BlackRock has expanded its suite of Environmental, Social and Corporate Governance (ESG)-related products with the launch of iShares MSCI ACWI Low Carbon Target ETF. The new fund which seeks to track the results of the MSCI ACWI Low Carbon Target Index and addresses two dimensions of carbon exposure – carbon emissions and fossil fuel reserves – started trading on the New York Stock Exchange on December 9, 2014.
CRBN is designed for individuals and institutions interested in environmental sustainability without divestment and provides transparency to the carbon footprint of their investments. By overweighting companies with low carbon emissions relative to sales and those with low potential carbon emissions per dollar of market capitalization, it aims to maintain exposure to global equity, while accounting for carbon exposure. Relative to the standard ACWI index, the underlying holdings to the CRBN index produce 81% less carbon emissions and 97% less potential carbon emissions from fossil fuel reserves.
Daniel Gamba, head of BlackRock’s iShares Americas Institutional Business, said, “We see a growing demand from global investors who are seeking to invest in way that can have a positive impact on the broader economy without potentially sacrificing returns and to be able to do so with the ease, access and efficiency of an ETF. With iShares MSCI ACWI Low Carbon Target ETF, we are helping investors to look at socially responsible investing through the lens of long-term investment returns and in the process helping them to take action with their portfolios. This is particularly relevant for official institutions, pensions, foundations and endowments who are interested in pursuing environmental sustainability strategies without divestment.”
Carol Boykin, CFA, Representative of the Secretary-General for the investment of the assets of the United Nations Joint Staff Pension Fund, said, “As we consider the impact of climate change worldwide, as highlighted by the UN Secretary-General at his Climate Summit on 23 September, it is clear that investors are now paying close attention to the risk posed to their investments by climate change. The United Nations Joint Staff Pension Fund welcomes the creation of a new lower carbon index and related ETFs as a responsible approach to environmentally sustainable investing and a positive response to the Secretary-General’s call for action.”
Sam Gallo, Chief Investment Officer of the University System of Maryland Foundation, said, “Being able to address socially responsible concerns while maintaining our fiduciary standards is critical to our investment approach. The iShares MSCI ACWI Low Carbon Target ETF is a low-cost, investment solution that allows us to maintain full exposure to global equities while incorporating a carbon exposure reduction strategy.”
Baer Pettit, Managing Director and Head of the Index Business at MSCI, said “Socially responsible investing increasingly influences many of our clients’ investment strategies. We are pleased that iShares has again selected MSCI to meet its need for an innovative index.”
The MSCI Global Low Carbon Target Index re-weights stocks based on their carbon exposure in the form of carbon emissions and fossil fuel reserves. The index is designed to achieve maximum carbon exposure reduction given a specific tracking error target. The MSCI Global Low Carbon Target Index is based on the MSCI ACWI Index, the global policy benchmark covering developed and emerging markets, and utilizes MSCI ESG CarbonMetrics data from MSCI ESG Research Inc.
BlackRock’s commitment to social investing spans asset classes and enables investors to access investment strategies that target a reasonable risk-adjusted rate of return in addition to positive and measureable social or environmental outcomes. The firm managed $257 billion in social investing products as of the end of June 2014, up from $215 billion as of June 30, 2012.
Clarien Bank Limited has announced te appointment of Clare Spearing as Head of Private Banking.
“Ms Spearing will be responsible for leading the new business efforts for private banking, providing overall strategic direction for the division, maintaining the Bank’s high level of client service and overseeing operational excellence for the group,” the bank said.
“Ms Spearing’s appointment reflects Clarien’s aim to become the pre-eminent financial institution for local Bermudian banking clients, while strengthening its international offering of sophisticated products and services, combined with top level investment advice to wealth management and private banking clients. She will report to Mr. Paul Finn, Head of Global Wealth Management for Clarien.”
Ms Spearing brings over 10 years of Bermuda based banking experience. She began her career in corporate banking at Butterfield Bank, Bermuda where she worked for seven years, ending in the role of Assistant Vice President of Relationship Management and Sales.
Following this, Ms Spearing spent two years with HSBC Bank Bermuda, where she was Vice President, Senior Relationship Manager of the commercial banking unit.
Most recently, Ms Spearing was Head of Operations at the Bermuda Business Development Agency [BDA] where she acted as the primary liaison between various Government Ministries, the Bermuda Monetary Authority and other international industry leaders.
