Analyzing Women’s Role in the Asset Management Industry

  |   By  |  0 Comentarios

A análisis: las mujeres y su rol en la gestión de activos, como clientes y asesores
CC-BY-SA-2.0, FlickrPhoto: Lowes Atlanta Hotel. Analyzing Women's Role in the Asset Management Industry

Financial Advisor magazine invites all advisors interested in women and wealth to attend its 5th annual Invest In Women conference, a national event that explores some of the most thought-provoking issues that face advisors and their female clients.

The 2019 conference will be held April 29-May 1 at the Loews Atlanta Hotel in Atlanta, Ga., and will feature a wide range of speakers on topics that include next-gen advisors, diversity, impact investing, executive women, estate planning, behavioral finance, divorce, client relations, marketing and much more.

“FA’s goal with Invest In Women is to provide a compelling, national forum for advisors to engage on topics that are particularly relevant to women,” said FA’s Executive Editor Dorothy Hinchcliff and Director of Conferences. “IIW has continued to grow each year, and we expect record attendance at our upcoming conference.”

David Smith, FA’s Group Publisher and Cofounder, said he is extremely pleased with the support sponsors have given to Invest In Women. “Leading firms such OppenheimerFunds, Dimensional Fund Advisors and TDAmeritrade, to name only a few, see the value in conveying the message that women advisors and clients are a force that shouldn’t be ignored. The fact that so many of our sponsors are capable of sharing their research and expertise to our content is confirmation of their commitment to the cause.”

Keynote speakers include:

  • Dr. Bernice King, the daughter of Martin Luther King Jr. and Corretta Scott King. As CEO of the King Center in Atlanta, she has continued to advance her parents’ legacy.
  • Lara Logan, a 60 Minutes journalist and war correspondent who faced harrowing experiences covering some of the world’s most dangerous places and who is known for her personal integrity.
  • Lauren Simmons, who has been dubbed the real-life “Fearless Girl,” who became the youngest and only full-time female trader at the New York Stock Exchange. She’s also the second African American woman in history to work as a trader on the floor.
  • Dr. Laura L. Carstensen, cofounder and director of the Stanford Center on Longevity at Stanford University. She has amazing insight on how we can make later life a time of great happiness.
  • Christina Boris, vice president and client research director at OppenheimerFunds, who is the architect of The Generations Project for the firm. Her current studies include advisor sentiment about wealth transfer, next-generation financial advisory practices, the shifting generational needs of high-net-worth families.
  • Marlena Lee, co-head of research for Dimensional Fund Advisors. Lee works closely with Dimensional’s clients on a variety of investment-related initiatives and questions. Previously, she worked as a teaching assistant for Professor Eugene Fama while she earned her Ph.D. in finance at the University of Chicago Booth School of Business.

FA’s Inside Retirement conference will immediately follow the Invest In Women conference. In its 10th year, Inside Retirement focuses on the changes clients face as a result of increases in longevity and how that impacts advisory practices. It also provides insight on issues for advisors who provide advice to small businesses on retirement plans, such as 401(k)s.

The events will also offer pre- and post-conference workshops. On April 29, immediately before the Invest in Women conference, FA has assembled a pre-eminent team to answer your key questions on planning for a sale of your practice. Following Invest in Women on May 1 and leading in to Inside Retirement, the ever-popular Susan Bradley, founder of the Sudden Money Institute, will present the workshop “In The Client’s Shoes.”

Registration is now open for both FA’s Invest In Women or Inside Retirement conferences.

Mexico’s Largest Pension Fund Changes CEO

  |   By  |  0 Comentarios

La afore más grande de México cambia a su director general
Courtesy photo. Mexico's Largest Pension Fund Changes CEO

The Board of Directors of Afore XXI Banorte has appointed Felipe Duarte Olvera as their new CEO, position he started on Monday, December 10. He replaces Juan Manuel Valle Pereña, who for almost two years led Mexico’s largest pension fund.

According to a statement from the firm, “the appointment is made as an agreement between the partners to promote and strengthen the professional management of Afore XXI Banorte, for the benefit of savers and customers, as well as investors and employees… The mandate for the new CEO is to protect and increase worker’s savings, while generating value for investors.”

