Internacional archivos - Page 347 of 532

Fitch Ratings: Large Private Equity Managers Flex Remediation Muscles

Large private equity firms are increasingly flexing their scale, balance sheets, restructuring experience and connections with creditors and limited partners to tighten control and enhance return potential on investments, says Fitch Ratings. Recent examples include Apollo’s and TPG’s decision on Jan. 15 to voluntarily place the largest operating subsidiary of Caesars Entertainment Corp. into a Chapter 11 bankruptcy and KKR’s follow-on private placement investment in First Data Corporation last June.

While such activities can bring creditors’ competing interests to the forefront, they also underscore the fiduciary responsibility of alternative investment managers to maximize returns for their limited partners through all available means. To the extent that managers are able to translate these activities into enhanced returns (or minimized losses) it can serve to support future fundraising and the overall franchise, both of which are important rating considerations when assessing investment managers.

In the Caesars case, Apollo has deployed aggressive tactics in an effort to retain control despite minimal recovery prospects for the most junior creditors. Maneuvers have included the sale of assets to affiliates at attractive multiples, repaying junior intercompany debt at par and the release of parent company guarantees of the debt at the weakest subsidiary. Apollo’s reputation and long track record of achieving outsized returns on distressed-for-control situations has helped drive the managers’ efforts and built some consensus among creditors. However, others among Caesars’ creditors have aggressively pushed back, so further legal and court action is possible.

Fitch believes that the largest private equity firms have also become more willing to use their balance sheets as a strategic advantage. This was demonstrated with First Data last year, when KKR itself committed part of the funding for a follow-on $3.5 billion investment in the portfolio company it originally bought in a 2007 LBO. KKR made its investment through a combination of $500 million from its 2006 Fund, $700 million from its own balance sheet, and $2 billion in co-investments from third-party investors. Such maneuvers, while demonstrating flexibility, create the type of balance sheet concentration that can constrain a private equity firm’s rating, or, in a scenario where the investment becomes degraded, potentially pressure the rating.

The Caesars and First Data examples show that as large private equity firms have grown their balance sheets and connections with large limited partners that are increasingly interested in co-investment opportunities, there is greater access to investment capital to weather downturns and improve capital structure positioning for IPOs.

In both the Caesars and First Data examples, private equity’s long investment cycle is providing the time to work through challenges, wait out market declines and achieve the debt reductions necessary to improve the prospect of achieving targeted returns on invested capital.

Wunderlich Completes Acquisition of Dominick & Dominick Wealth Management

| For Fórmate a Fondo | 0 Comentarios

Wunderlich Securities has completed its acquisition of the wealth management assets of Dominick & Dominick, a privately-held investment firm based in New York. Wunderlich, a leading full-service investment firm headquartered in Memphis, Tennessee, now has more than $10 billion in client assets under administration and 600 associates in 33 offices across 18 states. Approximately 150 Wunderlich associates are based in the New York area, the largest concentration in the firm’s footprint.

“We are pleased to have successfully completed our largest acquisition to date, both in terms of client assets and associates,” said Gary Wunderlich, Wunderlich CEO. “Through this combination, our firm has grown by approximately 20%, adding 43 financial advisors and more than $2 billion in client assets. Looking forward, we are excited about the opportunity to further expand our presence in New York, Miami and Atlanta.”

“After working together to prepare for this acquisition, we are even more confident that our similar cultures and shared focus on client relationships will ensure a smooth transition for Dominick & Dominick clients,” added Wunderlich. “Dominick & Dominick financial advisors are now able to offer their clients additional resources and expertise available through Wunderlich.”

Dominick & Dominick (D &D) will operate as a division of Wunderlich Wealth Management, the firm’s private client group. Robert X. Reilly, who was chief operating officer of D &D, joins Wunderlich as a Senior Managing Director. Reilly will serve as regional manager over D &D offices in New York, Atlanta and Miami, as well as two existing Wunderlich Wealth Management offices in the New York area.

