Allstate announced the launch of its first emerging manager program to invest with smaller private equity and private real estate equity asset managers, with a focus on minority and women-owned firms.
“We believe Allstate is leading the insurance industry in establishing this emerging manager investment program,” said Edgar Alvarado, Allstate’s group head of real estate equity. “We see this program as our farm team – a way to identify the next generation of investment stars, break down the high barriers to entry for these talented managers, and have Allstate be a catalyst in the success of emerging managers. Just as important, Allstate expects its socially responsible investments to achieve strong returns – we truly can say we do well by being a force for good.”
The Allstate program will be administered by the Customized Fund Investment Group (CFIG). Allstate and CFIG are seeking managers with strong investment track records and who are raising their first, second or third institutional funds and with less than $500 million in assets under management. In addition, at least 33 percent of a participating firm will be owned or controlled by women and/or minorities, or at least 50 percent of fund carried interest will be paid to women or minority staff.
The program’s fund managers will identify investments in the United States that meet Allstate‘s desired risk-return profile.
Imagine one idea that strikes twice, simultaneously inspiring two entrepreneurs physically separated by 3,000 miles and the equator. The tenets of capitalism suggest that of these two, only one will succeed by providing the market with a better product at a more competitive price.
Now, assume that the first entrepreneur is based in Silicon Valley and the other in Costa Rica. The playing field is now uneven, and the significance of a solid business acumen and competence gives way to geographic fortune.
When compared to their Silicon Valley counterparts, Latin American entrepreneurs are faced with significant funding gaps. For investors, this represents a wide swath of untapped investment options. For business owners, it is a competitive disadvantage. Latin America lacks a single platform that bridges these funding gaps, and investors have traditionally struggled to build the critical mass needed to launch successful ventures. Often, the money dries up after initial sources of funding such as family, friends and local banks are exhausted.
The entrepreneurs of the region can look to a mainstay of the American economy for a bridge: the stock exchange. The various New York-based and international stock exchanges that have developed in the past 150 years have helped companies and investors alike by providing an equal playing field that facilitates growth through investment. Startups in Latin America can benefit from such an exchange, which would also allow for the funding of all properly-vetted projects, by evening out the playing field.
An exchange exclusively focused on startups and interested investors presents a solution to such problems. For Latin American firms trying to gain momentum, the biggest time suck is playing the dual roles of fundraiser and product-maker. Without a built-in Rolodex of venture capitalists (VC), founders can find themselves working a full-time job just to secure funding. An “exchange for them all” is an elegant, egalitarian solution that will disrupt this insular model of VC investment.
Other obstacles exist that conspire to keep Latin American startups from succeeding. Some are cultural, deeply embedded within nationalistic attitudes. Failing is a requisite in business, but failure can be a source of great shame in some Latin American circles. Also, for many people on the lower end of the socioeconomic scale, class barriers can prevent even the best of ideas from being realized.
This is why a startup stock exchange should incentivize investor participation by setting a low barrier for entry. A minimum of $100 is a reasonable amount to expect from investors, which allows for incremental investment.
From the investor’s perspective, the world of international startups can be a murky one. To navigate these opportunities, investors need a single platform in which to apply judgment, and a tool that undertakes the task of due diligence, which is indispensable to making wise investments. To this point, the marketplace has been void of a trading platform that solely focuses on startups and interested investors.
Investors want a clearer path. They want a vehicle that allows them to invest and divest as they see fit, following the traditional exchange marketplace model; a place where their shares appreciate in value as the companies they invest in show returns.
Investors also crave transparency. Too often, seemingly lucrative investments in foreign companies can come with unexpected roadblocks, regulatory and otherwise. There is no way to anticipate wild cards, such as local politics and rogue regulators, without a marketplace that accounts for them, conducting due diligence on behalf of the investor community and shining light on these potential potholes. There is a need for a place that enables trading startup shares with ease and confidence.
