CC-BY-SA-2.0, FlickrAshish Goyal ha sido nombrado director del Equipo de Renta Variable Emergente de ING IM. ING IM impulsa su equipo de Renta Variable Emergente con dos contrataciones senior
ING Investment Management International has announced two senior appointments to its Emerging Market Equity team. Ashish Goyal has been appointed Head of the Emerging Market Equity (EME) team and Robert Holmes joins as Senior Portfolio Manager Emerging Market Equities.
Ashish Goyal joins as of 1 October and will be tasked with expanding ING IM’s EME capacity and capabilities. He will be based in Singapore and report to Eric Siegloff, Deputy Chief Investment Officer. Ashish joins ING IM from Eastspring Investments (formerly Prudential Asset Management). Over the past 20 years he has held positions including Investment Director Asia Equity, Chief Investment Officer Asia and GEM Equities, Head of Asian Equities and Analyst/Portfolio Manager.
Robert Holmes will join ING IM in early September and report to Ashish. He has more than 20 years of experience in the field of EME. Over the past 10 years, he worked as a specialist fund manager in EMEA and before that held various positions – including management roles – covering institutional sales and proprietary trading on the equity brokerage side.
Robert joins ING IM from Griffin Capital Management, where he worked as a fund manager for the past seven years. Based in London, he will take responsibility for ING IM’s Emerging Europe strategies.
Eric Siegloff, Deputy Chief Investment Officer at ING IM: “We’re very pleased to welcome these talented investors to ING IM. Both Ashish and Robert have excellent track records and these appointments give us the opportunity to further strengthen our Emerging Market Equity capabilities.”
Foto: Jim Mullhaupt, Flickr, Creative Commons. EDM: buenas perspectivas en Europa después del temporal
After a modest start to the year, equity markets – especially in the Eurozone – registered painful losses over the last few weeks. While the Eurostoxx 50 has lost 9.3% since its highest level in June, the Italian FTSE MIB tumbled almost 15% over the same period of time. Once more we got confirmation that while market participants can swallow one or two pieces of negative news – in this case the Ukraine crisis and the conflict in Gaza – they tend to reduce risks once a third one occurs. The recent catalyst was certainly the better than expected news from the US economy, which led investors to believe that the US Federal Reserve could increase its leading interest rate sooner rather than later. This fear coupled with, among other things, the aggressive positioning of market participants and deterioration of issuance quality, had already led to a widening of high yield bond spreads ahead of the equity market correction.
But should we really be afraid of a possible earlier Fed intervention? According to UBS Global AM, some wage indicators have certainly reached their lowest points – especially when it comes to smaller companies – but the general inflationary pressure in terms of CPI and PCE remains under control. Also, rate expectations have barely moved in the US.
Two year yields are lower now than at the start of the quarter, even though this could be, up to a certain point, also due to risk aversion rather than a shift in rate expectations. Taking another measure, US primary dealers continue to take a dovish view of Fed actions. In a Reuters survey conducted after the Non-Farm Payrolls released on 1 August, 12 of 18 respondents forecast that the first hike wouldn’t be before the second half of next year. Out of these, half thought the Fed would opt for a 25-50bp target range. So the sell-off has not been driven by a broad based change in market expectations for the Fed. Finally, history might not repeat itself, but usually equity markets are not really affected by rises in interest rates in general, particularly if announced well in advance by the Fed, which is the case presently.
Actually, has this really been a risk sell-off? Emerging market equity has held up well, as have Emerging Market currencies. Investment grade bonds have continued to experience inflows. Spreads on Italian and Spanish government bonds have widened versus German bunds but haven’t moved a huge degree in absolute terms (Italian 10yr started the quarter at 2.844% and is now 2.829%, as of 11 August). It would be wrong to think of this as a return to the risk on/risk off world of 2008-2013. Generally, those areas that were over-owned have experienced the worst of the correction, says UBS Global AM.
