Merger Arbitrage Investments Represent the Most Attractive Opportunity Set in Decades

  |   For  |  0 Comentarios

Screen Shot 2020-04-02 at 7
Wallpaper Flare CC0. Wallpaper Flare

Opportunity: Merger arbitrage investments represent the most attractive opportunity set in decades as a result of levered arbitrage funds facing margin calls, and multi-strategy funds exiting merger investments entirely. We have been approached by other institutional investors to establish a special purpose fund to take advantage of wide spreads caused by the market dislocation. We agree with these clients that now is a great time to add cash to merger arbitrage investments.

At the end of March, merger arbitrage spreads had “baked-in returns” of approximately 10%+ gross (before annualizing) when deals close over the coming months. The opportunity within these portfolios would be greater than 10% in addition to the new investment opportunities that currently exist at materially larger spreads because of the market dislocation. We expect more than 60% of the positions in the portfolio should be completed in the first half of this year, allowing us to harvest gains and reinvest the capital in additional attractive investments. In the last couple of weeks alone, more than 4 acquisitions have been completed after receiving regulatory approvals, shareholder approvals, or the expiration of tender offers. The acquisition price for TerraForm Power was actually increased earlier in March, which highlights buyers’ commitment to consummating acquisitions and is further evidence the deal market continues to present attractive opportunities. There are additional deals in the fund that are on the finish line, which will result in near-term realized gains.

Arbitrage vs. Equities: Returns in equities will be beta-driven, however we believe to be in a better position to generate alpha and returns in merger arbitrage. Equity buybacks will slow dramatically and volatility will persist. Equity exposure could be achieved more effectively by adjusting overlays and hedges.

Arbitrage vs. Investment Grade Credit (“IG”): Investing in the higher-quality end of IG would likely generate mid-single digit annualized returns assuming credit spreads normalize. A merger arbitrage portfolio should generate higher returns.

Investing in lower-quality IG would likely generate high single-digit/low double-digit annualized returns, still less than in a merger arbitrage portfolio. With lower-quality IG you also run the risk of investing in “fallen angels” that have not yet been downgraded to high yield, which would result in further bond price deterioration. There is a perception in IG credit that defaults do not occur, but if and when there are defaults it will have a broad impact on spreads and bond prices. Additionally, investing in IG Credit will dramatically change the liquidity profile of a portfolio. Credit liquidity is the worst in decades and wide bid/ask spreads could mean returns in credit could be illusory if managers are unable to source supply.

On a separate note, we would like to highlight that the cost of carry when hedging USD exposures for the non-USD currency classes has decreased, which is a benefit to these shareholders. This decrease has been primarily driven down / caused by the tightening of USD interest rate spreads to Europe’s already low (negative) rates. At the current rates, we forecast the cost of carry to equate to approximately 1.40% annualized.

We will continue to monitor the current deals in the market and anticipate market opportunities tracking the global environment, with a keen eye globally on deal terms and market factors.

Column by 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.

David Page: “The Fed and Congress Are Trying to Plug the Hole the Coronavirus Will Leave in the US Economy”

  |   For  |  0 Comentarios

David Page Axa IM
Foto cedidaFoto: David Page, economista sénior de AXA Investment Managers. Foto: David Page, economista sénior de AXA Investment Managers

After a couple of weeks’ of battling, Congress fagreed on a stimulus package thought to total $2trn (9.2% of GDP). This is an unprecedented stimulus, which according to David Page, Head of Macro Research at AXA Investment Managers, represents 9.2% of GDP.

The package began as a Senate Republican proposal estimated at around $850 bn, but over the ensuing time has morphed into a package that is estimated to more than double the combined GFC packages – the Economic Stimulus Act 2008 and the American Recovery and Reinvestment Act (2009). Senate Democrats had resisted earlier passage of the bill because it was not sufficiently focused on households, state or local governments. Democrats also wanted sufficient oversight of how a large portion of the package, to support larger businesses, was distributed. On Wednesday night 25, the Senate approved the measure with a unanimous vote of 96-0 and the House of Representatives voted out loud on Friday 27, with which the stimulus plan was approved.

