Wikimedia CommonsBy LunarGlide+ 5 from Nike Running. Renewed or Print
Continuously reinventing and taking advantage of opportunities offered by the advancement of technology is essential for companies to remain at the forefront. Some firms in an industry as traditional as textiles have been able to incorporate the technological advances into their production processes, reducing costs and time through the thereof. Increasing number of shoe companies are making use of the 3D printing, in which their designs are made more efficiently and effective.
The strategy of Robeco Consumer Trends is in line with these companies who are committed to continuous innovations, able to anticipate the needs of the consumers, even create them, obtaining further outperformance.
Through 3D printing, shoe manufacturers take advantage of advances driven technology heavy industries such as aerospace. This type of printing is partially extended in the area of personalized medicine as may be the case of hip prostheses. 3D printer’s particles have plastic, metal or even wood into thin layers that are used to construct objects solids.
Before the arrival of this new way of designing the new shoes, the prototypes of the German Adidas, teams were made up of twelve technicians working by hand. The new technology does not need more than two people. With the use of this technique, Adidas managed to reduce the time needed to evaluate new prototype from four to six weeks to just a day or two.
Shane Kohatsu, innovation director of Nike headquarters in Oregon, said to the Financial Times that for him the most striking of 3D printing is not the volume that you get to develop, but the speed with which you can make changes to prototypes.
The strategy of Robeco Consumer Trends has invested about 15% of its total portfolio in the garment industry and luxury goods. Along with Nike and Adidas helping to excel Robeco consumption strategy there is also Lululemon Athletica, other names or Michael Kors, among others. These big brands are a part, along with many others, one of the betting strategy of Robeco Consumer Trends, the big brands. A through them is to not only take advantage of the returns generated by these firms consolidated but also provide a defensive to the portfolio.
Wikimedia CommonsFoto: JoeJohnson2 . La longevidad y publicidad, los grandes aliados de la riqueza de los jugadores de la NBA
Three-quarters of the top 10 ultra wealthy National Basketball Association (NBA) players were drafted in the mid-1990s, suggesting longevity in the sport and corporate endorsements are key to wealth for today’s athletes.
These are the findings by Wealth-X, the ultra high net worth (UHNW) business development solution for private banks, luxury brands, educational institutions and non-profits, which released its ranking of ultra wealthy players following this year’s NBA Draft.
The NBA’s wealthiest have been playing for an average of 15 years, or since 1998, which is considered a long career by athlete standards.
Leading the pack is Kobe Bryant, LA Lakers shooting guard, with a total net worth of US$220 million. Drafted in 1996, Bryant, who will earn US$27.85 million in the 2012-2013 season, continues to draw the highest salary in NBA. This is supplemented by multi-million dollar endorsements with Nike, Coca Cola, Turkish Airlines, Mercedes-Benz, Lenovo, Panini and Hublot.
Boston Celtics forward Kevin Garnet ranks at number 2 with a net worth of US$190 million. The veteran player with a 17-year NBA career has endorsements with Anta, a Chinese sportswear company, and coconut water brand Zinco, worth US$4 million.
Below is the top 10 wealthiest NBA players by net worth:
“Against the backdrop of the NBA Draft last week, it is interesting to explore the correlation between talent, performance and net worth that is revealed in this ranking. It provides a window into the value that society implicitly places on the skills of these professional athletes and the role of entertainment within our culture,” said Wealth-X President David Friedman.
Foto cedida. Some Conclusions After the Correction in the High-Yield Market
The month of June closed with the same negative trends as last month, the sell-off continues without discriminating the fundamental values of the various risk assets, unlike the great falls of recent times (2008 and August 2011). If we focus on the high yield market, we notice a high correlation between the different ratings regardless of credit rating, which indicates that this is not a fall based on credit fears (systemic and increased default), as it was in the above dates.
If we look at the performance of different debt assets from May 9th to June 24th of this year, we can draw the following conclusions:
1. High yield fell lessthan U.S. Treasury bonds and than “investment grade” bonds, which highlights the importance of the spread and the coupon in negative periods.
