Wikimedia CommonsBy mattbuck. Terranum Capital’s First Fund Closes at US$235 Million
Terranum Capital, the Latin American real estate investment firm with offices in Bogota, Lima and New York, has successfully completed its inaugural fundraising effort, resulting in commitments of US$235 million and making it one of the largest private equity funds of its type. The Fund has attracted a broad range of investors including pension funds in Peru and Colombia, institutions in the US and Europe, and a select group of Latin American family offices.
The Fund executes a unique strategy, investing in the development of low and middle-income housing and retail projects in Peru, Colombia and Mexico. Terranum Capital partners with pre-eminent local developers to address the huge housing deficits within these countries. The real estate market in Latin America represents an excellent growth opportunity, with demand for middle and low income housing significantly outstripping supply, and strong government incentives supporting first time home buyers. Terranum Capital’s investment team has held executive positions at leading international investment firms including Och-Ziff Capital and has a strong track record investing in the Latin American region.
Terranum Capital has made strong progress since its inception in 2012, having already invested over US$65 million during the past year in five housing projects in Peru and Colombia, two of the fastest developing economies in Latin America. Several of these investments are already generating returns.
Gregorio Schneider, founder and Chief Investment Officer of Terranum Capital, commented, “We are delighted to have achieved such a successful fundraising for our first fund. We are particularly pleased with the strong endorsement we have received from the Latin American institutional and private investor community.”
Wikimedia CommonsMain Entrance of la Bolsa Mexicana de Valores. The BMV global market, Mexican invention and an example for other countries
The International Quotation System (SIC) in Mexico is a success story and will look to increase the number of investors in the future, increasing anonymity, reducing the spread, and increasing liquidity and improving listing processes, according to several experts gathered for the celebrations of the tenth anniversary of the SIC in Mexico, which was held on Thursday in the nation’s capital.
During the event Luis Tellez, BMV’s president, congratulated Deutsche Bank for achieving the launch of the global market ten years ago; while he added that this is “a Mexican financial invention” which technology has been imitated and has proven very useful for this type of markets to be established in other countries, particularly in the developing nations.
The market, which openned in May 2003 with 30 issuers’ shares, currently has more than 900 different securities of different foreign assets and represents about 20% of the total value traded on the Mexican Stock Exchange, being “an extraordinary option for Mexican investors both individuals and institutions”, according to Tellez.
Juan Hernandez, head of iShares in Mexico, mentioned that there is a huge opportunity for growth within the global market to internationalize portfolios.
Meanwhile, David Plasencia, Director of Financial Supervision for CONSAR said that the Afores currently have an exposure to foreign markets of 17% of their portfolios, 67% of which is carried out through the SIC. In this respect, Octavio Ballinas, Technical Deputy Director for the Amafore, highlighted as the key challenges: the review of the current 20% limit on foreign investment “so as to avoid bubbles within the local market”, and encouraging greater participation by institutional investors- in order to achieve and to maintain anonymity-, because the afores represent 60% of the SIC’s operations, and without anonymity there is a disclosure of strategies, a situation which is not ideal when competing in profitability.
Edwin Reyes, Managing Director, Global Head of Deutsche Bank’s Depository Receipts, said that the success seen in the ten years of operation of the SIC is a cause for celebration and a model which they aim to duplicate in other countries. The executive also highlighted its importance for business and said he will continue to work with stakeholders to grow the market, both in terms of the number of investors and of the products offered.
Claudio Curtis, Deutsche Bank Director in Mexico, explained that as at the end of May 2013 his institution held 22,000 million dollars of SIC assets, of which 55-60% were from Afores, 15% from mutual funds, 5% from corporate pension funds and insurance, and the remainder from qualified investors and individuals.
Foto cedidaRafael Fernández, director of Grupo Empersarial Arcallana, Founder of URBA Inmobiliaria and Director of FLEX – Financial Solutions - Paraguay. Paraguay, a 21st century American miracle
Knowing about Paraguay is as simple as learning to count to 10:
1 st largest net exporter of electricity globally
2 nd largest producer and exporter of stevia globally
3 rd largest fleet of barges globally, after the U.S. and China
4 th largest soybean and charcoal exporter globally
5 th largest soya flour exporter globally
6 th largest maize exporter globally
7 th largest producer and largest exporter of organic sugar globally
8 th largest soybean industrialization globally
9 th largest meat exporter globally
10 th largest wheat exporter globally
An export capacity coupled with negligible public debt and the world’s healthiest financial system, make Paraguay the nation with the greatest economic potential in the region and one of the greatest worldwide, with a real GDP growth estimated by the International Monetary Fund, at 11% in 2013 and inflation of 4.25%.
