Saxo Bank has consolidated its commitment to Latin America by opening a new office in Montevideo, Uruguay today. Saxo Capital Markets Agente de Valores, SA, is intended to bring the Bank closer to its customers in the region and offer a service that is fully adapted to the needs of Latin American investors.
Saxo Bank entered the Latin American market in 2012 with the acquisition of Uruguayan broker NVN Securities, Agente de Valores, which was founded in 2005 and is fully authorised by Uruguay’s Central Bank From the new office which is located in the Zonamérica district, the financial and business centre of Uruguay, Saxo Bank will provide all retail clients in Latin America with a service that is completely tailored to their investment needs.
Luis Simões Pereira, Director of Saxo Capital Markets Uruguay, says:
“With the opening of Saxo Capital Markets Agente de Valores, SA, we are expanding our presence on a continent with some of the most effervescent economies in the world. We’ve seen a significant and constant increase in trading among Latin American investors, largely due to the improved economic situation and the quick development of technological infrastructure. The aim of this new office is to develop the business even more and become closer to our customers and their needs. We are continuing to expand our offer and adapt it to Latin American investors through our modern multiple assets platform.”
Kim Fournais and Lars Seier Christensen, founders and CEOs of Saxo Bank, said in a joint statement:
“The opening of the new office in Montevideo is another milestone in Saxo Bank’s history and global expansion. With this new office, we expand our presence in a vibrant and eclectic continent that has much to offer. Latin America has some of the most promising economies and we anticipate investors will require a broader range of financial products such as Forex, international stocks, futures and options. By having a presence in this market, Saxo Bank is well positioned to facilitate these demands together with our institutional clients.”
Saxo Capital Markets Uruguay recently launched its new website, latin.saxomarkets.com, reflecting client proximity and the extensive product offering in Latin America.
The Saxo Bank Group was founded in 1992 by its co-CEOs Kim Fournais and Lars Seier Christensen. Since 2006, Saxo Bank’s geographical footprint has expanded rapidly and today, in addition to its headquarters in Denmark, the EU-regulated Bank is present in 22 countries.
Foto cedidaHans Stoter. ING IM appoints Hans Stoter, Chief Investment Officer
ING Investment Management announced the appointment of Hans Stoter as Chief Investment Officer (CIO) and member of the International Management Committee.
Hans has been with ING IM since 1998 and succeeds Mark Weber, who has returned to the US office of ING IM to resume his responsibilities as Executive Vice President of Structured Assets, Loans and Alternatives.
As CIO, Hans will also chair the Global Investment Leadership Team, which oversees the investment teams, investment processes, portfolio performance, and risk characteristics of mandates and funds managed by ING IM International’s investment boutiques. His appointment is subject to regulatory approval.
Gilbert Van Hassel, Chief Executive Officer, ING Investment Management:“Hans’ track record in international investing and team leadership makes him extremely qualified to assume the role of CIO. He has 22 years of experience in our industry and has been a member of the Global Investment Leadership Team since 2011. We’re delighted to promote such a strong internal candidate to this role.”
Tim Dowling will succeed Hans in his former role as Head of Credit Investments and Lead Portfolio Manager Global High Yield. Tim, currently Team Leader and Lead Portfolio Manager US High Yield, is an industry veteran with 27 years of credit and high yield investment experience, including 5 years with ING Investment Management.
Tim will remain located in ING IM International’s satellite office in New York, from where he will lead the multi-site global credit team and have continued responsibility for theinvestment process for the US region. He will report directly to Hans
. UBS completes acquisition of Link Investimentos in Brazil
UBS has completed its agreed acquisition of Link Investimentos, Brazil’s largest independent brokerage firm. The transaction strengthens UBS Brasil, a financial institution based in São Paulo, and establishes a strong platform for the expansion of UBS in Brazil, enabling the bank to provide a full range of wealth management and onshore investment banking services, operating in the equity derivatives, equities, options, exchange-traded fixed income, currencies and commodities in the local and international markets. Combining the operations of one of the largest global financial services firms with the operations of an institution with a strong local presence, UBS aims to become a leader in wealth management and investment banking in the Brazilian market, offering clients a full range of products and services, as well as access to its global capacities and resources.