Kevin McKay, previously D &D CEO, has been named General Counsel of Wunderlich Securities. Michael J. Campbell, former D &D chairman, will join the Wunderlich Securities board of directors. Both will continue to be located in the D &D New York office at 150 East 52nd Street.

Terms of the transaction were not disclosed. Keefe, Bruyette & Woods, Inc. served as Wunderlich’s exclusive financial advisor in the transaction. Baker Donelson served as counsel.

The 9th ALFI Real Estate Investment Fund Survey: Growth Continues for Luxembourg Domiciled REIFs

| For Alicia Miguel | 0 Comentarios

The Association of the Luxembourg Fund Industry (ALFI) has released the 2014 version of its annual real estate investment fund (REIF) survey, showing the development of the Luxembourg-domiciled REIF market as at the end of 2013.

According to the survey, 2013 was a good year for Luxembourg domiciled REIFs. 15 new Direct REIFs were launched, slightly down compared with 25 launches in 2012. Early signs for 2014 are very positive, with an additional 15 Direct REIFs launched in the first six months, bringing the total of Direct REIFs surveyed to 237, with an additional 40 Funds of Real Estate Funds completing the total survey population of 277 funds.

Marc Saluzzi, Chairman of ALFI, observes: “The sector has grown 276% since 2006, a compound annual growth rate of 21%. The continued growth in the number of REIFs in Luxembourg demonstrates that Luxembourg remains a favoured location to establish and maintain multi-national and multi-sectoral regulated real estate investment funds which continue to appeal to institutional investors and fund managers around the world.”

He continued: “The introduction of the AIFMD has impacted REIFs and the slight slowdown followed by an acceleration were expected. We believe Luxembourg continues to appeal to the global REIF industry as a domicile, as it combines investor protection with well-established industry practices at a reasonable cost.”

Key findings of the survey include:

Almost all of the new REIF launches were initiated by initiators in Europe with Benelux, German, and Swiss initiators again being the most active;
The most common target sector is still‘multi-sector’, with, 57% of the surveyed REIFs investing in a variety of sectors, with a preference for ‘office’ at 27% and for ‘residential’ at 21% in 2013. 30% of early 2014 launches, meanwhile, were in the more traditionally preferred ‘retail’ sector.
A single country investment focus still represents only 41% of the geographic investment strategies. This is a rise compared with 27% and 35% in the 2012 and 2013 ALFI REIF Surveys and supports a move toward simplification, but nevertheless underlines the suitability of Luxembourg investment vehicles for multi-national investments. The vast majority of the Direct REIFs surveyed invest in Europe, whereas eight funds invest in the Americas only and eleven in the Asia/Pacific region;
Although umbrella fund structures remain popular due to practical and cost considerations, the trend over the last few years has been towards a simplification of structures and strategies; as indicated by 64% of the funds surveyed having a single compartment structure.
In total 70% of Direct REIFs are closed-ended, reflecting the inherent illiquidity of real estate as an asset class and the difficulties of achieving investor liquidity on demand;
Similar to the findings of the previous two ALFI REIF surveys, average fund sizes continue to decrease, with the most common net asset value range between EUR 100 and 200 million and with the most common gross asset value range between EUR 400 and 800 million. Funds are becoming smaller, which reflects the more cautious capital raising forecasts of 2014 and preceding years.While target gearing is down in most of the ranges, the results are mixed, indicating some optimism in relation to the ability to borrow.
Investors are predominantly European, but a significant number also come from the Americas, Asia and the Middle East. Direct REIFs are widely distributed (but with a focus on specific geographical areas), with only 27% limited to a single country, and 24% being sold in more than six countries. The growing trend toward wider distribution confirms the global appeal of the Luxembourg real estate investment vehicles, especially those set up under the Specialised Investment Fund (SIF) regime, which has accounted for all new launches over the last 30 months;
Luxembourg domiciled Direct REIFs and funds of REIFs are mainly used for small groups of institutional investors, with 84% having less than 25 investors. Only 2% reported having more than 100 investors.