The best ideas and entrepreneurs in Latin America deserve a fair chance to either sink or swim. All that is missing is a clean pool.
Kate Upton, Eli Manning, Daniel Craig y Halle Berry, en la sede de ICAP en Jersey City, NJ. ICAP dona el 100% de sus ingresos en el Día de la Caridad a más de 200 organizaciones benéficas
ICAP held its 21st annual global Charity Day on Tuesday, December 3, 2013. On this day, 100% of company revenues and commissions will be donated to a selection of over 200 charities around the world. ICAP is a leading markets operator and provider of post trade risk mitigation and information services.
Since the inception of Charity Day in 1993, ICAP has raised over $161 million for more than 1,400 well-deserving causes worldwide. In 2012, the company raised $18 million globally on Charity Day.
As part of the day’s activities, ICAP hosted several of the charities’ celebrity spokespeople at its offices around the world to rally employee enthusiasm and interact with clients to boost trading volumes. At ICAP’s North American headquarters in Jersey City, NJ, over a dozen celebrities were on hand, including actress Halle Berry (Affiliated Charity: Jenesse Center, Inc.), model Kate Upton (Affiliated Charity: Girls, Inc.), New York Giants Quarterback Eli Manning (Affiliated Charity: PeyBack Foundation), and actor Daniel Craig (Affiliated Charity: S.A.F.E. Kenya)
Classroom at Wharton School.. Wharton will Hold a Private Wealth Management Program for Professionals and UHNWI in Miami
Wharton, in collaboration with Family Business School, designed the syllabus for Private Wealth Management, a bespoke program for executives and professionals in the wealth management industry, which will be held in Miami over a period of three days on January, 2014.
The program will be held at the Hotel JW Marriott Marquis in Miami (Florida) from the 8 th to the 10 th of January. For further information on the course or to registerplease contact info@fundssociety.comor call +1-305-692 0169
The program aims to provide industry professionals with all the expertise and knowledge of experienced Wharton professors so that students may further their skills and achieve continued asset growth for their clients, and to meet the challenges which are unique to the ultra high net worth client sector, also known as UHNWI.
According to a study conducted by Family Business School, a pioneer in providing training and education in private wealth management to the Latin American high net worth sector, nine out of ten Latin American companies are family-owned businesses, but only 30% of these businesses survive the second generation. The program taught by Wharton in Miami is also for members of these great family fortunes, with the aim of creating a smoother and more fruitful relationship between UHNWI and their financial advisers, bankers, or family offices.
According to Family Business School, the main reasons why family businesses do not thrive in the long term are, lack of planning when it comes to family succession and inefficient management, in addition to little or no training for owners, shareholders and the next generation of business leaders. Inefficient asset management and ineffective asset allocation are some of the other reasons which are considered to be a direct cause of the inability of these companies to continue beyond the second generation.
Family Business School also highlights the fact that even though Latin America is a world leader in productivity, when compared with other areas globally, the region does not save or invest enough.
During the three days of the program the teaching sessions will cover the following topics:
The family balance sheet: this session aims to show how wealth is not only an issue of financial assets, since it covers many other areas ranging from operating a business and liquid investments such as real estate, to the management of human and family resources. This block shares ideas and coordinates all elements of family wealth beyond family investment opportunities.
Other sessions provided in the program include: the modern theory of portfolio management, performance measurement and management evaluation, the art and implications of asset allocation, client centric influence, understanding you an your client communication style, alternative investments and real assets and, impact investing.
The program will be held at the Hotel JW Marriott Marquis in Miami (Florida) from the 8 th to the 10 th of January, 2014. For further information on the program or to registerplease contact info@fundssociety.comor call +1-305-692 0169
Photo: Raul Heinrich. Henderson refuerza su equipo en Singapur al contratar a un director de renta variable asiática
Henderson Global Investors has hired Andrew Gillan to head up its Asia (ex-Japan) equities team. He will be based in Henderson’s Singapore office. He joins from Aberdeen Asset Management where he was senior investment manager on its Asia Pacific (ex-Japan) equity team and manager of the Edinburgh Dragon Investment Trust, which has gross assets of over £600 million, making it the UK’s largest Asian (ex-Japan) Investment Trust.