The stimulus package contains

  • $500bn in bank loans and direct assistance to US companies, states and local governments affected by the virus (including $75bn to large corporates including airlines).
  • $377bn to small businesses (sub-500) to help fund payrolls in coming months. These payments will be structured as up to $10m interest free loans to businesses, but will be ‘forgiven’ proportionate to the number of workers kept on payrolls.
  • $250bn in direct checks to US individuals ($1200 per person, $500 per child).
  • $260bn in expanded unemployment insurance, raising payments by $600 per week and extending coverage duration by four months.
  • $150bn funding for states
  • $340bn additional Federal government spending

US Treasury Secretary Mnuchin stated that these payments would come quickly. He stated that loans to small businesses would be made next week and that individual payments would be paid within three weeks. Democrats secured more precise oversight for the distribution of stimulus funds to large corporates after accusations surrounding the distribution of TARP over a decade ago. An independent Inspector General will be appointed who will work with a panel of five members picked by Congress. A weekly report on the disbursement of funds will be produced.

 While eye-watering in scale and a complement to the range of measures enacted by the Federal Reserve, questions remain about whether even this will prove sufficient. Governors from Maryland and New York have suggested that there is insufficient aid to states most affected by the virus. In combination, the Fed and Congress are trying to help US households and businesses plug the significant hole that the coronavirus will leave in the economy over the coming months. The problem is no one can be sure how big that hole will be. The median estimate for jobless claims (released today) is to rise to 1.64m, although some estimate more than double that. St Louis Fed President Bullard recently said unemployment could rise to 30% in Q2. Such a sharp rise would suggest a double-digit fall in real disposable incomes in Q2, which would in turn exacerbate a sharp fall in domestic spending not just in Q2, but over the coming quarters. The stimulus package is designed to prevent such a deterioration, particularly by providing direct support to firms and incentivising them keep workers on payrolls, and to individuals through direct payments. This complements the Fed’s actions to facilitate lending to businesses to keep afloat while the virus-related drop in demand passes. But only the coming weeks will show how successful these measures will prove.  

 The stimulus package approved by Congress is also in part designed to bolster confidence, particularly for financial markets. To that extent, it has proved successful with the S&P 500 index rising by 10.5% as certainty over the passage of the stimulus rose. This easing in financial conditions in part offsets the material tightening over recent weeks which has provided an additional headwind to activity. Broader market moves saw the impact of the stimulus mix with ongoing efforts to curb liquidity issues in USD markets. 2-year yields have fallen by 10 bps to 0.30% over recent sessions, while 10 year yields have fallen by around 7 bps over a similar timeframe to 0.79%. The dollar has fallen by 2.4% against a basket of currencies this week as dollar liquidity scarcity has started to ease.  

 

 

 

 

In The Face Of The Pandemic And Low Oil Prices, Ckds And Cerpis Will Face Challenges And Opportunities

  |   For  |  0 Comentarios

Screen Shot 2020-03-30 at 5
cottonball pexels CC0. cottonball pexels CCO

The global pandemic, low oil prices and the resulting economic environment will put virtually all sectors of the economy to the test. This will imply opportunities and challenges for private equity funds that invest in Mexico and global ones under the figure of CKDs and CERPIs, respectively. Additionally, the economic damage, the loss of jobs and the new way of interacting, will change our consumption habits.

Recovery will be as fast or slow as the contagion stops. Hence, the concern of governments to curb the infection, inject resources into the economy and find the solution to the pandemic.

The crisis we are experiencing generates a great opportunity to acquire companies with low valuations for those young CKDs and CERPIs, while for those funds that have already passed their investment phase they will have the challenge of finding the best way out even extending the closing date.

Of the 114 CKDs and 32 CERPIs at the end of February 2020, only 9 CKDs will amortize in 2020. They have committed resources of $ 1.381 million dollars, representing 7% of the total CKDs or 5% if all CKDs and CERPIs are considered. Of these, 4 have so far, an IRR between 8 and 10% while the rest have a lower yield. Until they amortize, this performance cannot be considered as the definitive one.