2. Bonds with a BB, B and CCC rating fell almost the same. This confirms that the sell-off is not due to credit concerns. The credit fundamentals in the high yield market are still very solid. The vast majority of companies already refinanced their debt at long maturities, are at record cash-flow highs and default probability is low (according to JP Morgan about 2%). So the correction is purely technical and not fundamental.
3. The high yield ETF has fallen much more than the high-yield market, nearly 2% of “underperformance” for its trading at premium / discount to NAV and for its tendency to replicate very liquid bond indices.
4. As was to be expected in this correction, those which have performed better are the loans and the short-term bonds. In June, the Muzinich Short Duration Fund fell -1.33%, while that of loans only fell -0.38, versus the high-yield market which in the same period fell -3.6%. The Muzinich America Yield improved its benchmark result with -3.4% during the same period, as is usual in periods of correction due to Muzinich’s management type (without derivatives, without finance and BB and B only).
Having said that, we can see good BB and B bonds in today’s market paying 6 to 7%; levels which are equivalent to those of the summer of 2012 (Northern Hemisphere). So the spreads are already at their 450-550 historical average, but with the difference that the expected default is now much lower than the historical (2% versus the historic 4.5%).
At Capital Strategies Partners, we believe that periods of “non-core” off-risk behavior, as we are seeing right now, represent good opportunities to acquire interesting carry assets. Of course, always under the guidance of a conservative manager who knows how to manage the portfolio’s default efficiently. It’s worth remembering that Muzinich has an impressive track record of default, with only 0.20% of default in more than 10 years, well below the industry’s average rate of 4.3%.
We specifically believe that, currently, the best way to have exposure to high yield is through short-term funds or floating rate funds.
Opinion column by Armando Vidal, CFA, Associate at Capital Strategies.
Foto cedidaPlataforma Lun-A (Lunskoye-A), a 15 km de la costa este de Sakhalin Island. Riesgo soberano, QE y tensiones geopolíticas, las claves del mercado de commodities
Back in 2007 and 2008, correlation between individual commodities had reached very high levels. Of late, however, we have seen significant de-correlation between individual commodities, leading to polarised returns. For example, in the year to 31 May 2013, the DJUBS Commodity index returns for corn exceeded 33% while natural gas rose by over 20%. At the same time, wheat increased by just over 1%, aluminium fell by more than 10% and silver declined by more than 20%.
Commodity decoupling has created opportunities for relative value trades within the portfolio and we have been able to successfully exploit this strategy in metals, energy and grains. This was particularly the case in grains with positions between corn and wheat, and in energy between Brent and WTI Crude Oil or US Gasoline and US Natural Gas.
A US economic recovery is something of a two-edged sword for commodities, as it has two opposing effects
So what has been driving this decoupling? We believe investors initially bought into the commodity supercycle theory, both as a way of tapping into the China story and as a hedge against inflation. The supercycle theory was based on the premise that the industrialization of China would result in a prolonged period of sustained economic growth and increased demand for commodities, thus driving up prices for all commodities.
However, in recent months a growing consensus has developed that China’s growth is likely to decelerate and undergo a shift in emphasis from investment in fixed assets and infrastructure towards domestic consumption. This is likely to have a significant impact, particularly on metals and bulk commodities. As a result, some investors have declared the supercycle dead and are focusing instead on specific factors within each commodity class, such as different supply and demand dynamics within individual markets.
A further significant issue has been the extent to which the macroeconomic environment in the US is improving. A US economic recovery is something of a two-edged sword for commodities, as it has two opposing effects. On the one hand, a stronger US economy should lead to increased demand for commodities. However, it also tends to result in a strengthening dollar and, over time, there is quite a high correlation between dollar strength and commodity price weakness, since commodities are priced in dollars.
Our positioning
We are positive on the energy sector in general, and oil-based energy in particular, as structural demand continues to grow, particularly from emerging markets. Moreover, oil markets are less affected by a deceleration in Chinese growth or a change in the country’s growth strategy. We also believe the impact of an improving US economic environment is positive for oil markets, as the US remains the largest consumer in the world and higher employment should have a positive impact on demand for oil and gasoline. A strengthening US dollar is of less relevance in this sector, as energy tends to be less correlated to the dollar than is the case with metals.
