BlackRock and SpiderRock Advisors have entered into a strategic venture to expand access for wealth firms and financial advisors to professionally managed, options-based separately managed account (SMA) strategies. As part of the agreement, BlackRock will make a minority investment in SpiderRock Advisors.
This new venture builds on BlackRock’s position as a market leader in personalized SMAs, with its franchise managing over 190 billion dollars in SMAs as of March 31. This includes the acquisition of Aperio, a provider of personalized index solutions, which took place at the end of 2020.
SpiderRock Advisors will offer wealth management firms and financial advisors more tools to deliver tax-efficient, personalized portfolios and risk management solutions. This leading provider of customized options strategies in the U.S. wealth market manages approximately 2.5 billion dollars in client assets as of March 31, 2021.
The firm’s strategies are available through all of the major RIA custodians and are focused on risk management and yield enhancement for diversified portfolios as well as concentrated stock positions. BlackRock’s market leaders and consultants in U.S. Wealth Advisory will serve as the primary distribution and marketing team in introducing SpiderRock Advisors’ advisory services and strategies to wealth firms and financial advisors.
BlackRock is already an industry leader in SMAs for U.S. wealth management-focused intermediaries. The firm’s SMA franchise specializes in providing customized actively managed fixed income, equity, and multi-asset strategies. In its view, the venture with SpiderRock Advisors will expand the breadth of personalization capabilities available to wealth managers through this firm.
!We are excited to partner with BlackRock to introduce SpiderRock Advisors and our options management capabilities to a wider audience of firms and their clients,” said Eric Metz, President and Chief Investment Officer of SpiderRock Advisors. He believes that innovative advisors understand the value of managing risk “as we navigate a challenging capital markets landscape”.
“Between potential tax reform, historically low interest rates, and volatile equity markets, options-based strategies and solutions can often solve client objectives more efficiently than conventional allocations and techniques. With BlackRock’s breadth of industry relationships, SpiderRock Advisors will be able to partner with more advisors to deliver tailored portfolios and help investors achieve their investment goals“, he concluded.
The independent investment advisory firm Insigneo has announced the incorporation of a new team of four financial advisors who formed Green Grove Wealth Management. This group of women is comprised of Isadora “Sisi” Del Llano, Yzana Oestreicher, Maria Elena Garcia, and Nilia Gasson, who represent for the company “decades of dynamic international financial experience serving high net worth clients”.
They all serve as Managing Director at Green Grove WM and together they manage over 800 million dollars in assets catering to clients in the United States, the Caribbean, South America, Central America, and Europe.
“We are thrilled that Sisi, Yzana, Maria Elena and Nilia have joined our family of independent international financial advisors in Miami. They each come to us with decades of experience, and we look forward to supporting them and helping them grow their business,” said Javier Rivero, President and COO of Insigneo.
Del Llano studied at the University of Puerto Rico and joins Insigneo after 21 years at Wells Fargo Advisors and its predecessor firms, Wachovia Securities and First Union Brokerage Services. Before Wells Fargo, she worked at Paine Webber and Dean Witter. Her clientele is high net worth professionals and business owners throughout the U.S., Latin America, the Caribbean, and Europe.
Oestreicher is joining the firm with 26 years of experience in the financial services industry, 24 of them in Wells Fargo Advisors and its predecessor firms. Prior to that she worked at the Prudential Securities & Dean Witter. She services high net worth clients from Latin America and the Caribbean such as Suriname, Venezuela, Trinidad, Aruba, and several others from the Caribbean. She received her bachelor’s degree in International Finance and Marketing from the University of Miami and her master’s degree in International Business from NOVA University.
García is a 45-year veteran in the financial industry. She started her career at Chase Banking International, and then spent the remaining 30 years at Wells Fargo Advisors and its predecessor firms. Maria Elena focuses on servicing high net worth clients from US, Caribbean, Central America, and Europe.
