SocGen Private Banking has appointed Eric Verleyen as global CIO.
Eric Verleyen, CFA, joined Societe Generale Bank & Trust Luxembourg in 2005 as Head of Discretionary Management for the private bank. During his time in Luxembourg, he has contributed to the development of tailor-made portfolio management dedicated to Ultra High Net Worth Individuals.
In 2009, his responsibilities were enlarged to include Advisory Managed activities before becoming Chief Investment Officer, in charge of Discretionary Management and Advisory Management teams, as well as Products Offering in Luxembourg.
Previously, Eric Verleyen worked for KBL Luxembourg where he headed a portfolio managers team and for Sakura Bank Luxembourg.
He holds a degree from the Institut d’Administration et de Gestion of Louvain (Belgium) and was recently rewarded with the title of Outstanding Young Private Banker 2011 by Private Banker International.
Paul Smith, CFA, nuevo presidente y CEO de CFA Institute, organización a la que pertenecen más de 127.000 profesionales de la inversión en 147 países. Foto cedida. Paul Smith: nuevo presidente y CEO de CFA Institute
CFA Institute has named Paul Smith, CFA, currently managing director, APAC and global head, Institutional Partnerships at CFA Institute, as its new president and CEO, effective immediately. Smith’s appointment comes after an extensive global search to lead the organization of more 127,000 investment professionals in 147 countries, most of whom are CFA charterholders.
Smith has more than 30 years of leadership experience in the asset management industry, including over 18 years in Asia. He joined Bank of Bermuda in Hong Kong as Asia head of securities services in 1996. After HSBC’s acquisition of the bank in 2004, he served as global head of securities services and global head of alternative funds administration based in New York, where he was responsible for the delivery of services to 2,000 investment funds with over US$250 billion of assets. Before joining CFA Institute in October 2012, Smith was chairman and CEO of Asia Alternative Asset Partners.
With extensive management and business experience at global organizations, Smith will continue to support CFA Institute efforts to champion for ethical behavior in investment markets as a respected source of knowledge in the global financial community.
“It’s a critical moment for both investors and the professionals who serve them. In his time with CFA Institute, Paul has demonstrated the bold vision and strong leadership we need to advance the profession and shape a more trustworthy financial industry,” said Aaron Low, CFA, chair of the CFA Institute Board of Governors. “Paul has made a significant contribution to the investment industry, and CFA Institute is well-positioned for continued growth and leadership under his direction.”
The selection comes as CFA Institute continues to broaden its global reach, with a stronger presence planned for both China and India, continued growth of its recently launched Claritas Investment Certificate program, an Annual Conference in April in Frankfurt, Germany, and the second annual Putting Investors First Month in May – a global series of events to unite financial professionals throughout the world in a commitment to place investor interests above all others.
“Above all, CFA Institute was searching for a solid understanding of the value of our education programs, and how the CFA charter, our codes and standards, and advocacy efforts contribute to the advancement of our mission,” said Smith. “Having served CFA Institute from within I am fully aware of its rich history and contribution to the global investment profession, and I look forward to leading the organization in pursuit of our end goal, to advance the investment profession for the ultimate benefit of society.”
Smith is a Fellow of the Institute of Chartered Accountants of England and Wales and an Executive Committee member of the Alternative Investment Association, Hong Kong. He holds a Masters degree in History from Oxford University, and is a CFA charterholder.
Smith succeeds the leadership of Dwight D. Churchill, CFA, who was named interim president and CEO in June of last year following the tenure of former president and CEO John Rogers, CFA.
Global investors have put some of their cash to work in spite of a more downbeat assessment of global growth and corporate profits, according to the BofA Merrill Lynch Fund Manager Survey for January. Investors have regained a muted risk appetite, turning to U.S. equities, bonds and real estate. The proportion of respondents overweight cash has tumbled to a net 17 percent from a net 28 percent last month. Average cash positions have fallen to 4.5 percent of portfolios, the lowest in six months, down from 5.0 percent in December.