Luxemburg Real Estate Investment Fund (REIF) Survey can be downloaded here.

Managers from Boston Partners, Western Asset or JP Morgan, among the Morningstar Fund Managers of the Year for 2014

| For Alicia Miguel | 0 Comentarios

Morningstar announced last week the Morningstar Fund Managers of the Year for 2014., for the U.S domestic market. Morningstar gives awards in five categories: domestic-stock funds, international-stock funds, fixed-income funds, allocation funds, and alternatives funds.

The awards recognize managers who have not only just completed outstanding years but have tacked on a winning year to their already stellar long-term track records.

Beyond their 2014 outperformance and topnotch long-term records, this year’s winners share several important traits. “Two are repeat winners from a decade or more ago, truly an indication of the long-term excellence we like to reward. Several are closed to new investors, which we routinely view as a positive move to ensure the best outcomes for existing shareholders. Given their excellent records, all of these closed strategies could easily garner more assets by remaining open, but at the risk of lowering investor returns. Our winning managers also tend to invest alongside shareholders, another element that we see as helping ensure successful outcomes for investors. Finally, not a single winner this year is a solo manager, and several winners are rather large teams of managers, reflecting the fact that more and more funds today are team-managed. In reality, even single-manager funds are generally the work of many”.

Domestic-Stock Fund Manager of the Year: Theo Kolokotrones, Joel Fried, Al Mordecai, Mohsin Ansari, and James Marchetti

Funds: Primecap Odyssey Aggressive Growth, Primecap Odyssey Growth, Primecap Odyssey Stock, Vanguard Capital Opportunity, Vanguard Primecap Core, and Vanguard Primecap. The team from Primecap has gained fame and fortune for itself and shareholders by subadvising Vanguard Primecap for the past 30 years and Vanguard Capital Opportunity for the past 20, and advising three direct-sold Primecap funds for the past decade. The funds are all variants of the same patient contrarian growth strategy, which is based on finding stocks with great long-term growth prospects at discount prices and being willing to hang on to them until the market recognizes their worth. This publicity-shy team quietly goes about its business, with each manager handling his own sleeve of the portfolio, and some senior analysts also getting smaller sleeves to run. Because they all hew to the same investment philosophy, the overall portfolio often has significant sector or industry overweightings, but those result from independent decisions made by different managers rather than a single decision to place a big bet in one area of the market.

International-Stock Fund Manager of the Year: Dodge & Cox International Investment Policy Committee

Funds: Dodge & Cox International Stock (DODFX). Dodge & Cox has rolled out only six strategies since it opened its doors during the Great Depression. Each fund is run collaboratively by an investment-policy committee, including this one, and some members of this nine-person team also serve on the committees that direct other Dodge & Cox funds. Those funds, like this one, have put together impressive long-term records. The managers on the International Investment Policy Committee are highly experienced, to say the least. Every member of the team has been at the firm for more than a decade, and the average tenure is 24 years. Most have also spent their entire careers at the firm. The team won this award back in 2004 with five of the current nine members.

Fixed-Income Fund Manager of the Year: Ken Leech, Carl Eichstaedt, and Mark Lindbloom

Funds: Western Asset Core Bond and Western Asset Core Plus Bond. This year’s fixed-income award winner is a comeback story. The team underperformed during the financial crisis, revealing some flaws in its credit research, ineffective risk oversight, and poor communication between the firm’s macro and fundamental research teams. Since then, a number of improvements have been made to the investment process and risk management, and resources have been strengthened across the board. From 2009 through 2014, the team has guided both funds to topnotch records. Western Asset Core Bond and Western Asset Core Plus Bond land in the top quartile of the intermediate-term bond category for the trailing five- and 10-year periods ended Dec. 31. This is a great example of managers who learned something from a crisis, addressed the problems, and moved forward successfully.

Allocation Fund Manager of the Year: Anne Lester and Team

Funds: JPMorgan SmartRetirement Target-Date Series. This is the first time they’ve recognized a manager of a target-date series. As the investment vehicle of choice (or by default) for retirement-plan savers, target dates are now the largest type of allocation funds, with more than $700 billion in assets and around $50 billion of inflows last year.