Link Investimentos has been at the top of the BM&FBovespa ranking of derivatives transactions for the last 11 years, having traded 217 million contracts in 2012, representing a 16% market share. Also in 2012, Link achieved the second position in the BM&FBovespa ranking of shares transactions, with a total volume of BRL 316,893 million, representing an 8.9% market share. UBS Brasil will also incorporate Link’s research department, which has consistently figured in the Central Bank’s “Top 5” ranking.
As a reflection of its renewed commitment to Brazil, UBS recently opened a new office in the heart of São Paulo’s financial district, which will become the new headquarters of UBS Brasil.
Robert McCann, UBS Americas CEO, said: “Expanding in Brazil, one of the largest and most important emerging markets, is a strategic priority for UBS and offers excellent growth opportunities for our firm, clients, employees and shareholders. Bringing UBS and Link Investimentos together further strengthens our regional presence and adds deeper local knowledge and market expertise.”
Lywal Salles, Chairman of UBS Brasil, said: “Link Investimentos has had a history of success in Brazil and its acquisition strengthens our local presence. We share with our new partners a common desire to build a first rate organization, highly regarded, in this market. It has been a pleasure, personal and professional, to interact with Link’s team.”
Daniel Mendonça de Barros, CEO of Link Investimentos, henceforth to be called UBS Brasil Corretora, added: “We are excited to join UBS and build upon the success that Link has had in creating a leading financial services organization in this important and dynamic market. I am quite confident that our clients will benefit greatly from UBS’s global product offering and client-focused advice and services.”
FirstBank Florida, one of the healthiest banks growing in Florida, announced the appointment of Jose E. Cueto and Jose Maria Lacasaas the newest additions to their team as they expand in the corporate banking space. Cueto and Lacasa join the bank from Bankia/Caja Madrid, the parent company of City National Bank of Florida, and will compliment the banks growth and expansion plans within Florida.
Cueto and Lacasa will focus on expanding FirstBank Florida’s middle market & large corporate customer base, with a special focus on government infrastructure projects, the energy and healthcare sectors, and syndications. “Amongst their specific expertise is a keen understanding of highway/transportation projects, renewable energy initiatives, and experience working on large and complex credits”, said the bank in a statement.
“With a wealth of experience and success in Corporate and Commercial Banking, this new team brings many of the attributes, knowledge, and relationships we are looking to capitalize on,” said Calixto Garcia-Velez, Florida Region Executive and EVP at FirstBank Florida. “The continued expansion into core lines of business such as corporate banking, will allow FirstBank Florida to better serve our customers and our community, especially as the economy improves and credit demand increases,” addedGarcia-Velez.
Cueto will run the Corporate Banking Team at FirstBank Florida as SVP of the line of business, with Lacasa joining him in the group as VP. “We are excited to join FirstBank Florida and the strong team and culture that exist at the bank, and we are confident in what lies ahead for this bank as well as the corporate banking unit”, stated José Cueto.
Chris Palmer is Director of Global Emerging Markets at Henderson Global Investors. Mexico waves hello to a brighter future
The International Monetary Fund (IMF) has projected that Latin America will grow faster compared to advanced economies this year. Mexico has been one of the shining stars in the region; its economy is expected to have outpaced Brazil in 2012, with growth forecasts of around 3-4%. Last year, the MSCI Mexico Index returned 29.1% in US$ total return terms, compared with a return of 18.7% for the MSCI Emerging Markets Index.
Despite being hit hard by the 2008-09 financial crisis, Mexico has bounced back even stronger and foreign investment has risen strongly. Since the signing of the North American Free Trade Agreement (NAFTA) in 1994, Mexico has opened up its markets by signing many free-trade deals, paving the path for integration into the global economy. Recently Mexico nominated its own candidate, Herminio Blanco, for post of World Trade Organization (WTO) Director-General.