We have been underweight base metals for some time. The shift away from fixed-asset investment to consumer-led growth in China is bound to have an impact on those metals, such as copper, where China has been biggest source of demand over the past few years. The potential strength in the dollar is also likely to be negative for metals due to their strong correlation to the greenback. In addition, the investment we have seen from hedge funds has been driven by a bearish view on the dollar and, as the dollar has strengthened, we should see some liquidation of these trades.
Some investors have declared the supercycle dead and are focusing instead on specific factors within each commodity class
Outlook
We believe recent volatility in the commodities sector creates exciting opportunities to position our commodity portfolios advantageously in the second half of 2013. We remain bullish on the oil sector, especially oil products. Geopolitical risk in Syria and the Middle East in general is clearly a key issue. This risk has been underplayed lately because investors are paying more attention to China and the US −as we progress through the year, the market may be jolted by bad news. In the metals sector, we remain slightly bearish, as the outlook hinges on the changing nature of Chinese growth.
We remain firm believers in the benefits of active versus passive investment when accessing opportunities across commodity markets. We combine not only the use of curve strategies, which is a very popular way of investing in the commodities market, but also the above-mentioned relative value trades, enabling us to raise and lower risk, as appropriate. As intra-asset correlation comes down, our relative value strategies should continue to provide good opportunities.
Opinion column by Nicolas Robin, Co-Manager of the Threadneedle (Lux) Enhanced Commodities Fund.
Wikimedia CommonsFoto: Kreepin Deth. London Metal Exchange sale de gira por Latinoamérica
The London Metal Exchange will be in Latin America this September delivering a series of seminars, focusing on issues that are key to the region’s metals and mining industries, said the LME in an statement.
Seminar locations and dates
Mexico City -3 September
Bogota – 5 & 6 September (conference and training seminar)
Santiago – 9 September
Lima – 11 September
Sao Paulo – 13 September
Why attend?
Is metal price volatility a key issue for you?
Do you need help managing risk?
How do senior economists and metals analysts see the future for base metals?
The seminars are also a great opportunity to meet and network with a wide range of professionals in the metals and mining industries.
If you want to know how to register for a seminar click here.
Did you know?
The LME’s relationship with Latin America spans over 136 years
Our three month contract originates from the journey time from Chile to London
LME prices were first used by miners in Latin America
Latin American mining companies were the first to trade LME futures contracts.
Wikimedia CommonsFoto: Florent Ruyssen. Los ingresos de las gestoras de fondos alcanzan niveles precrisis
Median pre-tax operating margins rose to 32%, the highest since 2007, according to a new benchmarking analysis surveying 101 money managers worldwide who invest an aggregate $23 trillion for institutions and individuals. The new high in profit margin was driven by market appreciation, which also lifted 2012 revenue in the global asset management industry past the previous 2007 peak.
However, net inflows of 1.2% last year – compared with 3.7% in 2007 – increasing fee pressure, and a widening economic divergence among firms post-financial crisis point to growing industry challenges, according to the new analysis, Performance Intelligence: 2013 Survey Results.
The global survey participants largely came from the U.S. Institute and European Institute, members-only forums established by Institutional Investor’s conference division for CEOs of leading investment management firms. Casey, Quirk & Associates, a leading management consultant to investment management firms worldwide, has conducted the survey (its tenth annual) in partnership with McLagan, the investment management industry’s leading provider of compensation consulting services and pay and performance data. They surveyed privately held, publicly traded and wholly or partly owned firms with assets under management ranging from below $50 billion to over $1 trillion in assets.
“With annual net flows of under 1% anticipated through 2017 these findings, based on one of the largest industry surveys of asset management economics, indicate managers must adapt and innovate to keep up let alone to continue thriving,” said Kevin Quirk, partner at Casey Quirk.
Traditional investment offerings will continue to be challenged, while outcome-oriented and higher alpha strategies will enjoy the highest net flows, according to the benchmarking analysis. These include: hedge funds; balanced strategies; global tactical asset allocation and multi-asset class solutions; emerging markets debt; and global equities.