Access to capital markets to finance large business ventures is poor, without even a secondary market developing in the stock exchange, i.e. Paraguayan firms are financed only by fixed income bonds.
This scenario is favorable for investment funds, since this nation has a brilliant future, with a strong estimated population growth until 2040 due to its population under 30, which exceeds 70%, and the yields offered due of the lack of development of the financial markets are exorbitant, hovering around 20% annually.
Wikimedia CommonsBy Marcelo Páez Bermúdez. Credit Suisse Chile strengthened its team with the addition of Borja Martín de la Torre
Credit Suisse Securities Agency Limited (Chile) is strongly committed to growth in Chile, where it has been in operation with its brokerage format for over a year with an operations team and a team of bankers of about twenty members. Borja Martín de la Torre, from the International Private Banking division of Banco Santander in Miami, is the latest banker to join the project, according to information given to Funds Society by bank sources.
From Chile, the organization offers financial advice and intermediation through its Credit Suisse AG in Switzerland and Pershing, U.S.A. platforms, while it also signed an agreement with a local brokerage firm in Chile. Credit Suisse is aiming to strengthen and grow its business in Chile through these three avenues, plus they are also aware that this local presence will support them in their goals.
Martin de la Torre, a CUNEF (Spain) graduate, has spent his professional career between Spain and the United States. The last three years from Santander in Miami as a banker for Chile, while the previous three years he worked for Banif in Madrid.
Previously, he worked for two years in Morgan Stanley Spain, firstly in product information, joining the firm’s commercial team later on. Martin plans to take up his new post in Santiago, Chile on 1st August.
Japan is growing in self-esteem. A good example is the growing appetite the country has to consume luxury items. A good prelude for Prime Minister Shinzo Abe trying to pull their compatriots deflationary spiral in which bogged down decades ago.
After many years demoralized, the pioneer in real estate crises has seen its citizens lost since the late 80s over 75% of the value of their stock investments. The global financial crisis, the earthquake and tsunami of 2011 Okinawa helped to boost morale.
But the campaign launched by Shinzo Abe to revive the economy is paying off. Consumer confidence is surged strong, especially in the luxury brands. Jack Neele, responsible for the strategy of Robeco Consumer Trends, follower of trends in consumption, follows closely names like Richemont and Salvatore Ferragamo, direct beneficiaries of the growing interest in luxury in Japan.
Brands like Baccarat sales have risen 20% so far this year. Some firm’s of jewelry and high-end watches and Richemont’s target market, are seeing sales doubling in recent months. Kering, the parent company of Gucci and Bottega Veneta is giving a facelift to its stores in Japan to the growing interest in their products.
Although the Nikkei is taking a breather in the past weeks, in line with other markets, from November to May, the index has come to appreciate more than 50%, contributing significantly to improving the mood of the country.
The policy called “abenomics” seeks to return the country to a sustained growth in the next two years, removing the specter of deflation even if it means to flood the yen markets.
Japan, along with other Asian countries, seems to be taking the baton from China, where economic uncertainties are weighing on consumption of exclusive products. While, in the opinion of Jack Neel, names like Salvatore Ferragano still have tour in the Chinese market, the manager has lowered its exposure to that country in favor of other markets in the area, which still sees great potential.
Luxury is one of the trends of consumption in Neel focusing to achieve excellent performance in their management. Through its analysis, Robeco Consumer Trends has managed to outperform the world in more than 9% annually over the past five years.
Wikimedia CommonsFoto: Fabienkhan. Market Vectors realiza un split inverso en siete de sus ETFs
Market Vectors ETF Trust announced that its Board of Trustees has approved reverse share splits of seven ETFs.
The effective date of the split will be at market open on July 1, 2013. The Funds will continue to trade on the NYSE Arca under their current ticker symbols, but their current CUSIP numbers will be discontinued and the Funds’ new CUSIP numbers will be as follows, effective July 1, 2013.
The Depository Trust Company (“DTC”), the registered owner of all Fund shares, has been notified of the reverse share splits and has been instructed to adjust each shareholder’s investment accordingly.