Regarding the impact on private equity funds, Pitchbook prepared this analysis in march, 16, 2020: COVID-19, the Sell-Everything Trade and the Impact on Private Markets.

Among the interesting points to mention from the reading we find the following:

  • PitchBook data shows that funds raised immediately before a recession tend to underperform, while funds starting to invest at the lowest point in the market tend to perform better.
  • The best-yielding vintage tend to be those that invest at the lowest point of a recession and in the initial recovery stage, when inflow multiples are lower, competition declines, and portfolio companies benefit from the winds. macro.
  • Specialist private equity funds and large and diversified asset managers tend to outperform.
  • In times of great market difficulties, they consider it important to emphasize two central components to value a business: the free cash flow projections and the weighted average cost of capital.
  • LPs will likely focus on managers who have provided consistent returns in the past.
  • The main obstacle appears to be the possibility of a long parenthesis of face-to-face meetings, which could delay approval processes that are critical to consummating a commitment of funds.

In the case of CKDs and CERPIs, each sector in which they invest has its own problem. For all CKDs, 61% of the committed resources have been called, 30% of the called resources have been distributed and in the case of CERPIs only 24% of the committed resources have been called. The amount distributed is adequate due to the period since the closing of the CERPIs (highlighting that the initial closing implies an initial call of 20%).

h1

Based on the vintage of the CKDs and CERPIs, it can be seen that those who placed their CKDs between 2008 and 2015 have more than 70% of the money called, which would mean that it is already invested and are already in the divestment phase.

To date, we have two CKDs that have expired (CI3CK_11 and ADMEXCK_09) and have postponed their expiration following the provisions of prospectuses. On the other hand, we have two other CKDs that have already amortized (AMBCK_10 and PMCPCK_10) where it highlights that the net IRR did not reach double digits basically because these CKDs were pre-funded where the investment time of the resources caused a negative carry. Another factor to consider was the issuance and maintenance expenses that did not help the net IRR.

Out of a total of 114 CKDs, 96 will expire in the next 10 years (2030), as well as 2 of 32 CERPIs according to an analysis of their own as of February 28.

h2

Young CKDs and CERPIs (basically from 2016 to 2019 have called between 25 and 50% of capital, so they still have resources to make investments in their sectors at new market prices. In 2020, only issued 2 CKDs of which there is the case of EXI3CK_20 which is a co-investment vehicle which has already been called 100% of the capital. Due to this situation, the called capital data increases to 69.3% in 2020 (see graph).

We will have to see how CKDs and CERPIs take advantage of this opportunity.

Column by Arturo Hanono

Santander Appoints Alfonso Castillo as Head of BPI and CEO of BSI

  |   For  |  0 Comentarios

castilo
Alfonso Castillo, courtesy photo. castilo

Changes in Santander‘s international business: According to what Funds Society has learned, Alfonso Castillo has been appointed head of Santander BPI (his international private bank) and CEO of BSI (the bank’s international business in the US).

In his new role, he will continue to develop the business and consolidate Santander Private Banking as a global platform for the entity’s clients worldwide. Castillo will report to Víctor Matarranz (in his role as head of BPI) and Tim Wennes –CEO of Santander US- and Matarranz as CEO from BSI.

Castillo will replace Jorge Rosell, who is to leave the bank in search of new projects.

Alfonso Castillo joined the ranks of the global Wealth Management division created by Santander in late 2018, a few months after the bank created that division, which integrates private banking and asset management, and is headed by Víctor Matarranz.

Castillo came from Bankinter, where he was Managing Director, responsible for their Private Banking division. In his almost 20 years of experience, he has also worked at firms such as Barclays Wealth, Credit Suisse or EY.

 

The Latin American Financial Industry Goes Online

  |   For  |  0 Comentarios

Captura de Pantalla 2020-03-30 a la(s) 14
Pxhere. ,,

Get used to children screaming in the middle of a work call, incorporate over the course of a week remote work systems that otherwise would have been implemented in months, try new tools and test existing ones… As in many sectors, the  Latin American financial system is undergoing accelerated changes due to the spread of the coronavirus.