Duarte Olvera had been working since January 2016 as Deputy CEO of Infrastructure and Energy at Grupo Financiero Banorte. Between 2013 and 2015, also within the Banorte Financial Group, he was Deputy CEO of Customer Experience. Previously, he was the Undersecretary of Transportation of the Ministry of Communications and Transportation (SCT), Undersecretary of Competitiveness and Regulations of the Ministry of Economy, and Technical Secretary of the Mexican President’s Economic Cabinet.

He holds a Master’s Degree in Business Administration from Harvard Business School; He holds a degree in Administration and a Public Accountant from the Instituto Tecnológico Autónomo de México.

Investec Miami Conservation Awareness: Investec AM’s Commitment with Art And Protecting Wild Life

  |   By  |  0 Comentarios

Investec Miami Conservation Awareness: el compromiso de Investec AM con el arte y la conservación de la vida salvaje en África
CC-BY-SA-2.0, FlickrCourtesy photo. Investec Miami Conservation Awareness: Investec AM's Commitment with Art And Protecting Wild Life

On December 3rd, Investec Asset Management, preparing for the Art Basel season in Miami, gathered 80 distinguished members of the asset management industry coming from private banks, family offices, and distributors in Miami for their Investec Miami Conservation Awarness. An event featuring David Yarrow, at the InterContinental Hotel.  

David Yarrow is a British fine-art photographer, conservationist and author. He took up photography at an early age and as a 20 year old and some of his pieces have received the highest bid for piece by a living photographer. Philanthropy and conservation are central to David Yarrow’s passion to document the animal and human world in a fresh and creative way.

The event actutioned a piece of art for the benefit of the Tusk Trust, an NGO with a mission to amplify the impact of progressive conservation initiatives across Africa. “For almost thirty years, Tusk has supported forward-thinking and successful conservation intervention in Africa. From the plains of the Serengeti to the rainforests of the Congo Basin, we’re working towards a future in which people and wildlife can both thrive across the African continent.” Says Investec.
 

SEC is Still Undecided About Bitcoin ETFs While Bipartisan Bills Look to Strenghten US’ Position

  |   By  |  0 Comentarios

Estados Unidos busca regular el uso de criptomonedas y sigue indeciso sobre autorizar sus ETFs
Pixabay CC0 Public DomainPhoto: Dave McBee CC0. SEC is Still Undecided About Bitcoin ETFs While Bipartisan Bills Look to Strenghten US' Position

Two US congressmen have introduced pieces of legislation designed to prevent the manipulation of cryptocurrency prices as well as ensuring the US becomes a leader in the crypto sphere.

Democratic Representative Darren Soto of Florida and Republican Representative Ted Budd of North Carolina have introduced The Virtual Currency Consumer Protection Act of 2018 and the U.S. Virtual Currency Market and Regulatory Competitiveness Act of 2018. The bills are designed to protect retail investors from price manipulation while also positioning the US at the forefront of the developing industry.

In a joint statement eleased on December 6, the two congressmen emphasized the “profound potential” of cryptocurrencies and blockchain in their ability to drive economic growth.

“Virtual currencies and the underlying blockchain technology has a profound potential to be a driver of economic growth. That’s why we must ensure that the United States is at the forefront of protecting consumers and the financial well-being of virtual currency investors, , while also promoting an environment of innovation to maximize the potential of these technological advances” the congressmen stated.

 One bill directs the Commodity Futures Trading Commission to describe how price manipulation could happen in virtual markets, then recommend regulatory changes. Another seeks to keep the U.S. competitive in the global industry. They ask the Commodity Futures Trading Commission to come up with recommendations.

On the same day, the U.S. Securities and Exchange Commission (SEC) posted an update regarding the approval process for a rule change proposal for the allowance of a bitcoin exchange traded fund (ETF).

The ETF in question is the VanEck SolidX Bitcoin Trust, created in a team up between money management firm VanEck and blockchain company SolidX. The attempt is VanEck’s third at creating a bitcoin ETF. In the update, the SEC said it was delaying its decision until Feb. 29, 2018.

