Georges Chodron de Courcel, 64, BNP Paribas’ Chief Operating Officer, will retire on September 30, 2014.
Georges Chodron de Courcel has devoted his entire 42-year career to BNP and then BNP Paribas, and has made a decisive contribution to the Group’s development, and especially to the project which eventually led to the creation of the new BNP Paribas entity.
The Board of Directors of BNP Paribas pays tribute to the career and work of Georges Chodron de Courcel, who has been one of the key players in the expansion of BNP Paribas and its businesses, especially outside France, through the various positions that he has held.
Georges Chodron de Courcel commented: “I am proud to have contributed to building this outstanding Group, which has now become one of the European leaders in its industry. I am convinced that BNP Paribas will be able to play a prominent role in the coming years”.
As a Director of several listed companies, in order to continue to fulfill his director roles while complying with the new French banking law, which limits the number of such mandates for bank corporate officers, Georges Chodron de Courcel will stand down from his role as BNP Paribas’ Chief Operating Officer on 30 June at his own request.
Photo: Miguel Virkkunen Carvalho . Comino Seeks to Expand its Business among U.S. and Latin American Fund Managers
Comino is an alternative platform for small and medium management companies who have neither the ability nor the means to compete in the big leagues. As explained by Johan Kahmn, founder of Fund Management Group (FMG), the company which owns the platform, it houses hedge funds, long-only and private equity funds, among others, all under one roof.
Likewise, Kahmn also explained that the platform provides an interesting alternative for those management companies who prefer to focus on the profitability of their portfolios rather than spend time and money on regulation, compliance, risk, and transactions. Larger companies may be able to afford the effort and money required, but not so the smaller operators who may lose attractiveness and competitiveness.
Comino Platform is domiciled in Malta and is aimed at small and medium fund managers with funds between 5 and 20 million dollars in assets and more. At Comino Platform, they say that a fund may be operating in the market within a period of between six to twelve weeks. Currently, there are 578 funds registered in Malta, 460 of which are funds designed for professional investors.
Gunnar Chr Detlie, Group Operations Director, explained that Comino Platform wishes to seize the opportunity of the implementation of the new regulation on investment funds launched in Europe, in order to expand its business among U.S. and Latin American operators. The regulations are quite different and one is required to meet those regulations. “The offshore jurisdictions will face problems during the next three years in trying to comply with the regulation,” said Detlie.
Meanwhile, Gill Hillevi Dahlin, coordinator for the group in Latin America, stated that multiple strategies ranging from private equity to long short, are housed under the Comino Platform. They have received requests from Brazil, Argentina, Mexico, Uruguay, and Colombia, especially from managers seeking a long-term solution which allows them to focus on the product, leaving the fulfillment of regulations to third parties.
Comino Platform currently has several funds under its umbrella and many more which are about to enter. They already have two funds in their Latin American basket: a fund of funds and one of Argentine equities, although it aims to expand that base.
Detlie emphasized that from Comino Platform they can address the needs of those management firms which, due to their size, cannot resort to large institutions, which require figures above 30 million dollars.
As for their forecasts for the period 2014/2015, they expect a successful close to the cycle because they trust that European regulations will push a number of management companies to move in their direction, so they expect to double the number of clients.
According to the platform, Malta has quietly emerged as one of the most stable and innovative finance domiciles in the EU, which it joined in 2004, later joining the Euro zone in 2008. Since then, Malta has developed into an important financial and business center. Malta has attracted investment from some of the world’s leading financial institutions, frontline multinationals and wealthy individuals. Over the years, the Financial Services Authority of Malta (MFSA) has established itself as a household name among international organizations for its pro-business government policies. In addition, a large number of double tax treaties ensure Malta’s position as a major emerging financial center in Europe.