Large Latin American Firms Adapt

From Credicorp Capital, Rafael Castellanos, Executive Director of Asset Management, points out that “following the states of emergency in the different countries in which we are located, our support teams organized a fairly comprehensive business continuity plan where the majority of people are working from home. We are using technological tools with VPN to access our files, Bloomberg everywhere, videoconference systems, emails, all in order to continue making the necessary coordination. We have focused on being close to customers, which is very important in these volatile markets, to closely inform them of our analyzes and results.”

The effort is enormous, as SURA Group‘s statement shows: “Preventive isolation and remote work of more than 90% of the 30,000 SURA employees in Latin America; flexible conditions for underwriting policies and handling claims; advance payment of pensions and digital transactional channels; expansion of capacities in health services (Colombia) and contributions to strengthen hospital infrastructure and improve health care. These are some of the actions undertaken by Grupo SURA, its subsidiaries Suramericana and SURA Asset Management, and the SURA Foundation to help contain and overcome the situation generated by COVID-19.”

Aiva has announced a series of measures such as the suspension of trips or visits to its offices. The Latin American firm based in Montevideo has opened a new communication channel “Aiva MarketWatch”, to share the latest market news and provide support to its clients. “We maintain all of our customer services remotely. 5.50% of our staff is already working remotely and we will continue to increase this measure gradually,” the firm says on its website.

Miguel Sulichin, CEO of Advise Wealth Management, explains that more than two weeks ago a home office policy was decided for everyone: “we enhanced communications, sent the report to the regulator, the team is adapting and the trading systems are working good.”

Sulichin points out that these days companies in the sector are fighting two battles: “The main one, which is the disease and the spread of the coronavirus, and then the fall of the markets, the worst we have experienced since 2008 and the Lehman Brothers crisis.”

At Chile, LarrainVial has just launched its Spotify channel to “to be closer to our customers and the public with timely information inlight of Covid-19.”

The New Normal

Giovanni Onnate, Head of Mexico Institutional Business at BlackRock summarizes the immense transition that is taking place in companies in the sector.

“We have been adapting to this new dynamic of working from our homes and around our families. So while we are far away and operating virtually with our clients and with our work teams, we are more connected than ever. For the past couple of weeks we have been coordinating a series of calls with our clients around different topics such as market prospects, investment strategies in moments of volatility, and more,” he points out.

 “Personally, I try to follow a routine, we divide the living room and dining room as work spaces between my wife and me. We try to do yoga everyday and take turns to take care of our daughter at specific times. It is normal now to hear a dog bark or a baby cry while on calls, and it feels good. It is the new normal, for now”, adds Onnate.

Mauricio Giordano, Country Manager of Natixis in Mexico explains that Natixis IM has a presence in various countries in Europe, Asia and Latin America, “so remote work is part of our day to day.”

“On this occasion we knew that it required a greater commitment, especially so as not to jeopardize the health of our collaborators or that of their families, which is why we started working remotely two weeks ago. Although in Mexico an extreme situation was not yet been reached, after having a conversation with our colleagues from other countries we decided to take preventive measures and start working from home as soon as possible,” Giordano points out.

“With clients we have weekly calls to know their concerns and to be able to give them the certainty that we are here to support them. Although we are going through difficult times we know that this too, shall pass, we are not sure how long it will last, but if we all do our part, things will move faster.”

According to Simon Webber, Lead Portfolio Manager at Schroders, “The behavioural changes that the coronavirus is forcing on people in such dramatic fashion are likely to lead to a re-evaluation of the necessity of many face-to-face meetings. Many businesses have moved to remote working, and business meetings and conferences are being switched to virtual ones.

Here at Schroders, for some time now we’ve had an emphasis on video conferencing where viable, instead of business travel. This underpins our focus on sustainability.”

Chilean AFPs with Reduced Hours

In Chile, the quarantine became mandatory on Thursday, March 26 at 22:00. But many companies already had a first experience with teleworking after the social outbreak in October, when public transport was clearly affected.