So what will happen next? “We believe that the recent correction is primarily a market readjustment driven by repositioning and the usual lower volumes during summertime. We don’t think that we have seen the equity peak for this cycle, even though we expect higher volatility and lower yearly equity market returns than we have seen in the past few years. In our view, valuations are not over-extended, particularly outside of the US, and relative to other asset classes offers more value. In particular, the recovery in the US economy should sustain global growth and allow for higher sales numbers in the coming quarters which will compensate for either higher wage growth (in the US) or modest economic growth numbers (in Europe)”.
“Do we have any worries? Yes, we are always retesting our investment views! While we still think the valuation case for European over US equities is very supportive, we are re-examining the macro and earning gaps, particularly in light of the Russian sanctions and growth data in the Eurozone. We are also looking at global saving/borrowing imbalances as we think this is a meaningful longer-term risk for the global economy. Finally, we are also concerned that, as the US economy strengthens ahead of the rest of the world, changes to Fed policy could be inappropriate for certain European and Asian economies still dependent on US monetary policy. In this regard we hope that the Fed has learnt its lessons from the correction of spring 2013. All of this leads us to expect a world of higher volatility for risk assets in the foreseeable future”.
What about geo-political risks? While many of the geo-political events of the last few months have led to significant human misery, in terms of macro-economics or earnings the effects have been rather limited. The possible exception to this may be the Russian sanction on EU food imports. While Russia had already been on a path of limiting European food imports for some time (for example, all EU pork was already banned in Russia due to an outbreak of African Swine Fever in the Baltic states), the latest sanctions increase the breadth. “Our initial assessment is that the consequences will mainly affect citizens of Russia’s larger cities, who will be confronted with higher food prices, leading to a 1 to 2 percentage point rise in inflation rates down the line. This could become quite an issue for the Russian Central Bank which was already forced to raise its leading interest rate to slow down capital outflows and the weakening of the ruble. Of course, any ban on flights using Russian air space would clearly have more significant earnings and potential macro implications”.
Are there upside risks? Yes. If the European economy continues to disappoint the ECB might take firmer steps towards unconventional measures and possibly asset purchases but this is unlikely to happen in the next few months and the Comprehensive Assessment remains the ECB’s focus for 2014. “We could increasingly have to deal with a situation comparable to the one we have had in the US over the last few years: every time the economic landscape deteriorates, the ECB will be tempted to come back with new measures which, in turn, will be positive for risky assets. Furthermore, we shouldn’t forget that outside of the weaker Eurozone data, the global recovery has gained further traction with signs of acceleration in the US and stabilization in China”.
“At this stage the company feels that is too late in the correction to sell further equities and we are looking to the following signposts to potentially add an overweight in client portfolios: A reduction in geo-political tension between Russia and the EU (and to a lesser extent the US) o Positive price momentum or at least stabilization, indicating that the positioning rotation has played out o Supportive policy action, especially from the ECB”.
CC-BY-SA-2.0, FlickrFoto: Picharmus, Flickr, Creative Commons. Los inversores salen de los fondos de bolsa estadounidense en julio por tercer mes consecutivo
Morningstar has reported estimated U.S. mutual fund asset flows for July 2014. Investors withdrew money from U.S. equity funds for the third-consecutive month, and the pace of outflows increased to $11.4 billion in July from $8.3 billion in June and $6.9 billion in May.
Overall, flows into long-term mutual funds remained positive in July at $14.4 billion, but this total is noticeably lower than in recent months. Morningstar estimates net flow by computing the change in assets not explained by the performance of the fund.
Taxable-bond funds continued to see strong inflows despite declining interest rates. For the past three months, taxable-bond funds have seen the greatest inflows among all category groups.
Despite the strong month for the taxable-bond category group overall, high-yield bond funds saw outflows of $7.9 billion in July after much milder redemptions of $466 million in June and inflows of more than $1.2 billion in each of the previous months of this year except January. Bank-loan funds also saw sizeable outflows of $1.9 billion.
Even though U.S. equity funds saw outflows, Vanguard Total Stock Market Index, Vanguard Institutional Index, and Vanguard Total International Stock Index recorded July inflows of $2.6 billion, $2.2 billion, and $1.8 billion, respectively. With four of the five top-flowing funds for the month, Vanguard topped all providers in terms of July inflows, while Fidelity suffered the greatest provider-level outflows as a result of large redemptions from two of its flagship active U.S. equity funds.
