Mellon calls them the G4.
The optimistic G4 scenario would add over $10 trillion to the four economies’ combined GDP by 2020. According to an independent modelling exercise by the Economist Intelligence Unit, it would help add $8 trillion to the rest of the world’s GDP outside these four. This would be enough to restore a $100 oil price within three years and lift global food prices by over 40 percent from their level in March 2015. It would help the Nikkei 225 surpass 24,400, the Sensex exceed 45,000 and the S&P 500 reach 3,000 by the end of the decade.
According to Cox, recent economic weakness has left the G4 economies with substantial “slack”. Their GDP has fallen short of their potential, leaving them substantial room to grow without generating unwelcome inflationary pressure. The gap between America’s actual GDP and its potential GDP adds up to a cumulative $5.3 trillion over the past seven years, a waste of resources that is equivalent to shutting down the entire economy for three-and-a-half months.
For BNY Mellon’s G4 scenario to come true, the four economies would all have to perform better than the IMF and many other forecasters now expect. But in most cases, the G4 scenario is in keeping with what the IMF and others foresaw a few years ago. Forecasters have lowered their sights in the past few years in the belief that recent economic setbacks reflect a new trend. Cox believes this is “a little defeatist”. He prefers to view these four economies with undiminished expectations.
“Before the financial crisis, many people thought the rosy status quo would persist indefinitely. Now they’re assuming that the future must be as grey as the present. By taking on the glum consensus and exploring what could happen if the G4 all do well, we want to create a robust discussion that helps investors think through all of the potential scenarios for future growth,” says BNY Mellon Investment Management APAC CEO Alan Harden.
Steve Lackey, BNY Mellon APAC Chairman, notes, “The white papers are intended to be living documents that will reflect the ideas exchanged over the course of the year as we discuss the current challenges and future outlook for the four leading economies in the world.”
. El mayor estímulo del BoJ y el mandato del Fondo de Pensiones gubernamental respaldarán la renta variable japonesa
“Further stimulus from Bank of Japan and Government Pension Investment Fund (GPIF) supportive of stock prices in the near term”, points out Kwok Chern Yeh, Head of Investment Management, Japan at Aberdeen Investment Management K.K. (an affiliate of Aberdeen Asset Management Asia Limited) in this interview.
Is Abenomic working?
So far, the benefits of ‘Abenomics’ have largely been confined to impressive gains in asset prices. This wealth effect has not trickled down to the average Japanese – prices have outpaced wage gains, while job creation has been limited to part-time employment with minimal benefits. Companies remain unconvinced of the need to raise basic wages and capital spending. Nonetheless, an ever tighter labor market means that salaries could go up at a modest pace. Meanwhile, the weakening of the yen via monetary easing from the Bank of Japan has not boosted exports as hoped for. Prime minister Shinzo Abe has a fresh mandate after a victory in last December’s snap elections. However, the jury is out on his ability to deliver on tough reforms in the face of entrenched interests. He has made little progress in overhauling the rigid labor market or in opening up Japan’s uncompetitive industries.
Will Japan, Inc. invest more at home now because of the weaker yen?
While a cheaper currency makes it more cost-effective for companies with overseas revenues to invest domestically, we believe many are unlikely to do so. Firstly, many large corporations – and their suppliers – have moved production offshore to take advantage of cheaper labor costs and to be closer to growth markets. A weaker yen would not justify shifting production back home, especially when demographic trends have not improved.
Secondly, Japan has yet to solve the problem of its long-term energy needs. Its nuclear plants remain shuttered after the Fukushima disaster. While falling global oil prices offer a welcome respite, cheap energy is the exception rather than the rule.
Will a corporate tax cut make a difference?
The Abe administration has proposed a 2.5 percentage point cut to the corporate tax rate, which is expected to take effect in April this year. While that could encourage private investment, the plain fact is that very few companies pay the top rate of tax and 70% of them pay no tax at all!
What’s the outlook for Japan equities?