Anne Lester has led the JPMorgan SmartRetirement team since the series inception in 2006, and most of the fund’s managers have spent their investment careers at J.P. Morgan. That stability has helped the series successfully blend all the key elements of target-date management: the glide path, strategic allocation, manager selection, and tactical positioning. The series’ glide path is more conservative (lighter in equities) than its peers’, but that decision is based on extensive research on J.P. Morgan’s plan-participant base. Lester and team also emphasize greater diversification than many of their peers, with the allocation including stakes in REITs, high-yield bonds, and commodities. For manager selection, Lester and team screen potential underlying funds for factors such as expected alpha, correlation between strategies, and fees. J.P. Morgan’s fund universe is of varying quality, but the team has done a commendable job selecting consistent performers from that lineup, mixing fundamental and quantitative strategies and otherwise seeking to combine funds that don’t correlate strongly. The team makes tactical moves at the margins that have, in general, added value.

Alternatives Fund Manager of the Year: Robert Jones and Ali Motamed

Funds: Boston Partners Long/Short Equity. It probably comes as no surprise that we don’t have a very big universe of alternatives managers that have Morningstar Analyst Ratings of Gold, Silver, or Bronze. That’s because most mutual funds that pursue alternative strategies have relatively short records. This year’s winner, however, is one of the longest-tenured managers in the alternative mutual funds space. Robert Jones took over Boston Partners Long/Short Equity fund in 2004, when the strategy was overhauled to its current approach. Ali Motamed, a longtime analyst on the fund who has worked with Jones for more than a decade, was promoted to the named management team in 2013.

NewAlpha AM Raises $250 Million in Seed Capital for Long-Only Strategy

| For Alicia Miguel | 0 Comentarios

In the wake of the convergence between mainstream and alternative asset management, NewAlpha AM expands the scope of its activities beyond Hedge funds to Long Only Equity funds. The success of this new orientation is marked by 250 million dollars in capital fund raising from 12 institutional investors, several among the largest and most influential in France, for the closing of the Long Only Equity sub-fund of “Emergence”, the major French seeding platform.

For its Long-Only Equity strategy (sub-fund of French SICAV “Emergence”, created at the initiative of Finance Innovation and with the support of the French Asset Management Association (AFG) and Paris Europlace, and currently closed to new subscriptions), NewAlpha AM selected two innovative and promising asset managers for their potential to deliver higher returns, and injected 90 million dollars in acceleration capital. In doing so, NewAlpha AM lowers entry barriers for institutional investors.

Focus AM

Founded by Frédéric Motte and Jérôme Archambeaud in 2011, Focus Asset Managers (AM) is specialized in value investing and concentrates specifically on the consumer goods, manufacturing and services sectors (all caps). Focus AM’s flagship fund manages 150 million dollars in AuM and has one of the best 10-year track-records in its category.

Financière Arbevel

Jean Baptiste Delabare and Sébastien Lalevée, specialized in European and French equities respectively, took over Financière Arbevel in 2009. In just five years, the asset management firm has grown exponentially, going from 30 to 300 million euros in AuM. Its all-caps equity fund was awarded a Lipper Fund Award 2014 – French equities category, in recognition of its management over the last five-year period.

The remaining 160 million dollars in dry powder will be invested over the course of 2015.

Philippe Paquet, Managing Partner at NewAlpha AM, says “For a number of years now, NewAlpha AM has been among the leading platforms in the hedge fund arena. We absorbed Next AM in 2013 and focused our efforts in 2014 on consolidating our business model. In 2015, we intend to build on our skill set and develop business globally. We are witnessing a clear demand for investment solutions at the crossroads of private equity, absolute return and long only investing. Going forward and to leverage our new capabilities, we are going to diversify into pure Private Equity and launch at least one fund in 2015.”