Passive funds continued to dominate, collecting $14.1 billion in July compared with inflows of $0.3 billion for active funds.
CC-BY-SA-2.0, FlickrAlex Crooke, Head of Global Equity Income, Henderson Global Investors. Global Investors Are Enjoying a Bumper Year for Dividends
Global investors are enjoying a bumper year for dividends, according to the latest Global Dividend Index (HGDI) from Henderson Global Investors. Overall pay-outs grew 11.7% year on year in the second quarter to a new record of $426.8bn, an increase of $44.6bn. That increase is equivalent to a whole year’s worth of Japanese dividends. The underlying picture, which excludes special dividends, rose an equally encouraging 10.2%. The Henderson Global Dividend Index rose to 157.8 from 151.6 at the end of March, meaning that dividends are 57.8% higher over the last 12 months compared to 2009, the base year.
Source: Henderson Global Investors as at 30 June 2014
The second quarter is especially important, accounting for almost two fifths of the annual total, so the strong growth was very encouraging. Developed markets drove the good performance, with Europe and Japan at the forefront, after lagging behind in recent periods.
Europe, where companies typically pay the bulk of dividends in this period, dominates the second quarter, accounting for over two fifths of the global total. European firms paid $153.4bn, up 18.2% on a headline basis, led by France and Switzerland. Germany lagged behind its peers, up just 3.9%. The European total was boosted by strong exchange rates against the US dollar. Even so, the $16.4bn constant currency growth from Europe is the best performance from the region by far over the five year history of the HGDI.
Japan also showed convincing growth, up 18.5% to reach $25.2bn. With the sharp year on year declines in the yen now dissipating, currency effects only made a small deduction from the Japanese total.
The US continued to show broad based strength (13.8%), but emerging markets saw their pay-outs decline 14.6% in US dollar terms. Emerging markets are lagging behind developed markets, though the fall was exacerbated by index changes, and sharply lower exchange rates.
For the first half overall, dividends grew a headline 18.4%, the fastest in a six month period since 2011. Unlike 2011, when half of the growth came from the effects of the weaker dollar, the increases this year have largely come from companies raising dividends themselves with only a small favourable contribution from currency effects.
Global currencies continue to be volatile. However, the Henderson research demonstrates that over the medium term, currency effects are a limited factor. Over the last five years, they have accounted for just 1.4% of the total $4.5 trillion of distributed dividend income. In the latest quarter, the currency effect was just 1.5% as some currencies rose and some fell against the US dollar.
Alex Crooke, Head of Global Equity Income at Henderson Global Investors said, “2014 looks set to deliver the fastest growth in global dividends since 2011, only this time, most of that growth will come from increases in pay-outs from firms themselves, rather than from swings in currencies. In 2011, more than a third of the growth came from a falling US dollar. Developed markets are leading the charge, and we expect that to continue. It’s especially encouraging to see Europe and Japan delivering big increases to their shareholders, after lagging behind the rest of the world recently.
“Our investigation into how currency moves contribute to investor returns highlights the value of taking a global approach. Over time, such investors can broadly afford to ignore currency risk as currencies rise and fall against one another through the economic cycle. Investors who take a decision to invest internationally, but only focus narrowly on one region will find themselves much more exposed. Generating a good income on your investments is more about understanding the companies themselves, wherever they are operating.”
Yoy may access the full report through this link and you may watch a video featuring Alex Crooke’s comments through this link.
CC-BY-SA-2.0, FlickrFoto: LI Jen Jian, Flickr, Creative Commons. Detector de burbujas
Summer is time for vacation, and getting ready for a trip has become almost a ritual for me: pack bags for my large family, load the car, don’t forget the GPS and check weather conditions.
The last two points, I believe, apply not only to planning a safe and comfortable personal trip, but also to navigating the financial markets.
The financial “weather” seems nice: volatility is extremely low across almost all asset classes, as a consequence of the extra-loose monetary policy. However, as with the weather, we are aware that financial conditions can rapidly change. History suggests that periods of exceptionally low volatility should be treated with skepticism, as they have usually preceded vicious market turmoil.