Shares of the Fund will be offered on a split-adjusted basis on July 1, 2013. The total market value of the shares outstanding will not be affected as a result of this reverse share split, except with respect to the redemption of fractional shares, as discussed below.
Redemption of Fractional Shares and Tax Consequences for Each Reverse Split
For shareholders who hold quantities of shares that are not exact multiples of the reverse share split ratios (for example: a multiple of 3 for a 1-for-3 split), the reverse share splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders. Otherwise, the reverse split will not result in a taxable transaction for holders of the Fund.
Wikimedia CommonsChristian Dargnat, nuevo presidente de EFAMA. EFAMA designa a Christian Dargnat nuevo presidente
Christian Dargnat who served as Vice-President of EFAMA from June 2011 will succeed Claude Kremer who has been President since 2011. Christian is Chief Executive Officer of BNP Paribas Asset Management (BNPP AM), the largest investment centre of BNP Paribas Investment Partners (BNPP IP), of which he is CIO. He joined the business in 2006 and became a member of the Executive Board and was also named Director General of BNPP AM in April 2009. In September 2010, Christian was appointed Chairman of the MEDEF committee “Currencies and International monetary system”. He has also lectured at Hautes Etudes Commerciales (the leading European university) since 2008.
The representatives of the European investment management industry also appointed Alexander Schindler, Member of the Executive Board of Union Asset Management Holding AG, as its Vice-President.
The new Vice Presidentwas elected as a member of the Board of Directors of EFAMA in May 2012 and as a member of the management committee of the Board of Directors of EFAMA in June 2012. He became a member of the Executive Board of Union Asset Management Holding AG in January 2004. Alexander has also been a member of the Board of Directors of BEA Union Investment Management Limited, Hong Kong since 2007 and a member of the Executive Board BVI Bundesverband Investment und Asset Management e.V. (German association of investment and asset management) since 2011. He is a qualified banker and lawyer.
In his inaugural AGM President address, Christian Dargnat said: “I am honored to be elected as President of such a widely respected and influential industry body as EFAMA. Having spent two years as Vice-President, I have witnessed my predecessor, Claude Kremer, work tirelessly alongside the EFAMA team to support the industry and the end investor and I am grateful for the solid foundation upon which I take on this role.”
Investors are currently more focused than ever on the US economy. According to Mark Burgess, Chief Investment Officer at Threadneedle, this follows comments from the Federal Reserve indicating that signs of the recovery gathering momentum would lead them to “taper” the level of quantitative easing, from the current rate of $85bn per month. Consumer confidence and expenditure are reasonably healthy and the housing market has shown a strong recovery, although this has been driven more by investors than occupiers. Employment is growing at a steady pace and whilst corporate capital expenditure has been disappointing, we anticipate some acceleration in the second half of the year. Our confidence in the US recovery is growing.
In contrast to the US, the eurozone shows little sign of improvement, with the French economy showing greater weakness than had been anticipated. Furthermore, recent yen depreciation will be an added headwind for exports, particularly from Germany.
We see very pedestrian growth in the UK at just 1% this year. Employment is showing reasonable growth, the housing market is improving and consumption is satisfactory despite pressure on real disposable income. The largest issue for the economy is the export market, which is heavily biased towards the weak eurozone. This will continue to be a drag on the UK’s performance
Japan’s economyis already responding to the massive package of quantitative easing, fiscal injections and other measures aimed at ending deflation and stimulating growth. Consumption has improved, exports will benefit from yen weakness and the increasingly likely plan to restart some nuclear generation would give a useful boost to the trade balance. We have an above consensus forecast for Japanese GDP growth this year and next.
These varying economic environments around the globe lead us to adopt more of a regional equity strategy than previously. In the US, we have added to domestic cyclicals, especially housing related stocks, and are cautious on many defensive sectors such as utilities. In the UK and Europe, we are generally more cautious on cyclicals and are looking to add to some steady growth stocks, e.g. consumer staples, which have recently suffered in the market correction. In Asia, we favour cyclicals exposed to the US, such as technology companies, but are wary of some of the China exposed cyclicals, such as steel stocks. In all areas, good growth companies and those with high and growing dividend yields are likely to be in demand.