“The Commission finds it appropriate to designate a longer period within which to issue an order approving or disapproving the proposed rule change so that it has sufficient time to consider this proposed rule change,” Eduardo A. Aleman, assistant secretary in the SEC, said in the release.

The last time the SEC postponed the decision on the VanEck SolidX bitcoin ETF, over $9 billion was wiped off the value of bitcoin.Back in the summer, Jan van Eck, chief executive officer of VanEck said: “I believe that bitcoin has emerged as a legitimate investment option, as a type of ‘digital gold’ that may make sense for investors’ portfolios,” since then bitcoin has lost nearly half of its value.

Why The Energy Stock Selloff May Be Overdone

  |   By  |  0 Comentarios

¿Por qué las ventas en el sector energético pueden ser exageradas?
CC-BY-SA-2.0, FlickrPhoto: Tina Nord / Pexels CC0. Why The Energy Stock Selloff May Be Overdone

Unless oil prices collapse, energy stocks now appear to be cheap, Russ Koesterich, CFA, Portfolio Manager for the BGF Global Allocation Fund explains.

While much ink has been spilled this year on the rout in emerging markets, and, more recently, the fall from grace of technology stocks, natural resource shares are actually the worst performers year-to-date. The S&P Energy Sector Index is down more than 5%, underperforming the S&P 500 by approximately 900 basis points (bps, or nine percentage points).

More interestingly, although oil prices have dropped sharply in recent weeks, they have not collapsed, unlike in early 2016. West Texas Intermediate Crude (WTI) is flat year-to-date, but the global benchmark Brent is still up 6%. This suggests that either the recent collapse in energy shares looks overdone or oil prices have further to fall. Consider the following:

1.    Based on price-to-book (P/B) the energy sector is now trading at the largest discount to the S&P 500 since at least 1995 (see Chart 1). Energy stocks are currently trading at roughly a 50% discount to the broader market.

Ampliar

2. The sector also appears unusually cheap on an absolute basis. At less than 1.7x earnings, the current valuation is the cheapest since early 2016 and is in the bottom 5% of all observations going back to 1995.

3. As you would expect, the valuation of the energy sector tends to move (roughly) in tandem with oil prices. When oil prices are lower, the sector’s relative value versus the market also tends to be lower. Since 1995, this relationship has explained approximately 20% of the relative multiple of the sector. Based on oil prices at $60/barrel, history would suggest that the sector should be trading at a 15% discount to the market, not a 50% one.

Valuations hard to justify

As I’ve discussed in many previous blogs, value is a poor market timing tool. Neither cheap relative or even absolute valuations guarantee a bottom. The comparisons against both the broader market and oil prices could simply mean that the S&P 500 and/or oil prices might be too expensive, rather than energy shares too cheap. That said, both the market and oil would have to fall a significant amount to justify today’s sector valuation. As a simple example, if the historical relationship between oil prices and relative valuation were too hold, oil prices could fall to $40/barrel, roughly where they bottomed in 2016, and the energy sector would still appear underpriced.

Finally, there may be another reason to consider raising the allocation to energy shares. Historically, energy stocks have been more resilient than the broader market during periods of rising interest rates and/or inflation. If part of what has dislocated the market this year is the prospect for higher rates and an overheating U.S. economy, energy stocks seem a logical hedge. All of which suggests that for investors sifting through the rubble searching for bargains: Consider U.S. energy companies.

Build on Insight is written by Russ Koesterich, CFA, is a Portfolio Manager for the BGF Global Allocation Fund at BlackRock

In Latin America and Iberia, for institutional investors and financial intermediaries only (not for public distribution). This material is for educational purposes only and does not constitute investment advice or an offer or solicitation to sell or a solicitation of an offer to buy any shares of any fund or security and it is your responsibility to inform yourself of, and to observe, all applicable laws and regulations of your relevant jurisdiction. If any funds are mentioned or inferred in this material, such funds may not been registered with the securities regulators of Argentina, Brazil, Chile, Colombia, Mexico, Panama, Peru, Portugal, Spain Uruguay or any other securities regulator in any Latin American or Iberian country and thus, may not be publicly offered in any such countries. The provision of investment management and investment advisory services is a regulated activity in Mexico thus is subject to strict rules. For more information on the Investment Advisory Services offered by BlackRock Mexico please refer to the Investment Services Guide available at www.blackrock.com/mx. The securities regulators of any country within Latin America or Iberia have not confirmed the accuracy of any information contained herein. No information discussed herein can be provided to the general public in Latin America or Iberia. The contents of this material are strictly confidential and must not be passed to any third party.