Our “GPS” for navigating market conditions (valuations) is pointing out that some areas of the financial markets are getting stretched. Core government bonds, credit markets and US equities are the most likely candidates for a bubble.
Starting with bonds, there is a lot of debate in the market as to whether economic growth (and consequently interest rates) will remain lower than historical norms for the next decade and beyond. However, we cannot be sure that this will be the case (we will know only ex-post) and, for this reason, we believe it’s not wise to build an investment strategy around this view. Moreover, as the economist Andrew Smithers pointed out in a recent FT.com piece, there seems to be no evidence of a strong empirical long-term relationship between growth (either US growth or global growth) and the US real interest rate.
Even if interest rates “in equilibrium” should be lower, we still see a role for monetary policy in influencing short-term economic cycles. Monetary policy can also be used for other purposes: recently, in its Annual Report, the Bank for International Settlements made a call for tightening monetary policy, by invoking the risk of “euphoric capital markets” and instability.
Given that economic conditions are improving in the US, we are convinced that the current level of real interest rates is cyclically too low. Consequently, we expect a mean reversion of interest rates towards more normal levels, as discussed in Be Aware of New Normal: The Economic Cycle Is Not Dead.
This is not a healthy outlook for core government bonds, where yields continue to lie towards the bottom of their historical range.
Meanwhile, credit market valuations are becoming less and less attractive for investors. Spread compression has continued across the whole ratings spectrum. Corporate default rates are artificially low: companies that in the past would have struggled to access the credit market are able to raise money for refinancing. The hunt for yield induced by central banks’ zero interest rate policies has pushed the share of credit assets in household portfolios (as a percentage of total credit outstanding) to unprecedented levels. Meanwhile, liquidity in the trading market is fading.
Both investment-grade and high-yield credit retain some appeal in comparison with core government bonds. However, the upside potential is very limited, while overheating is rising. Therefore credit markets, in our view, need to be handled carefully.
Turning to equities, our valuation models based on Cyclically Adjusted Price Earnings (CAPE) – which help us decide optimal allocations among asset classes – indicate that Europe and some Emerging Markets (China) remain the most interesting investment opportunities. US equity markets appear less compelling according to our valuation metrics, cash flow and by profits.
To check US equity valuations, we have also considered Tobin’s q indicator (the ratio of overall market value against the replacement cost of corporate assets): the chart below indicates that the US equity market is getting overvalued, as the current level of the q ratio is significantly above its historical average (the light blue line).
Meanwhile, US non-financial corporate cash flow as a percentage of GDP is at historic highs. So far, companies have channeled this cash into accelerating buybacks of their own shares and into M&A activity, rather than into fixed capital investments. This cash flow has been a welcome source of demand for equities that has helped to buoy markets, but has not resulted in a strong stimulus to the real economy, a necessary condition, we believe, for healthy future profitability.
Lastly, if we consider corporate profits, they are at their highest level ever relative to GDP. Our forecasts suggest that, assuming real GDP growth of around 2-2.5% (as a proxy for sales growth), the potential for further profit growth is limited, as margins (net income/sales) are becoming unsustainable. This risk of future earnings growth disappointments could pose a threat for the continuation of the rally.
All three metrics confirm our cautious view on US equities. Currently, we see this market as presenting the clearest risks of overheating. At the same time, we appreciate that in case of a correction, other equity markets would also be affected.
So, what’s next for our investment strategy? Based on our main scenario, we believe that improvements in the global economy and the ongoing financial repression from central banks should continue to be mildly supportive for risky assets. With the lower and lower returns we expect for all the main asset classes, we have already implemented a more defensive approach, reducing the size of our investment decisions without changing their direction (read also Be long, but be careful).
But our directional stance on risky assets could also change, subject to developments in our main scenario or a major unexpected event (a so-called “unknown unknown”). Regarding the former point, the base scenario of multiple transitions in the principal economic arenas is so far confirmed, as we see US economic momentum strengthening, Europe (slowly) returning back to growth and emerging markets engineering slowdowns to engender more balanced growth.