Andrew joined Aberdeen as a graduate trainee on the UK equity desk, via Aberdeen’s acquisition of Glasgow-based Murray Johnstone in 2000, before moving to Singapore in 2001.
Andrew will take over as lead manager of the £200 million Henderson Asia Pacific Capital Growth Fund and the US$33 million Henderson Horizon Asian Growth Fund.
Commenting on his appointment Graham Kitchen head of equities, says, “We have been very clear of our intention to continue growing our business internationally, particularly in Asia and the US. Andrew has built up an enviable track record. Having spent over 10 years in Singapore, he is the ideal person to lead our build out there. In addition, and in keeping with our desire to increase our ‘on the ground’ investment talent, we will also be moving a number of our Asian equity analysts to Singapore in the New Year.”
In total Henderson manages US$2.3 billion assets in Asia (ex-Japan) equities on behalf of European, Asian and US clients. Products range across Growth, Income, China and long/short equity.
There are currently 16 investment professionals in Henderson’s equities business in Singapore which includes nine portfolio managers, three analysts and four dealers.
The number of advisors practicing in the registered investment advisor (RIA) model grew at an annualized rate of 8% between 2004 and 2012, while every other advisory channel declined by more than 1% during the same timeframe, according to the latest research from Cerulli Associates.
The December 2013 issue of The Cerulli Edge-U.S. Asset Management Edition examines the RIA channel’s evolution, how third-party vendor platforms reach advisors who value flexibility, and the emergent phenomenon of ETF strategists.
According to Cerulli, multiple factors have fueled the growth of this channel, most prominently the so-called “breakaway broker” – an advisor or team with an established practice choosing to leave an employee broker/dealer (B/D) and creating their own advisory firm. Transitioning advisors have not only come from employee B/Ds, but also from independent B/Ds.
“While the ‘Breakaway Broker’ has been an important driver of change, it is not the sole source of growth for the RIA channel,” Waldert explains. “Nontraditional competitors, such as law and accounting firms, have entered the advisory industry.”
“The unique challenges of business ownership are no longer an obstacle for a breakaway advisor,” Waldert continues.
“The RIA channel expanded from a cottage industry to an essential element within the financial advisory and asset management space”, concludes the report.
Cormac Weldon, director de Renta Variable EE.UU. en Threadneedle. EE.UU. está más caro que otras regiones debido a los puntos fuertes de los que otras regiones carecen
Cormac Weldon, Head of US Equities at Threadneedle, addresses some of the questions currently on the minds of US equity investors. Overall, he believes that US stocks remain attractively valued and that some sectors offer particular value. Cormac also points out the positive aspect of the political division in Congress over the budget deficit and the debt ceiling.
US stock markets are higher now than before the 2008 financial crisis. How is that possible?
Earnings have recovered and surpassed their previous peak so therefore it is entirely understandable that the market should have performed so well.
European stocks have yet to regain their previous highs. Why has the US performed so much better?
The reason that US earnings have recovered is that America quickly implemented dramatic steps to stabilize the economy in 2008 and 2009. Measures included forcing the banks to accept fresh capital and to raise equity and capital levels. As a result, US banks are well capitalized and loan growth is positive. By contrast, European banks remain poorly capitalized and lending growth is negative on the Continent.
Moreover, the US is much stronger in terms of innovation and companies that are dramatically changing industries have driven some of the stock market gains. Examples include Google and Facebook and other internet companies that are changing how companies advertise and gaining market share through innovation.
What do you think of the current level of valuations in the US? Are stocks still attractive?
We believe that the market remains fairly valued and is certainly not overvalued in historical terms although neither is it cheap. However, when compared with other asset classes such as bonds, stocks do look attractive.