Investing involves risks, including possible loss of principal.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are as of November 2018 and may change as subsequent conditions vary. The information and opinions contained in this post are derived from proprietary and non-proprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. As such, no warranty of accuracy or reliability is given and no responsibility arising in any other way for errors and omissions (including responsibility to any person by reason of negligence) is accepted by BlackRock, its officers, employees or agents. This post may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections and forecasts. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this post is at the sole discretion of the reader. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.
©2018 BlackRock, Inc. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other marks are the property of their respective owners. MKTG1218L-684166-2107904

 

More than Love, Mass Affluents Rank Money as Most Important When Tying the Knot

  |   By  |  0 Comentarios

A la hora de casarse, los estadounidenses prefieren la seguridad a la loca pasión
Pixabay CC0 Public DomainFoto: Michael Morse / Pexels CC0. More than Love, Mass Affluents Rank Money as Most Important When Tying the Knot

Is financial security the new happily ever after? According to the Fall 2018 Merrill Edge Report it could be so.

57% of Americans say they prefer a partner who provides financial security more than “head over heels” love. The survey conducted with over a thousand mass-affluent respondents shows that this preference is true for men and women, whereas today’s youngest generation, Gen Z, is the only generation to prioritize love over money.

The report also finds that Americans are contributing more annually to their savings and investments, than they spend in a year on their mortgage, children’s education and travel.

However, as Aron Levine, Head of Consumer Banking & Merrill Edge while explains, “While an endless pursuit for financial security may be prompting Americans to save at record rates, it’s clear that saving does not mean planning.” The majority of respondents say they have no monetary goal in mind when it comes to many major life milestones, including having a baby (67 percent), getting married (64 percent), sending children to college (54 percent), and putting a down
payment on a house (50 percent).

Could emerging technologies be the solution to these planning shortfalls?

Respondents are increasingly embracing artificial intelligence (AI) in their financial lives, with the majority already comfortable with AI providing financial guidance, managing day-to-day finances and making investments. And, nearly half of Americans admit social media impacts their finances on a daily basis, including their spending habits, budget, and savings.

Merrill concluded that many Americans are clearly in need of well-defined plans to help pursue their goals with more autonomy and confidence.

Emerging Markets: Have they Ceased to be Attractive for Investors?

  |   By  |  0 Comentarios

Mercados emergentes: ¿han dejado de ser atractivos para los inversores?
Pixabay CC0 Public DomainAlexas_Foto. Emerging Markets: Have they Ceased to be Attractive for Investors?

Following the volatility of the foreign exchange market in Turkey and Argentina, the uncertainty about future elections in Brazil, and trade tensions in China, which were motivated by the escalation of US protectionist measures, many investors have decided to limit their exposure to emerging markets. Is it time to exit emerging markets?

According to management companies, keeping emerging market assets in the portfolios remains a good option in order to diversify risks and to capture some more profitability with some types of assets, but they also emphasize that it must be done with caution after thoroughly analyzing both the countries and the assets.

For example, Luca Paoilini, Chief Strategist at Pictet AM, admits that they continue to overweight emerging markets. “In this state of affairs we maintain a neutral position in stocks and bonds. The world economy remains resilient, but caution is justified and it is too early to overweight. However, we continue to overweight emerging stocks, as the risks are compensated with attractive valuations and solid fundamental,” he says.