Ian Truran, CEO of Clarien Bank Limited, said: “Miss Spearing brings over a decade of Bermudian banking experience, and holds strong relationships with not only local and international clients but many important key organisations across the island.
“At Clarien, while we have international ambitions, we remain firmly committed to the island of Bermuda and the talent we have here. Miss Spearing brings an expert knowledge and experience of the local banking environment and we look forward to welcoming her.”
Ross Webber, CEO of the Bermuda Business Development Agency [BDA] commented: “Clare has dedicated the last 18 months to laying the foundation for the BDA to thrive and flourish; her tireless work has provided us with the platform to help Bermuda succeed in the international business arena.
“She has been a loyal and tenacious stalwart for the BDA, and handled with aplomb the myriad changes that come with building a business from scratch. While we will miss her expertise, we are delighted she will join one of Bermuda’s leading financial institutions. We wish her all the best and look forward to continuing our relationship”.
Foto cedida. Scotiabank Joins CONCACAF as Official Partner
The Confederation of North, Central America and Caribbean Association Football (CONCACAF) has announced an official partnership with Scotiabank, designating the international bank as title sponsor of the CONCACAF Champions League and official bank of the Confederation.
The multi-year agreement makes Scotiabank the first official partner of CONCACAF, and covers multiple tournaments through 2018 including the region’s most important club competition – the CONCACAF Champions League –now to be known as the Scotiabank Champions League beginning February 2015 with the Championship Round of the on-going 2014-15 edition.
“I am extremely proud to welcome Scotiabank to the CONCACAF football family and commemorate this strategic partnership,” said CONCACAF President Jeffrey Webb. “This agreement exemplifies the growing value of CONCACAF’s properties and demonstrates the trust and confidence in our Confederation.”
Headquartered in Toronto, Scotiabank is Canada’s most international bank, with a presence in over 55 countries including Latin America, the Caribbean and parts of Asia. The Bank offers a broad range of products and services, including personal and commercial banking, wealth management, corporate and investment banking, to over 21 million customers.
“Scotiabank is proud of our deep roots and strong commitment in the CONCACAF regions – supporting customers, businesses and communities for over 180 years,” said John Doig, Scotiabank’s Chief Marketing Officer. “This partnership is a natural fit for Scotiabank. Football is a passion we share with our customers and we’re excited to support current and future football stars. We are looking forward to celebrating the sportsmanship and teamwork of this beautiful game.”
In addition to title sponsorship of the Champions League, Scotiabank becomes an official sponsor for the CONCACAF Gold Cup – the Confederation’s flagship event for national teams – for 2015 and 2017.
Scotiabank will also support multiple additional CONCACAF tournaments through 2018, including 2016 Olympic Qualifying events, and men’s and women’s tournaments at the under-20 and under-17 levels, starting with the CONCACAF Men’s Under-20 Championship Jamaica 2015, set to kick off in January.
The deal further includes sponsorship for the next two editions of the CFU Caribbean Cup and the UNCAF Central American Cup, as well as upcoming CONCACAF championships in Beach Soccer, Futsal and at the Girls’ and Boys’ under-15 levels.
“When we extended our agreement with CONCACAF in late 2013, we focused on restructuring the sponsorship program in line with global standards led by CONCACAF Partners,” said Aaron Davidson, President of Traffic Sports USA, the sponsorship rights agency of CONCACAF. “Scotiabank is the perfect founding CONCACAF Partner thanks to their footprint across the region and their commitment to sport and the communities they serve.”
The partnership was announced in an event hosted at the Mexican Stock Exchange in Mexico City on Tuesday morning, with the presence of special invited guests from the Mexican and international soccer community including Mexican Football Federation President Justino Compean.
CC-BY-SA-2.0, Flickr. Matthews Asia contrata a Neil Steedman como director de Desarrollo de Negocio en Europa
Matthews Asia announces the appointment of Neil Steedman as Head of U.K. Business Development. Based in London, Neil will be responsible for directing the firm’s business development and client service activities in the U.K. and select European markets.
Neil has extensive experience working with institutional and professional investors, including local authorities, discretionary wealth managers, private banks, and global financial institutions, as well as leading platforms, including 10 years at Aberdeen Asset Management where he served as Head of U.K. Discretionary Sales.
Reporting to Jonathan Schuman, Head of Global Business Development, Neil’s hire marks an important step in the continued build-out of Matthews Asia’s global operations and highlights the company’s long-term commitment to the U.K. and European marketplace.
