ING Investment Management (ING IM), which will soon rebrand as NN Investment Partners, has announced the appointment of Hiroshi Kimura as CEO of ING IM Japan.
Kimura joins ING from Alliance Bernstein, where he was managing director client relations and communications and member of the board. Kimura replaces Douglas Hymas, who recently joined BNY Mellon as country head Japan.
Commenting on this appointment, Management Board member Martin Nijkamp said: “With Kimura-San, we have appointed a CEO that brings highly sought-after experience and a business development track record to take ING IM Japan to the next level. His breadth of expertise fits well with our strategic ambitions, and his leadership skills will contribute greatly to ING IM’s growth plans in Japan.”
Foto: Americasroof . Morgan Stanley alerta del robo de información de casi un millar de sus clientes de wealth management
Morgan Stanley began advising certain Wealth Management clients that an employee had stolen partial client data. The Wealth Management employee has been terminated, and law enforcement and regulatory authorities have been advised of the incident, said the firm in a statement.
While there is no evidence of any economic loss to any client, it has been determined that certain account information of approximately 900 clients, including account names and numbers, was briefly posted on the Internet. Morgan Stanley detected this exposure and the information was promptly removed.
Overall, partial account information of up to 10 percent of all Wealth Management clients was stolen -350,000 clients were affected, according to Bloomberg. The data stolen does not include account passwords or social security numbers. The Firm is taking the precaution of notifying all potentially affected clients and instituting enhanced security procedures including fraud monitoring on these accounts.
All impacted clients are in the process of being contacted by the Firm and their Financial Advisors. A dedicated information line also has been established at 855-398-6437 (U.S. and Canada) or 512-201-2186 (outside the U.S. and Canada).
“Morgan Stanley takes extremely seriously its responsibility to safeguard client data, and is working with the appropriate authorities to conduct and conclude a thorough investigation of this incident”.
Knowledge@Wharton, the Wharton School of the University of Pennsylvania’s online research and business analysis journal, in collaboration with The Lauder Institute at the University of Pennsylvania and Momentum, a leading event organizer, has announced it will host a major conference for senior U.S. executives to gain insight into the legal and business challenges of doing business in Cuba as well as to capitalize on the opportunities of tapping into the island’s market.
The conference, titled the “Cuba Opportunity Summit,” will be held in New York City on April 1. It will cover sectors as diverse as tourism, transportation, technology and the knowledge economy, infrastructure, hospitality, agriculture, food, manufacturing and retail sectors. The event will feature leading Cuban and U.S. business experts and academics from Wharton.
The conference will be co-chaired by Faquiry Diaz Cala, President and CEO, Tres Mares Group Inc., an investment firm based in Miami, Florida, and Mauro F. Guillén, Director of The Lauder Institute, and a professor of management at the Wharton School of the University of Pennsylvania. According to Prof. Guillen, “Unleashing Cuba’s potential in the global economy is essential to fostering change from all perspectives, and it will hopefully lead to a more integrated Caribbean region.” Added Mr. Diaz Cala, “This conference promises to help participants better understand the opportunities that lie ahead in light of the recent news.”
The Cuba Opportunity Summit is designed to be a unique learning and networking forum for companies looking to leverage the Cuban market to drive growth. It is expected to attract some 200 senior-level executives and decision makers from across a variety of sectors.
Mukul Pandya, Knowledge@Wharton’s editor-in-chief, who will host the conference, noted: “President Obama’s move to normalize relations with Cuba offers an unprecedented opportunity for North American corporations. Many firms will be considering how to gain a first-mover advantage in this emerging market.”
Ben Greenzweig, Co-Founder and Co-CEO of Momentum added: “We are excited to again be working with Knowledge@Wharton on this latest and most topical iteration in the High-Velocity Growth series of events crafted specifically for senior level decision makers looking for next stage growth in the Cuban market.”
Presentations will focus on providing education and real-world case studies designed to provide a strategic roadmap for entry into the Cuban market.
In addition to keynote presentations, the summit will feature panels and fireside chats as well as extensive time for Q&A, discussion among participants, and networking opportunities.
The summit is hosted by Knowledge@Wharton in collaboration with The Lauder Institute and Momentum.
More information, including details on how to register, is available at this link.
Foto: ChrisCruises. Los fondos de pensiones: elevando la apuesta por los activos alternativos
Pension funds are restructuring for a new investment climate. They are becoming more hands-on in the way they manage their investment portfolios. This proactive approach extends to all aspects of their operations and governance. New research from State Street reveals key trends that are radically reshaping almost every aspect of how pension funds manage their investments and deliver long-term value to their members. One of these trends is a “Big Bet on Alternatives”.