Gasson has been living in Miami since 1965 and has served 40 years in the industry as a Financial Advisor, 30 of them at Wells Fargo Advisors and its predecessor firms. Previously, she worked at Southeast Bank Brokerage Services. She services clients across three different continents including the United States, Central and South America, the Caribbean, and Europe.
The Green Grove WM team claimed to be “honored” to be partnering with an “exceptional” firm like Insigneo. “This partnership allows for mutual growth and independence that will benefit all of us, but most importantly our clients. Miami is a premier location for the work we do as it grants us strategic access not only to domestic clients, but also markets in Latin America, the Caribbean and Europe. We look forward to a long and fruitful relationship”, they said.
At Insigneo they will leverage the firm’s technology platform, multi-custodian capabilities, robust product offering and open architecture to serve their global client base. The firm has joined the battle to recruit advisors from Wells Fargo’s US Offshore business after the wirehouse announced in January that it was exiting its international segment.
Pixabay CC0 Public DomainWilliam de Gale, gestor del BlueBox Global Technology Fund. William de Gale, gestor del BlueBox Global Technology Fund
ACCI, asset management firm specialized in systematic strategies through its ACCI Dynamic fund family, has signed an exclusive agreement with Swiss fund manager BlueBox Asset Management to distribute its BlueBox Global Technology Fund in Latin America and Iberia (Spain, Portugal and Andorra).
In a press release, the firm has revealed that this 5-star Morningstar rated fund is managed by William de Gale, who was Portfolio Manager for 9 years for the BlackRock World Technology Fund. It was launched in March 2018 and has been backed by a broad range of institutional investors, which has allowed it to recently surpass 500 million dollars in assets under management.
In ACCI’s view, this is possible thanks to its differentiated approach among other strategies in the sector, largely avoiding mega-caps and focusing on enabler-type companies, with strong balance sheets, profitability and strong cash generation. It is a UCITS fund, available on the main trading platforms such as Allfunds, Inversis and Pershing, among others.
“This partnership with BlueBox will strengthen our product offering aimed at institutional clientele in Latam South and Iberia, adding a solid and consistent strategy such as BlueBox’s, with average annual returns of over 31% and 141% since its launch just over 3 years ago”, Antonio de la Oliva, Head of Distribution at ACCI, commented.
Gely Solis, Co-Founder of BlueBox Asset Management, said that this agreement with ACCI, “who have proven their impressive distribution capabilities in key regions” for us, will serve to broaden their investor base, consolidate their growth and “give access to a unique strategy such as BlueBox to a broad typology of investors in the region”.
ACCI continues its commitment to offer a wide range of high value-added strategies to institutional investors, complementing its own strategies with distribution agreements with outstanding alpha-generating asset management firms.
The transition from a fossil-fuelled economy to one powered by renewables carries the promise of being as transformational as the agricultural and industrial revolutions. But as things stand, hopes for containing climate change look ambitious.
New net zero pledges from the US, China and Europe are inadequate. They still leave the world far short of the Paris Agreement goal of limiting global temperature rises to below 2 degrees Celsius from pre-industrial levels. This is why carbon pricing is essential.
According to members of the Pictet-Clean Energy fund’s Advisory Board, a fully functioning carbon pricing mechanism could be the difference between halting climate change and allowing it to spiral out of control. Market forces, they argue, can be a powerful ally, helping change the behaviour of businesses and consumers.
The problem is finding a way to harness them effectively. Currently averaging globally at just USD 2 per tonne of CO2, the carbon market is clearly not doing the job it was set up to do. The International Energy Agency says carbon prices need to rise to as much as USD 140 by 2040 to meet Paris goals.
Breaking the tragedy
Getting there will not be straightforward. As former Bank of England Governor Mark Carney warned, the battle against climate change is hampered by the “tragedy of horizon”. In other words, the current generation has no direct incentive to fix the problem when catastrophic impacts of climate change will not be felt for decades. By making carbon emissions more costly today, however, there is the possibility of avoiding that tragedy.