Neil Steedman, Head of U.K. Business Development, commented: “I am excited to join Matthews Asia as it continues to grow its business in the U.K. and Europe, and thrilled to be part of the team that will bring the firm’s distinctive investment approach and long-term focus on Asia to U.K. and European-based investors. Matthews Asia’s extensive product line-up and the firm’s long-term, fundamental approach to investing are ideally suited for institutional and professional investors’ portfolios.”
Jonathan Schuman, Head of Global Business Development, commented: “Neil’s appointment reflects Matthews Asia’s strategic commitment to provide distinctive Asian investment strategies and high-quality service to our partners and investors across the U.K. and Europe. We are pleased that a growing number of investors have recognized Matthews Asia’s specialist capabilities. The expansion of our local presence in Europe reflects the long-term importance that we place on providing quality products and service to our clients.”
Foto cedida. Art Basel Miami Beach cierra su edición más fuerte gracias a la visita de 73.000 personas
Art Basel’s 13th edition in Miami Beach closed Sunday, December 7, 2014, amidst strong praise from gallerists, private collectors, museum groups and the media.
Highlights of the show included the introduction of the new Survey sector, which brought 13 art-historical projects to the fair, including many rare works never before exhibited in an art fair context; and Art Basel’s staging with Performa of Ryan McNamara’s ‘MEƎM 4 Miami: A Story Ballet About the Internet’ at the Miami Grand Theater. Solid sales were reported across all levels of the market and throughout the run of the show.
Featuring 267 leading international galleries from 31 countries, the show – whose Lead Partner is UBS – attracted an attendance of 73,000 over five days. Attendees included representatives of over 160 museum and institution groups from across the world – and a surging number of new private collectors from the Americas, Europe and Asia.
Following a 100 percent reapplication rate for the Galleries sector and with new galleries coming from across the world, the list of exhibitors was the strongest to date in Miami Beach, firmly solidifying the show’s position as the leading international art fair of the Americas.
On Wednesday, December 3, Art Basel and BMW announced a new partnership supporting emerging artists. Starting in 2015, the BMW Art Journey will enable emerging artists to go on a journey of creative discovery to a destination of their choice. Functioning as a mobile studio, the BMW Art Journey is open to artists from Positions and Discoveries, Art Basel’s sectors for emerging artists in Miami Beach and Hong Kong. The show also marked the successful launch of Art Basel’s Next tours program for emerging collectors. A total of 80 collectors drawn from 12 young patrons groups of international museums attended bespoke tours of the fair and had intimate sessions with exhibiting galleries.
Art Basel’s next show in Miami Beach will take place from December 3 to December 6, 2015. Starting after the 2015 edition, the Miami Beach Convention Center will undergo major renovation, phased around the 2016 show, with the aim to finish the renovation before Art Basel returns to Miami Beach in December 2017.
Dagong Europe has announced that its majority shareholder Dagong Global Credit Rating Co. Ltd. (Dagong Global) has completed an adjustment to the shareholding structure of the company.
Through the adjustment, Dagong Global has acquired the 40% shares previously owned by Mandarin Capital Partners (MCP), therefore becoming the sole shareholder of Dagong Europe Credit Rating Srl (Dagong Europe).
Jianzhong Guan, chairman of Dagong Global and of Dagong Europe commented “Dagong Global’s strategy in the European rating market is to build up a new bridge that pumps up mutual investment between China and Europe and to undertake rating responsibility to guard off credit risks by providing just and authoritative rating information for Chinese investors. We believe that we will reap great fruit from the unique blueprint that caters for the historical demands of Europe. We are grateful that MCP co-founded Dagong Europe with us, and I hope that we could continue our cooperation in the future to help Dagong Europe to thrive”. Lorenzo Stanca, deputy chairman at Dagong Europe and managing partner at MCP, commented “we believe that Dagong Europe has a significant potential to become a key player in the credit rating industry in Europe. The results obtained in the first year from the obtainment of the Licence from ESMA confirm such an expectation, in a sector that is bound to see important changes and reshuffles, following years of dominance of the three big U.S. players.
Ulrich Bierbaum, general manager of Dagong Europe added, “I’m confident that the new ownership structure will provide even stronger support for Dagong Europe’s future growth plans, as we can leverage fully the internationally renowned Dagong brand. We will keep promoting the Dagong brand under Chairman Guan’s guidance by providing top-notch quality services to European issuers and Chinese investors.”