“In a slow growth environment, asset retention is crucial, and winning firms stand out with more robust staffing in sales and client service and operationally by aligning their economics for superior attraction and retention of talent,” said Adam Barnett, head of the asset management practice at McLagan.
Privately held and publicly listed asset managers enjoyed the strongest revenue growth in the 2007-2012 period, expanding at average annual rates of 8.4% and 7.0%, respectively, according to the benchmarking analysis. Firms owned by larger financial institutions had average annual growth rates of 4.3% over the same period, while revenue at affiliates of asset management holding companies declined on average 4.6%.
Of the firms surveyed, those in the middle, with managed assets between $50 billion and $200 billion, enjoyed the strongest rebound in operating margins, to 32% in 2012 from a low of 15% in 2009, and were most consistent in attracting net flows over the period 2007 to 2012.
“It’s abundantly clear firms must retool to take advantage of market segment opportunities and changing investor demands, or risk losing talent and market share to more adaptable competitors,” said Fred Bleakley, director of the U.S. and European Institutes.
Further expanding its portfolio of derivatives products, the Dubai Gold and Commodities Exchange (DGCX) has announced the launch of SENSEX Futures, the first ever Indian equity index futures contract to be listed on an exchange in the Middle East and North Africa (MENA) region. The new contract, which will go live on July 5, 2013, will be cleared by the Dubai Commodities Clearing Corporation (DCCC).
DGCX SENSEX Futures is a futures contract based on the S&P BSE SENSEX, the blue-chip stock index of India’s leading bourse, the Bombay Stock Exchange (BSE). Recently co-branded in partnership with S&P Dow Jones Indices, the SENSEX is considered the most popular gauge of the Indian equity market and has high brand recall among investors. The SENSEX Index tracks the performance of 30 of the largest and most heavily traded stocks on the BSE.
Gary Anderson, CEO of DGCX said:“The contract is part of a planned expansion of our Emerging Market product offering, and will offer an exciting trading option for investors seeking exposure to one of the world’s largest Emerging Markets. While the retail segment is a key target market, we are also anticipating strong interest from a wide range of regional and international investors including UNHWIs, professional traders and institutional investors. DGCX participants have already shown great interest in trading SENSEX futures.”
DGCX’s new equity futures contract will target retail participants including non-resident Indians (NRIs) across the world, existing DGCX members focused on retail offerings, the NRI desks of banks, professional traders trading and arbitraging Indian markets offshore and large foreign institutional investors seeking exposure to Indian equity markets.
Ashishkumar Chauhan, MD, BSE said:“BSE tied up with DGCX for SENSEX derivatives in October 17 2011. Derivatives on India Stock Indices are very popular in several overseas markets including Singapore. Trading in Indian indices has grown substantially over the last decade in overseas markets. This launch is a key milestone for us since it is the first time we have partnered with an exchange in the MENA region to launch an equity-based derivatives product. DGCX SENSEX Futures will provide investors with an important tool for managing their portfolios benchmarked to BSE’s equity indices.”
“Given that a large number of NRIs reside in the Middle East region, we are confident about the SENSEX futures contract’s potential to generate high interest and trade volumes in line with interest in other jurisdictions,” Chauhan added.
Wikimedia CommonsFoto: Blaise Frazier. H.I.G Capital cierra su II fondo de private equity europeo en 1.100 millones de dólares
H.I.G. Capital announced on Tuesday that it has successfully closed H.I.G. European Capital Partners II at €825 million ($1.1 billion), significantly above its initial target. The fund will follow the strategy of its predecessor fund, focusing on private equity, buyout and growth capital investments in lower middle-market companies primarily in Western Europe.
Sami Mnaymneh and Tony Tamer, co-founders and Managing Partners of H.I.G. Capital, commented: “We are very pleased to have completed this fundraising in less than three months, and, in particular, that the fund was significantly over-subscribed from existing H.I.G. investors. The new fund will continue our successful strategy of investing in privately-held companies and non-core subsidiaries of larger companies, especially those which present significant opportunities for earnings improvement and value creation.”
H.I.G. Europe’s team is based in four offices in London, Paris, Hamburg and Madrid, and consists of over 50 investment professionals with significant operating and turnaround experience. It has completed 28 European investments since it began investing in 2008.
