Ricardo Soto has joined Norman Alex, an international consulting boutique providing executive search and corporate development services to clients within the financial services sector.
Soto, who is based out of Montevideo, will be in front of the company’s new Uruguayan office, covering the Latin American region and working closely with Norman Alex’ Miami office.
He has an extensive background in the financial services industry working for multinational banks. For the last three years he served as a Partner of a Swiss consulting and recruitment boutique based in Zurich and focused on wealth management.He also spent more than fifteen years at Citibank based in Montevideo and New York covering different areas but mostly private banking. He developed the wealth management activity in Uruguay managing a team of over thirty people and also led a project to implement credit sales teams throughout the region. Previously, he worked seven years for American Express Bank in several senior positions.
Soto speaks fluent English and Spanish (native language) and learnt French during a year in Geneva.
Established in 1997 in Monaco, Norman Alex has offices in Geneva, Paris, Luxembourg, London and Miami and they are looking to establish a presence in Singapore next year.
Pixabay CC0 Public Domain. La UE regula las plataformas de crowdfunding y crea un nuevo servicio de gestión de carteras de préstamos
Financial professionals, including investment advisers, wealth managers, broker/dealers, and financial planners, expect US stock returns to climb back from steep losses to finish the year down just 3.6%, according to findings of a survey published by Natixis Investment Managers. Despite seeing losses as high as -34% within the first few weeks of the crisis, financial professionals saw losses moderate to as little as -10% by the end of April.
The survey showed that 51% of financial professionals globally saw initial volatility caused by the coronavirus crisis as driven more by sentiment than by fundamentals. Optimistic the market will continue to right itself in the second half of the year, financial professionals’ main concern is the uncertainty of what happens next, including how investors handle it.
Between March 16 and April 24, 2020, Natixis surveyed 2,700 financial professionals in 16 countries, including 150 financial professionals in Mexico, and found that, globally, respondents forecast a loss of 7% for the S&P 500 and a loss of 7.3% for the MSCI World Index at year end. Their 2020 return expectations more closely resemble the modest declines seen in 2018 than in 2008, when the S&P plunged 37% and the MSCI posted a loss of 40.33%. In the US market, the outlook is more optimistic, but elsewhere, financial professionals are notably more pessimistic about stock performance in their own markets, with those in Hong Kong, Australia and Germany all projecting double digit losses for the year.
Ongoing volatility remains the top risk to portfolio performance and market outlook. Two-thirds (69%) of professionals globally cite volatility as a top concern, followed closely by recession fears (67%). Almost half (47%) say uncertainty surrounding geopolitical events poses a risk to their portfolios. In a dramatic shift in risk concerns from previous years surveys, a fifth of respondents (19%) expressed concern about low yields, while liquidity issues were also cited by 17% of those surveyed.
Resetting expectations: Hard lessons and teachable moments
After a 12-year run in which the S&P 500 delivered average annual returns of nearly 13%, and fresh off record highs in January and February, the magnitude of losses caused by the coronavirus pandemic was swift and stunning. Never mind that nearly half of financial professionals (47%) agree that markets were overvalued at the time; eight in 10 (81%) believe the prolonged bull market had made investors generally complacent about risk. And as long as the markets are up, 49% of respondents say their clients resist portfolio rebalancing.
The survey found:
67% of financial professionals think individual investors were unprepared for a market downturn (63% in Mexico)
75% (72% in Mexico), suspect investors forgot that the longevity of the bull market was unprecedented, not the norm, historically
76% -67% in our country- think individual investors, in general, struggle to understand their own risk tolerance, and the same number say clients don’t actually recognise risk until it’s been realized
“The market downturn – and expected recovery – serves as a lesson in behavioural finance, even if learned the hard way through real losses and missed goals,” said Dave Goodsell, Executive Director of Natixis’ Center for Investor Insight. “Investors got a glimpse of what risk looks like again, and it’s a teachable moment. Financial professionals can show their value by talking with clients in real terms about risk and return expectations, helping them build resilient portfolios and how to keep emotions in check during market swings.”