For pension funds, alternative investments have typically constituted a small part of the portfolio. This is changing. Pension funds are finding that a small allocation to alternatives is not sufficient to generate the required growth. This is forcing many of them to place bigger bets on alternatives.
Private equity emerges as a hot area for investment, with 60 percent of respondents anticipating increased allocations into this asset class. A significant proportion of pension funds also say they will invest more in direct loans (54 percent), real estate (46 percent) and infrastructure (39 percent).
Pension funds are also showing a greater appetite for hedge funds. Globally, 29 percent of pension funds that already invest in hedge funds will increase their allocation, while 25 percent will invest in this asset class for the first time. There have been some high-profile withdrawals from hedge funds in recent times. But our research reveals that many pensions will continue to seek out hedge fund strategies with the potential to deliver upside returns.
More than half of pension funds (53 percent) plan to make greater use of low-cost investment strategies. Many are adopting a “barbell strategy,” to blend the cost efficiencies of passive strategies with higher-growth/ higher-risk asset classes such as alternatives. The shift into alternatives may represent a real test of capabilities, as pension funds seek to manage risk and performance across complex portfolios.
To learn more, you may request the report: “Pension Funds DIY: A Hands-on Future for Asset Owners”, through this link www.statestreet.com/vision/assetowners
BlackRock has announced that its iShares business led the global industry by capturing $102.8bn in new flows in 2014, 31% of the record-breaking $330.7bn global exchange traded fund (ETF) market flows.
Growth was driven by the iShares U.S. and European product lines, which continue to be adopted by investors across the globe. The iShares U.S. product line led the way with a record $82.8bn of new assets in 2014, surpassing the previous record for U.S. iShares ETFs of $62.0bn in 2012. In Europe, the business captured $20.3bn in net new flows.
Mark Wiedman, Global Head of iShares at BlackRock commented: “iShares growth this year was driven by two global product lines. Clients from Asia and Latin America continue to use both our U.S. and European ETF suite in record numbers, contributing $19.8bn in net new assets through November 30th.”
“We’re seeing ETFs truly come of age, as more investors around the world recognize and embrace the versatility of these vehicles – whether it’s for their strategic buy-and-hold investments or precision exposures to express a view on virtually any market.
“ETFs have also been discovered by capital market participants, who are using them as efficient substitutes for futures and swaps.”
“Fixed income was a key driver of flows globally, as investors of all kinds increasingly adopt ETFs as an essential instrument for accessing the bond markets. iShares captured $40.3bn globally or 48% of all new flows into fixed income ETFs.”
iShares global AUM exceeded $1 trillion as of December 31, 2014.
Bob Doll desvela sus tradicionales 10 predicciones para el año. 2015 según Bob Doll: Del escepticismo al optimismo
Robert C. Doll, Senior Portfolio Manager, Chief Equity Strategist at Nuveen Asset Management, has released his popular Ten Predictions for the year ahead.
2014 was a year of transition and (mostly) positive surprises: U.S. equities and bonds performed better than most predicted in 2014. The job market surged, consumer and business confidence improved and corporations aggressively put cash to work. Equities experienced double-digit returns, but also endured periods of setbacks, including the first 10% decline in three years. The biggest surprises for 2014 included a further drop in interest rates, a sharp decline in the price of oil and a significantly stronger U.S. dollar. Global economic growth experienced a notable divergence. Europe’s struggles could be tied to still-tentative central bank actions and the impact of Russian sanctions, while emerging economies were hit by falling commodity prices, slow global trade, and selective inflation, credit and liquidity pressures.
“We also believe last year saw several important transitions emerge: U.S. GDP growth from around 2% to the 3% range, core inflation from approximately 1% to 2%, the Federal Reserve becoming slightly less market-friendly and wage gains moving from flat to moderately positive. It also appears to us that we’re moving from an environment where equities and bonds did well to a period in which stocks are likely to advance while areas of the bond market struggle, and from a period of very low to more normal volatility. The phase of the rising tide lifting all boats appears to be ending and investing is becoming more challenging. As such, the importance of security selection will likely increase”, says Doll.
