Photo courtesyLisa Golia, COO UBS Wealth Management US & Jason Chandler, Head of Wealth Management at UBS US
UBS has hired Lisa Golia as Chief Operating Officer for its Global Wealth Management US segment, Jason Chandler, Head of Wealth Management for the Americas at UBS, reported on LinkedIn.
“As COO for Wealth Management US, we know you will do great things for our advisors and clients. Described as a “leader’s leader” in just her first few days, her passion for people and service is clear”, he said.
The executive comes from Morgan Stanley and will work in UBS’s New York office.
With more than two decades of experience, Golia joined Morgan Stanley in 1999 where she held various positions as portfolio associate, head of Branch Advocate and administrative Head of Wealth Management between 2006 and 2016.
In May 2017, she was appointed head of Wealth Management Strategic Services, a position she held until landing at the Swiss bank, according to her LinkedIn profile.
Golia’s appointment adds to a series of departures from Morgan Stanley in its wealth management division after the firm implemented changes for international accounts, mainly those corresponding to clients in some Latin American countries.
UBS, Bolton, Raymond James and Insigneo were the firms that attracted the most advisors.
Fee reforms introduced by Chinese regulators in July are likely to influence multiple aspects of the mutual fund industry, going beyond cuts in management fees and custody fees to impacting company revenues, and creating the potential for consolidation. Despite the immediate challenges faced, both investors and the overall fund industry are expected to benefit from fee reforms in the long run, according to The Cerulli Edge—China Edition, 3Q 2023 Issue.
On July 8, 2023, the China Securities Regulatory Commission (CSRC) issued a work plan for mutual fund fee reform to guide the industry in lowering fund fees in a reasonable and orderly manner.
The reform proposes to reduce active equity fund fees by the end of 2023. Among the changes, newly registered products’ management and custody fee rates are capped at 1.2% and 0.2%, respectively. Existing products’ management and custody fee rates are to be reduced to the same levels.
Mutual fund managers have responded quickly and positively to the reforms. Soon after the measures were announced, 19 large managers took the lead in reducing the fund and custody rates of some of their equity funds, and other managers followed suit.
As of September 5th, the number of managers that announced fee cuts topped 130, and the number of funds with reduced fees exceeded 3,500. Most of these are active equity products, although a small number of bond funds and index funds have also lowered custody fees.
In the short term, the fee reforms are expected to have a significant impact on fund managers’ costs. According to Cerulli’s preliminary estimates, the industry will see management and custody fees fall by about RMB14 billion (US$1.9 billion) and RMB2 billion after the stipulated reductions to 1.2% and 0.2%, respectively.
Cerulli also expects that management fee income will drop by up to RMB1 billion, with 36 managers facing double-digit reductions. Compared with their management fee income at the end of last year, without considering the impact of asset changes in the first half of this year, the decline in total management fee income of large managers will average about 10%.
Several leading managers have been ranked highly by management fee income in the past few years, so it is likely that they will face greater pressure to cut costs and increase efficiency, but this can be offset by their large assets under management.
On the other hand, small and medium-sized managers, especially those focusing on equity products, are likely to see profits squeezed. In the long run, they may need to make painful decisions on trimming their workforce or cutting salaries; some could even face the prospect of liquidation. With their relatively cheaper rates, better product performance, and more qualified talent, larger firms could further strengthen their leading positions, resulting in greater industry concentration and consolidation.
“In the short term, the fee reduction will lead to a decrease in managers’ income and further intensify industry competition,” said Joanne Peng, research analyst with Cerulli Associates. “In the long term, however, the reform is conducive to promoting high-quality development of the mutual fund industry, attracting medium- and long-term institutional investments and encouraging distributors to strengthen buy-side investment teams and better serve the wealth management needs of mass retail investors. Managers with outstanding investment and research abilities that can create value for investors in the long term will be able to compete effectively.”