The 4 main Chilean AFPs, which control most of the market share, are promoting the use of remote channels, have closed the branches affected by the quarantine and those that they keep open do so with reduced hours.

Individual strategies differ slightly by entity, for example, AFP Habitat has extended the hours of its call center from 8:30 to 23:00 at night from Monday to Friday and Saturday mornings and AFP Cuprum recommends changing the modality of cash payment by the bank account to avoid risk of contagion.

 

Congress Finally Approves 2 Trillion Dollars Stimulus Package

  |   For  |  0 Comentarios

Screen Shot 2020-03-26 at 6
Photo: Bytemarks . Bytemarks

After a couple of weeks of battling, Congress finally agreed on a stimulus package thought to total 2 trillion dollars (9.2% of GDP). Meanwhile, 3.3 million people in the U.S. registered for unemployment benefits in a single week. The previous record was 695,000 in a week in 1982.

David Page, Head of Macro Research at AXA Investment Managers, believes that “despite the eye-watering scale of the package, there are questions over whether this will prove sufficient to deal with the material shock coronavirus looks set to deliver to the US economy over the coming months.The package is also designed to offset the sharp tightening in financial conditions. In this respect the 10.5% rise in the S&P 500 index over the last two sessions is a positive reception.” 

The median estimate for jobless claims was to rise to 1.64m, while the actual 3.28m number almost doubles estimates, which Page believes “would suggest a double-digit fall in real disposable incomes in Q2, which would in turn exacerbate a sharp fall in domestic spending not just in Q2, but over the coming quarters. The stimulus package is designed to prevent such a deterioration, particularly by providing direct support to firms and incentivising them keep workers on payrolls, and to individuals through direct payments. This complements the Fed’s actions to facilitate lending to businesses to keep afloat while the virus-related drop in demand passes. But only the coming weeks will show how successful these measures will prove.” He mentions.

Jobless claims

The package began as a Senate Republican proposal estimated at around $850bn, but over the ensuing time has morphed into a package that is estimated to more than double the combined GFC packages – the Economic Stimulus Act 2008 and the American Recovery and Reinvestment Act (2009).

The stimulus package contains:

  • $500bn in bank loans and direct assistance to US companies, states and local governments affected by the virus (including $75bn to large corporates including airlines).
  • $377bn to small businesses (sub-500) to help fund payrolls in coming months. These payments will be structured as up to $10m interest free loans to businesses but will be ‘forgiven’ proportionate to the number of workers kept on payrolls.
  • $250bn in direct checks to US individuals ($1200 per person, $500 per child).
  • $260bn in expanded unemployment insurance, raising payments by $600 per week and extending coverage duration by four months.
  • $150bn funding for states
  • $340bn additional Federal government spending

The US Treasury Secretary Mnuchin stated that these payments would come quickly. He stated that loans to small businesses would be made next week and that individual payments would be paid within three weeks. Democrats secured more precise oversight for the distribution of stimulus funds to large corporates after accusations surrounding the distribution of TARP over a decade ago. An independent Inspector General will be appointed who will work with a panel of five members picked by Congress. A weekly report on the disbursement of funds will be produced.

BlackRock Commits 50 Million Dollars to Coronavirus Relief Efforts

  |   For  |  0 Comentarios

Federación banco de alimentos
Foto cedidaFoto de la Federación de Bancos de Alimentos de España.. BlackRock destina 50 millones de dólares para apoyar a ONG y paliar el impacto del COVID-19 entre los más desfavorecidos

BlackRock, the world’s largest asset manager, on Monday committed $50 million to relief efforts as the coronavirus pandemic leads to job losses and unexpected medical costs.

“We are committing $50 million to relief efforts, helping meet immediate needs of those most affected right now and by addressing the financial hardship and social dislocation that this pandemic will bring,” the company said in a statement.

Blackrock said a first tranche of $18 million in funding has been deployed to food banks and community organizations across America and Europe working directly with vulnerable populations.

BlackRock’s commitment includes plans to support various global charitable initiatives aimed at helping those impacted by the ongoing coronavirus pandemic, including $5 million to Feeding America, $2 million to the UK’s National Emergencies Trust, and $500,000 to the Global FoodBanking Network, “which will serve as our partner in meeting ongoing needs in Asia and the emerging crisis in Latin America.”