10 Predictions for 2015
1. U.S. GDP grows 3% for the first time since 2005.
2. Core inflation remains contained, but wage growth begins to increase.
3. The Federal Reserve raises interest rates, as short-term rates rise more than long-term rates.
4. The European Central Bank institutes a large-scale quantitative easing program.
5. The U.S. contributes more to global GDP growth than China for the first time since 2006.
6. U.S. equities enjoy another good yet volatile year, as corporate earnings and the U.S. dollar rise.
7. The technology, health care and telecom sectors outperform utilities, energy and materials.
8. Oil prices fall further before ending the year higher than where they began.
9. U.S. equity mutual funds show their first significant inflows since 2004
10. The Republican and Democratic presidential nominations remain wide open.
2015 Outlook
In his view, 2015 is likely to be the year investors transition from disbelief to belief, or from skepticism to optimism.“Sir John Templeton coined the phrase, “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria,” and we believe we are entering the “optimism” phase. This means 2015 should result in another decent year for U.S. equities as we experience (1) solid momentum in U.S. economic growth with low inflation, (2) a pickup in consumer spending, (3) solid earnings growth, (4) a boost from low commodity prices and financing costs and (5) a relatively solid liquidity environment aided by stimulus from non-U.S. central Banks”.
The United States is likely to experience a surprisingly resilient economy in the coming year, Doll says. The consumer sector should strengthen due to better jobs growth, some improvement in real wage gains and a noticeable pickup in confidence. Investment spending is likely to rise, while the government sector should move from a modest economic drag to a net contributor to growth. Halting recoveries in much of the rest of the world will dampen U.S. export growth but keep commodity and interest costs low. Deflation threats in Europe and Japan should start to ease, while China’s economic growth is likely to slow.
Although equities are no longer a bargain, they offer better value than other financial assets and should outperform cash, bonds, inflation and commodities, says Doll.“Core inflation should remain contained, but wage gains will likely increase. The benefits from the decline in oil prices should outweigh the negatives, although the swiftness of the price decline could cause dislocations and credit issues. Other risks include occasional deflation threats, unease associated with monetary tightening and unknown consequences of the significant decoupling in growth between the U.S. and the rest of the world. Even though equities are likely to advance further, the pace of gains that occurred during the massive run-up since the 2009 market low is likely to falter. We are expecting to see average annual returns somewhere in the mid-to-high single digit range. Within the equity market, we prefer mid-cycle cyclicals, companies that can generate positive free cash flow and those with higher levels of domestic earnings”.
JPMorgan Chase & Co. has released “How We Do Business – The Report,” which describes the company’s business practices and standards and reviews how it has addressed recent challenges. The report was initiated in response to a request by a shareholder group led by The Sisters of Charity of Saint Elizabeth.
Specifically, the report highlights efforts the company has been making to re-articulate and re-emphasize its cultural values and corporate standards – with the aim of ensuring that employees internalize these standards and live by them every day. It details many large-scale efforts and investments the company has made to strengthen its control environment through improved infrastructure, technology, operating standards and governance. And it describes the company’s commitment to its customers and to its relationships with regulators, shareholders and communities.
JPMorgan Chase & Co. is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands.
Foto: Doug8888, Flickr, Creative Commons. Smart beta, mercados emergentes y bolsa japonesa: estrategias a considerar en ETFs para 2015
BlackRock has released its ETP Landscape 2014 Year in Review. According to the company, the Global ETP industry AUM has grown 15% to over $2.7 trillion, driven by record inflows and increased adoption of ETFs among investors.
“The global ETP industry continues to grow at a double digit pace as ETPs attract a broader base of global investors than ever before. ETPs are being used by capital market participants looking for deep liquidity, to investors seeking precision exposures, to a growing segment of the market using ETFs as buy and hold investment vehicles,” says Amy Belew, Global Head of ETP Research at BlackRock.
“We are forecasting global ETP assets to double to $6 trillion over the next five years”. The secular trends of increased ETP adoption and market expansion contributed to record flows in 2014 and will be the driving forces behind future growth, according to BlackRock.
“The industry will continue to evolve to encompass new users and new uses. This will include, among others, an expanding retail segment in Europe and greater utilization of fixed income ETPs by banks and insurance companies. The breadth of strategies and exposures offered by ETPs, as well as more extensive cross-border investment brought by the globalization of the industry, should enable further market penetration. Regardless of the investment climate, ETPs are increasingly becoming viable alternatives to individual stocks and bonds, derivatives and mutual funds”.
Themes for 2015
Themes to watch in 2015 include smart beta, emerging markets and Japan equity, all of which remain compelling following notable contributions to 2014 flows.