H.I.G. Capital is a leading global private equity investment firm with more than $13 billion of equity capital under management. Based in Miami, and with offices in Atlanta, Boston, Chicago, Dallas, New York and San Francisco in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Paris, and Rio de Janeiro, H.I.G. specializes in providing capital to small and medium-sized companies with attractive growth potential. H.I.G. invests in management-led buyouts and recapitalizations of profitable manufacturing or service businesses. H.I.G. also has extensive experience with financial restructurings and operational turnarounds. Since its founding in 1993, H.I.G. has invested in and managed more than 250 companies worldwide with combined revenues in excess of $30 billion.
Wikimedia CommonsBy Hendrik Kueck . Funds by Itaú, Lyxor, Rothschild, Oaktree and Pictet are Approved by the Chilean CCR
The Classificatory Comission of Risk of Chile (CCR) announced this Monday, July 1st, the list of approved and disapproved funds by the commission. A total of 10 products received the approval and whereas six were disapproved.
Approved domestic funds:
Fondo Mutuo Itaú Latam Pacific
Approved foreign mutual funds and ETFs:
Lyxor ETF MSCI EMU- France
Baron Select Funds-Baron Real Estate Fund –USA
Edmond de Rothschild Emerging Bonds – France
Oaktree Global Convertible Bond Fund – Luxemburg
Oaktree Global High Yield Bond Fund – Luxemburg
Pictet – Emerging Corporate Bonds – Luxemburg
Pictet – EUR Short Term High Yield – Luxemburg
SEB Fund 1 – SEB Nordic Fund – Luxemburg
SEB Sicav 1 – SEB Emerging Markets Fund – Luxemburg
The CCR decided to disapprove the following certificates representing financial indexes and foreign mutual funds, because they do not have assets equal to or greater than $ 100 million:
SPDR Index Shares Funds- SPDR S&P Emerging Latin America ETF – USA
Market Vectors ETF Trust- Nuclear Energy ETF – USA
Henderson Gartmore Fund – Emerging Markets Fund – Luxemburg
Finally, the CCR informed that the foreign mutual fund BNP Paribas L1-Equity Pacific ex Japan (Luxemburg) was disapproved because it was absorbed, while the KBL EPB Bond Fund – Government Bonds Euro (Luxemburg) also was disapproved in response to the request of its administrator.
The New York office of Hines, announced on Tuesday that a subsidiary of the Hines U.S. Core Office Fund (Core Fund) closed on the sale of 499 Park Avenue to an institutional fund managed by American Realty Advisors. The Core Fund also closed on the sale of 425 Lexington Avenueto institutional investors advised by J.P. Morgan Asset Management. Exact sale prices of each building were not disclosed; however, the combined sale price totaled more than $1 billion, generating a sizeable return on investment for the Core Fund and its investors.
Tommy Craig, senior managing director of Hines’ New York Office, said, “We are pleased to expand our relationship with American Realty Advisors, and to continue our long-standing global relationship with J.P. Morgan. We will continue to build on our high level of activity in New York with further investment and development opportunities.”
499 Park, located at 59thStreet and Park Avenue, is one of the city’s premier boutique office buildings. The 28-story, 300,000-square-foot tower was designed by I.M. Pei & Partners and completed in 1980.
425 Lexington is a 31-story, 750,000-square-foot office building designed by Murphy/Jahn. The property has enjoyed 100 percent occupancy since its development in 1987, and the original anchor tenants, Simpson Thacher & Bartlett LLP and CIBC, continue to occupy the building.
J.P. Morgan Asset Management – Global Real Assets has approximately $66.7 billion in assets under management and more than 400 professionals in the U.S., Europe and Asia, as of March 31, 2013. AmericanRealty is an investment advisor, and a leading provider of real estate investment management services to institutional investors. With over $5.3 billion in assets under management, American has provided real estate investment management services to institutional investors for over 25 years utilizing core and value-added commingled funds and separate accounts. Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. With offices in 113 cities in 18 countries, and controlled assets valued at approximately $24.3 billion, Hines is one of the largest real estate organizations in the world.