Furthermore, BlackRock is supporting its employees’ efforts and has said it will match employee contributions to local organisations addressing the crisis in their communities.

“COVID-19 is a stark test to companies everywhere. BlackRock Is working hard to support all of our people through this crisis,” the firm said. “There’s no doubt that there is much uncertainty ahead as we continue to address this fast-moving global challenge, an effort that we believe will require unparalleled global cooperation… We’ll keep all our stakeholders informed of what we learn as we tackle this crisis together.”

COVID-19: Is Your Life Insurance Policy Inmune?

  |   For  |  0 Comentarios

Captura de Pantalla 2020-03-24 a la(s) 12
Pixabay. ,,

The global pandemic COVID -19 has, in a few short weeks, altered our life as we knew it.  This is true for our younger population being homeschooled; for parents working from home; and especially for the many who have tested positive and are recovering or have lost their lives to this invisible enemy.

As we watch the hourly updates with great concern and borderline panic, current and potential life insurance policyholders all over the world, afraid for their own lives and the security of their families, are wondering—what impact could the outbreak of COVID-19 coronavirus have on my life insurance policy or am  I still eligible to  purchase a life insurance policy in the midst of this chaos?

Feel free to cheat and scroll down for the Top 3 Frequently Asked Question!

If You Already Have Life Insurance…

If you already have life insurance, you don’t need to worry about COVID-19 coronavirus affecting your existing life insurance policy. Having said that, you should be concerned about catching the virus or spreading it. Therefore,  by all means keep washing your hands and abide by expert advice about social distancing and restricted travel.

But in the universe of worries ushered in by COVID-19 coronavirus, including plummeting stocks, limited resources and an alarming economic outlook, threats to your life insurance policy can be crossed off of your worry list.

In the words of Ana Gomez, President of American Fidelity International Ltd:

“A life insurance policy is designed to offer us peace of mind and provide protection to our loved ones at the time of our death. Our life insurance product portfolio is designed to offer a death benefit to the designated beneficiaries in the policy, in the event of the insured’s death, even if the death is caused by a virus such as Coronavirus (2019-nCoV).”

Global pandemics do not void your death benefit, even if you reside in, work in, or intend to travel to COVID-19 hotspots. Life insurance is underwritten prior to issuance. The terms and conditions of the policy are locked in and no subsequent event can alter them.

Although COVID-19 coronavirus is a reason to worry over your health, it is definitely not a reason to worry about the health of your life insurance policy. Even if the worst happens, your beneficiaries will be taken care of.

If You Are Considering Buying Life Insurance…

If you’re considering buying a new policy in the midst of the outbreak, both U.S. and international insurance companies are accepting new applications and you should be able to acquire a highly rated, competitively priced life insurance policy. As this situation evolves, however, it may become more challenging to be underwritten under the same terms within a reasonable time frame.  

As of now rates and conditions remain the same specifically in the term life space.  It is important to note that life insurance underwriters set policy terms based on a risk assessment. The factors that affect this risk assessment include your health, lifestyle, and age relative to the average life expectancy.

The COVID-19 pandemic has added uncertainty to the risk assessment equation, which insurance underwriters hate. Major insurers have already taken steps to reduce the number of coronavirus fatalities that end up as liabilities on their balance sheet.

Lincoln Financial Group (LNC) just announced a 30-day waiting period on applications submitted by applicants who have traveled into pandemic “hot” zones like China and Italy. American International Group (AIG) has similarly held all applications for recent hot-zone travelers until 30 days after their return from the US. Other companies have added a short COVID-19 coronavirus questionnaire to their application package.

Residents of Latin America or the U.S.A. considering the purchase of a new life insurance policy should not hesitate to contact their insurance advisors before the acceptance applications close off altogether.

—————————————————————————
TOP 3 Frequently Asked Questions

Question #1: Does my life insurance policy cover death from a global pandemic like COVID-19 novel coronavirus?