Comino Platform, which functions as an umbrella SICAV, was incorporated in 2012 as a third party fund manager and management firm established in Malta. Comino claims to offer a more cost effective and efficient route to launch your own professional fund through a collective investment infrastructure. The platform is fully regulated by MFSA providing a one-stop shop for independent operators. The platform of fund managers is preparing to comply with AIFMD (Alternative Investment Managers Directive).
Currently Comino Platform has a team of 12 people working from Oslo, Stockholm, Malta, and London, as well as a trading team.
Wikimedia CommonsPhoto: böhringer friedrich. Oil on The Rise?
An oil supply shock could be a threat to the markets in mid-2014. A rise in the global price of oil would cut spending and hurt profits. If there is no quick solution, this could be a summer of market discontent.
The sudden and successful advance of Sunni militants from the Islamic State of Iraq and Syria (ISIS) into northern and western Iraq has captured our attention and raised some concern. There is no ignoring the risks to the markets from this rapidly developing situation. The most important bargaining chip — or weapon — in such a situation is a country’s biggest economic asset. For Iraq, that asset is its oil.
Flying back to Boston from Dubai last Friday, I was far from reassured as I thought over the six days I had just spent in the Persian Gulf region. While there, I asked everyone I could about the prospect for upheavals in the flow of oil and political power.
The consensus I heard was that the ISIS fighters have signaled their intention to use oil to further their cause — meaning that the price of oil is likely to rise in the near term. In fact, we’ve already seen evidence of price fluctuations in the spot and futures markets.
In the longer run, any new Iraqi government — whether hostile to the west or not — will eventually need to keep the oil flowing out to keep the money coming in. But in the meantime, even if the rebels fail to take over southeastern Iraq and the oil-exporting terminals on the Persian Gulf, there is still the chance of an escalation in the conflict and a further disruption in the flow of Iraqi oil.
I have consistently held out that the business cycle matters to investors. Rising energy costs would put the forward growth of the US economy directly at risk — especially if those costs rose above 7% or 8% of disposable income. And this could happen in the next couple of months for reasons unrelated to increasing demand.
As I have maintained throughout this business cycle, the United States holds an enviable position among its peers. The eurozone is heavily dependent on both oil from the Middle East and natural gas from Russia, another area of geopolitical concern. Since the Fukushima nuclear disaster in March 2011, Japan has imported nearly 100% of the fossil fuels needed to generate power.
Oil is relatively cheap in the US because domestic production has been rising, though still not enough for independence from imports. The reality remains that an oil price spike would threaten the buying power of US consumers and companies alike. And with 40% of S&P 500 profits coming from international sources, the US equity market’s ability to boost sales and earnings in the coming months could also be at risk.
Right now, I fail to see a quick solution, and so I fear a summer of market discontent might lie ahead.
Fiserv announced that Dr. Ben S. Bernanke will speak at Fiserv Forum, its fall conference for credit union clients, to be held Sept. 8-11, 2014 at the Orange County Convention Center in Orlando, Florida.
Dr. Bernanke served consecutive terms as chairman of the Board of Governors of the Federal Reserve System from 2006 to 2014. He also served as chairman of the Federal Open Market Committee, the System’s principal monetary policymaking body. Before his appointment as chairman of the Fed, Dr. Bernanke was chairman of the President’s Council of Economic Advisers, from June 2005 to January 2006.
A distinguished economist and scholar, Dr. Bernanke has published articles on a wide number of economic issues and held professorships at Princeton, Stanford, New York University and the Massachusetts Institute of Technology.
“Dr. Ben Bernanke served as the single-most influential person on the global economy for nearly a decade, and was a key leader in helping the United States successfully navigate the global financial crisis,” said Jeff Yabuki, President and Chief Executive Officer of Fiserv. “We are certain that his experience and insights will help inform the strategies of our clients, who are constantly looking for new ways to drive innovation, efficiency and value.”
Forum features dozens of educational and strategy sessions, covering the areas impacting financial services and their implications for the future. Based on proprietary Fiserv research, conference content was carefully crafted to deliver actionable insights that credit union leaders can use to improve the growth, efficiency and profitability of their institutions.
