Guggenheim Partners, a global investment and advisory firm, announced the official opening of its representative office in Tokyo, Japan.
Guggenheim Partners Japan Representative Office has been established in Tokyo, and will initially conduct market research activities.
“We are honored to open our first office in Japan,” said Mark Walter, Chief Executive Officer. “We look forward to delivering innovative solutions and providing exceptional value to Japanese institutions and investors.”
Guggenheim also announced the hiring of Atsuhito Sakai as Senior Managing Director and Guggenheim’s Representative in Japan. Prior to joining Guggenheim, Mr. Sakai was Managing Director and Senior Banker for Corporate and Investment Banking at Societe Generale. He brings a wealth of experience in asset management, insurance, and capital markets.
“Guggenheim’s history of performance across market cycles should resonate with many Japanese institutional investors including banks, insurance companies, pensions, and financial intermediaries,” said Mr. Sakai. “I am very pleased to join Guggenheim Partners and to lead our efforts in establishing Guggenheim’s presence in Japan.”
Added Scott Minerd, Global Chief Investment Officer, “Guggenheim has been very deliberate in how we approach our global expansion. In this regard, we believe our full complement of investment capabilities is ideally suited for a Japanese market. Guggenheim is committed to Japan and to delivering long-term value to all of our clients.”
Foto: JimmyReu, Flickr, Creative Commons. El principio de la segregación de activos en la legislación de Luxemburgo: qué es y cómo afecta a los tomadores de seguros
BLI – Banque de Luxembourg Investments S.A., Banque de Luxembourg’s asset management company, strengthens its fund management by recruiting 3 analysts.
After the restructuring of its sales distribution team, BLI – Banque de Luxembourg Investments has also strengthened its fund management with the appointment of three new analysts: Inès Buttet, Fund Analyst in Fund Selection team; Henrik Blohm, US Equity Analyst; and Tom Michels, Junior European Equity Analyst.
“After having restructured our distribution, we decided to strengthen our fund management, with a particular focus on the equities team”, saysGuy Wagner, BLI’s managing director. “Inès, Henrik and Tom are young professionals or have gained first professional experience in other companies before joining us. We are delighted to welcome them to the team!”
Inès Buttet (33) replaces Matthieu Boachon who was appointed sales manager for Benelux in BLI’s distribution team. She worked 3 years in the fund selection of ING Investment Management in Luxembourg. Inès holds a Master of Science in International Business Administration of the University of Sherbrooke, Canada and ESCEM, France and a Master in Financial Markets and Portfolio Management from the I.E.B. – Instituto of Estudios Bursátiles, Spain.
Henrik Blohm (30) will support Luc Bauler for the equities selection of the fund BL-Equities America. Henrik worked 3 years as fund manager at BCEE Asset Management in Luxembourg. After a two-year apprenticeship at a German bank in Luxembourg, he graduated from the University of Innsbruck and the San Diego State University, with a specialisation in Banking and Finance.
Tom Michels (24) will assist Ivan Bouillot in equities selection for the fund BL-Equities Europe. Tom has a Bachelor of Science in Management from the HEC business school in Lausanne and a Master of Science in Accounting, Control and Finance.
Santander Asset Management has strengthened its board of directors with the appointment of Robert Noach as non-exec director.
Noach has been head of Global Financial Institutions Group at Schroders from 2008 until March 2014. Prior to that, he has worked as head of UK Financial Institutions Group of the company since 2001.
“We are delighted that we will be able to benefit from Robert’s extensive experience of the UK investment landscape, and look forward to a long and productive working relationship,” said Jeff Scott, chief executive of Santander Asset Management UK.
At present, Santander Asset Management UK has £19bn AUM.
Foto: AidaNeus, Flickr, Creative Commons. MetLife y el fondo soberano noruego compran la torre de One Beacon Street en Boston
MetLife and Norway’s sovereign wealth fund Norges Bank Investment Management (NBIM) have announced that they have bought the One Beacon Street office building in Boston for approximately $561 million. This is the second property investment in Boston and the fourth overall for the joint venture, which now has a real estate portfolio with a gross value of approximately $2.4 billion.