While Latin America’s second largest economy remains dependent on oil and remittances from migrant workers in the US, a growing middle class is driving consumer spending. According to a World Bank report, about 17% of Mexicans joined the ranks of the middle classes between 2000 to 2010. With a population of 114 million Mexico’s consumption power is set to rise over the decade; this is good news across the border as Mexico is also a significant growth market for US products and services. Consumer confidence was hammered during the financial crisis due to the spillover from the US recession, but since 2010 the consumer confidence index has steadily risen, reaching its highest level in nearly five years in January 2013.
Source: Bloomberg. Monthly data from January 2008 to January 2013
Mexico’s attractiveness as a manufacturing base is another positive. In terms of competitiveness Mexican wages have risen strongly since 2000 but less rapidly than in China, which has experienced years of double-digit growth in factory wages. As a consequence, many US companies have started reshoring from Asia to Mexico’s benefit. Coupled with relatively low inflation, interest rates and public debt, these factors have driven a faster-than-expected economic recovery in Mexico. Mexico has got off to a good start in 2013, with an improving manufacturing sector, sustainable jobs creation and slower input price inflation.
President Enrique Peña Nieto, elected last July, has promised a slew of economic and social reforms. Among these are tax, energy and educational reforms and new ways to increase competitiveness. The oil sector, previously monopolised by the state is being opened up to foreign investors to further develop Mexico’s shale gas potential. Mr. Peña Nieto also recognises that the poor image of Mexico has hampered the economy from more rapid growth. Class mobility remains poor and many still work in the informal economy, paying no taxes and receiving no employer benefits, and the divide between rich and poor is wide compared with other countries in the region.
We consider Mexico to be underrated in terms of its investment appeal. Its strength in exports is the main driver of our stock selection. Mexico should continue to benefit from its proximity to the US, remittances from US-based workers and an improving domestic economy. Mexico’s economy has expanded more rapidly than that of the US in recent years as industrial activity has continued to shift to Mexico’s increasingly competitive market. Among our largest overweights are Grupo Mexico, the copper miner and railroad operator and financial Grupo Financiero Banorte, which recently announced rises in fourth quarter profits of 15% and 20% respectively.
J.P. Morgan today announced that Jose Berenguer will become Senior Country Officer of Brazil, effective April 1, 2013. He will report jointly to Mary Callahan Erdoes , CEO of J.P. Morgan Asset Management, and Martin Marron, CEO of J.P. Morgan’s Latin America franchise.
“We are thrilled to build on the success of our Gavea partnership and welcome Jose to J.P. Morgan in an expanded role,” Erdoes said. “Jose brings more than two decades of local and global experience across wholesale banking, a client-first mindset, and a proven track record of leading and growing organizations.”
Senior Country Officers are responsible for building and managing J.P. Morgan’s regional presence across lines of business, including Asset Management and the Corporate & Investment Bank. They play a central role in delivering the firm’s global capabilities to local clients.
“Brazil is one of our most important markets in Latin America,” Marron said. “We have built great momentum across all of our businesses in the region and we look forward to Jose’s help in taking our J.P. Morgan franchise to the next level.”
Berenguer was most recently CEO of Structured Credit at Gavea Investimentos, which he joined in March 2012. Gavea Investimentos was co-founded in 2003 by Arminio Fraga , former President of the Central Bank of Brazil. In October 2010, J.P. Morgan Asset Management purchased a majority interest in Gavea.
“Jose’s appointment is an important step in continuing to strengthen the great partnership between J.P. Morgan and Gavea,” said Arminio Fraga , Founding Partner and Chief Investment Officer of Investimentos. “We look forward to working with him in his new capacity as Gavea continues to invest in its hedge fund, listed equities, private equity, and real estate businesses.”