At Julius Baer they don’t rule out that in the short term there may be more sales in local debt from emerging markets, driven especially by the decisions that the Fed may take this week on interest rates. They are optimistic however, “Looking beyond the next Fed meeting, we note that fundamentals continue to support both local and strong currency emerging market debt on an equal basis. Valuations have returned from high risk levels to quite normal. Most importantly, global growth remains well supported by US consumer activity and housing resilience in China. Therefore, global growth is unlikely to decline to levels historically linked to emerging market bond crises,” explains Markus Allenspach, Head of Fixed Income Analysis at Julius Baer, and Eirini Tsekeridou, Fixed Income Analyst at Julius. Baer.

According to Legg Mason, despite asset management companies’ valuations, investors are beginning to show their fear of exposing themselves to the emerging universe. “Real yield spreads between emerging and developed markets are at 10-year highs, reflecting the backdrop of fear that continues to spread across the developing world, when one country after another is sold and then repurchased with yields high enough to tempt value and produce hungry investors,” say Legg Mason’s fixed income experts.

ESG: Will It Become A Competitive Advantage?

  |   By  |  0 Comentarios

ESG: ¿Se convertirá en una ventaja competitiva?
CC-BY-SA-2.0, FlickrCourtesy photo. ESG: Will It Become A Competitive Advantage?

A few months ago, a great manager and friend, a faithful follower of the philosophy of value investing, told me that he had introduced ESG criteria into his analysis, and that he considered them a source of competitive advantage for certain companies. He even gave an example. It is the typical comment that you interpret as a justification to support a new trend, but as it came from this person, it made me think. Not only for listed companies where to invest, but for the very business of asset management.

There is no self-respecting conference on investments that does not discuss ESG, no institutional investor that does not show interest in adopting these criteria in new investments and no slide in strategic presentations of companies that does not mention it. They have started to create certificates in “ESG investing” and, of course, the regulator is surely not far behind wanting to define and assign universal ratings…

Obviously, it would be an unsustainable competitive advantage as it does not create a lasting entry barrier, but the speed of implementation may condition the feasibility of the business in the short term.

From the asset management perspective, it should go from being a specific type of asset to be part of the corporate investment philosophy. It will be a new risk factor to control. However, and still being an unstoppable trend, in the short term it faces certain difficulties:

  • It is currently in direct conflict with passive management, where there is no type of ESG filter in most indexes, and therefore in the funds that replicate them.
  • Most capital allocation decisions are made within the companies themselves, which makes it especially difficult to analyse the decisions and the impact on different factors such as supply chains or trade policies.

It definitely means a great risk for asset managers, not being able to access a growing client base with clients who are looking for it, or ultimately, lose them (a great French institutional manager recently mentioned in a conference that 50% of its new business is coming with ESG criteria). And it is also a great risk for listed companies to see reduced access to capital markets, which may (it has not happened yet) increase their cost of capital. In certain cases, if a case of corruption by a senior executive of a company comes out, it could trigger a wave of indiscriminate sales from these funds. And if corporate governance does not work well, it may compromise its cost of financing in a much more aggressive way than we are seeing recently. And the client will eventually demand a report where their manager’s performance is analysed and the impact achieved in certain cases.

Column by Luis Buceta, CFA, CIO Banco Alcalá. Head of Equities at Crèdit Andorrà Financial Group. Crèdit Andorrà Financial Group Research.

The World’s Tallest Penthouse Will Set You (Or Your Client) Back by 95 Million Dollars

  |   By  |  0 Comentarios

La mejor vista de Nueva York cuesta 95 millones de dólares
CC-BY-SA-2.0, FlickrPhoto: Extell Development Company. The World's Tallest Penthouse Will Set You (Or Your Client) Back by 95 Million Dollars

A beacon of glass and steel rising 1,550 feet on famed Billionaire’s Row in New York City, Central Park Tower is set to become one of the most prestigious addresses in the world. Offering endless views, exquisite architecture, gracious layouts and an unprecedented level of service, Central Park Tower will be the definitive New York skyscraper. Real estate development firm Extell Development Company will exclusively handle the sales and marketing for Central Park Tower which will have 20 condos worth over 60 million dollars, and a 95 million dollar penthouse.

“Over a decade of planning and collaboration with the world’s most talented architects, engineers and designers has resulted in Manhattan’s newest iconic structure,” said Gary Barnett, Founder and President of Extell Development Company. “Central Park Tower introduces a level of design, quality and service that hasn’t been seen before. This building will stand out in New York City history as the singular residential offering that redefined luxury living.”