More than two-thirds of investors say equities will outperform other major asset classes in 2015. Accordingly, a net 51 percent of asset allocators are overweight equities, down one percentage point since last month but the third-highest reading in the past year. A net 24 percent of asset allocators are overweight U.S. equities, up from a net 16 percent a month ago. However, a net 75 percent say U.S. equities are overvalued – the highest reading since the question first appeared in 2001. The proportion of asset allocators overweight real estate has climbed six percentage points to a net 9 percent. Investors also reduced net underweight positions in bonds.
Investors are less optimistic about the economy. A net 51 percent of the panel believes the world economy will improve this year, down from a net 60 percent in December. But, as deflation surfaces in the Eurozone, expectations of stimulus from the European Central Bank (ECB) are high. This month, 72 percent predict QE to start in the first quarter. Furthermore, the third quarter is now the most likely timing for a rate hike by the U.S. Federal Reserve, verses the second quarter a month ago.
“Lower oil prices and hopes for policy stimulus are sustaining both global growth expectations and investor confidence,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research. “Amid expectations of ECB stimulus, consensus is convinced that Europe is the region to overweight in the coming year. But, on an absolute basis, European stocks will be vulnerable to headwinds from outside the region,” said Manish Kabra, European equity and quantitative strategist.
Equity allocations defy weaker corporate outlook
Allocations towards equities remain strong despite concerns about the prospects for profits and margins. A net 8 percent of global investors expect corporate operating margins to fall in the coming 12 months, up from a net 1 percent in December. The proportion of the panel expecting corporate profits to improve has fallen to a net 38 percent from a net 46 percent.
Only a small minority believes that a double-digit rise in profits is possible in the coming year. A net 53 percent now says that it is unlikely profits will improve 10 percent or more, up from a net 32 percent in December. On a regional basis, a net 41 percent of the panel says that profit outlooks are the most favorable in the U.S., with a net 20 percent backing Japan.
Oil and Energy – undervalued yet underweight
Investors see value in oil and in energy stocks – but it seems too soon for them to have made a move. A net 45 percent of respondents say that oil is undervalued, up from a net 36 percent in December and at the highest level in exactly six years. At the same time, a net 30 percent of the panel says that energy stocks are the most undervalued – up from a net 21 percent.
Allocators to energy and commodities remain weak. The proportion of investors underweight energy stocks has increased in the past month to a net 25 percent from a net 22 percent. Asset allocators have modestly increased allocations to commodities but a net 24 percent remains underweight.
Emerging markets fall further out of favor
With questions hanging over China’s economy, bearishness towards Global Emerging Market equities has intensified. A net 13 percent of asset allocators are underweight the region compared with a net 1 percent being overweight in December. Furthermore, a net 17 percent of investors say that emerging markets is the region they most want to underweight in the coming year. A net 41 percent of respondents to the regional survey say that they expect weaker growth in China in the coming year.
Foto: Anna Christina, Flickr, Creative Commons. La responsable de selección de fondos de la brasileña Itaú AM sale de la gestora
The head of offshore fund selection for Itaú Asset Management, Eliza Pepper, has left the Brazilian giant after seven years, Citywire Global publishes.
While her departure has been announced it is not yet known whether this will take place with immediate effect but her potential replacement, Jeff Lombardi, joined the group’s New York office last December as Head of Alternative Investing and Fund of Funds Group.
Lombardi is a former global head of private bank portfolio managers at Citi and is now a member of Itaú AM‘s international fund selection team.
Pepper joined the Brazilian group in 2008 to work in its New York office. Prior to this, she was head of investment manager research at UBS Wealth Management for two years. Between 1999 and 2006 she was at Citi, where was appointed head of research on its global investments platform for the wealth management division.
Itaú Asset Management runs $153 billion across all asset classes.
Lombard Odier Investment Managers (LOIM) has named Théodore Economou Chief Investment Officer of LOIM’s multi-asset business.
The unit, which managed $5.2bn (€4.5bn) at the end of December, also includes a fiduciary management division.
Economou most recently served as CEO and Chief Investment Officer of the CERN Pension fund, where over five years he initiated a risk-based approach that came to be known as the CERN Model. The multi-asset, factor-driven model aims to preserve capital while maximizing returns relative to risk.