The Topix index rose 8.1% in local currency terms in 2014, although returns were negative in U.S. dollar terms. Further stimulus from the Bank of Japan and the decision by the country’s pension fund Government Pension Investment Fund (GPIF) to buy more stocks should be good for share prices, at least in the short term. Stocks are fairly valued, trading at forward multiples of around 15 times for Financial Year 2015.
Meanwhile, corporate earnings are expected to grow at a healthy pace, aided partly by the weaker yen – which raises the value of repatriated earnings for companies with overseas revenues – and a one-off boost from falling oil prices. The better use of company cash, in the form of share buybacks and dividends is also supportive of stock prices.
Are you encouraged by recent initiatives to improve corporate governance?
Yes. Corporate governance is improving, albeit slowly and from a low base. Japan has adopted the Stewardship Code, which urges investors to engage management more effectively. Aberdeen was one of the signatories of the code.
Tell us about the portfolio’s exposure to the automation sector.
In light of rising costs in manufacturing hubs such as China demand for factory automation is increasing. Japan is home to some excellent companies, including Fanuc, the world’s largest robot-maker and a leading producer of computer numerical controls.
Keyence, a leading provider of sensing and measuring solutions in factory automation is another name we hold. Another example would be Nabtesco, a producer of precision reduction gears, a key component used in robots.
You seem to favor the consumer goods sector too. Why?
This sector offers a broad range of companies including global automakers Toyota and Honda, Japan Tobacco, a company with a strong track record not only in Japan but
also in Eastern Europe, the Middle East and Africa and baby product-makers Unicharm (nappies) and Pigeon (baby bottles) which are benefiting from growing affluence across Asia.
Name the standout performers in your model portfolio.
Stocks that have done well include medical equipment manufacturer Sysmex and Unicharm, a leading maker of feminine care products and disposable baby diapers. Sysmex’s share price was supported by the strength in its hematology business. The launch of a cell- analysis product in the U.S. fuelled expectations of further gains in its market share. Unicharm’s share price rose 55% in local currency terms in the year to end December on signs of a recovery in its China business. At the other end, the share prices of Japan Tobacco and power- tools maker Makita Corp came under pressure on the back of concerns over their exposure to the Russian market.
What about the small cap portfolio?
Nippon Paint and sports gear maker Asics delivered robust gains in our view. Nippon Paint’s stock price rose following a move to consolidate its joint-ventures across Asia. The paint maker is also expected to benefit from a dip in crude oil prices, a key ingredient for solvent and resin paints.
The share price of Asics went up after it posted solid sales growth and upgraded its full-year earnings guidance. At the other end, property leasor Daibiru’s share price came under pressure after a strong run. Concerns over a tepid recovery in the Osaka market also weighed on sentiment.
What are the advantages of investing in small cap stocks in Japan?
We believe smaller companies tend to be under-researched, and because of their size, have more potential for growth than larger companies. In Japan these differences are magnified: research coverage is often thin – benefiting active managers like us who do our own due diligence – while headline growth rates are often stronger. To us, they’re just as well run as the larger companies, boast robust balance sheets, and many of them are global leaders in their particular fields. We invest in just under 40 companies in our smaller companies portfolio, ranging from consumer names that are domestic and global, to industrial companies that are part of the global supply chain. In our view, smaller companies in Japan have actually outperformed their large cap counterparts in the longer term, although periods of mispricing and illiquidity mean investors must be patient.
CC-BY-SA-2.0, FlickrFoto: Kieran Clarke. El FMI lanza un concurso de fotografía para jóvenes en América Latina y el Caribe
The International Monetary Fund (IMF) has launched a regional photo contest entitled “Latin America and the Caribbean:Through the Eyes of its Youth” for Latin American and Caribbean youth. The contest, which is open to citizens of Latin American and Caribbean countries age 18-30, provides an opportunity for youth in the region to communicate visually the economic and social challenges facing their countries, as well as ideas about how best to build a better future for the region.