MetLife and Norges Bank Investment Management bought the 34-story office tower from a joint venture of Beacon Capital Partners and insurer Allianz. MetLife will own 52.5 percent of One Beacon Street and be the managing member, while Norges Bank Investment Management will own the remaining 47.5 percent.
Located in Boston’s financial district, One Beacon Street is LEED Platinum certified and offers more than one million square feet of office space. Built in 1973, One Beacon Street is currently about 85 percent leased, with current tenants including the Massachusetts Housing Finance Agency, the University of Massachusetts, the University of Massachusetts Building Authority, Standard Life Investments (USA) Limited and JPMorgan Chase Bank, National Association.
“One Beacon Street in Boston adds a high-quality asset in a core market to our joint portfolio with Norges Bank Investment Management,” said Robert Merck, senior managing director and global head of real estate investments for MetLife. “Our partnership with the world’s largest sovereign wealth fund is built on a strategy of providing first-rate asset management and of investing for the long-term to bring strong returns to our stakeholders.”
The three other properties in the joint venture’s portfolio are: One Financial Center in Boston; District Center (formerly the Thurman Arnold Building) at 555 12th Street, NW, in Washington, D.C.; and 425 Market Street in San Francisco.
Photo: Gabriel Cabral www.selvasp.com
. World Cup Economics – A Latin American Take
With the dust settling on the 2014 World Cup, we thought it would be an opportune time to contrast the performances of some of the teams in South America with the outlook for their stock markets.
Starting with the host nation Brazil, in the run-up to the World Cup there was much concern regarding Brazil’s ability to stage such a big event, with numerous headlines about infrastructure failures and stadium delays. In contrast, there was much hope and expectation that the host nation would cement its footballing supremacy over the rest of the world by winning on home turf. The reality was quite the opposite. The country has been praised for the smooth running of the tournament but the football team’s humbling at the hands of the Germans highlighted that Brazil is no longer the dominant force that it once was in world football. Similarly, an economy that was once touted as one of the most dynamic in the world has been stuck in a rut.
Much of the blame for the football team’s performance has fallen on the team’s manager, who has already been forced to resign, and many point the finger at President Dilma Rousseff for the weak economy and hope that she could receive a red card at the presidential elections that are due in October. A decline in the president’s approval ratings in recent months has coincided with a rally in the stock market as both alternative candidates are favoured by investors. Indeed such is the love of the beautiful game in Brazil that many believe the failure of the football team will have a direct impact on Dilma Rousseff’s election prospects. Although it is a fool’s game to predict the final outcome, the pressure is clearly mounting on the current government and hence whatever the final result, a shift towards more market-friendly policies appears inevitable. Having consistently underperformed for the last four years, this will give further momentum to Brazil’s recent rally.
The Mexican football team struggled in qualifying for the tournament and although they were knocked out in the second round, their performances were that of a team on the rise. The economy itself has also struggled in the past year, as the change in government led to a slowdown in state spending and tax increases held back the consumer. In the second half of the year, growth should accelerate and with President Enrique Peña Nieto having made huge progress in implementing wide-ranging reforms, the long-term outlook for the economy and the equity market is clearly on the right trajectory as well.
One of the surprise packages of this year’s World Cup was Colombia. Los cafeteros won many fans with their exciting brand of football and there are many reasons to be excited about the outlook for the Colombian stock market too. The recent presidential election was won by the incumbent, giving him a mandate to continue his pursuit of a peace agreement with the FARC guerrillas. Easing security concerns and greater integration with the world economy has already led to accelerating growth for the regions’ third most populous country. Infrastructure investment is poised to augment this and could make the Colombian stock market the surprise package of Latin America.
Elsewhere, Chile’s footballers surpassed expectations and were very unlucky not to knock out Brazil. However, with a new government imposing fiscal reform, the short-term outlook for Chilean equities appears challenging. Uruguay’s economy has been performing well but this is a peripheral market with little for investors to sink their teeth into. Costa Rica showed resilience on the football field and reminds us that the countries of Central America, although small, present growth opportunities for many Latin American companies.