Nearly eight in 10 financial professionals (79%) globally and in Mexico, believe the current environment is one that favours active management. For those who embrace volatility as a potential buying and rebalancing opportunity, it’s another teachable moment for portfolio positioning and active management. Almost seven in 10 advisers, both global and in Mexico, agree investors have a false sense of security in passive investments (68%) and don’t understand of the risks of investing in them (72%).
Financial professionals are responding to new challenges managing client investments, expectations and behaviour. Under regulatory, industry and market pressure, their approach is changing on all fronts: investment strategy, client servicing, practice management and education. In a series of upcoming reports, the Natixis Center for Investor Insight will explore in-depth how financial professionals are adapting.
The COVID-19 pandemic has caused extreme volatility in the financial markets this year, which represents additional challenges for Brazilian investors. Concerns about the impact of the novel coronavirus led the Brazilian government to bring down its projected growth this year from more than 2% to 4.7% contraction. Given these factors, where should investors in Brazil look to drive growth and outperformance during such a difficult time?
New opportunities from disruption
Many Brazilian investors have been forced to explore alternative options outside of their traditional fixed income portfolios, due to historically low interest rates. Despite attractive returns in the local equity index (IBOV) over the past 10 years, the Brazilian Reais exchange rate with the U.S. dollar went from 1.5 to 5.4. This leads many Brazilian equity investors to believe that they have missed opportunities abroad, and as a result, they are now looking for ways to diversify their portfolios.
Fortunately, the impact of technological advancements on the Brazilian economy is providing new opportunities for growth. For example, the COVID-19 pandemic has actually led to the push for greater accessibility and mobility with so many employees working from home. Even prior to the onslaught of the virus, smart phones in Brazil were becoming ubiquitous, more affordable and easier to use. Now, technology is continuing to facilitate a world on lockdown, with more connectivity tools to work from home, practice telemedicine and engage in e-commerce.
Given the critical nature of behind-the-scenes infrastructure to support these products and services, we are seeing companies, and even whole industries, being forced to either retool or fail. These are companies that work in sectors such as the cloud, cybersecurity, automation, semiconductors and robotics. Investors who look to equity strategies focused on technological disruption will be able to capture the benefits of long-term trends in these sectors.
Investing without borders
The market environment has changed drastically, such that investors in Brazil who take a more globally diversified approach are more likely to reap previously untapped benefits. By investing outside of the country, they can take advantage of some of the more dynamic and fast-growing global sectors in this new environment, including those involving automation and digital economy strategies.
This is a new approach for Brazilian investors, who have historically maintained a very strong home bias and have had little to no need to diversify their investments abroad. But now, they can also look to opportunities in the global fixed income markets, where we’ve been in a historically low-rate environment for years. In particular, the U.S. high yield market has provided attractive relative levels of yield over the past 20 years, due in part to the strength of the U.S. economy. U.S. high yield has outperformed most other fixed income options and provided returns that compare favorably with the equity markets but with lower volatility.
In addition, it’s important for Brazilian investors to start looking more closely at global opportunities in tech-focused sectors that are seeing accelerated growth and disruption. These technologies are primarily produced in developed countries, and their value is in U.S. dollars. Previously, investors have accessed these spaces via direct individual equity investments or structured notes. Now the market is ripe for selective investment managers to help make these opportunities more attractive and accessible to a larger investor base in Brazil.
As an example, AXA Investment Managers and XP Investments recently partnered to offer Brazilian-based investors access to global equity and fixed income strategies through three local products focused on the digital economy, automation, and the U.S. high yield market. This provides local investors international opportunities with companies whose businesses are not in lockdown but are actually growing. As they look for better ways to reach higher performance, investors in Brazil should look out for vehicles such as these that provide them with easier access to strategies that can diversify their portfolios abroad.
We hope to see Brazil thrive once the pandemic recedes and investors become more comfortable accessing more unique and dynamic portfolio options. As the investment process is made simpler and more accessible, we anticipate seeing this goal accomplished.