Economou will be based in Geneva and build on a similar approach that LOIM began applying to its own employee pension fund in 2009 and developed for institutional clients. The risk-based approach is designed to meet the needs of Sovereign Wealth Funds and pension funds. He will report to Jan Straatman, Chief Investment Officer of LOIM.
In multi-asset investing, portfolios are built with a global mix of asset classes and styles, including investments in public and private markets. Factor-driven—also called smart beta-—portfolios allocate assets to investments with identifiable characteristics or “factors” that account for their performance.
Before joining CERN, Mr Economou was assistant treasurer of ITT Corporation in New York where he managed pension assets and liabilities worldwide as well as the firm’s capital markets activities. Prior to that, he was a consultant with Accenture’s Financial Services Group in Geneva and Zurich. He holds an M.Sc. in Mechanical Engineering from the Swiss Federal Institute of Technology in Lausanne and an MBA from Northwestern University’s J.L. Kellogg Graduate School of Management.
The European Fund and Asset Management Association (EFAMA) has published its latest Investment Funds Industry Fact Sheet, which provides net sales of UCITS and non-UCITS for November 2014. 27 associations representing more than 99.6 percent of total UCITS and non-UCITS assets at end November 2014 provided them with net sales and/or net assets data.
The main developments in November 2014 in the reporting countries can be summarized as follows:Net sales of UCITS reduced to EUR 27 billion in November from EUR 44 billion in October. This fall in net sales came despite increased net sales of long term funds during the month.
Long-term UCITS (UCITS excluding money market funds) posted increased net inflows of EUR 31 billion, up from EUR 23 billion in October. Equity fund net sales returned to positive territory in November posting inflows of EUR 2 billion, against net outflows of EUR 6 billion in October. Bernard Delbecque, Director of Economics and Research commented: “The decline in stock market uncertainty brought back net sales of equity funds to positive territory in November.”
Bond fund net sales reduced to EUR 11 billion, down from EUR 16 billion in October. Balanced funds enjoyed a pick-up in net sales to EUR 13 billion in November, up from EUR 9 billion in October.
Money market fund net sales returned to negative territory in November posting outflows of EUR 4 billion in October, compared to net inflows of EUR 22 billion in October.
Total non-UCITS net sales remained relatively steady in November at EUR 16 billion. Net sales of special funds (funds reserved to institutional investors) remained at EUR 12 billion for the second consecutive month.
Total net assets of UCITS stood at EUR 8.02 trillion at end November 2014, representing a 1.5 percent increase during the month.
Total net assets of non-UCITS increased 1.4 percent to stand at EUR 3.17 trillion at month end. Overall, total net assets of the European investment fund industry stood at EUR 11.2 trillion at end November 2014.
Foto: PrimelmageMedia, Flickr, Creative Commons. Seis tendencias en real estate a vigilar en 2015
The world in which we live and work is changing rapidly and it’s sometimes difficult to spot the trends that will shape the coming years. “We have been tracking these trends and considering the potential implications for the real estate industry”, says KPMG.
“These trends are not only to be watched and accepted, there are real developments that will call for action if you are to stand out. If you anticipate those trends, real opportunities can emerge for your business”. Here’s what they’ll be watching in 2015:
Globalization
Driven by the need to diversify beyond domestic markets, global capital flows will continue to build. This will bring even greater understanding of RE markets as a whole. KMPG prediction is that the result will be an expanded RE universe with investors on the lookout for strong risk-adjusted returns.
Shift to “real assets”
Uncertainty, heightened volatility and slower growth has led to investors allocating a larger piece of the pie to “real assets”. This term comprises a variety of tangible investments that give investors options and are widely thought to provide a stable source of income in weak markets and access to capital appreciation in strengthening markets.
Increasing risk appetite
The so-called “flight-to-core” has led to significant competition for prime assets in sought-after locations. As they are currently increasing allocations to real estate, investors are being forced – through competition – and encouraged – by improving economic sentiment – to diversify. “We expect to see new geographical locations, asset classes and asset segments gain in popularity”.
Asset class broadens
Property types which would have been considered ‘specialised’ just a short time ago are now becoming mainstream. As investors increasingly seek long-term income flows, demand for assets with operating elements – such as hotels, student accommodation and so on – are receiving increasing interest, which in turn is leading to yield compression. All signs point to this continuing.