Foto: JJ Harrison . Como evitar la concentración de los grandes en los índices de Renta Variable con ETFs
The European Central Bank (ECB) should not now need the ‘nuclear option’ of full quantitative easing as growth returns to the Eurozone, though the door remains open for it, says Robeco’s chief economist, Léon Cornelissen.
The long-suffering Eurozone economy is improving to the point that we will soon see the end of hated austerity programs, Léon Cornelissen believes. Meanwhile, the threat of deflation that would seriously undermine a recovery is fizzling out, thanks to better growth figures, he says.
And with these two issues under control, the ECB’s main enemy may ironically now become the very strength of the euro, says Cornelissen. A strong currency is a problem because it makes exports more expensive and imports cheaper. This has a double-edged effect as it hurts Eurozone exporters, threatening the recovery, and encourages disinflation as imported goods become relatively less expensive.
“With a gradually strengthening economy, deflation is unlikely, and if it does materialize in the coming months, it is likely to be of a temporary nature,” Cornelissen says. “The policy mix in the Eurozone is also changing, with austerity on its way out, which will support the recovery further.”
Reluctance for generalized QE
The strength of recent Eurozone economic data means the ECB may be reluctant to go too far with monetary stimulus. Its stimulus measures announced last week, including a cut to the base rate, a negative deposit rate and mild refinancing programs, were well received by investors.
“The ECB did not enter into a program of generalized QE, which would have been a true ‘shock and awe’ approach, though it has left the door open for it,” Cornelissen says. “However, the ECB has repeatedly expressed frustration about the strength of the euro and this has been a clear motive behind the recent policy moves.”
He says the euro might well weaken against the US dollar because the American economy is doing much better after a poor start to the year. The most recent ISM Manufacturing Index reading for May of 55.4 (where figures above 50 represent economic expansion) means tapering of bond purchases by the US central bank will remain on track.
“Now that the US economy is showing a strong rebound after an unusually weather-related weak first quarter, we can expect more talk about the timing of the first interest rate hike in the US, and the dollar will strengthen as a consequence,” Cornelissen says.
Reluctance for generalized QE
The strength of recent Eurozone economic data means the ECB may be reluctant to go too far with monetary stimulus. Its stimulus measures announced last week, including a cut to the base rate, a negative deposit rate and mild refinancing programs, were well received by investors.
“The ECB did not enter into a program of generalized QE, which would have been a true ‘shock and awe’ approach, though it has left the door open for it,” Cornelissen says. “However, the ECB has repeatedly expressed frustration about the strength of the euro and this has been a clear motive behind the recent policy moves.”
He says the euro might well weaken against the US dollar because the American economy is doing much better after a poor start to the year. The most recent ISM Manufacturing Index reading for May of 55.4 (where figures above 50 represent economic expansion) means tapering of bond purchases by the US central bank will remain on track.
“Now that the US economy is showing a strong rebound after an unusually weather-related weak first quarter, we can expect more talk about the timing of the first interest rate hike in the US, and the dollar will strengthen as a consequence,” Cornelissen says.
“The strength of the euro has been a clear motive behind recent policy moves”
Inflation target miss overlooked
However, investors should not rule out the possibility of future QE in Europe, due to a prediction in the ECB’s 5 June rates announcement that may have been overlooked by the market, Cornelissen says. The central bank admitted in a back-door fashion that it won’t meet its own inflation target by the end of 2016, at the limit of current forecasting, when it now expects inflation to be 1.5%.
“As the ECB’s target is generally quantified as 1.75%, the central bank is explicitly admitting that it won’t fulfil its mandate over its own forecast horizon,” Cornelissen says. “This sets a remarkable precedent as far as we are aware, and clearly indicates a bias towards further easing, in this case – inevitably – generalized QE,” he says. “Nevertheless, we still think a policy switch towards generalized QE is unlikely.”