Column by Rafael Tovar, director, US Offshore Distribution, AXA Investment Managers and Fabiano Cintra, Funds Specialist at XP Investments
John Surplice. John Surplice sustituirá a Jess Taylor como responsable de renta variable europea de Invesco
Invesco has announced that Jeff Taylor will retire from his role as Head of European Equities at the end of 2020, after almost 20 years in the role and 23 years at Invesco. Taylor will hand over leadership responsibilities to John Surplice, his co-manager on the Invesco European Equity Fund (UK).
John will work alongside Jeff for the rest of the year as co-head of the team and will assume the role of Head of European Equities from 1 January 2021. The investment strategy and process across the portfolio will remain unchanged.
Jeff Taylor said: “I’m fortunate to work with very talented and experienced investors who are all focused and committed to delivering the best outcomes for our clients. In planning for a successor, it was crucial to ensure consistency in our investment philosophy and process. John shares my vision for the portfolio and team and has a deep understanding of our clients’ ambitions, as well as strong leadership qualities. I look forward to working with John and the rest of the team for the remainder of the year.”
Stephanie Butcher, Chief Investment Officer said: “We would like to thank Jeff for his dedication to clients over the years and his role in building a team of highly talented and experienced investment professionals. He has always placed a huge amount of importance on nurturing talent and supporting career progression and his leadership has ensured that there is great strength and depth across the European Equities desk. I would like to add my personal thanks for all the support he has given me over the many years I have worked with him. John’s broad contribution to the team, his investment insights and strong relationships with clients make him a natural successor to Jeff, and I look forward to working with him in the leadership role in the future.”
John has been with Invesco for 24 years, as a core member of the European Equities team and has worked with Jeff for the majority of that time. He co-manages several funds, including the Invesco European Equity Fund (UK) with Jeff as well as the Invesco Pan European Equity Fund with Martin Walker.
Further strengthening the team
With John taking on additional responsibilities, Invesco also announces the appointment of James Rutland to the European Equities team. James joined Invesco as a fund manager in early June and will co-manage the Invesco European Opportunities Fund (UK) alongside John.
James joins Invesco after more than five years at Schroders, where he was a key member of the European Equities team and had co-managed successful European portfolios since 2016 (Schroders ISF European Alpha Focus and Schroder ISF European Opportunities). Previous to that he had worked on the sell side and in investment banking. He brings with him a total of 12 years of industry experience as an analyst and a fund manager.
Commenting on his appointment John said: “I look forward to continue working with Jeff for the rest of the year and thank him for all his support during our time spent working together. The personal development of the team has always been high on his agenda and it will continue to be high on mine. I would also like to welcome James to the team, he has a thorough knowledge of European stocks which should benefit our clients and the team as it continues to strengthen its skillset and expertise.”
Pixabay CC0 Public Domain. Eaton Vance Management lanza Calvert ESG Leaders Strategies, una gama de fondos de renta variable para inversores institucionales y profesionales
Eaton Vance Management has launched Calvert ESG Leaders Strategies, a new series of equity separate account strategies for institutional and professional investors offered by Calvert Research and Management, a subsidiary of Eaton Vance.
The Calvert ESG Leaders Strategies are co-managed by Jade Huang and Chris Madden, vice presidents and portfolio managers at Calvert. The strategies invest in the common stocks of selected companies with leading environmental, social and governance (ESG) characteristics as determined by Calvert. Calvert serves as the investment adviser to the strategies.
Calvert ESG Leaders Strategies are:
Calvert U.S. ESG Leaders
Calvert Tax-Managed U.S. ESG Leaders
Calvert Global ex.-U.S. Developed Markets ESG Leaders
Calvert Tax-Managed Global ex-U.S. Developed Markets ESG Leaders
Calvert Global Developed Markets ESG Leaders
Calvert Tax-Managed Global Developed Markets ESG Leaders
Calvert Emerging Markets ESG Leaders
The Calvert ESG Leaders Strategies seek to invest in companies that are leaders or emerging leaders in ESG factors that Calvert believes are material to long-term performance. The investment process has three primary components: stock selection, portfolio optimization and corporate engagement. The strategies seek to use corporate engagement to strengthen how portfolio companies manage material environmental and social exposures and governance processes and to enhance investment returns.