The World Bank’s modelling has shown that carbon pricing has the potential to halve the cost of implementing Paris targets, saving some USD 250 billion by 2030. One problem is that carbon pricing schemes don’t cover nearly enough of the world’s emissions.
Globally, the carbon pricing market accounts for about 12 gigatonnes of CO2 equivalent – which translates into just under a quarter of all annual global greenhouse gas emissions (1).
The US, the world’s biggest polluter, does not even participate in carbon trading at the federal level while the Paris climate agreement did not include a provision for pricing carbon (2). Industry lobby groups in coal, oil and gas sectors had been fierce opponents too. And then there is a wide divergence in prices from country to country.
European countries set the example. Sweden levies the highest carbon tax in the world at SEK1,190 (EUR 117)/tonne CO2, covering about 40 per cent of its greenhouse gas emissions. In Europe, the world’s biggest and oldest market, carbon prices rose more than five-fold since 2018 to a record high in May (see Fig. 1).
But elsewhere, carbon remains under-priced. According to the IEA, the average carbon prices would need to rise almost 50-fold to USD 75-100 /tonne by 2030 and then USD 125-140 by 2040 to meet Paris Agreement goals.
University of California San Diego researchers believe even that will fall short. Their study puts the social cost of carbon – which takes into account empirical climate-driven economic damage estimations and socio-economic projections – at a staggering USD 417/tonne (3).
The lack of a harmonised market and a unified global carbon price are perhaps the most significant problems. Businesses, especially in energy-intensive industries, may relocate out of countries with high carbon costs into those with laxer emission constraints – in a phenomenon known as “carbon leakage”.
Our advisory board members say renewed international efforts to fight global warming could encourage more countries and regions to start adopting carbon pricing schemes. That should push prices higher in the long term and prevent carbon leakage.
The signs are encouraging. In China, which launched its national carbon market in February, market participants expect the price to average RMB 66/tonne (USD 10) in 2025 before rising to RMB 77 by the end of the decade (4). It has the potential to be the world’s biggest carbon market.
Elsewhere, the American Petroleum Institute, the powerful fossil fuel lobby, is now endorsing the introduction of carbon prices in a major policy reversal that underscored seriousness in tackling climate change.
What’s more, Brussels plans to present proposals to revise and possibly expand its emission trading system in line with the European Green Deal and its new target to reduce greenhouse gas emissions by at least 55 per cent by 2030.
One way to improve the emission pricing system is to expand the use of carbon credits. Governments can give out credits to businesses that lower their carbon footprint with carbon capture and storage (CCS) technology, reforestation activities or energy efficiency solutions.
This way, companies can gain flexibility in complying with carbon pricing regulations.
The discussion on carbon pricing and credits is likely to feature prominently during the landmark UN climate talks in Glasgow later this year as potential cornerstone to supporting climate goals.
Accelerating innovation
An overlooked benefit of effective carbon pricing is that it can also accelerate the pace of innovation in clean energy technologies and promote a faster and broader adoption of products and services that have yet to become commercially viable.
For example, our Advisory Board members say, certain types of hydrogen power generation that combines carbon storage could become cost competitive if carbon prices are set around EUR 60-70 per tonne of CO2.
Other technologies that could become viable at higher carbon prices include advanced power transmission mechanisms and next-generation batteries.
This would have significant benefits. The IEA estimates such technologies alone have the potential to cut global energy sector CO2 emissions by nearly 35 gigatonnes of CO2 by 2070, or 100 per cent of what’s considered sustainable in the same period.
The transition to a decarbonised economy will be among the most wrenching socio-economic shifts humans have ever experienced. Yet even though the survival of the planet is at stake, resistance to change is proving difficult to overcome. A higher carbon price can smooth the path.