Dagong Europe Credit Rating srl (Dagong Europe) was established in March 2012 with headquarters in Milan, Italy. In June 2013, Dagong Europe received authorization and registration by the European Securities Market Authority (‘ESMA’) under the Article 16 of the CRA regulation. Dagong Global Credit RatingCo., Ltd., headquartered in Beijing, is the sole owner of the company.
Dagong Europe provides credit opinions on financial institutions including insurance companies and non-financial corporates, producing autonomously Procedures, Criteria and models that are the foundations of the credit rating process.
Dagong, the biggest credit rating agency in China, has 600 employees, including over 300 analysts with master’s and doctor’s degree, and over 50 post-doctoral researchers. Over 30 branch offices in China provide credit information services for clients at home and abroad.
Asset managers have told TABB Group that they are focusing more attention on index derivatives as market structure changes in both OTC and cash markets are impacting their portfolio decisions. As they change the way they manage cash flows and risk exposures, index derivatives are seeing greater growth as part of the evolution of existing strategies, already generating record level volumes on multiple days in October 2014.
According to Matt Simon, a TABB principal, head of futures research and author “US. Equity Index Derivatives: The Next Phase of Institutional Discovery,” traditional drivers of equity-index based derivatives usage will persist, evolving over time with asset managers using index products to equitize cash, hedge risk, gain exposure to underlying reference markets and search for new ways to gain alpha when provided with the right opportunities. “If recent volumes during October are any signal of what to expect in 2015, the changes for increased adoption are already taking hold.”
This growth potential has not gone unnoticed. “The recent announcement by the London Stock Exchange (LSE) concerning its acquisition of Frank Russell and its lucrative index operations for $2.7 billion highlights the current appeal of owning an index business,” says Simon.
For this study, which covers market validation, the most active products, electronic order routing, brokerage routing decisions, executing brokers’ market share, trading product selection, and regulatory impact, TABB interviewed 26 firms, including long-only asset managers, hedge funds, commodity trading advisers (CTAs) and pension managers with $6 trillion in total Assets under Management (AuM), It also includes interviews with sell-side trading desks, market makers, proprietary trading firms, technology providers and exchanges, conducted during the second quarter 2014.
Top findings include:
92% of long-only funds, hedge funds and CTAs say their equity index derivatives volumes will increase over the next year.
E-mini S&P 500 remains the most active futures contract by a wide margin with SPY the leading options index product, January-September 2014 vs. January-September 2013.
Nearly 60% of buy side trade through clearing broker(s).
For brokers, cost of execution and service levels are most important selection criteria.
Hedge funds and CTAs say they are interested in sophisticated trading functionality to support their derivatives activity; leading OMSs and EMSs received mixed results.
Rather than being used as a pure alpha generating tool, says Simon, hedge funds are using index products to manage the growing number of market risks. “Facing a more difficult operating environment, they’re not only being forced to improve their balance sheets and lower risk exposures, they’re being driven by pressure from their prime brokers to improve the management of their risk exposure.”
The 30-page 22-exhibit study is available for download by TABB Group Research Alliance Futures clients at this link.
ETFGI’s research finds 2014 is proving to be a very good year for the ETF/ETP industry in the United States. The ETF/ETP industry in the United States reached a new record of US$1.98 trillion in assets at the end of November. They expect to see assets break through the US$2 trillion milestone any day.
At the end of November 2014 the US ETF/ETP industry had 1,659 ETFs/ETPs, from 68 providers listed on 3 exchanges. Net new asset inflows into US listed ETF/ETPs were US$42.4 billion in November, which is a record month, beating the previous high of US$41.2 billion set in July 2013.
The global ETF/ETP industry has reached a new record of US$2.76 trillion in assets. They expect the assets to break through the US$3 trillion milestone in the first half of 2015.
“Economic news in Europe during November was not positive with the OECD warning that Europe was the “locus of weakness” in the global economy – criticising the ECB’s efforts to combat economic stagnation. Many found the EC’s investment plan as lacking new money and new ideas with even the Pope criticising the plan. During November the US market continued its positive trend with both the S&P 500 and the Dow closing up 3% for the month. Developed markets ended the month up 1% while emerging markets declined 1%.” according to Deborah Fuhr, Managing Partner at ETFGI.