State Street Global Advisors, the asset management business of State Street Corporation, released the results of its Gold ETF Impact Study: Advisor Edition, which was designed to better understand investor attitudes and behaviors around investing in gold.
According to the research, there is significant opportunity for investor education when it comes to gold investments, and advisors are playing an important role in helping clients understand its role in portfolios.
The study found that lack of knowledge is the number one reason why, among the options provided, surveyed investors do not invest in gold, with more than a third indicating they do not have gold in their portfolio because they do not know enough about the ways they can invest in gold. Furthermore, only 41% of surveyed investors agree that they understand what influences the price of gold, compared to 75% among those who actually do have gold in their portfolios.
When it comes to investing in gold ETFs, the advisors’ role as educator is critical. Nine out of 10 (91%) surveyed investors who own gold ETFs indicated they were informed by their financial advisor about the different ways to invest in gold. A similar percentage (91%) of surveyed investors indicated discussing an investment in gold with their financial advisors.
“Investors have good instincts about where – and when – to get objective advice. But it’s likely they will need even more guidance to achieve their financial goals as markets continue to react to higher interest rates, lower consumer sentiment and stubborn inflation,” said Allison Bonds, Head of Private and Independent Wealth Management at State Street Global Advisors.
Among surveyed investors with a financial advisor and holding a gold ETF in their portfolio:
91% have discussed investing in gold with their financial advisor compared with 36% of all surveyed investors with financial advisors;
89% report their financial advisor has explained the benefits of having gold in their investment portfolio compared with 35% of all surveyed investors with financial advisors;
83% noted that their financial advisor recommended gold for their long-term investment portfolio versus 26% of all surveyed investors with financial advisors; and
55% reported their financial advisor recommended gold as a short-term investment given current markets compared to 17% of all surveyed investors with financial advisors.
The survey also revealed approximately three in four gold ETF investors (73%) agree that gold ETFs have improved the performance of their investment portfolio, with three-fourths (76%) reporting that ETFs are a more cost-effective way to invest in gold.
Notably, across all surveyed investors (advised and self-directed) those who hold gold ETFs are more likely to have investable assets of $500,000 or more (82%) than those surveyed investors who do not hold gold ETFs (64%).
The top three variables surveyed gold ETF investors considered when buying a gold ETF are:
Expense ratio (65%)
A structure that is physically backed by gold (55%)
Following the SEC adoption of new rules for cybersecurity risk management, strategy, governance, and incident disclosure by public companies, 64.8% of public company executives say their organizations will strengthen their cybersecurity programs, according to a new Deloitte poll.
Over half of executives surveyed will also push their third parties to strengthen cyber programs (54.1%) in response to the new SEC rules.
Looking back, 53% of public company executives say that their organizations have been planning for and anticipating the newly issued SEC cyber rules. Within that group, executives’ organizations have prepared along various timelines inclusive of up to six months (17%), six to 12 months (19.1%) and more than a year (16.9%).
While one-quarter of those surveyed have yet to begin preparing to comply with SEC cyber rules ahead of their finalization (26.1%), they say their organizations will be compliant by mandatory deadlines.
“Leading public companies have invested considerable time into maturing their cyber, risk management and governance capabilities in anticipation of the now finalized SEC cyber rules,” said Naj Adib, a Deloitte Risk & Financial Advisory principal in cyber and strategic risk, Deloitte & Touche LLP.
In response to the new SEC cyber rules, just 33.9% of polled public company executives’ organizations have evaluated communications with third party service providers. An additional 27.4% are in the process of evaluating the same presently.
“Whether organizations are publicly traded or do business with public companies, clear communication from top leadership about cyber risk management expectations can help mitigate security risks within organizations themselves, but also within their broader supply chains and ecosystems,” said Daniel Soo, Deloitte Risk & Financial Advisory’s strategy and extended enterprise leader and a principal, Deloitte & Touche LLP.