How do US valuations compare to other regions?
The US is clearly more expensive than other regions but we believe this simply reflects strengths that other regions lack including: well-contained inflation; positive economic growth; innovation; and a robust banking system.
Many experts have increased their allocation in US equities. Is that a good move?
It certainly has been in terms of performance over the year to date and we believe it will probably remain prudent to have a good allocation to US equities, particularly given that the Federal Reserve is targeting employment levels, which means that is also focusing upon economic growth. Given that inflation remains low, this is almost certainly a very good environment for equities to continue to perform well.
Does the debt ceiling issue pose a serious threat to the economy?
Although the political shenanigans in Washington generate many headlines, we believe they are very much a secondary issue in terms of their impact upon markets and the economy. While there may be some negative effects, we believe that these will be more than offset by the Federal Reserve’s willingness to prolong quantitative easing.
Moreover, we would rather see political bickering than a situation where the Democrats controlled Congress and were able to do as they pleased. This is because the major long-term challenge facing the US is the budget deficit, particularly given that healthcare expenditure will explode in 10 years or so. It is very clear to us that the Democrats are reluctant to address an issue that the Republicans are at least discussing. Thus, we would prefer to see some political turbulence over the budget deficit than a government able to ignore it entirely.
What do you think about the appointment of Janet Yellen to head the Federal Reserve?
We can only comment upon what we have read about her. She is clearly experienced and we are impressed by the fact that her economic forecasts have been more accurate than other policymakers within the Federal Reserve. This record appears a very positive factor.
What are your expectations for the coming months and for 2014?
We believe the market will make further gains. It tends to at this time of the year while all should be quiet on the political stage for a while. Whilst the economy is growing moderately, the Federal Reserve continues to stimulate the economy by buying treasuries and maintaining interest rates at very low levels.
Can you give examples of two companies in your top 10 holdings and explain why these stocks are interesting?
We like Google, where revenues and earnings are growing at healthy double-digit rates – with earnings probably expanding at 20% plus per annum. This has been the case for a number of years and we anticipate this pace will continue given that it is changing the face of the global advertising industry. Although it trades at 19 times next year’s earnings, it is important to remember that earnings will double over the next four years if it maintains a 20% earnings growth rate.
Charter Communications is another favored stock. The cable business had been poorly managed but under a new chief executive, who took over two years ago, has benefited from hefty investment. Consumers are buying more services, such as digital movies and broadband internet, from the company and are paying higher prices for them. Consequently, we believe the company will enjoy good growth in the coming years. Moreover, it is possible that Charter will be involved in any further consolidation within the US cable industry.
Markets are acting in quite a complex way in Europe at present, being pushed higher more by people wanting to increase their weighting in Europe rather than any dramatic improvement in economic data. October and November thus far has seen some pretty strong gains for more cyclical areas of the market. There is a contradiction within the way markets are moving: what I think is potentially exaggerated optimism. Whilst economic news in Europe is marginally better and company news has generally been quite good, people are maybe getting a little ahead of themselves.
Overall, we anticipate a period of fairly low and volatile economic growth. We might get some quite good economic news, or some strong results, but then markets might get scared by renewed talk over tapering, a disappointing piece of data or inclement weather conditions, which could change people’s spending habits.
On the subject of results, the latest round of figures from LVMH and Heineken (neither of which we hold) were pretty weak. But results like this amongst other recognisable quality growth names have been a key reason behind the trend towards more cyclical names, in anticipation of a cyclical recovery that may, or may not, come through. There has been a bit of a ‘dash for trash’ in October and November and that is a part of the market in which we do not really participate. Nonetheless, whilst our long-term ‘quality growth’ investment style could be seen as a little unfashionable in this environment, we think the fund is reasonably well placed.