Neuberger Berman Opens Office in Bogotá, Firm’s Second in Latin America

| For Fórmate a Fondo | 0 Comentarios

Neuberger Berman has announced the opening of a new office in Bogota, Colombia.

Bogota is Neuberger Berman’s second location in Latin America, following the opening of an office in Buenos Aires, Argentina in 2011. Mauricio Barreto will head the office and continue to lead the firm’s client efforts in Colombia, working closely together with Maximiliano Rohm, who oversees the firm’s efforts in Latin America. Mr. Barreto will be supported by Ana Maria Roa Sarmiento and together they will service the local investment community.

“We have been working closely with Colombia’s sophisticated institutions for a number of years and want to further express our commitment to the region by establishing this local presence,” Dik van Lomwel, Head of EMEA and Latin America, said of the new office.

With the new office in Bogota, Neuberger Berman is now based in 18 countries globally. Demonstrating a growing international presence, 25% of the firm’s clients are outside the U.S. and its range of UCITS funds available to non-U.S. investors total $17.3 billion invested in equities, fixed income and alternatives strategies.

Investors will Move out of Armageddon Mode and Focus on the Massive Benefits of a Lower Oil Price

| For Fórmate a Fondo | 0 Comentarios

There are certain things that the month of January is traditionally noted for. Post the excesses of the Festive Season, the de rigeur New Year fitness regime. For those who enjoy such things, a half-decent pantomime, none of which would be complete without the presence of an arch villain and, of greater importance to the investment community, a fund manager’s outlook.

The performance of UK equities has not been without its own drama of late. We’re reliably informed that the UK stock market has seen its worst start to the year since 2008. For those needing a gentle reminder, that coincided with the start of the world’s financial crisis. And yet, seven years on and the world is a different place, slowly but surely continuing to heal, with central banks still having to be incredibly supportive.

So which arch villain has been responsible for spooking the markets this time? Look no further than the plunge in the oil price. In early December I noted that the rapid demise of Brent Crude could lead to it going to an almost unthinkable (at the time) US$ 50 a barrel or below, a near halving in six months. Now we are at that level, and for those who are wondering where we go from here, the honest answer is that it doesn’t really matter.

The Saudis have set in motion what they want to achieve. Sooner rather than later investment by the Canadians, Americans and others will result in the higher cost, and more unconventional areas of extracting oil, notably oil sands in Canada, shale projects in the US and deepwater drilling projects in the Gulf of Mexico and elsewhere, being abandoned.

The market is rightly searching for casualties and there are already obvious candidates. The most identifiable are the oil majors, suppliers to the oil industry, some sovereigns and lenders to all of the above. The presence of hedging contracts could delay the pain somewhat, so the real impact on company cashflows will take several months to come through. But casualties there will be.

Yet, at some stage, investors will move out of Armageddon mode and focus on the massive benefits that will accrue from a lower oil price. Western consumers and Western corporations, as well as the Asian economies of China and Indonesia will be amongst the immediate beneficiaries. Already economists are busy constructing models, trying to quantify the benefits. In the US, for example, the advantage of an average earning American doing average mileage should equate to a 2% pay rise as a result of the falling oil price. (Hands up who knows if such a person actually exists).

Let’s not forget the massive benefit a falling oil price has on Europe. All eyes at the moment are on Mario Draghi, I remain deeply sceptical over the impact of indiscriminate bond buying on loan demand. Much more quantifiable are the benefits of a falling oil price, coupled with ongoing weakness in the euro. These two factors could really help growth in the eurozone towards the second half of the year. Watch this space.

And so to the UK. While the momentum of growth is slowing here, the labour market is still supportive and further falls in inflation beneficial. Electoral uncertainty inevitably exists and already appears to be taking its toll on corporate confidence, as evidenced by Deloitte’s quarterly poll of UK CFOs. As a result the UK stock market is likely to be stuck in a trading range for the first half of the year, with sterling drifting gently towards £/US$ 1.40, clearly helpful for overseas earners.