“Calvert’s proprietary, industry-leading research system enables us to identify companies that are leading their peers in managing financially material ESG risks, and which may be poised to take advantage of business opportunities based on their knowledge of and commitment to meaningful ESG practices,” said John Streur, president and chief executive officer of Calvert. “Financial materiality is a critical component of ESG analysis. We believe understanding the connection between sustainability factors and business success sets these companies apart and positions them to maneuver efficiently and effectively in an evolving world.”
Calvert ESG Leaders Strategies employ a dynamic investment approach that leverages quantitative and qualitative analysis and a risk-managed portfolio construction process, while seeking to effect positive change.
“In developing the strategies, we conducted a quantitative review of ESG leaders’ past performance,” said Ms. Huang. “The results indicate that companies that achieved top ESG scores in financially material factors have historically produced stronger financial performance than those with weaker ESG scores. Additionally, we found that by optimizing the portfolios, we could position the strategies to achieve positive environmental and societal impact by increasing exposure to companies with healthier environmental footprints and better gender diversity.”
Pixabay CC0 Public DomainPhoto: Ludwig Friborg. Photo: Ludwig Friborg
The global health crisis triggered by the coronavirus pandemic has firmly put the spotlight on how well countries will be able to handle the burden of rescuing their economies from an unprecedented meltdown. The question fixed income investors face is which countries will weather the storm and will sovereign debt crises follow?
Government deficits are ballooning everywhere, driven by two forces. First, huge fiscal programmes have been instituted to support households and companies at a time when many have seen incomes and revenues plummet due to the global lockdown. And, second, governments’ tax revenues have been hit hard by the dearth of economic activity, both domestic and cross-border.
So far governments have announced fiscal stimulus programmes in response to the coronavirus crisis worth 4.1 per cent of potential global GDP, nearly half of which will come from the US alone. Across the euro zone, the stimulus programmes are worth 3 per cent of GDP, while in Japan it’s 10 per cent. This spending necessitates huge volumes of government debt issuance. Central banks in the best-placed countries like the US, which benefits from reserve currency status, can absorb most, if not all, of this new debt through their asset purchase programmes. The US Federal Reserve’s balance sheet has expanded from USD4 trillion to USD6.5 trillion over the past couple of months alone and we expect it to peak at around USD8 trillion by the end of the year. In the UK, the Bank of England is pursuing an even more aggressive form of asset purchases by buying bonds directly from the Treasury in a form of debt monetisation – a policy that for long has been taboo.
But if the lockdowns last more than two quarters, a new set of fiscal measures will have to be adopted, which could mean solvency problems for some already highly indebted countries. We estimate US debt will have risen from 108 per cent of GDP to between 133 per cent and 145 per cent following its massive stimulus programme, worth some 7 per cent of GDP, depending on how sharply the economy bounces back. In the worst case, it could hit 165 per cent of GDP by the end of 2022. Elsewhere, higher debt levels are likely to ring alarm bells – it’s worth remembering that during the euro zone’s sovereign debt crisis, Greece flirted with ejection from the single currency as its debt breached 150 per cent of GDP.
Who’s at greatest risk?
Pictet Asset Management’s sovereign risk scores show which countries were most vulnerable to dangerous debt dynamics coming into the coronavirus crisis. The metric is based on how countries stand relative to each other and to their own historic trend on three dimensions – how affordable their existing debt is, how well they’re able to finance it and the degree to which the debt will fall naturally as their economies grow.
Our analysis shows that Greece had by far the poorest state of debt sustainability at the end of 2019 among developed countries, followed by Italy, Japan, Belgium and the UK. At the other end of the scale, Switzerland, the Netherlands and Ireland were in the most enviable positions.