With respect to the latter point (unknown unknown), it is unpredictable by definition. As such, we prefer to focus on hedging what we believe are the main risks: deflation in Europe and an abrupt change in US monetary policy (i.e. a policy mistake).
At the same time, facing tighter financial market conditions, it’s important to continue to monitor valuations closely, in order to see when the “odds” with respect to our stance become less favorable.
More than ever, we believe that now is the time to keep our GPS switched on.
Giordano Lombardo, Pioneer Group Chief Investment Officer
Foto: Archer 10, Flickr, Creative Commons. Oportunidades en China
MIT Sloan School of Management will hold its first-ever Latin America-China Conference: Prospects & Challenges for Economic Growth on August 28-29 at the Sheraton WTC Hotel in São Paulo, Brazil. The conference will also be available worldwide via live streaming.
The event, which brings together prominent academics including four MIT faculty, many business leaders, and policy advisors, features networking opportunities and panel discussions focused on the economic future of Sino-Latin American relations. It is open to the public who can register at MIT Sloan Latin America – China Conference.
“The economies of China and Latin America are interwoven at an unprecedented level and given this level of interdependence, the two regions need to understand each other better,” says Yasheng Huang, International Program Professor in Chinese Economy and Business at MIT Sloan, who will speak at the symposium.
Chinese trade with the region has surged more than 20-fold since 2000. But growth in China—which is the world’s second-largest economy—is slowing down, and the downshift has important implications for Latin America.
“Relative to the level of trade and investments, the intellectual understanding of China in Latin America is low,” says Huang. “We have assembled managers, policymakers, and academics in both regions, as well as scholars from MIT, to delve into issues that may be missing from the headlines of the newspapers and media.”
Some of the conference’s speakers include: Vittorio Corbo Lioi, former Governor of the Central Bank of Chile, Jian Gao, Former Vice Governor at the China Development Bank, Ilan Goldfajn, Chief Economist at Itaú Unibanco Bank Brazil, André Loes, Chief Economist at HSBC Latin America, Paul Mackel, Managing Director at HSBC Hong Kong, Enrique Ostalé, Executive Vice President, President and CEO of Walmart Latin America, and Alejandro Werner, Director of Western Hemisphere Department at the International Monetary Fund.
The conference also features a technology and social media component. All panels will be livestreamed and viewers are invited to ask questions via Twitter during an on-air interactive session. Those wanting to view the session online can register via the website to watch the entire conference broadcast live online.
“This is an exciting development because it enables anyone who is interested in the future economic dynamics of China and Latin to take part in this conference,” says Roberto Rigobon, Society of Sloan Fellows Professor of Management and Economics at MIT Sloan, who will also speak at the forum. “Both places will benefit from more cooperation and understanding.”
Foto cedidaWolfgang Zemanek, Erste AM . Wolfgang Zemanek
Erste Asset Management, with an invested fund volume of approximately 2.8 billion euros (as of 30/06/2014), making it Austria’s leading investment company in the field of SRI (Socially Responsible Investments or Sustainable Investments), is enlarging its in-house SRI research team.
Dominik Benedict (32) joined in July as a Senior Analyst to further develop the rating process and company analysis. Dominik Benedict can draw on many years’ experience in the field of Socially Responsible Investments (SRI) and, as a former employee of MSCI ESG Research in Paris, will not only contribute an international perspective but also bring the mind-set of a recognized rating agency to the team.
In addition, Richard Boulanger (25) and Stefan Rössler (26) will also be reinforcing the SRI research team. Richard Boulanger has already gained experience in the SRI team and focuses, in addition to conventional company analysis, on the areas of engagement and active ownership. The active safeguarding of owners’ interests with regard to sustainable corporate policy is an integral part of Erste Asset Management’s sustainable activities.
Stefan Rössler completes the SRI team as a quantitative analyst and will primarily be involved in the development of Erste Asset Management’s rating system as well as the expansion of the in-house rating database. Producing EAM’s own ratings and intelligent use of information constitute key factors in the investment process.