Carla Grasso, IMF Deputy Managing Director, announced the launch of the photo contest yesterday during a roundtable event with university students in Lima. “It’s always enlightening and refreshing to engage with young people to learn more about the challenges they see and aspirations they have for the future. The photo contest will be a fantastic opportunity to visualize their perspectives on the region’s economic and social situation and how to improve it,” Ms. Grasso stated.
The contest will accept photo submissions from May 6 to June 30, 2015 and the online voting will run from July 1 to July 31.
Full contest details can be found following this link
Assets in ETFs/ETPs listed in the United States reached a new record 2.132 trillion US dollars at the end of April according to ETFGI’s preliminary monthly global insight report for this month.
The US ETF/ETP industry had 1,703 ETFs/ETPs, from 76 providers listed on 3 exchanges at the end of April 2015.
Record levels of assets were reached at the end of April for ETFs/ETPs listed globally at US$2.998 trillion, in the United States at US$2.132 trillion, Europe at US$511 billion, Asia Pacific ex-Japan at US$125 billion, Japan at US$112 billion and Canada at US$69.9 billion.
“Market performance outside the United States contributed to the overall increase in assets invested in ETFs/ETPs. Developed and emerging markets had a very good month, gaining 5% and 8%, respectively while in the United States the S&P 500 and Dow were up less than 1%”, according to Deborah Fuhr, managing partner of ETFGI.
In April 2015, ETFs/ETPs saw net inflows of US$14.6 Bn. Equity ETFs/ETPs gathered the largest net inflows with US$11.3 Bn, followed by fixed income ETFs/ETPs with US$3.7 Bn, while commodity ETFs/ETPs saw net outflows of US$1.0 Bn.
Year to date through end of April 2015, ETFs/ETPs in listed in the United States have gathered a record level of net inflows of US$72.1 Bn more than double the prior record of US$34.9 Bn set at this time in 2014. Equity ETFs/ETPs gathered the largest net inflows YTD with US$41.3 Bn, followed by fixed income ETFs/ETPs with US$21.8 Bn, and commodity ETFs/ETPs with US$3.2 Bn in net inflows.
iShares gathered the largest net ETF/ETP inflows in April with US$7.7 Bn, followed by Vanguard with US$7.2 Bn, Deutsche with US$4.7 Bn, WisdomTree with US$4.0 Bn and First Trust with US$1.9 Bn in net inflows.
CC-BY-SA-2.0, FlickrJuan Andrés Camus, Chairman, SSE, Aurora Williams Baussa, Chile's Minister of Mining, José Antonio Martínez, General Manager, SSE, and John McCoach, President, TSX Venture Exchange (TSXV). Santiago Stock Exchange and TSX Venture Exchange Celebrate the Launch of a New Venture Market in Chile
Santiago Stock Exchange (SSE) today announced the launch of Santiago Stock Exchange Venture (SSEV), a new public venture capital market for small and early-stage companies in one of Latin America’s largest economies. The announcement was made at a launch event featuring Juan Andrés Camus, Chairman at SSE, Aurora Williams Baussa, Chile’s Minister of Mining, José Antonio Martínez, General Manager at SSE, and John McCoach, President, TSX Venture Exchange (TSXV).
TSXV and SSE entered into an agreement in March 2014 to create a streamlined dual listing process providing companies with access to public venture capital markets in both Chile and Canada. Under this agreement, companies listed on TSXV may choose to list on the new market. SSEV is initially focused on capital formation for small and medium enterprises (SMEs) in the mining sector. The new venture market may expand to other industry sectors at a later stage.
“One of the biggest challenges of Santiago Stock Exchange has been to deepen its position as a solid, diversified, competitive and transparent market that attracts national and foreign investors,” said Mr. Camus. “The launch of the Santiago Stock Exchange’s new Venture Market is part of this strategy. We hope that it will become a viable option for financing early-stage companies and contribute to the growth of the Chilean capital market.”