“Increasingly, more executives understand cybersecurity is not just a CISO’s responsibility, but a multifaceted business risk that demands many groups work together to support. Responses to requirements like new SEC cyber rules should help make cyber risk management improvements that benefit many organizations whether they are publicly traded or not,” he added.
Dante Neyra and Conny De La Torre are the latest international financial advisorsto join Bolton Global Capital from Morgan Stanley.
The Neyra & De La Torre Group cover high-net-worth clients from various Latin American and European countries. As a team they manage approximately $200 million in assets under management.
Neyra has more than three decades in the financial industry. He has spent the last nine years as a Senior Vice President at Morgan Stanley in Fort Lauderdale and before that he served a fifteen-year tenure at Merrill Lynch. He started his career at Barnett Bank/Bank of America in 1989.
Conny De La Torre is a Financial Advisor, Portfolio Manager and Certified Financial Planner™. She started her career in 2013 at Merrill Lynch, where she began working with Mr. Neyra and in 2014, they both joined Morgan Stanley.
“The arrival of Dante and Conny to Bolton Global Capital is another testament to our firm’s successful efforts in recruiting top financial advisors. Many of their client relationships extend back three or more generations, which is a true testament to their professionalism and the trust their clients place in them. We are very pleased to welcome Dante and Conny to the firm” said Michael Averett, Bolton’s Head of Business Development. Thus far this year, Bolton has hired five advisor teams from Morgan Stanley with total client assets of $800 million.
Neyra and De La Torre will be based out of the Las Olas Financial District in Fort Lauderdale.
Christopher Shea joins Balanz USA after 16 years at Citi to establish Shea Wealth Advisory.
The 25-year industry veteran, who also previously worked at Morgan Stanley, has decided to leave the large financial firms to focus on delivering clients a more robust product offering and unparalleled client experience, which the large institutions have abandoned.
As stated by Claudio Porcel, Balanz Group President, “there is a drive towards independence, advisors are looking for a culture that is both client and advisor friendly, Balanz aims to provide this culture”. With this, Chris will continue to service high-net-worth clients globally and expand his practice, from Balanz’s new Coral Gables, Miami office.
As one of Citi’s most successful advisors, Chris has spent his entire career developing a substantial wealth management business that encompasses a global footprint that aligns perfectly with our strategy and growth trajectory, said Balanz USA CEO Richard Ganter.
Shea will continue to deliver guidance and advice to his clients, and now, with the resources of the Balanz global brand and independence-driven culture, he will undoubtedly grow his practice to the next level. Is a significant hire for our firm and creates what we consider to be an enormous opportunity for him and his clients, added Ganter.
In the same sense, Balanz USA Managing Director Fred Lucier said, “with his knowledge and expertise, Shea will be an important catalyst for our future growth”.
A graduate of Florida International University’s College of Business, and a recent Barron’s Top advisor, He focuses on comprehensive wealth management for ultra-high-net-worth families and individuals.
“With Balanz’s open architecture platform and superior technology stack I can be far more proactive with clients, provide best in class solutions, and will have access to unique intellectual capital”, said Shea.
Diego Daza will be joining together with Shea, and he will be his second-hand in the process of establishing his wealth advisory practice in Balanz USA. Daza is a highly experienced and accomplished portfolio registered associate, with a proven track record in esteemed financial institutions, including JP Morgan Chase and Citibank.
With 12 years of combined experience, including the last 7 years at Citibank, Daza has established himself as a specialist in servicing high-net-worth clients, the release added.
“His extensive experience and comprehensive knowledge of the industry have enabled him to understand and cater to the unique needs of affluent individuals. Diego’s expertise led him to become a valued member of Citibank’s top producer’s team as a Registered Service Associate, where he efficiently helped manage a book of over $250MM (AUM) in assets”, the firm said.
In addition to his vast industry experience, Daza holds a B.B.A from Towson University.