The overall responsibility for the sustainability team, as in the past, lies with Gerold Permoser, Chief Investment Officer of Erste Asset Management.
Christian Schön, member of the Board of Erste Asset Management explains: “Sustainability is a growing market. So we are very pleased that since we started our SRI activities in 2001, we have been able to build this field into one of the company’s core competencies. Over the years we have established ourselves as the clear market leader in Austria.”
With these three new recruits, the analytical capacity in the field of sustainability has been noticeably reinforced. And the expansion of the team is not over yet: “We will continue to strengthen our core competency of sustainable investment and are convinced that in so doing, we are emphasizing our internationally recognized market position in this field,” said Schön.
Foto: PicturePerfectPose, Flickr, Creative Commons. Los gestores de hedge funds apuestan por la renta variable pero son cautos con el crédito estadounidense
According to the results of a survey conducted at the end of June of hedge fund managers on the Lyxor platform, there is a positive sentiment concerning risk assets. Equities are largely expected to continue to rally, both in the US and Europe, on the back of accommodative monetary conditions recently reiterated by Janet Yellen. However, on the negative side, Lyxor managers express caution regarding US credit and China.
The bullish stance on equities, both in Europe and in the US, was largely shared by the respondents to the survey. The level of agreement that US equities are not overvalued and European equities remain undervalued is very high. The respondents were more divided with regards to equity investment styles. 50% do not expect value continue to outperform growth stocks. Value stocks have underperformed growth stocks for several years, especially in the US. However, the underperformance of value stocks unexpectedly and abruptly reversed in March and April 2014.
According to a recent press report, this is the least- believed bull market in years. Most asset allocators remain bullish on equities because of the lack of opportunities in other asset classes. Equity investors believe that valuations are not overstretched globally. The bullish case generally assumes that earnings will take the lead after the expansion of multiples over recent years. “L/S equity funds continue to attract significant investor interest. However, style gyrations caused some damage earlier in Q2. As a result, investors must be aware of the biases implied by the investment style of a fund. We recommend a balance between growth and value oriented funds in a L/S equity portfolio”, says Lyxor. L/S Credit funds focused on Europe and L/S equity funds focused on Japan should do well if these expectations effectively materialise.
The majority of the respondents to the survey currently expect the central banks to remain extremely accommodative. According to Lyxor managers, the ECB and the BoJ should implement (or expand) quantitative easing programmes in the second half of 2014. At the same time, only 47% of respondents think that the Fed will lift rates in the first half of 2015. As a result, 10-year Treasuries are not expected to reach 3% over the next six months. Finally, the increasingly dovish stance of the ECB suggests that the EUR will fall versus the USD to below 1.35 according to 53% of the managers surveyed.
Other important finding of the survey is that hedge fund managers are increasingly cautious regarding US credit. This is being seen in the context of rising fears concerning financial stability following the extended period of near-zero interest rate policies implemented by the major central banks. According to the survey, 65% of the respondents do not expect the credit rally to continue.
“US fixed income and credit appear increasingly expensive as an asset class. Although long dated Treasury yields are not expected to move significantly higher, a long-only strategy on credit does not fit with current market conditions”, says the report. For this reason, unconstrained bond funds are much more adapted to current market conditions. At the same time, Global Macro funds should do well as a result of established short EURUSD positions.
Emerging markets
Emerging Markets remain a key investment theme given attractive equity valuations and carry positions in fixed income. However, downside risks for EM have increased as the Fed prepares its exit strategy. The EM asset price gyrations in May 2013 (when Bernanke first signalled tapering) were a good reminder of the emerging markets’ sensitivity to US monetary policy.
The vast majority of the respondents of the survey (74%) expect real GDP growth in China to fall below 7% over the next two years. In parallel, over the next six months, the WTI is not expected to fall below USD100/ bbl (USD105/ bbl as of 30 June). However, it is important to note that the survey was conducted at a time when geopolitical tensions were rising and the risk premium attached to oil prices had probably increased significantly.
“Deceleration in growth in China would have a significant impact on emerging markets, particularly Latin America (huge producer of base metals consumed by China) and Asia (supply manufacturing chains). Latin America is more exposed here given that the deceleration would tend to come from an adjustment of the real estate market, a commodity intensive market”, says the report.