Before joining Gavea Investimentos, Berenguer spent five years with Banco Santander where he served in a number of roles including CEO of the Wholesale and Investment Bank, Asset Management, Private Banking, Consumer Finance and Retail Banking businesses. Berenguer also served on the Board of Directors for Banco Santander Brazil. He previously held senior roles at Banco ABN Amro Real SA, Banco BBA Creditanstalt SA, Utor Investimentos, and ING Barings.
Investors searching for core, low-cost exchange-traded funds (ETFs) to use as the building blocks of their portfolios helped push Schwab ETFs to a new milestone: the suite of 15 equity and fixed income ETFs reached $10.02 billion in assets under management as of February 8, 2013. Charles Schwab Investment Management (CSIM) reached this threshold just slightly more than three years after launching its first proprietary ETFs in November 2009.
“I want to thank investors for choosing Schwab ETFs as the right place for their hard-earned assets,” said Marie Chandoha, president of CSIM. “For Schwab ETFs, what matters most is that we continue evolving to meet client demand for quality ETFs in key asset classes at an incredible value. And, we think that crossing the $10 billion mark in such a short period of time is just the beginning.”
When Schwab debuted its first ETFs in 2009, the company broke new ground by offering them to clients commission-free online. In September 2012, Schwab made investing in ETFs more affordable for clients again by slashing expense ratios on all Schwab ETFs – they each have the lowest operating expense ratios in their respective Lipper categories.
Schwab’s 15 proprietary ETFs continue to be available commission-free online, and are part of the new $0 commission Schwab ETF OneSource™ featuring 105 ETFs from leading providers in major asset classes1. CSIM’s suite of ETFs spans the major asset classes, providing retail investors with the core building blocks of an investment portfolio. Eight of the funds now have a three-year track record, none have paid capital gains distributions to date, and all have competitive tracking errors. Three Schwab ETFs have over $1 billion in assets under management, including the Schwab Broad Market ETF (SCHB), Schwab International Equity ETF (SCHF) and Schwab U.S. Large-Cap ETF (SCHX). The Schwab Emerging Markets Equity ETF (SCHE) has $871 million in assets as of February 8, 2013.
Nuveen Investments, a leading global provider of investment services to institutions as well as individual investors, announced an update to the portfolio management teams for the following four Nuveen closed-end funds.
Nuveen Equity Premium and Growth Fund (NYSE: JPG)
Nuveen Equity Premium Income Fund (NYSE: JPZ)
Nuveen Equity Premium Opportunity Fund (NYSE: JSN)
Nuveen Equity Premium Advantage Fund (NYSE: JLA)
Effective immediately, Michael Buckius and Kenneth Toft, both of Gateway Investment Advisers, LLC, have been appointed co-portfolio managers of the funds. Mr. Buckius joined Gateway Investment Advisers in 1999 and holds the positions of senior vice president and chief investment officer. Mr. Toft joined Gateway Investment Advisers in 1992 and currently serves as senior vice president and portfolio manager. J. Patrick Rogers no longer serves as a portfolio manager of the funds. Each fund’s investment objectives and investment strategies remain unchanged.
Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutional and individual investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets a wide range of specialized investment solutions which provide investors access to capabilities of its high-quality boutique investment affiliates—Nuveen Asset Management, LLC, Symphony Asset Management LLC, NWQ Investment Management Company, LLC, Santa Barbara Asset Management, LLC, Tradewinds Global Investors, LLC, Winslow Capital Management, LLC and Gresham Investment Management LLC, all of which are registered investment advisers and subsidiaries of Nuveen Investments, Inc. In total, Nuveen Investments managed approximately $219 billion as of December 31, 2012.
We see more evidence that the Eurozone economy is tentatively healing, although the emergence from recession will be a slow one. A stronger euro can derail a recovery, yet ECB President Draghi may be able to talk down the exchange rate.
The euro declined after Mario Draghi’s press conference last week. It remains to be seen however if he could again “talk the talk without having to walk the walk”.