“TSX Venture Exchange is a leading global marketplace for financing and trading SMEs,” said Mr. McCoach. “The launch of Santiago Stock Exchange, Venture will help entrepreneurs and emerging companies in Chile to grow their businesses, while also providing new opportunities for TSXV-listed companies who choose to access capital in Latin American markets.”
A dual listing on SSEV will allow TSXV-listed companies to not only connect to investors in Chile, but also the investment communities in Colombia, Mexico and Peru through the Latin American Integrated Market (MILA), a program that integrates the capital markets of these countries.
CC-BY-SA-2.0, FlickrFoto: Stéfan. Matthews Asia lanza un fondo japonés
Matthews Asia has announced the expansion of its Luxembourg-domiciled UCITS fund range with the launch of the Matthews Japan fund.
It seeks to generate long-term capital appreciation by investing in the Japanese equity markets.
The fund seeks to achieve its objective by investing in an all-cap portfolio of Japanese companies, many of which are positioned to benefit from growth opportunities in Asia or the improvement in the corporate governance and domestic growth outlook inside Japan.
The Matthews Japan strategy has been available to investors in the US since 1998.
The UCITS fund will follow the same bottom-up, fundamental investment approach and is managed by the same Lead Portfolio Manager, Kenichi Amaki, who is supported by Co-Manager Taizo Ishida and the broader Matthews Asia 40-member investment team.
Kenichi Amaki, lead manager commented: “Japan has been seen by many investors as a ‘large-cap value’ market over the past 15 years, but we view Japan as a long-term, core investment opportunity and, as such, we invest across the market-cap spectrum.
“The portfolio includes lesser-known small-cap companies with strong and sustainable growing domestic businesses relative to many large-cap peers. We also look at Japan in a regional context, paying particular attention to firms that are poised to benefit from the rising income levels in the region and that are tied into the growth of the Asian household.“
Jonathan Schuman, head of Global Business Development adds: “We believe that this is an opportune time for global investors to re-engage with Japan as a strategic portion of their portfolios. Japanese companies are increasingly benefitting from rising levels of income growth and improving productivity levels across Asia.
“The integration of Japan with Asia’s broader economy is a key reason why we are excited about investment opportunities in the Japanese equity market. The addition of the Matthews Japan Fund to our Luxembourg funds platform reflects Matthews Asia’s strategic commitment to delivering our specialist capabilities to retail and institutional investors globally.”
Foto: Geraint Rowland. Toronto, Nueva York, Islas Vírgenes Británicas y Sao Paulo: los mayores centros financieros de Las Américas
The 4thAnnual Private Equity Latin America Forum presented by Marketsgroup will take place this June 8th and 9th at The Harmonie Club in NYC.
The conference is designed to compare private equity investment opportunities in Brazil, Mexico, the Andes and throughout Latin America. The forum will bring together 400+ investors, funds, and advisors for a two day meeting discussing sectors, due diligence, access to capital and the relevant distinctions of emerging markets opportunities.
Speakers include, His Excellency Luis Carlos Villegas, Colombian Ambassador to the United States; David Petraeus, Chairman ofKKR Global Institute; David Rubenstein, Co-Founder & Co-CEO of the Carlyle Group; William Ford, CEO of General Atlantic, Steve Pagliuca, Managing Director, Bain Capital; Donald Gogel, Chairman & CEO of Clayton,Dubilier and Rice; Pedro Grados, CEO of AFP ProFuturo; and Jane Rowe, Senior Vice President-Private Equity of Ontario Teachers’ Pension Plan.
Among the topics, the record amounts of capital that were invested in 2014 in PE across the emerging markets with LatAm representing the most countries receiving this capital. Expectations for this year on track; Infrastructure, natural resources, real assets, agribusiness, timberland and other industry focused discussions prove as highly interesting outlets for PE investment; Investment strategies and tactics such as special situations, middle markets and minority versus control.
For more information or registration, please follow this link.