In terms of strategies, L/S equity funds with a Chinese focus playing domestic consumption themes should be resilient due to the rebalancing of the economy. At the same time, the Chinese equity market is attractive from a valuation standpoint. Additionally, the deceleration in growth should already be priced in to a certain extent, as this forecast is quite consensual. Finally, CTAs provide a very good hedge against geopolitical factors due to their established long energy positions.
Foto: Covilha, Flickr, Creative Commons. El oro y la volatilidad
GBI (Gold Bullion International), an electronic platform for the purchase, sale and storage of precious metals, is pleased to announce that New York Private Bank & Trust has made an investment in the company. The NYPB&T investment will enable GBI to continue its growth – including the build-out of its cutting-edge, Internet-based software offerings for use by sovereign mints, wealth managers, investment firms, high net worth investors, as well as for digital currencies.
New York Private Bank & Trust is the parent company of Emigrant Bank, HPM Partners and three Internet-based banks, and offers private banking services through its NYPB&T division. NYPB&T and its affiliate companies will join the GBI platform in order to offer its wealth management and banking clients access to physical precious metals through GBI’s platform.
“The GBI family is excited by its partnership with NYPB&T,” said Steven Feldman, GBI’s co-founder and CEO. “The visionary thinking that Howard Milstein and New York Private Bank & Trust are known for will be a very valuable asset to GBI as it further expands its existing platforms and enables its sophisticated precious metals business to be utilized by far more market participants.”
“We believe our relationship with GBI will enable our clients to have a robust opportunity to invest in gold and other precious metals that have been a store of value for thousands of years,” said Howard Milstein, New York Private Bank & Trust Chairman, President and CEO. “Gold is the ultimate store of value. As inflation, geopolitical and sovereign debt risks move to the forefront of investor minds, gold will become an effective hedging component in the portfolios of small and large investors alike.”
Mr. Milstein added: “GBI provides the most cost effective and advanced trading platform for investors to purchase and store precious metals, given its ability to offer consumers transparent and razor-sharp pricing through unprecedented access to the largest network of dealers.”
Deutsche Asset & Wealth Management (DeAWM) has announced that Carolyn Patton will join as a Managing Director and Head of Consultant Relations, Americas.
Based in New York, Carolyn will report to Mark Bolton, Global Head of Consultant Relations. Regionally, she will report to J.J. Wilczewski, the newly appointed Co-Head of the Global Client Group, Americas, who is responsible for serving institutional investors.
In this newly-created position, Patton will be responsible for cultivating relationships with investment consultants based in the Americas. She will play a key role in helping the region’s leading consultancies access the firm’s global investment capabilities on behalf of their clients.
“I am delighted to welcome Carolyn to the firm, as we are committed to broadening our reach and strengthening our position in the institutional marketplace,” said Mark Bolton. “Carolyn’s connections and depth of experience will be a significant factor in helping consultants and their clients appreciate the full scope of our investment capabilities.”
Patton is the latest high-profile strategic senior hire by DeAWM as it pushes to enhance outreach to institutional investors, expand its institutional product offerings, and continue to build its overall market share in the Americas. In July, the firm announced that J.J. Wilczewski was hired to lead the institutional investor effort, overseeing client coverage and distribution in the Americas region. Over the last six months, DeAWM has added more than a dozen leading asset and wealth management executives to its Americas team while investing in new technology and launching innovative fund offerings.
“Investment consultants are a critical element of our institutional growth initiative in the Americas,” said Jerry Miller, Head of DeAWM in the Americas. “With a full suite of solutions across multiple asset categories and investment disciplines, we believe we have a compelling and differentiated offering for institutional clients in the region.”
Patton brings over twenty years of experience to the DeAWM. Most recently, she was an Executive Managing Director and Principal at Turner Investments, an employee-owned investment manager based in Pennsylvania. From 2005 to 2011 she worked for Janus Capital Group, where she was Global Head of Consultant Relations. Before that, she worked at Morgan Stanley Investment Management both in the Americas and Europe.