(1) Carbon Pricing Dashboard, World Bank
(2) Article 6 of the Paris Agreement provides options for voluntary cooperation amongst countries in achieving their NDC (nationally-defined contributions) targets to allow for higher climate ambition, promote sustainable development, and safeguard environmental integrity
(3) Ricke, K., Drouet, L., Caldeira, K. et al. Country-level social cost of carbon. Nature Clim Change 8, 895–900 (2018). https://doi.org/10.1038/s41558-018-0282-y
(4) China Carbon Pricing Survey 2020
Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to risks and uncertainties that could cause actual results to differ materially from those presented herein.
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The supply of private equity funds listed on the Mexican stock exchanges (BMV and BIVA), as well as AFOREs’ investments in them, have almost doubled in just over three years. Between December 2017 and March 2021, the number of vehicles increased from 88 to 172 vehicles (+ 95%) while the investments of the AFOREs rose from 7.797 million dollars to 15.365 million dollars (+ 97%).
Mexico is perhaps the only country that has private equity funds registered in its stock exchanges, however, this occurred since the institutional investor can only acquire securities that are the subject of public offering, so making it public was the solution found to give institutional investors access to this asset class in 2009.
In December 2017, investments in private equity were basically local, the real estate sector (30% of the capital called) led the list; followed by infrastructure (21%); private debt (17%); private equity (14%) and energy (11%) to name the most relevant.
By allowing global investment as of January 2018, what has been observed is a recomposition that has allowed the AFOREs to diversify both by sectors and globally.
In December 2017, 93% of the resources were concentrated in 5 local sectors, while by March 2021, 91% were concentrated in 6 sectors where 5 are local and one global. In another 5 additional sectors there are the remaining 7%.
In 2017, investments in CKDs and CERPIs accounted for 4.9% of assets under management and by May 2021 they reached 6.2%, however, it must be taken into account that in the period the assets under management of the AFOREs increased 55% from 160.251 million dollars in December 2017 to 247.825 million dollars as of May 2021.
If you break down 6.2% of the private equity investments held by the AFORE, it means that in just over three years 5.2% are local investments (from 4.9 to 5.2%) and 1% are global investments.
The incorporation of global investments in private equity is not only causing sector diversification, but also a rebalancing between local and global investments. We already observed this recomposition when the AFOREs were allowed to invest in equities (2005), where in the first instance they were allowed local investments and later global investments through a variety of vehicles such as ETFs, mandates and in recent years mutual funds. Currently 14.1% of the assets under management of the AFOREs are in international equities and 5.8% in national equities, which means that 71% of equities are international and 29% local.
Today the AFOREs’ investments in private equity, 80% are in local investments and 20% are global, so as assets continue to grow, the composition of local and global investments will continue to seek sectoral and global diversification.
Pixabay CC0 Public Domain. Jupiter AM nombra seis nuevos analistas para sus equipos de estrategias de inversión
Jupiter AM has announced in a press release the hiring of six new analysts within its sustainable investing strategies, doubling the size of the existing resources and “adding fresh investment expertise to key portfolios”.
The asset manager has highlighted that its sustainability suite of funds offers clients a range of differentiated investment options with a shared goal of generating attractive returns through long-term sustainable investing. Following a strategy refresh earlier this year, Abbie Llewellyn-Waters was appointed as Head of Sustainable Investing, working with Rhys Petheram, Head of the Environmental Solutions team.
The firm is now strengthening its offering with the appointment of new analysts. Specifically, Maiken Anderberg joins the Global Sustainable Equity team as Equity Analyst. Having previously interned with Jupiter’s Sustainable Investing team in 2018, she is returning to the company in a new permanent role, working closely with Abbie Llewellyn-Waters and analyst Freddie Woolfe with a dedicated focus on the Jupiter Global Sustainable Equities strategy
The Jupiter Global Sustainable Equities strategy was launched in 2018 to offer clients an alternative to mainstream global equities by combining financial returns with positive environmental and social returns – enabling clients to participate in the transition to a more sustainable world.