Finally, Argentina’s team fell just short of the big prize but were the best performing South American team. Similarly, the country’s stock market has been the best performer in the region this year and with the prospect of political change in 2015 and a move to settle conflicts with sovereign debt holders, investors are re-evaluating the long-term potential of Argentina. Supported by cheap valuations, the stock market rally is likely to continue. We do caution though that the economic situation can only be described as…. Messi.
At the end of the day, although the region’s football teams experienced mixed results at the World Cup, the outlook for the region’s stock markets has significantly improved. Political change in Brazil, economic acceleration in Mexico and Colombia, a more benign than expected impact from the US Federal Reserve’s tapering policy and attractive valuations lead us to conclude that investors should be careful not to be caught offside in Latin American equities.
Authored by Nicholas Cowley, Investment Manager, Global Emerging Markets, Henderson Global Investors
Last Wednesday, the SEC approved amendments on money market fund (MMF) rules. Seth Roman, a portfolio manager at Pinoneer Investments who specializes in the sector, summarized the areas of reform as they relate to institutional and retail money market investors. Mike Temple, Senior VP, Director of Credit Research, Pioneer Investments shares the expert’s view in followPioneer.com:
The SEC’s new rules require prime institutional money market funds to float their NAVs and to use liquidity fees and gates on a discretionary basis. Meanwhile, prime retail money market funds would be able to maintain their stable NAV but would be subject to liquidity fees and gates.
Since the floating NAV issue has been in the money market universe for some time, Wednesday’s SEC vote was not a surprise. It will take time to see the full impact, because full implementation is two years away. Nonetheless, we can see money leaving institutional funds and going any number of places . . . government money market funds, ultrashort funds and bank deposits. The choice of venue obviously depends on investor preferences and risk tolerance.
Below is an outline of the SEC’s reform changes to money market funds.
*Government MMFs are exempt from liquidity fees and gates. However, they could voluntarily opt into them, if previously disclosed to investors.
The SEC changed the rules for institutional money market funds in an attempt to prevent a run – it does not want another Lehman scenario. It appears that the SEC is working to reduce the effects of “shadow banking” (i.e. money market funds) on the market and drive more assets into the hands of banks. This, in turn, allows regulators to have more control of the financial system.
Driving Investors to Change Strategies
By tightening money fund rules, the SEC is essentially driving investors to change their cash strategies. As I mentioned above, the path to take is up to the investor. They have numerous options to choose from, and it’s likely institutional money market assets will shift into a range of other strategies. Investors looking to minimize risk for safety of principal may go with bank deposits, despite their low yields. But other investors who want yield may turn to ultra-short strategies, which come with slightly higher risks but potentially higher returns.
I don’t see a reduction in liquidity. I see a change in how liquidity is distributed throughout the market.
followPioneer.com is an investment insight blog written by investment professionals at Pioneer Investments.
The latest update of the BlackRock Sovereign Risk Index (BSRI) details quarterly movers in the 50-country index and highlights Argentina’s position. Argentina’s BSRI score dipped as the IMF slashed the country’s long-term GDP forecasts, hurting its Fiscal Space score.
A history of defaults and political upheaval have been the country’s Achilles’ heel – and have dragged Argentina’s overall score lower as the country negotiates with holdout creditors who have rejected its debt restructuring. Weak Willingness to Pay is the main drag on Argentina’s overall score.
Also, revisions to the IMF’s long-term GDP growth forecasts resulted in some large ranking shifts in the quarter. Belgium (up four notches in our 50-country index), UK (up three), Israel and Netherlands (both up two) benefited from upward revisions to their GDP growth forecasts. Spain had the biggest BSRI score gain (and its ranking rose four notches to 38th) due to an improved IMF assessment of its net debt position.
Brazil (down four to 31st) fell the most in the rankings (along with China). Brazil’s debt is becoming more front- loaded. Short-term debt rose to 21% of GDP from 12% a quarter earlier, IMF data show.
China fell four notches to 23rd on a modest decline in its BSRI score. China’s score is closely bunched together with that of countries such as UK, Poland and Israel. Russia dropped three spots due to a decline in its perceived Willingness to Pay and a downward revision to its growth prospects against a backdrop of rising tensions with Ukraine.