Mapping countries’ short-term debt situations against their structural scores confirms that Greece, Italy and Japan exhibit the worst debt dynamics, though France is also a worry. By contrast, other northern European and Scandinavian countries are in a good position.
Among emerging economies, the countries that faced the biggest risks to their sovereign debt at the start of the crisis were Brazil, South Africa, Egypt and Argentina. In terms of debt dynamics relative to short-term debt situations, South Africa, Egypt and Ukraine are of greatest concern. Those likely to be most resilient were Russia and Korea.
Flashpoint
Italy was a flashpoint during the euro zone crisis and it could prove to be one again. Italian government debt could potentially hit 150 per cent of GDP by the end of this year. The European Central Bank already owns Italian bonds worth some 22 per cent of Italy’s GDP and, as such, it has a big role in the sustainability of the country’s debt. The ECB has already said it would take a flexible approach to purchases of member states’ bonds and will be absorbing some 90 per cent of net new issuance by the single currency region’s governments this year.
Those purchases by the ECB come against the backdrop of northern European concerns about creeping debt mutualisation. But ultimately, if the euro zone is to be kept together, some sort of debt pooling will be necessary – extend and pretend can only be supported for so long before the market tests the region’s political resolve. We expect that there will be moves in the direction of mutualisation, which ensure that yields on Italian bonds stay contained.
The ECB, however, faces a fine balancing act in how it navigates the coming months and will have to be deft in how it applies game theory. It wants to prevent another sovereign debt crisis. But it also doesn’t want to entirely remove pressure on euro zone politicians to reach agreement on some sort of debt mutualisation. If the central bank is too accommodative and compresses southern European government bond spreads too much, this would lessen the need for euro zone governments to agree on how to move forward.
An even more immediate concern is that some emerging market economies have already run out of monetary headroom. Inflation won’t be an issue for some time in developed economies as depressed demand and weak oil prices drag down consumer prices overall, notwithstanding aggressive central bank action. In some emerging economies, however, central bank policies are already acting to drag down their currencies in what could turn out to be another devaluation/inflation cycle. Worryingly some large developing economies – Turkey, Brazil, South Africa – are heading in this direction.
The global pandemic is likely to expose strains that already exist in the global economy as well as throwing up new problems. How governments came into the crisis will play a big role in how they emerge.
Opinion by Andrés Sánchez Balcazar, Head of Global Bonds, and Sabrina Khanniche, Senior Economist, at Pictet Asset Management.
This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation. Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.
This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management Limited, which is authorised and regulated by the Financial Conduct Authority, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.
For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.
Pictet Asset Management Inc. (Pictet AM Inc) is responsible for effecting solicitation in North America to promote the portfolio management services of Pictet Asset Management Limited (Pictet AM Ltd) and Pictet Asset Management SA (Pictet AM SA).
In Canada Pictet AM Inc is registered as Portfolio Managerr authorized to conduct marketing activities on behalf of Pictet AM Ltd and Pictet AM SA. In the USA,Pictet AM Inc. is registered as an SEC Investment Adviser and its activities are conducted in full compliance with the SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref. 17CFR275.206(4)-3.
CC-BY-SA-2.0, FlickrPaul Becker/ Becker1999. fondos y asesores
Since last week, we’ve seen people stand together in 50 states and across the world, to demand justice and an end to systemic racism. The four officers involved with George Floyd’s death have been fired and charged. However, markets seem to not be taking note.
Adam Vettese, from eToro, said: “Away from the markets, mass protests over police brutality in the US continued to dominate headlines, as the civil unrest entered its eighth day yesterday. Most of the protests are peaceful but violence is escalating, with mass looting, thousands of arrests, and at least five deaths. Investors appear to be largely ignoring the protests so far, but that could change if the mass gatherings lead to a significant spike in Covid-19 cases, as the biggest risk currently facing US stocks is a second wave of the virus.”
Esty Dwek, from Natixis, said: “Markets continue to prove immune to negative headlines, as they climbed into the end of last week and were in the green yesterday as well, even as protests grapple the US and tensions between the US and China rise again.” The S&P 500 rose for a fourth straight day on Wednesday, trimming its YTD loss to just 3.3%.