“All in all, the measures by the ECB are a mild boost for risky assets. Although it could be argued that too much attention is focused on monetary policy, and real economic progress could much more easily be reached through fiscal policy, investors will be comforted by the clear expression of commitment to QE should the necessity arise.”
Wikimedia CommonsFoto: Totya. El rally bursátil de julio y qué hacer a partir de ahora
WE Family Offices, the independent, family-focused wealth management firm serving UHNW individuals and families, announces that global investment experts Alexander Calvo and Dr. Walter T. Molano will join the firm’s Strategic Investment Committee, bringing with them extensive industry knowledge and decades of experience.
Managing partner and chair of the Committee, Santiago Ulloa states, “Together with Jean Brunel and our firm’s personnel serving on the Committee, Alex and Walter bring unique external perspectives that will add tremendous value in our work with clients.”
WE’s Strategic Investment Committee considers macro-economic factors and makes strategic and tactical asset allocation decisions to be implemented at the client portfolio level.
Alex Calvo has worked in the financial industry for more than 20 years. A recognized investment expert, he currently serves as founder and managing director of StratEdge Quant Investors LLC, a registered investment advisory firm providing analysis, investment consulting services and financial systems development. Prior to founding StratEdge, Mr. Calvo served at Franklin Templeton Investments, Inc., where he worked as director of International Fixed Income. The flagship funds he managed included Templeton Global Bond Fund and Templeton Global Income Fund, quoted on NYSE.
Dr. Walter T. Molano is a renowned investment expert and currently serves as managing partner and head of research at Intruder Capital. Prior to founding Intruder Capital, he was head of research at BCP Securities, LLC. Before his role at BCP, he served as the executive director of Economic and Financial Research at Warburg Dillon Read. Dr. Molano was also a senior economist for Latin America at CS First Boston.
Bank of America Merrill Lynch, Goldman Sachs and J.P. Morgan are tied for the number-one spot among brokers, with trading shares of 8.3%–8.5% in U.S. Equity Trading for combined high-touch and low-touch cash equity commissions with U.S.-based institutions as of early Q1 2014. Morgan Stanley and Credit Suisse round out the top five with identical market shares of 7.8%. These firms are the 2014 Greenwich Share Leaders in U.S. Equity Trading.
“In U.S. equities the main priority is getting paid for what you deliver,” says Greenwich Associates consultant Jay Bennett. “By maintaining their trading share in trading, some of the bulge bracket banks are now punching above their weight class in terms of their research presence. On the other hand, mid-sized brokers and research specialists that are now being paid in large part through CSAs must be careful that they are being adequately compensated for their research.”
In the increasingly important category of U.S. Equity Algorithmic Trading, the top position is held jointly by Credit Suisse, Goldman Sachs and Morgan Stanley, which are used for algo trading by 60%–64% of institutional investors. J.P. Morgan, UBS and Bank of America Merrill Lynch round out the 2014 Greenwich Share Leaders in U.S. Equity Algorithmic Trading, tied with market penetration scores of 48%–51%.
Citi is the clear leader in North American Portfolio Trading, with a trading share of 10.5%, followed by three banks—Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley—tied with shares of 9.2%–9.7%, and then Barclays, Deutsche Bank and Credit Suisse, which are tied with shares of 8.2%-8.6%. These firms are the 2014 Greenwich Share Leaders in U.S. Equity Portfolio Trading.
Greenwich Quality Leaders
Greenwich Associates asks institutional portfolio managers, analysts and traders participating in our annual research program to rate the quality of service and products they receive from individual brokers. In U.S. Equity Research and Analyst Service, J.P. Morgan and Sanford C. Bernstein receive top scores and are the 2014 Greenwich Quality Leaders among institutional portfolio managers and Sanford C. Bernstein claims that title alone among institutional analysts.