Drawing on a pool of financial data, surveys and political insights, the BSRI provides investors with a framework for tracking sovereign credit risk. The index uses more than 30 quantitative measures, complemented by qualitative insights from third-party sources.
The index breaks down the data into four main categories that each count toward a country’s final BSRI score and ranking: Fiscal Space (40%), Willingness to Pay (30%), External Finance Position (20%) and Financial Sector Health (10%). Fiscal Space includes metrics such as debt to gross domestic product (GDP), the debt’s term structure, tax revenues and dependency ratios. Willingness to Pay measures a government’s perceived effectiveness and stability, and factors such as perceived corruption. External Finance Position includes exposure to foreign currency debt and the state of the current account balance. Financial Sector Health gauges the banking system’s strength.
Morningstar has announced the speakers and agenda for its fifth annual ETF Conference Sept. 17-19 at the Sheraton Chicago Hotel and Towers. The conference features experts from across the exchange-traded fund (ETF) industry along with Morningstar’s analysts to provide in-depth knowledge and perspective for advisors, asset managers, and fund providers.
“We’re bringing together some of the sharpest minds in the industry for our fifth annual ETF conference this fall. We shape each year’s agenda with investors in mind and focus on the tactics, strategies, and portfolio management tools to help financial professionals successfully incorporate ETFs into their portfolios and achieve better investing outcomes,” Ben Johnson, Morningstar’s director of manager research for global passive strategies, said. “The ETF industry continues to witness significant asset growth, and at the same time is increasingly more complex. Strategic beta, ETF managed portfolios, and active ETFs are growing in popularity, and our goal is to shine a light on these strategies to help investors understand and apply them effectively.”
Russ Koesterich, chief investment strategist for BlackRock and chief global strategist for iShares, will deliver the keynote opening address on Wednesday, Sept. 17. Eugene Fama, Robert R. McCormick Distinguished Service Professor of Finance at The University of Chicago Booth School of Business, will present the keynote luncheon address on Thursday, Sept. 18.
General session speakers include Dr. David Kelly, JP Morgan; Jerome Schneider, PIMCO; and Ronen Israel, AQR; who will speak on Thursday, Sept. 18, and Wesley Gray, Drexel University, who will speak on Friday, Sept. 19.
The ever-popular “Meet the Pundits” panel will close the conference on Friday, Sept. 19. Moderated by Brendan Conway, Barron’s, Morningstar’s Johnson; Matt Hougan, ETF.com; and Tom Lydon, ETF Trends, will provide a no-holds-barred discussion of the current and future state of the ETF industry.
The conference includes 15 breakout sessions focusing on three key areas: strategic, tactical, and managed portfolio solutions. Featuring speakers from Blackstone/GSO, Envestnet, Fidelity, Guggenheim, MSCI, Nuveen Investments, State Street Global Advisors, S&P Dow Jones Indices, Vanguard, and WisdomTree, among other firms, the sessions will cover a wealth of timely topics, including:
Strategic beta;
Best practices in ETF trading;
ETF managed portfolio strategies;
Opportunities and dangers in reaching for yield;
Re-thinking exposure to emerging markets;
Equity income strategies among ETFs;
Accessing alternative strategies and asset classes through ETFs; and
Managing interest-rate risk and the role of fixed income.
More information about the 2014 Morningstar ETF Conference, including the full agenda, hotel accommodations, and complete registration information, is available at this link.
. Hispania Acquires Four Office Buildings and Two Hotels in Madrid
Hispania Activos Inmobiliarios, through its subsidiary Hispania Real SOCIMI, has acquired from IDL Group a portfolio consisting of four office buildings and two hotels, all of them located in Madrid.
The transaction has amounted to €42.15 million, fully disbursed with Hispania’s own funds.
The acquired office buildings are located in the surroundings of the A1 highway, in the north of Madrid, and have a gross leasable area of 14,547 square metres, plus 387 parking spaces.