Shea’s hire is the first of many to come and sets the tone for Balanz USA moving forward: the firm will continue to hire top-tier financial advisors, offering them sophisticated wealth management services and independence, with the goal of helping these advisors grow their practice and give their clients best-in-class plans, strategies, and solutions to achieve their financial goals.
Safra New York Corporation, the holding company of Safra National Bank of New York (“The Bank”), announced the successful completion of its acquisition of Delta North Bankcorp, including its subsidiary Delta National Bank and Trust Company.
This strategic acquisition is a significant milestone for Safra National Bank and underscores the Bank’s continuous expansion in the private banking and wealth management business.
The acquisition strengthens the Bank’s market position among high-net-worth clients in the United States and Latin America, where the Bank has been providing premier private banking and financial services and has a long and successful track record.
Jacob J. Safra, Chairman of Safra National Bank of New York: “We are proud to have completed this acquisition, which represents an excellent strategic fit to our existing business in these markets. Clients will benefit from an organization that is fully dedicated to wealth management, providing the service, products and expertise that best meet their specific needs. We are confident that the Bank has all the attributes required to continue growing and prospering in a sustainable manner.
Simoni Morato, Chief Executive Officer of Safra National Bank of New York: “We very much look forward to working closely with Delta’s clients and employees and developing long term relationships. Together we will build on the strengths of our organization, not only in the United States, but also throughout Latin America.”
Headquartered in New York, with branches in Aventura, Miami and Palm Beach, and offices throughout Latin America, Safra National Bank is a leading private bank with approximately US$ 30 billion in clients’ assets. Safra National Bank of New York is part of the J. Safra Group.
BroadSpan Capital has announced that Mark Rosen has joined the firm as a Senior Advisor and Vice Chairman of the firm’s Advisory Board.
Rosen brings over 30 years of experience in international financial markets including the role of US Executive Director at the International Monetary Fund, a position he held until January 2021.
Prior to his time at the IMF, Rosen held various senior positions in the investment banking industry, including Chairman and CEO of the Latin American Investment Banking Division of Bank of America Merrill Lynch, holding the Chairman position at BAML until August 2018.
BroadSpan CEO Mike Gerrard commented: “We are delighted to have the opportunity to work with Mark. His experience at the IMF is a great asset for our sovereign restructuring group and his deep transaction knowledge will complement our M&A advisory efforts across the region”.
Rosen added: “The BroadSpan team has built a very impressive restructuring and M&A advisory platform. I am delighted to join and help expand the business in Latin America, as well as in other emerging markets around the world”.
About BroadSpan
BroadSpan Capital, founded in 2001, is an independent investment banking firm that provides corporations, partnerships and government institutions with impartial advice related to mergers & acquisitions and financial restructuring in Latin America and the Caribbean. BroadSpan delivers solutions to clients from its offices in Miami, Rio de Janeiro, São Paulo, Mexico City and Medellín and through affiliate offices located in 30 countries around the world.
U.S. stocks were lower in August as the S&P 500 and Nasdaq suffered their first monthly declines since February. One notable challenge that stocks grappled with in August was rates rising again, despite the prevailing narrative of broader disinflation. However, even with this month’s declines, equities are having a great year, with the Nasdaq attaining its best first 8 months to start a year since 2003.
The “Magnificent Seven” mega-cap tech stocks remain at the forefront of news, driving nearly 72% of the S&P 500’s gains this year. Notably, Nvidia Corp. (NVDA), a major player contributing approximately 14% of the S&P 500’s returns for the year, recently reported robust earnings amidst the surging demand for artificial intelligence technology.
On August 25, Fed Chair Jerome Powell spoke at the annual economic symposium hosted by the Federal Reserve Bank of Kansas City in Jackson Hole, Wyoming. Powell noted that the Federal Reserve may need to raise interest rates further to cool still-too-high inflation and noted both the progress made on easing price pressures as well as risks from the surprising strength of the U.S. economy. Although Powell’s stance was notably less hawkish compared to his messaging a year ago, there is a strong likelihood that the Federal Reserve will implement at least one more interest rate hike by year-end.