Tim Stevenson, manager of the Henderson Horizon Pan European Equity Fund
Foto: Awesome Sasquatch. FATCA crece con dos nuevos acuerdos firmados por Costa Rica y las Islas Caimán
The U.S. Department of the Treasury announced that the United States has signed intergovernmental agreements (IGAs) with the Cayman Islands and Costa Rica this week to implement the Foreign Account Tax Compliance Act (FATCA).
“Today’s announcement marks a milestone in the effort to promote global tax transparency,” said Deputy Assistant Secretary for International Tax Affairs Robert B. Stack. “These agreements underscore growing international cooperation in the effort to end tax evasion everywhere.”
FATCA, enacted in 2010, seeks to obtain information on accounts held by U.S. taxpayers in other countries. It requires U.S. financial institutions to withhold a portion of payments made to foreign financial institutions (FFIs) that do not agree to identify and report information on U.S. account holders. FFIs have the option of entering into agreements directly with the IRS, or through one of two alternative Model IGAs signed by their home country.
Signed on November 29th, the Cayman Islands IGA is a Model 1B agreement, meaning that FFIs in the Cayman Islands will be required to report tax information about U.S. account holders directly to the Cayman Islands Tax Information Authority, which is the sole channel in the Cayman Islands for the provision of tax-related information to other governments. The Cayman Islands Tax Information Authority will in turn relay that information to the IRS. Additionally, the United States and the Cayman Islands also signed a new Tax Information Exchange Agreement (TIEA), to take the place of the original TIEA signed in 2001.
“By working together to detect, deter, and discourage offshore tax abuses through increased transparency and enhanced reporting, we can help build a stronger, more stable, and accountable global financial system. We look forward to collaborating with the Government of the Cayman Islands to further these objectives,” said Julie Nutter, Minister-Counselor for Economic Affairs at the U.S. Embassy in London, who signed on behalf of the United States.
The Costa Rica IGA was signed on Tuesday, November 26, and is a Model 1A agreement, meaning that the United States will also provide tax information to the Costa Rican government regarding Costa Rican individuals with accounts in the United States.
“Today’s signing marks a significant step forward in our efforts to work collaboratively to combat offshore tax evasion – an objective that mutually benefits both our countries,” said Gonzalo R. Gallegos, Chargé d’Affaires of the U.S. Embassy in Costa Rica, who signed on behalf of the United States.
In addition to the 12 FATCA IGAs that have been signed to date, Treasury has also reached 16 agreements in substance and is engaged in related conversations with many more jurisdictions.
For the signed Costa Rica IGA, click here. For the signed Cayman Islands IGA, click here.
Marcos Martinez, presidente ejecutivo y CEO de Banco Santander Mexico. Santander México completa la compra de ING Hipotecaria por 41,4 millones de dólares
Grupo Financiero Santander Mexico announced on Novembr 29th that its subsidiary, Banco Santander Mexico, has completed the acquisition of the equity stock of ING Hipotecaria, a subsidiary of ING Group, as announced on June 14, 2013.
Upon receipt of all required regulatory approvals and authorizations for the acquisition, Banco Santander Mexico purchased ING Hipotecaria for Ps.541.4 million (approximately US$41.4 million) in cash. As of September 30, 2013, ING Hipotecaria’s loan portfolio totaled Ps.11.9 billion, its customer base exceeded 28,000 clients, and its distribution network consisted of 20 branches throughout Mexico.
Marcos Martinez, Executive Chairman and CEO, commented, “We are very pleased to have completed the acquisition of ING Hipotecaria, which strengthens our core portfolio and solidifies Santander Mexico’s position as the second largest banking mortgage provider in Mexico with an estimated market share that increases from 15.8% to 17.8% with this acquisition. We have successfully grown our mortgage business over the years through a prudent combination of organic and external growth initiatives, and we believe the acquisition of ING Hipotecaria fits perfectly into our ongoing strategy. Going forward we intend to continue to expand our mortgage business, providing our clients with innovative products and services while leveraging opportunities for cross-selling our other banking products and maximizing the cost synergies we have identified for this acquisition.”