All four buildings are of recent construction, have an average occupancy of 71% and are located within consolidated business complexes and areas with ample growth potential. The acquired assets are the Arcis Building and Talos Building -both situated in Las Tablas and nearby the new BBVA headquarters-, a building at Av. Bruselas, in Arroyo de la Vega, and a fourth one situated within the complex Poeta Rafael Morales, in San Sebastián de los Reyes.
Regarding the hotel portfolio, it includes the NH Pacífico, a 3* hotel with 62 rooms in Avda. Ciudad de Barcelona, and NH San Sebastián de los Reyes, a 3* hotel with 99 rooms and located within the Poeta Rafael Morales business complex. Both hotels are currently operated by NH Hoteles under long-term rental contracts.
According to Concha Osácar, Board Member of Hispania, “thanks to this acquisition, Hispania continues consolidating its presence within the office segment by investing in high-quality office buildings in the secondary business centre of Madrid as well as strengthening its hotel portfolio with two hotels operated by the renowned Spanish chain NH Hoteles”.
With this transaction, Hispania has already invested €262.8 million out of the €550 million raised in its IPO on March 14th, and is building a portfolio which already includes a gross leasable area of 84,307 sqm in office space -predominantly in Madrid and Barcelona-, 213 dwellings in Barcelona and 3 hotels, one of them in Marbella and the other two in Madrid.
Ignacio Saldana, Afore XXI Banorte’s CIO, during the interview. Courtesy photo. Afore XXI Banorte Expects to Award its Commodities Mandate in September and Fund its Equities Mandates
As explained by Ignacio Saldaña, Afore XXI Banorte’s CIO, during an interview with El Financiero TV picked up by Funds Society, Afore XXI Banorte is about to fund its equities mandate, something they wanted to do in the month of September, but which will most likely be delayed until the end of the year.
Saldaña explained that, in this regard, they are working with both managers and with its custodian, State Street, in order to achieve it. Afore XXI awarded the European equities mandate, to Schroders and BlackRock, last January. These management companies will receive 1.75% of the assets under administration, which according to Consar’s figures from last December amount to 9,632 million pesos (US$725 million).
“We are working closely with the two management firms so that we can be ready in due time and proper form to fund the two equity mandates before closing this year,” he said.
Saldaña also referred to the commodities mandate, a mandate for which they applied to eight mandataries, including four which have already been shortlisted, but which he preferred not to disclose at this stage. 3% of assets managed by the afore go to this mandate, a volume for which they will need at least two asset managers. In a couple of months they should be finished with the selection process and will announce the names of the selected asset managers.
Afore XXI Banorte manages 25.9% of the total resources of the afores, ranking it as the largest afore by volume in the market.
Saldaña also referred to Consar’s role and to how the regulator has increased the afores’ investment capacity in foreign instruments.
As to whether they believe Consar will make modifications to the investment regime and where they would like to see these changes, Saldaña highlighted that the regulator has continued to make changes to the regime. “Our system has expanded constantly. The portfolios are acquiring quite a substantial size as a percentage of our domestic product and the size of our market,” he added, while stressing that hence the importance of a growing portfolio diversification.
Therefore, he said, it is becoming increasingly difficult to manage such portfolios which also grow globally. “We believe that the authority will continue to expand the diversity in this regard,” he said. “Bit by bit we gradually increase the diversification of our portfolios, which is essential for when things get complicated.”
Afore XXI’s Investment Committee has approved to have 9% of its assets under mandate, which currently represents about US$4.05 billion by the end of 2015. In this sense, the manager stressed that the key is to “increase the diversification of portfolios to sail ahead in difficult times.”
As for his plans for higher yields in an environment of low rates, Saldaña reiterated that the key is “to continue to diversify our portfolios” and recalled that when the current system started, it was launched with a single bond fund, which led the way to a second fund with some equity, until they gradually evolved to four funds.
“The regulatory authority has been expanding the investment regime and the way of obtaining higher yields is to maximize our investment regime, which is one of the plans which always exists in Afore XXI Banorte. Our focus is on increasing investment mandates with foreign managers. The afores have to participate in the reform environment which the country is experiencing. We cannot be left aside and we must find a way to get into power projects, infrastructure, and technology. We have to find a way to capitalize so that the savings of Mexican citizens may benefit,” said Saldaña.