Small-cap stocks sold off during the month and have underperformed the broader equity market in 2023 thus far. We continue to see abundant opportunities in small to mid-cap stocks, given the compelling valuation of the Russell 2000 Value, which currently trades at only 10-12x earnings. This stands in stark contrast to the broader market, which hovers closer to 20x earnings, representing one of the biggest deltas we have ever witnessed.
Merger Arbitrage performance in August was bolstered by deals that made significant progress in securing U.S. regulatory approvals. Shares of Horizon Therapeutics traded higher after the U.S. FTC indicated it was open to settlement discussions ahead of the September 11th trial date, and the FTC and parties formalized a settlement on September 1st. The deal is expected to close shortly after the October 5th Irish High Court hearing. Spreads firmed on other deals that experienced similar regulatory wins including: VMware being acquired by Broadcom for $85 billion in cash and stock; Black Knight was acquired in September by ICE for $12 billion in cash and stock, ForgeRock was acquired by Thoma Bravo for $2 billion in cash in August, and NuVasive was acquired by Globus Medical in September for $4 billion in stock. Investors are actively deploying capital in newly announced deals like Abcam plc, which is being acquired by Danaher for $6 billion cash, and Capri Holdings, which is being acquired by Tapestry Inc. for $10 billion cash.
August saw a return of volatility, and the convertibles market gave up some of its gains for the year but rebounded slightly as we approached month end. New convertible issuance picked up in August after companies reported earnings. We saw a mix of issuance that included companies that are new to convertibles, along with some that are returning to refinance existing debt. This mix of issuance is good for our market and it has generally been at attractive terms with higher coupons and lower premiums than many existing issues. With equities having moved substantially off the lows this year, we think convertibles offer a compelling value proposition. They allow us to stay invested in the market with an asymmetrical profile that has increasing equity sensitivity while still offering a yield advantage and near term maturities that should limit downside participation.
Opinion article by Michael Gabelli, Managing Director and President of Gabelli & Partners.
CAZ Investments, a Houston-based investment manager, and Palantir Technologies, a builder of operating systems for the modern enterprise, announced a five years partnership for Palantir to provide its Artificial Intelligence Platform (AIP) in support of CAZ’s growth and innovation.
Palantir will provide CAZ with AI-powered solutions to accelerate partner onboarding and augment investment managers’ work with generative AI. The use of Palantir’s software aims to help CAZ automatically scale operations and meet growing demand.
AIP will offer CAZ executives a next-best action system to identify and recommend opportunities or content to improve retention and service to its partners, among other use cases, allowing it to provide differentiated investment services to its partners as it embarks on a crucial expansion period.
“The last few years have marked unprecedented growth for CAZ and a dramatic increase in demand for access to our curated opportunities,” said Christopher Zook, Founder and Chief Investment Officer of CAZ Investments. “We are excited to partner with the talented team at Palantir to ensure that we are able to scale our business for exponential growth, harnessing the power of AI to transform our processes.”
“CAZ is embarking on a remarkably ambitious AI transformation that will put exceptional demands on AIP. These are the partners we are looking for,” said Daniel Wheller, Head of Financial Services at Palantir. “We are proud to deploy Palantir AIP at CAZ, bolstering AI transformation.”
Palantir’s technology is currently deployed to solve some of the world’s most complex challenges in the government, defense, and financial sectors, including banking, asset management, anti-money laundering, and cryptocurrency.
CAZ Investments’ proprietary research process and global network identifies thematic investment opportunities across public and private markets. The CAZ team reviews 1,500 private investments in a typical year, but usually invests in approximately 10-12. Among CAZ Investments’ guiding principles is that it will align its interests with its partners, meaning the firm is the first investor in every opportunity it presents to its network.
This means that individual investors and investment advisors alike can participate knowing that CAZ is directly aligned with their success, or that of their client’s.