Ryan Detrick, from LPL Financial, pointed out that for the last 50 trading days, the S&P 500 is now up 39.6%, making this “the best 50-day rally ever. Looking at the other largest 50-day rallies, they tend to take place at the start of new bull markets and the future returns 6- and 12-months later are quite strong”.
Keith Ellison, Attorney General of Minnesota, said he was of the opinion that people “have been cooped up for two months, and so now they’re in a different space and a different place. They’re restless. Some of them have been unemployed, some of them don’t have rent money, and they’re angry, they’re frustrated”.
Data released today shows that the number of Americans filing for unemployment benefits last week dropped below 2M for the first time since mid-March, though at 1.88 million, the figure still remains astonishingly high. So far, 42.6 million people have filed for benefit, the highest unemployment since the Great Depression.
Meanwhile, the Federal Reserve now allows smaller cities to raise funds by selling debt. Until the announcement yesterday, the Fed’s municipal bond-buying program, launched in April, only applied to cities with populations of 250,000 or more and counties with at least 500,000 residents.
The U.S. spring stock market rally extended with a solid gain in May as a gradual ending of various virus lockdowns, a nascent world economic recovery, and rising expectations for a COVID-19 vaccine remedy fueled the advance. The unprecedented U.S. and world fiscal and monetary policy backdrop, confrontational dynamics between the U.S. and China, bankruptcies, presidential election year uncertainties, worries over a virus ‘second wave’ in the U.S., and Hong Kong social unrest will likely prevail through year end. We expect government spending initiatives on infrastructure and transportation soon.
Monetary (hypersonic) and fiscal policy dynamics are largely in place to jump start consumer spending and the hardest hit parts of the economy as reflected by the BOTL stocks (Banks, Oil, Travel and Leisure), which have paced the recent market surge. We echo, “how bad is bad, how long will bad last, how good will good get” and “which stocks have discounted the bad and have a bright future?” For our value investing, we use the Gabelli Private Market Value (PMV) with a Catalyst™ stock selection process to spot stocks selling below intrinsic value.
First quarter earnings season is in the books and second quarter numbers are now becoming more visible every day with July starting the second quarter earnings season. So far, stocks have rallied sharply from the March lows with the U.S. markets leading the way over foreign stock indices. However, the overall stock market appears to be discounting current monetary and fiscal policies. Though deal activity has been suppressed by recent events, we expect M&A to pick up for small, mid-sized and microcap companies as the economy progresses. As oil prices crashed so did the related stocks. Potential deals await – stay tuned.
Chairman Powell and the Fed have done a terrific job responding to the complex pandemic. One tool used by other central banks the Fed has not used is a negative policy interest rate, so we were encouraged to hear New York Fed President John Williams say on May 28th, at Stony Brook University in Long Island, “I don’t think negative rates is something that makes sense given the situation we’re in because we have these other tools that can be used…that I think are more effective and more powerful to stimulate the economy.”
Column from Gabelli Funds, written by Michael Gabelli
__________________________________
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155
Disclaimer:
The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
Malie Conway, formerly CIO Global Fixed Income strategies, will become Head of US Distribution at AllianzGI. In her new role, Malie will relocate to New York, reporting to Tobias Pross, CEO of Allianz Global Investors.
“As well as being an outstanding investor, Malie has strong business and entrepreneurial credentials, having been instrumental in the build out of Rogge Global Partners for 18 years before joining AllianzGI. She is looking forward to moving back to the US and to working with the Distribution Channel heads to continue the growth of our business in the US and Latin America.” The company told Funds Society.
The change, comes after AllianzGI created an integrated, global set-up for fixed income.Having broadened and deepened its fixed income capabilities significantly over many years, AllianzGI has now taken the natural next step in the evolution of its fixed income offering by bringing its capabilities into an integrated, global structure. The new structure, effective June 1st, reflects the fixed income products and services that investors are focused on and AllianzGI’s strategic strengths.