The stiffest headwind in the US, apart from the more obvious stretched valuations and impacts of a stronger dollar on US corporations, is history. The US stock market has risen for six consecutive years now. The odds of that becoming seven are heavily stacked against it. But then again we have to keep on reminding ourselves that we are not in a ‘normal’ stock market cycle. All the academic studies indicate that post a financial crisis, the ‘normal’ economic timeline goes out of the window. Forget the six to seven year cycle. We’re told it could be 15, or possibly even 20 years, before the healing process has restored us to a more familiar world.

And what of the bond market? Just why were so many of us caught out by its direction in 2014 and for the first few weeks of 2015? Well, the answer could simply be that it continues to be a deflation hedge against the uncertain global growth outlook and the continuation of its role as a safe haven asset.

So where does this leave us? We’ll need to see global broadening and strengthening of profits growth. The aforementioned headwinds are likely to act as a brake on profits for the first half of 2015. The second half of 2015 however is shaping up to be more promising in this respect, with earnings growth essential for any share price progression. In essence, more of the same. More healing, certainly more volatility, but probably more progress.

Opinion column by Richard Buxton, Head of UK Equities, Old Mutual Global Investors

JK Capital Management: 2015 May Be a Lot More Fundamental Analysis Driven

| For Alicia Miguel | 0 Comentarios

The past year will remain as one of the most difficult years we ever had to deal with highly macro driven markets. JK Capital Management thinks 2015 may be a lot more fundamental analysis driven.

“There is in China a very palpable sense of optimism floating around. Despite the economy slowing down and macro numbers all pointing to the same direction, president Xi Jinping managed to convince most Chinese that he was the right person to handle the task of reforming the economy”, highlights the firm.

“His fight against corruption is certainly his most high-profile achievement. Nobody seems to be above the law, not even Ling Jihua, the right arm of former president Hu Jintao, or Zhou Yongkang, the former Minister of Security and the first member of the Standing Committee of the Politburo to be arrested since Mao’s wife in the late seventies. His handling of difficult matters such as the growth of shadow banking and local government debt won him praise. By liberalizing interest rates for institutions while gradually opening up the capital account of China, he turned the Chinese bond market into the third largest in the world, at roughly USD5.3 trillion. Private companies like Alibaba and Tencent are now global giants in the world of e-commerce and have been allowed to grow exponentially despite the sensitive nature of anything related to the internet in China. By creating in October the Asian Infrastructure Investment Bank with 20 other countries of Asia and USD50 billion of initial capital, China set up a platform to handle some of its overcapacity issues: It will help finance the infrastructure needs of its neighbors while selling its products and expertise overseas”.

In 2015 JK Capital Management anticipates the reform of State-Owned Enterprises to become less of a concept and more of a reality. “We see the Chinese government pushing companies to become global players. The most recent example was the merger of its two largest train makers to create a global leader almost three times bigger than its closest foreign competitor, Bombardier Transportation of Canada. In the technology space, we foresee a push in Near Field Communication, as part of new technologies promotion, the technology that allows contactless micropayments through mobile phones, as well as subsidies aimed at the development of hi-tech foundries able to compete with the Taiwanese and Korean leaders. Companies like ZTE, Huawei and Lenovo will make further headways in global markets be it in telecom equipment, servers or handsets against renowned leader”s.

At a time when macro numbers are not particularly inspiring, they believe China has the appropriate leadership and the required tools to sail through this transition phase. And, summing up, in 2015, they see opportunities in companies benefitting of SOE (state-owned enterprises) reform; in the rising global leaders from China and in the companies with key technologies.

In Asia, they remain cautious about Thailand. “Despite the support given by the population to the military junta, the new government has achieved very little last year. Going forward, we believe the military government will continue to disappoint by failing to deliver the growth needed”.

In Indonesia, the newly elected president has had a strong start by implementing sensible policies such as cutting fuel subsidies and reducing the fiscal deficit while he managed to gather almost half of the parliament around him. “We believe he will keep on delivering in 2015, giving upside potential to the rupia”h.