Answer: Yes. No exclusions apply to global pandemics. Valid life insurance policies cover beneficiaries even in the event of the policy holder’s death in a global pandemic like COVID-19.

Question #2: I have not visited China, Europe  or other country  heavily impacted by the COVID-19 coronavirus pandemic. Can I still get life insurance?

Answer: Absolutely, but you should act quickly since other variables may impact the process of working

Question #3: Will the COVID-19 global pandemic undermine my insurer’s ability to pay out claims?

Answer: Not with a reputable insurer. Top-rated insurers earn such ratings by maintaining substantial liquidity and re-insurance, safeguarding their ability to pay their claims liabilities.

Column by Mary Oliva: www.maryoliva.com

A One-Of-A-Kind Conference: INTL FCStone’s Vision 20/20: Global Markets Outlook

  |   For  |  0 Comentarios

Screen Shot 2020-03-23 at 11
. https://youtu.be/I6G0tw_EksQ

Between February 27-28, 2020 over 525 experts and thought-leaders from around the world gathered at the Omni Orlando Resort at ChampionsGate to participate on INTL FCStone’s Visión 20/20: Global Markets Outlook Conference.

After the welcome remarks given by INTL FCStone Financial’s founder Sean O’Connor, attendees listened to Keni Thomas, retired Army Ranger involved in Black Hawk Down and Award-Winning Country Music Artist. He spoke about leadership and responsibility in his Get It On! What it Means to Lead the Way, keynote.

Steven zum Tobel and Roger Shaffer, Correspondent Clearing Managing Directors at INTL FCStone Financial, told those present about their passion to “provide them with as many tools and capabilities as we can so you can better serve your clients.”

Aberdeen Standard Investments presented its Product Spotlight, which was followed by a presentation on the current state of cyber security and regulatory oversight concerns, by Paul Allegra of INTL FCStone Financial.

Investec Asset Management, now Ninety One, also introduced its products, followed by an update by Jennifer Morello of INTL FCStone Financial on new and future features for Vulcan Pro, INTL FCStone’s proprietary broker workstation.

After the meal, Steven Feldman, CEO of Gold Bullion International talked about how as the macro landscape changes, old investment paradigms may become ineffective, focusing on what an investor should do to bolster their financial  (and emotional) resilience.

Sandra Powers Murphy, Founder and CEO of Noble Ark Ventures held a workshop on how to maintain and increase your assets under management, followed by a presentation by Carmignac.

Bao Nguyen, from Kaufman Rossin‘s risk practice, gave a talk on how to comply with Reg BI, which was followed by a presentation by MFS IM and the dinner.

On February 28, after Franklin Templeton‘s presentation, Joshua S. Siegel, CEO of StoneCastle Cash Management, spoke about some groundbreaking ideas about monetary policy, the challenges with global interest rates, and why slow growth will be persistent. This was followed presentations from GAM Investments, Vestmark and Schroders.

Yousef Abbasi, Global Market Strategist at INTL FCStone spoke about the global dynamics that affect markets today, while Tobel and Shaffer were in charge of the closing remarks.

Free Learning Opportunities for Children and Adults During the Quarantine

  |   For  |  0 Comentarios

Screen Shot 2020-03-18 at 11
Photo: Peakpx CC0. De cara al COVID-19, adultos y niños pueden acceder a cursos gratuitos

Staying at home in the face of the challenge presented by the spread of the COVID-19 virus for the Health sector is the most prudent thing. Whether it was the individual or the government that decided upon this measure, changing one’s routine and spending time in isolation from the rest of the world but living with the whole family is something, let’s say “challenging”.

Thinking about this, various organizations have decided to offer free courses and activities to make spending time in quarantine more bearable.
For people who must work remotely, LinkedIn has published a series of videos with tools to make remote work more efficient, either individually or in groups, as well as some to help to better manage stress.

For those who have time and want to learn something new or reinforce their knowledge, freecodecamp compiled a list with 450 free and online courses, which are offered by US Ivy League schools.

For those with children at home, Kids Activities Blog has a list of educational companies that due to the current situation, decided to offer free subscriptions.