Securitization
The depth and breadth of listed REITs/companies is increasing, with more conservative balance sheets post-2009. The shift from Defined Benefit (DB) to Defined Contribution (DC) is also supporting this trend, along with the emergence of DC-compatible private equity vehicles. Will this continue into 2015? We certainly believe so.
Debt
Ongoing bank deleveraging is making space for new entrants to debt markets. “Watch this space as we believe this is the sign of things to come”.
Nuveen Investments has announced it has extended its offerings to non-U.S. investors with the availability of a new UCITS fund focused on large cap core equities. The new fund is offered via Nuveen Global Investors Fund plc through a UCITS structure.
The new fund is managed by Nuveen Asset Management (NAM) LLC, a Nuveen investment affiliate recognized as a global investment manager with a broad investment platform. As a $130 billion multi-asset-class investment manager, NAM’s collaborative approach to portfolio construction is driven by integrated research and risk management processes.
The objective of the fund is to provide long-term capital appreciation through investments in large cap core equity securities. Led by respected portfolio manager and market strategist, Bob Doll, the portfolio management team will select securities using an investment process that combines quantitative, objective analysis with fundamental, research-based measures. Securities generally are added to the portfolio based both on the ranking given to a particular security by the multi-factor quantitative models used by the management team as well as the fundamental analysis of the securities.
In “Getting Closer to Home,”Henry H. McVey, Member & Head of Global Macro and Asset Allocation at KKR, outlines key global trends that he believes will impact asset allocations for the year.
“While the general backdrop for risk assets remains favorable, we are no longer advising folks to “Stay the Course” as we did in our January 2014 Outlook piece,” McVey writes. “Rather, given where we are in the cycle and the magnitude of gains in recent years, we have begun the inevitable process of “Getting Closer to Home” in terms of our asset allocation targets. In particular, we do advise folks to raise some cash and to tilt the invested part of the portfolio to become more opportunistic in 2015.”
In the piece, McVey also outlines key themes that make compelling “arbitrages” in the global macro landscape that CIOs and portfolio managers should pursue this year. These include:
China’s slowing is not an aberration. As such, its role in the global economy is materially shifting, which means that McVey expects to see sizeable restructuring and recapitalization opportunities in sectors that previously over-earned and/or overstretched their footprints.
Many corporations still have inefficient capital structures, including too much cash and too little debt, in his view. As such, investors can still benefit from corporate and/or shareholder actions to lower companies’ cost of capital and/or improve growth, including buybacks, dividends, capital expenditures and acquisitions.
Despite a slew of liquidity in the system, many companies across both emerging and developed economies still can’t get proper access to credit. Hence, McVey still sees a compelling illiquidity premium that is worth pursuing, particularly in today’s low rate environment.
McVey suggests harnessing volatility in the liquid commodity markets. He continues to favor private real asset investments with upfront yield, growth and long-term inflation hedging relative to traditional liquid commodity notes and swaps.
Government deleveraging in the developed markets is disinflationary, which drives McVey’s thinking about the direction of long-term interest rates as well as the relative value of risk assets against the risk-free rates.
La Française REM purchased the PANORAMA SEINE and DOCKSIDE buildings, located 255 and 224 quai de la Bataille de Stalingrad respectively in Issy-les-Moulineaux (92130), ZAC des Chartreux, overlooking the river Seine, near Paris. Designed by architects Patrice Novarina and Atelier de Midi, and built by Sefri-Cime, the office complex was completed in 2008.
The acquisition includes two buildings: a seven-storey building (at 255) with 7,905 m² of office floor space; a two-storey building (at 224) with 2,082 m² of office space, including restauration facilities. The complex has 116 underground parking spaces. The global headquarters of the Sodexo group have been based there since 2008, under a twelve-year lease.
La Française REM was assisted by law firm Fairway Avocats and 14 Pyramides Notaires. The financing was provided by pbb Deutsche Pfandbriefbank, assisted by Lefèvre Pelletier & associés and Attorney Moisy-Namand. The seller was assisted by DTZ, as part of an exclusive mandate, and law firms K&L Gates and Le Breton & Associés.