The 2014 Greenwich Quality Leaders in U.S. Equity Trading are Credit Suisse, Goldman Sachs and Morgan Stanley. The 2014 Greenwich Quality Leaders in U.S. Equity Electronic Trading are Credit Suisse and RBC Capital Markets.
More than three quarters of asset managers say they are embarking on a fundamental shift in their overall business strategy in response to changing client demands in the areas of innovation, distribution and front office solutions, a report by State Street Corporation has found. The report titled, “Frontline Revolution: The New Battleground for Asset Managers,” highlights that although asset managers are overwhelmingly positive about the future, true success will be defined through investing in new capabilities, long-term investments and the right mix of talent, transformation and tools.
“Asset managers can have a clearer line of sight by preparing an arsenal of tools and capabilities to thrive in this more specialized and trying environment. That comes with transforming single asset products into fully serviced solutions.”
“Emerging from the financial crisis, asset managers have growth in their crosshairs,” said Joseph Antonellis, vice chairman at State Street. “Although nearly all of the managers surveyed are optimistic about business growth over the next twelve months, few believe they are well equipped to provide the solutions their clients need. To close the capability gap, the top areas of investment over the next three years will include risk analytics, performance analytics and data integration.”
Defending existing borders, but pushing new boundaries:
48 percent of survey respondents believe developing new products for their existing country markets offers the greatest growth opportunity followed by growing market share of their existing products within existing country markets (24 percent) and bringing in existing products to new country markets (20 percent)
42 percent will target growth from new client segments
32 percent expect to expand number of distribution channels
47 percent plan to expand into new markets over the next three years, and of these, 60 percent are focused on opportunities in Asia Pacific
Barriers to expansion:
85 percent say regulatory barriers are the top challenge when expanding into new markets
55 percent say distribution challenges deter them from expanding into otherwise attractive new markets
67 percent of respondents note that multi-asset solutions represent a major source of growth for their business over the next three years. This reflects the shift toward more outcome-based investment solutions for investors. However, 74 percent believe that few managers are equipped to excel in providing these solutions.
“More than ninety percent of respondents agreed that those managers offering the greatest degree of transparency will have the upper hand in attracting new assets,” continued Antonellis. “Asset managers can have a clearer line of sight by preparing an arsenal of tools and capabilities to thrive in this more specialized and trying environment. That comes with transforming single asset products into fully serviced solutions.”
To secure a competitive advantage, the report highlights how asset managers should hone their capabilities to achieve their full growth potential by:
Mastering regulatory compliance, enhancing operational efficiency and focusing on enterprise-wide agility
Upgrading the front office to support new growth segments and more complex multi-asset solutions
Deploying advanced tools to deliver a more outcome-based perspective on investment risk and performance
Identifying where the new solution set requires different skills and augmenting capabilities with the right blend of in-house and external support
State Street commissioned FT Remark to conduct a global survey of 300 senior executives at asset management firms from April – May. Respondents were equally distributed across North America, Europe and Asia Pacific and managed at least $5 billion in retail and/or institutional client assets.
Foto: DanNguyen, Flickr, Creative Commons. ¿Una subida de los tipos de interés a la vista?
J.P. Morgan Asset Management has announced that its first ETF, JPMorgan Diversified Return Global Equity (JPGE), officially launched for trading today. The fund represents the next generation of strategic beta ETFs, seeking to provide global equity returns from four distinct return factors and reduced volatility by diversifying risks across regions and sectors. It is designed to be a core global equity allocation.
JPMorgan Diversified Return Global Equity is a strategic beta, developed market equity ETF that tracks an index co-developed with FTSE Group – the FTSE Developed Diversified Factor Index.
The fund is designed to provide market participation with lower volatility, and starts with the premise that traditional market-cap weighted and single-factor indices expose investors to excessive risk concentrations and a systematic bias toward overvalued securities. Therefore, the fund seeks to reallocate risk by weighting stocks according to four factors: value, size, momentum and low volatility. Research has shown that these factors, when combined, may offer better risk-adjusted returns.