The recent talk of tapering by the Federal Reserve has sharply increased market volatility in all asset classes. Quantitative easing has been a huge force in driving markets and traditionally the start of a cycle of monetary tightening has been a difficult time for investors. However, tapering is only a reduction in the level of the Federal Reserve’s monetary stimulus, not a traditional tightening. We expect official interest rates to remain extremely low for an extended period. The Federal Reserve’s action would be on account of improved economic momentum, and we believe that there will be very little inflationary pressure in the short term. This combination of better growth, low inflation and still stimulatory monetary policy should be a reasonable background for equity markets. We remain above benchmark in equities and have used the recent correction to increase our Japanese exposure, moving to an overweight position. This reflects the recovery potential we see for corporate profits in the new world and “Abenomics”.
Government and investment grade bond markets, on the other hand, are showing very limited long-term value and therefore appear vulnerable if the growth outlook improves. We have been well below benchmark in government bonds for some time but have recently reduced our exposure to investment grade corporate bonds, where spreads are likely to offer only limited protection in the event of rising government yields.
We expect income hungry investors to continue searching for yield and assets that have lagged other markets in recent years. In addition, the issue of refinancing of UK properties that has hung over the sector for a long period is now underway. We have added to UK commercial property, moving to a small overweight on a medium-term view.
Wikimedia CommonsPhoto: AFP. Andrea Rossi is appointed CEO of AXA Investment Managers
AXA has announced the departure of Dominique Carrel-Billiard, Chief Executive Officer of AXA Investment Managers and a member of the AXA Group’s Executive Committee, who has decided to leave the Group. He will be replaced by Andrea Rossi, Chief Executive Officer of AXA Assicurazioni since 2008, who will also join AXA Group’s Executive Committee. Frédéric de Courtois, Chief Executive Officer of AXA MPS, will take the lead of AXA’s main insurance operations in Italy.
Andrea Rossi began his career at Olivetti in the Finance Department.In 2001, he joined the AXA Group as senior vice president, business support and development – Mediterranean region, Middle East and Latin America, with a subsequent post of COO of the MEDLA Region.
In 2006, he moved to Dubai as CEO and deputy chairman of AXA Insurance Gulf & Middle East before taking on the role of CEO of AXA Assicurazioni in Italy in 2008.
These appointments will be effective July 22nd, 2013.
Wikimedia CommonsBy UMCane . CISA Trust Believes that Miami is the Ideal City from which to Target the Latin American Client
A few months ago the Swiss company, CISA Trust, joined the long list of companies which continue to set up business in the area of Brickell Avenue, the financial heart of Miami, to serve high net worth foreign nationals with the purpose of reaching new Latin American clients.
Speaking to Funds Society in this regard, Myriam Bril, tax expert and lawyer and head of the CISA Trust office in Miami, said that the new office “provides high net worth clients with all necessary services and advice on legal and inheritance matters with jurisdictional implications.”
Miami headquarters works as a sales and marketing office and currently has a small group aiming to bring new customers from Central and South America and the Caribbean to the company.
CISA Trust Company, founded in Geneva in 1972, is one of the oldest and most renowned Swiss private trust companies in the industry. CISA, based in Geneva, is owned by a family group headed by John Ryan Jr., president of the company, with John Ryan III as President Emeritus.
For its president, “Miami seems to be the place to be to do business with Latin America. Latin Americans want to come here to meet with their lawyers and bankers, plus they have apartments here.”
Meanwhile, Bril stressed that wealth planning for Latin Americans is a booming business. “There is no better place for this than Miami. Many wealthy South Americans like to visit the city and even have a second home in Miami and they like to do business here, including private banking.”
The executive, aware of the importance that comes from being close to banks and major law firms, explains that her job in CISA is to “adequately structure customer’s investments, by working together with lawyers in order to achieve efficient tax planning while preserving assets for future generations.” She also pointed out that services are personalized and tailored to the needs of each client.
Bril, who has been working for CISA for over a decade, previously worked in Spain for a “big four” as a taxation attorney and specializes in advising high net worth Latin American clients. Bril is a law graduate from the University Pompeu Fabra and specialized in tax law with ESADE. In 2011, after completing an Executive Development Program at IESE in Spain, she was appointed by CISA to expand its business in Latin America from its Miami office.
Bril is certified as a Trust Estate Practitioner by STEP (Society Trust Estate Practitioners) since 2006 and has extensive experience in wealth planning advice within the legal and international taxation aspects of transnational transactions and advises private clients on their investments abroad.
According to its growth plans, the company does not rule out the opening of a New York office in the coming years.