Central Park Tower was designed by Adrian Smith + Gordon Gill Architecture (AS+GG), a firm dedicated to the design of high-performance, energy-efficient, striking architecture on an international scale. AS+GG has collaborated with clients across the globe to design nine of the world’s tallest and highest-performing buildings. Currently, AS+GG is responsible for the design of the next world’s tallest building, Jeddah Tower now under construction in Saudi Arabia, as well Wuhan Greenland Center and Greenland Tower Chengdu, both currently under construction in China.

With their breadth of experience, AS+GG is uniquely suited to deliver an iconic, landmark building like Central Park Tower. The building’s façade distinguishes itself from its surroundings by combining elements of glass, satin-finished stainless steel, and light-catching vertical and horizontal details that accentuate the interplay of texture and light. At a height of 300 feet from the street, the tower cantilevers to the east, creating Central Park views for all north-facing residences.

The definitive aspects of living in Central Park Tower are the extraordinary views and floor plans. The grand living and entertaining spaces are strategically positioned in the corners of the residences to maximize multiple panoramas and citywide views. Structural elements are discreetly located between the residential units, resulting in floor-to-ceiling windows, unencumbered views and gracious layouts.

“One of the greatest responsibilities of architecture is to continue to elevate experiences yet create structures that are elegant and respectful,” said Gordon Gill of Adrian Smith + Gordon Gill Architecture. “Central Park Tower was designed to take advantage of the spirit of the great city of New York and create an address worthy of its location on Billionaires Row and Central Park.”

The interiors of these grand residences are designed by Rottet Studio, whose credits include The Surrey Hotel in Manhattan, The St. Regis in Aspen, The Beverly Hills Hotel Presidential Bungalows and The River Oaks in Houston. Rottet’s interiors are marked by a distinguished level of detail and incorporating unique and custom finishes to create an unparalleled interior environment. Starting on the 32nd floor, the 179 ultra-luxury two-to-eight-bedroom residences range in size from 1,435 square feet to over 17,500 square feet.

Located within the tallest residential tower ever built will be one of the world’s most exclusive private clubs, Central Park Club.  The Club will offer approximately 50,000 square feet of thoroughly curated luxury amenities spread across three floors, each location providing a unique experience complemented by five-star service.Extell is co-developing Central Park Tower with SMI USA (SMI), the US subsidiary of Shanghai Municipal Investment, a leading infrastructural investment company responsible for the esteemed Shanghai Tower, the second tallest building in the world.

For more information or to schedule a private appointment at the sales gallery, please call 212-957-5557 or visit their website.

 

 

 

Abraham E. Vela Dib Will Head the Mexican Pension Funds Regulator

  |   By  |  0 Comentarios

Abraham E. Vela Dib será el próximo titular de la CONSAR
Pixabay CC0 Public DomainAbraham E. Vela Dib, Linkedin. Abraham E. Vela Dib Will Head the Mexican Pension Funds Regulator

Abraham Everardo Vela Dib will be, as of December 1, 2018, the new President of Mexico’s pension funds regulator, the CONSAR.

Vela Dib told Funds Society that leading this endeavour will be “a pleasure and distinction.”

According to Funds Society sources close to the CONSAR, Vela Dib will meet with the team of Carlos Ramírez Fuentes next week to work on the transition process.

Since the beginning of the year, Ramírez has been preparing various materials so that the change of administration is as easy as possible and the new team has all the necessary tools to make the decisions they need.

Amongst the new administration to-do list is to hold the CAR meeting that will give the green light to Afores’ investment in mutual funds.

The PhD in Economics from the University of California, Los Angeles (UCLA), has held various positions at the Bank of Mexico and its Ministry of Finance. He has also been a visiting economist at the International Monetary Fund and the Bank for International Settlements. He recently joined the teaching team of the Colegio de México-where he completed his MA in Economics, after leaving his post at the Central Bank of Hungary, where he spent the last 10 months as an expert in macroeconomic analysis and education.