The fund is managed by an experienced J.P. Morgan team, with 18-year veteran Beltran Lastra as the lead portfolio manager. Lastra’s team currently manages $12 billion in AUM globally (as of April 30, 2014).
“We believe that J.P. Morgan has unique investment insights and global capabilities that will be attractive to ETF investors, and this product is an important first step in delivering those capabilities,” said Robert Deutsch, head of the ETF business for J.P. Morgan Asset Management. “J.P. Morgan has grown to one of the largest global mutual fund managers and our ETF offering will be a natural extension our product line-up.”
“We believe that the custom index co-developed with FTSE sets this fund apart and reflects a next-generation-style ETF that will be attractive to U.S. investors,” Deutsch said.
“We are delighted that J.P. Morgan has chosen FTSE as the index provider for launching their new ETF business in the United States,” said Jonathan Horton, president of FTSE North America. “Electing to work with FTSE to co-develop the methodology behind this ground-breaking multi-factor index series is a great example of combining J.P. Morgan’s research and investment process know-how with our index expertise creating customized solutions in partnership with clients.”
PwC US announced four professionals from its Florida market will be admitted into the firm’s partnership, effective July 1, 2014:
Juneen Belknap will be admitted as an advisory principal in the insurance practice based in Orlando. Belknap has experience with clients in property and casualty personal and commercial insurance as well as life, annuity and retirement services. She has supported initiatives across the customer experience, product development, marketing, sales, service, operations, and IT functions. Belknap holds a B.A. in liberal arts from Amherst College and an MBA from the Wharton School at the University of Pennsylvania with a focus in marketing and operations management.
Manuel Iraola will be admitted as an advisory partner in the deals practice based in Miami. Iraola brings over 17 years of experience providing M&A advisory services to corporate and private equity clients in the U.S., Europe and Latin America. As the leader of the U.S. firm’s Latin America deals practice, he has led cross-functional teams on over 150 deals ranging in size from $2 million to more than $10 billion in the U.S. and numerous Latin American markets across a variety of industries. Iraola holds a B.A. in biology and economics from Brown University and is a CPA licensed in Florida.
Tracy Junger will be admitted as an assurance partner based in Orlando. Junger has over 18 years of experience working primarily with large, multi-national SEC registrants in the retail and consumer products and financial services industries. Her experience includes a 5-year tour in PwC’s Global Capital Markets Group in London focusing on projects including equity and debt offerings, carve-outs, internal controls effectiveness projects and IFRS conversion projects. Junger holds a B.B.A in accounting from Stetson University and is a CPA licensed in Florida.
Catherine Stahlmann will be admitted as an advisory principal in the banking and capital markets practice based in Miami. Stahlmann co-leads the firm’s U.S. anti-money laundering (AML) practice and brings more than 22 years of experience assisting global banks develop comprehensive AML programs that include target operation models, governance, client due diligence/ customer risk scoring programs, risk assessments (entity, product, geography), account monitoring systems, and reporting infrastructure. She has also assisted banks in addressing regulatory enforcement actions including Cease and Desists, Deferred Prosecution Agreements, monitorships, and other requirements mandated by regulators. Stahlmann holds a bachelor of commerce degree in management science from the University of Ottawa and is a member of the Association of Certified Anti-money Laundering Specialists, the American Bankers Association, and the Florida International Bankers Association.
“These individuals understand our clients’ key business issues and have the passion and enthusiasm to help them transform their business, all while maintaining a focus on our people and the qualities that make PwC distinctive,” said Mario de Armas, managing partner for PwC’s Florida Market. “We welcome them into the partnership and congratulate them on achieving this significant career milestone.”
These four individuals are among 180 professionals admitted to the U.S. partnership, representing all PwC service lines. The number includes 69 new partners in audit and assurance, 49 in tax, 61 in advisory and one in internal firm services. The new admissions bring PwC’s U.S. partnership to more than 2,850 men and women.