Assets for smart beta equity have quadrupled since 2008. Investor appetite for tailored exposures not available via traditional market cap-weighted funds has accelerated in the past two years. Flows remained robust in 2014 after surging in 2013. Organic growth for smart beta is 18%, twice that of market-cap weighted equity ETPs.
Improved sentiment for emerging markets equity led to inflows of $4.3bn after redemptions reached ($10.3bn) in 2013. Valuations and economic growth levels remain attractive relative to developed markets. Flows into Japanese equity have reached $13.4bn. Still- attractive valuations and aggressive government stimulus makes this an important investment theme for 2015.
The sector, in 2014
According to the report, global ETP flows have reached $267.9bn through November, surpassing the previous full-year record set in 2012.
Increased adoption among institutions, intermediaries and individuals aided unprecedented expansion in the European and US markets. ETPs in Europe gathered $60.8bn, triple the amount last year, as market penetration increased and ECB bond purchases boosted fixed income flows. Accelerating US GDP growth propelled US-listed ETP flows to a record $193.5bn as demand for US equities and fixed income proved resilient.
Fixed income ETPs set a new record, gathering $78.6bn as appetite for yield and slower than expected global economic growth helped assets swell 21% to $430bn.
Two of Europe’s leading pension markets are about to undergo a dramatic shake-up in the new year with the introduction of ground-breaking reforms. In Italy, Cerulli is expecting an imminent change in the law regulating pension fund investments, and from April 2015, retirees in the United Kingdom will no longer be forced to buy an annuity with their pension funds.
The fourth quarter issue of The Cerulli Edge-Europe Edition takes a close look at these developments, and suggests why they represent an ideal opportunity for asset and hedge fund managers to step in and satisfy an expected increase in demand for strategies and products.
“Law ‘703/96’, which has been in force in Italy for the past eight years, is expected to give way to a new regime, sometimes referred to as ‘new 703’ where risk assessment and management will be at the core of asset allocation,” notes Barbara Wall, Europe research director at Cerulli Associates. “It will impact both ‘open’ and ‘closed’ pension funds, worth a combined €46.5 billion (US$57.9 billion)–or just more than 40% of the total Italian pensions industry–by allowing exposure to asset classes that have hitherto remained ‘out of bounds’, including hedge funds, emerging markets, and commodities. We describe the change as nothing short of an ‘investment revolution’.”
Cerulli associate director David Walker says, “The pension landscape in the United Kingdom is also about to see a profound change as pension savers will soon be at liberty to manage their own finances and seek alternative ways of generating an income in their retirement. Retirees will be looking to insurers to manage their longevity risk and asset managers to deal with their investment risk. As a result, we are anticipating greater demand for multi-asset funds, target-date funds, and an increase in the use of drawdown, which will soon become the mainstream option and not just the preserve of the affluent.”
J.P. Morgan Asset Management and Sonnedix have announced that institutional investors advised by J.P. Morgan Asset Management have joined Sonnedix’s management and shareholders in a new 50/50 joint venture platform company, Sonnedix Power Holdings Ltd., to pursue opportunities in the attractive, rapidly expanding global solar market.
The joint venture platform currently operates 17 power plants with 117MW of installed capacity across France, Italy, Spain, Thailand and Puerto Rico. It also has a portfolio of 18 projects representing over 600MW of projects in pre-construction stages in Japan, Puerto Rico, Chile, UK and South Africa. The joint venture anticipates a total commitment for the operating and development projects of more than €300 million.
Speaking about the partnership, Matt LeBlanc, CIO of OECD Infrastructure at J.P. Morgan Asset Management – Global Real Assets, said, “These are exciting times in the clean energy market and Sonnedix’s experienced management team, highly focused on execution and operations, is well positioned to benefit from the confluence of technology improvements, operational efficiencies and economies of scale. This combination results in a lower cost of solar PV, even with the current energy market volatility, and these operating investments are already generating consistent and growing investment yields supported by long-term contracts.”
Carlos Guinand, Chairman and Director of Sonnedix, said, “As the global solar power industry experiences exceptional growth rates, we are keen to expand further our footprint across multiple regulatory regimes that are at different phases of renewable integration. Our joint venture with J.P. Morgan Asset Management’s clients will be integral in capturing these opportunities and building our platform.”
Pan American Finance, Paul Hastings and Mayer Brown advised Sonnedix in the transaction. Skadden, Arps, Slate, Meagher & Flom acted as legal advisor to J.P. Morgan Asset Management.