In November 2014 ETFs/ETPs listed in the United States saw net inflows of US$42.4 billion. Equity net inflows of US$41.2 Bn in November were a record month, beating the previous high of US$37.2 Bn in July 2013, followed by fixed income ETFs/ETPs with US$1.7 Bn, whilst commodity ETFs/ETPs saw net outflows of US$321 Mn.
iShares gathered the largest net ETF/ETP inflows in November with US$11.9 Bn, followed by SPDR ETFs with US$10.8 Bn and Vanguard with US$8.7 Bn net inflows. iShares is the largest ETF/ETP provider in terms of assets with US$757 Bn, reflecting 38.2% market share; SPDR ETFs is second with US$433 Bn and 21.8% market share, followed by Vanguard with US$421 Bn and 21.3% market share. The top three ETF/ETP providers, out of 68, account for 81.3% of US ETF/ETP assets, while the remaining 65 providers each have less than 5% market share.
Wikimedia CommonsPhoto: Jenix89. Morgan Stanley Launches The Institute of Family Wealth Management
Morgan Stanley Wealth Management has announced the launch of its Institute of Family Wealth Management (IFWM) to focus on family wealth which is part of a powerful strategy designed to help its Financial Advisors better serve clients’ growing multigenerational needs.
The IFWM is the first-of-its-kind interactive e-learning program that will give Financial Advisors the resources, process and knowledge to transform individual relationships into family relationships. The curriculum, which is entirely digital and accessible via tablet or PC, addresses the important planning needs of clients and their entire families, including spouses, children and aging parents, and the skills to engage these family members in the planning process.
“We are on the cusp of the largest wealth transfer in history, and we recognize the need for industry-leading family-focused solutions,” said Andy Saperstein, Head of Investment Products and Services. “The IFWM demonstrates our dedicated approach to building meaningful family relationships.”
The Firm’s most highly regarded wealth management experts, including Financial Advisors who already do this well, not only informed the content, but provide practical and tactical advice, via video messages and best practices, on how to apply the learnings in client engagements.
The Family Wealth Advisor designation, earned upon completion of the program, indicates a mastery of topics such as estate planning from the family perspective, families and philanthropy and family enterprises, as well as demonstrated ability to have effective conversations that help families understand and transition wealth from one generation to another.
“Innovative approaches such as the IFWM are part of our ongoing efforts to enhance the effectiveness of our Financial Advisors to the benefit of our clients,” said Jim Tracy, director of Morgan Stanley’s Consulting Group Wealth Advisory Solutions. “By building stronger relationships with clients and their entire families, we will lead the industry with our distinct family focus. Online advice is proliferating, but nothing can replace the value of personal advice from a highly trained professional who can ask the right questions.”
. Morningstar Launches Family of More Than 60 New Global Equity Indexes
Morningstar has launched more than 60 new global equity indexes. Now, Morningstar’s index family spans 45 countries in both developed and emerging markets. The new indexes provide investors with benchmarking tools that reflect the performance of equity markets worldwide and will serve as the foundation for the next generation of Morningstar “strategic beta” indexes.
“As more and more individual investors, advisors, and institutions take a global perspective to investing, our new index family will provide them with meaningful, consistent worldwide views across market capitalizations and regions to provide a deeper understanding of market behavior throughout the globe,” Sanjay Arya, head of Morningstar Indexes, said.
Morningstar’s new index family comprises global, regional, and country-specific indexes using a transparent, rules-based methodology with a focus on the investability of the underlying securities. The new index family can help investors with:
Market monitoring—Comprehensive and non-overlapping, the indexes allow investors to analyze performance trends and market movements around the globe.
Asset allocation—The global equity indexes reflect the risk and return profiles of each developed and emerging market country and can help investors build better model portfolios.
Attribution analysis—Investors can use the indexes to perform attribution analysis to understand what drives a manager’s or portfolio’s performance.
Currently, the indexes are available with end-of-day returns and constituent data in Morningstar Direct, the firm’s research platform for institutions. In the coming months, the company will add the indexes into Morningstar Advisor WorkstationS and Morningstar.com, investment platforms for advisors and individuals, respectively. Morningstar also plans to roll out real-time calculations early next year for the development of market monitoring tools and strategic beta indexes. Morningstar defines strategic beta indexes as those that seek to either improve performance or alter the level of risk relative to a standard benchmark.
Introduced in 2002, the Morningstar Indexes include a broad range of traditional beta equity, fixed income, and commodity indexes that are also combined to form asset allocation index series. In addition, Morningstar Indexes offers a family of strategic beta indexes that draw on the equity, fund, and asset allocation research across the company. Currently, Morningstar has more than 280 indexes and approximately 40 exchange-traded products track Morningstar Indexes globally.