Eurozone economy is slowly healing…
We see more confirmation that the Eurozone economy is slowly starting to heal this year. The substantial drags on growth exerted by credit and financial conditions on the one hand and austerity measures on the other, should abate somewhat while an improvement in global demand will have a positive effect on exports. The latest economic data broadly seem to confirm this view as both the composite purchasing managers’ index (PMI) as well as the EC economic sentiment index has increased for three consecutive months now.
…largely driven by Germany
Most of the improvement is driven by Germany. This was also confirmed by the IFO business climate index which rose for the third consecutive month from 102.4 to 104.2 in January. As a rule of thumb, three rises in the row in the past signalled a recovery which is set to continue. The rise was mainly driven by the expectations component which correlates well with German growth momentum and confirmed the strong upward trend that started towards the end of the summer of last year. All this suggests that Germany indeed benefits strongly from the pick-up in global growth given its diversified export base.
Recovery will be a slow one
Nevertheless, it is important to emphasize that the Eurozone’s emergence from recession will be a slow one. We should not forget that the Eurozone economy has always been like an oil tanker (i.e. turning slowly) and this time around this should hold to an even larger extent. The winds of peripheral deleveraging are still blowing and outside Germany unemployment rates remain on a rising trend which exerts downward pressure on the consumer.
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Photo: Seabirds. RobecoSAM and S&P Dow Jones Indices introduce DJSI Emerging Markets
RobecoSAM and S&P Dow Jones Indices today announced the launch of the Dow Jones Sustainability Emerging Markets Index (DJSI Emerging Markets). The DJSI Emerging Markets offers investors a tool for measuring the performance of companies that RobecoSAM has recognized as leaders compared to their peers in terms of corporate sustainability and it also provides an effective engagement platform to encourage companies from emerging markets to adopt sustainable best practices.
A reference tool based on unique investment insights
RobecoSAM explains in a press release that although much progress has been made in terms of political and economic stability, many companies in emerging markets continue to operate in challenging surroundings. “The DJSI Emerging Markets seeks to identify corporate sustainability leaders by drawing on RobecoSAM’s extensive experience in measuring intangibles through the annual Corporate Sustainability Assessment (CSA)”. For example, RobecoSAM has identified resource efficiency as a potential driver of corporate success in the emerging markets based on the important role commodities play in the regional value chain.
Guido Giese, PhD, Head of Indexes, RobecoSAM, said: “The steady increase in the number of emerging market companies that participate in our CSA shows that businesses around the world are embracing sustainable practices as an important factor in their future competitive position. As the emerging markets have come of age, demand for a regional benchmark for sustainability investors has increased and we can now offer an appropriate product.”
Alka Banerjee, Vice President of Global Equity Indices at S&P Dow Jones Indices, said: “An important strategic reference point for sustainability investors around the globe, the DJSI are continuously advanced to respond to market trends and requirements. The DJSI Emerging Markets, the first index of its kind in the market, is launched in response to the evolving needs of the global investment community.”
New region – same proven rules
In keeping with the already existing suite of the Dow Jones Sustainability Indices family, the DJSI Emerging Markets is constructed on the basis of RobecoSAM’s annual CSA, which evaluates companies’ sustainability performance based on economic, environmental and social criteria. Constituents are selected based on the same criteria and best-in-class approach as companies competing for membership in the other DJSI.
In the emerging markets universe, only the companies whose Total Sustainability Score in the RobecoSAM Corporate Sustainability Assessment, based on the company’s participation and/or publicly available information, ranks them among the top 10% in their sector are eligible for index inclusion.
Out of a total of 800 emerging market companies that were eligible to participate in the 2012 CSA, 69 were identified as sustainability leaders in their respective sector and selected for index membership. As a result, the DJSI Emerging Markets tracks the performance of those leading companies from 20 developing economies. Like the existing DJSI Family, the new index can be customized to meet investor requirements with regard to value or faith based motivated exclusions or specific geographical subsets.