They continue to like the Philippines’ macro picture, although we are mindful of expensive valuations in certain areas and the fact that the 2016 presidential election will start to create meaningful noise, probably leading to stock market volatility. “As for Korea, we are cautious on the domestic economy although there is enough room for fiscal and monetary stimulus. Stronger exports led by global recovery and chaebol reforms bringing higher dividend pay-outs could bring investment opportunities in Korea despite the expectation of a tepid growth for 2015”.

Taiwan and Korea are more about stock picking than about their economies. In Taiwan they are weary about the Smartphone supply chain that may be facing a tough year.

SocGen Private Banking Appoints Eric Verleyen as Global CIO

| For Alicia Miguel | 0 Comentarios

SocGen Private Banking has appointed Eric Verleyen as global CIO.

Eric Verleyen, CFA, joined Societe Generale Bank & Trust Luxembourg in 2005 as Head of Discretionary Management for the private bank. During his time in Luxembourg, he has contributed to the development of tailor-made portfolio management dedicated to Ultra High Net Worth Individuals.

In 2009, his responsibilities were enlarged to include Advisory Managed activities before becoming Chief Investment Officer, in charge of Discretionary Management and Advisory Management teams, as well as Products Offering in Luxembourg.

Previously, Eric Verleyen worked for KBL Luxembourg where he headed a portfolio managers team and for Sakura Bank Luxembourg.

He holds a degree from the Institut d’Administration et de Gestion of Louvain (Belgium) and was recently rewarded with the title of Outstanding Young Private Banker 2011 by Private Banker International.

CFA Institute Names New President and CEO

| For Fórmate a Fondo | 0 Comentarios

CFA Institute has named Paul Smith, CFA, currently managing director, APAC and global head, Institutional Partnerships at CFA Institute, as its new president and CEO, effective immediately. Smith’s appointment comes after an extensive global search to lead the organization of more 127,000 investment professionals in 147 countries, most of whom are CFA charterholders.

Smith has more than 30 years of leadership experience in the asset management industry, including over 18 years in Asia. He joined Bank of Bermuda in Hong Kong as Asia head of securities services in 1996. After HSBC’s acquisition of the bank in 2004, he served as global head of securities services and global head of alternative funds administration based in New York, where he was responsible for the delivery of services to 2,000 investment funds with over US$250 billion of assets. Before joining CFA Institute in October 2012, Smith was chairman and CEO of Asia Alternative Asset Partners.

With extensive management and business experience at global organizations, Smith will continue to support CFA Institute efforts to champion for ethical behavior in investment markets as a respected source of knowledge in the global financial community.

“It’s a critical moment for both investors and the professionals who serve them. In his time with CFA Institute, Paul has demonstrated the bold vision and strong leadership we need to advance the profession and shape a more trustworthy financial industry,” said Aaron Low, CFA, chair of the CFA Institute Board of Governors. “Paul has made a significant contribution to the investment industry, and CFA Institute is well-positioned for continued growth and leadership under his direction.”

The selection comes as CFA Institute continues to broaden its global reach, with a stronger presence planned for both China and India, continued growth of its recently launched Claritas Investment Certificate program, an Annual Conference in April in Frankfurt, Germany, and the second annual Putting Investors First Month in May – a global series of events to unite financial professionals throughout the world in a commitment to place investor interests above all others.

“Above all, CFA Institute was searching for a solid understanding of the value of our education programs, and how the CFA charter, our codes and standards, and advocacy efforts contribute to the advancement of our mission,” said Smith. “Having served CFA Institute from within I am fully aware of its rich history and contribution to the global investment profession, and I look forward to leading the organization in pursuit of our end goal, to advance the investment profession for the ultimate benefit of society.”

Smith is a Fellow of the Institute of Chartered Accountants of England and Wales and an Executive Committee member of the Alternative Investment Association, Hong Kong. He holds a Masters degree in History from Oxford University, and is a CFA charterholder.

Smith succeeds the leadership of Dwight D. Churchill, CFA, who was named interim president and CEO in June of last year following the tenure of former president and CEO John Rogers, CFA.