With the launch of this globally integrated platform, AllianzGI’s global fixed income capabilities, responsible for EUR 193 billion of Assets under Management, will be grouped into five pillars of expertise: Core Fixed Income; Credit; Asian & Emerging Markets; Insurance & LDI; Advanced Fixed Income. “Each area will be led by highly-skilled and seasoned investment professionals from our existing capabilities, with the structure maximizing team-based and portfolio manager continuity while strengthening collaboration and implementation of our best ideas and practices”, the company said in a statement. Franck Dixmier, who has led their global fixed income business for the last five years, assumed a more involved role in the oversight of investment processes, becoming CIO Fixed Income.
According to the company, the simplified structure provides maximum continuity in terms of teams and investment processes, at the same time as unlocking the full potential of AllianzGI’s deep pool of fixed income talent. “The changes will see AllianzGI bring together over 25 individuals into a credit research powerhouse, including resource focused on advancing our pioneering ESG and sustainability capabilities even further onto our Fixed Income platform.” They mention.
Franck Dixmier, CIO Fixed Income, said:
“Fixed income markets are increasingly driven by a global opportunity set and clients recognize that a global mindset and global skillset, that AllianzGI is uniquely well placed to offer, can add significant value in any fixed income asset class and strategy, regardless of its geographical identity.
“This globally integrated setup is a natural progression for our teams that have already been working alongside each other as we have steadily built out our Fixed Income capabilities. By introducing a simplified, common framework and harmonized governance structure, we will be able to make best use of our considerable active investment talent to drive performance for clients as we continue to evolve our offering.”
IPG openned its offices’ doors, both in San Diego and Miami, since last week. This reopening was the result of hard planning work that began the day they closed, seeking to flatten the curve.
Rocio Harb, director at IPG and in charge of the Miami office, spoke to Funds Society about how their organization and having everything well planned before the opening were key to their return.
In her opinion, it is very important to “plan, talk to the building, talk to the employees, do research, see how daycares are working -since you cannot open and expect mothers to return to work when there is no day care or school.”
Overall, they are “super excited to be back in the office. Despite the fact that working from home worked fine, being face-to-face and from an emotional point of view, knowing that you are reaching normality, makes you feel good,” she says.
The San Diego office opened with 10 people and Miami with three, and “little by little we expect to add between 5 to 10 in San Diego and in Miami, the doors are open for when advisors want to return.” The executive expects to be at its peak by mid-July, “if everything continues as before and there has not been a second wave of infections,” of course.
When arriving at the building, some measures must be followed, for example, there can only be two people in the elevator. Upon entering the office one finds thermometers, gloves, masks and antibacterial gel. The process to follow is to put on hand sanitizer, then take your temperature and write down your name, date and temperature. Afterwards, you must change the mask and used gloves for new ones and only after that, access the office.
The premises were redecorated to maintain social distancing, including the use of plexiglasses in open areas, Harb tells us, adding that since they started preparing for the return, months ago, they have been able to build a significant stock of prevention supplies such as gloves, face masks and antibacterial gel.
Also, although most people in Miami have private offices, “when you leave your own office, to go to the bathroom or whatever, you should wear a mask.”
For Harb, going through the experience of working remotely was enriching from the point of view that “we learned that we worked quite well and that we could continue working from home, but opening was more emotional than necessary. Having a date to open an office and the advisors know that they can return serves everyone emotionally, ” she says, commenting that new tech tools have also been incorporated into the day-to-day business of the company.
For her, face-to-face was what she missed the most. “This office is three years old but the team has known each other for more than 10. We are friends, we are a family and the truth is that we missed each other, seeing each other, chatting and sharing our experiences. With San Diego we have a call with all the staff every two weeks so there is a lot of contact, but seeing us is totally different.”
To other companies planning to open, Harb reiterates that what worked best for them was to start planning early and have fairly detailed guidelines, which were sent to everyone beforehand followed up via call with all employees to answer their questions. “A lot of work must be done, like research, guidelines and surveys to give your coworkers peace of mind,” she concludes.