Joining Jupiter in a newly created role, Noelle Guo has beenappointed Equity Analyst of Environmental Solutions. Supporting fund manager Jon Wallace and reporting into Petheram, she will work across the equity strand of Jupiter’s environmental solutions suite. Guo has eight years of equity research experience, joining from an Investment Analyst role at Pictet Asset Management before which she was at AB Bernstein as a Senior Research Associate.
Laura Conigliaro has been named Analyst of the Environmental Solutions team. Having joined Jupiter in 2019 as a member of Jupiter’s Governance and Sustainability team, she will now work directly with fixed income specialist Petheram with a particular focus on fixed income verification, also providing sustainability research into the desk’s environmental impact themes. Prior to joining Jupiter, Conigliaro has held roles at the Inter-American Development Bank and sustainability management consultancy Critical Resource.
Jupiter’s Environmental Solutions suite of funds boasts a 33-year track record and over 890 million pounds in AUM across the Jupiter Global Ecology Growth and Jupiter Global Ecology Diversified funds, and UK onshore vehicles. The strategy looks to invest in companies intentionally focused on providing solutions to sustainability challenges across key environmental themes.
In an internal move, Jenna Zegleman joins the teams as Investment Director. Having arrived at Jupiter in 2018 as a product specialist, she will provide client-facing support across the full range of portfolios in the Sustainable Investing suite.
In addition to these hires, Anisha Arora and James Kearns have joined Jupiter’s Governance and Sustainability team. An emerging markets economist and strategist with 10 years’ experience across sell side research and buy side asset management, Arora joins from Allianz Global Investors and has experience in applying ESG considerations to macroeconomic analysis, as well as to the sovereign debt investment process. Kearns joins Jupiter from BNP Paribas, where he worked initially in CSR within their Global Markets division before moving to become a Sustainable Finance Analyst.
“As we navigate through this global pandemic, the importance of confronting the climate crisis, bridging social inequality and ensuring a sustainable future is more important than ever. By investing in companies leading a sustainable transition across our Global Sustainable Equities and Environmental Solutions strategies we are able to offer our clients a range of attractive and truly innovative solutions that deliver positive outcomes for planet, people and profit”, Abbie Llewellyn-Waters, Head of Sustainable Investing, commented.
Meanwhile, Stephen Pearson, CIO, added: “We are pleased to make these appointments to the team as we continue to grow Jupiter’s sustainability suite, helping us continue to innovate and build on our long heritage of sustainable investing. We are delighted to be making these appointments at this important point in time, cementing support for these key strategies with the addition of specialist insight and investment expertise.”
Pixabay CC0 Public DomainEmergentes . Asia emergente
Two questions about investing in emerging markets (EM) are increasingly common: Does it make sense to time allocations to emerging market equities? And given the MSCI’s EM Index’s historic, near-doubling from its March 2020 low, is it time to get out?
Trying to time shifts is difficult in any market, but even more so in emerging markets. Market timing questions aside, there are several compelling reasons to maintain a consistent and material allocation to emerging market stocks, if not increase it.
Why Emerging Markets Should Comprise a Consistent Allocation Within a Portfolio
Developing economies represent about 85% of the global population and generate nearly half of global gross domestic product (GDP), thanks in large part to a rapidly expanding middle class. Not only are these economies contributing a significant portion of the world’s economic output, but their collective GDP has also proven more resilient through the pandemic and is expected to rebound more this year and next. According to the International Monetary Fund’s World Economic Outlook from January, advanced economies are estimated to have declined 4.9% in 2020 and are forecast to expand 4.3% this year and 3.1% in 2022. By contrast, emerging and developing economies collectively declined just 2.4% in 2020 and are seen growing 6.3% in 2021 and 5% next year.
The faster economic growth should be supportive for emerging market earnings, if past experience is any guide. Despite the rapidly increasing importance of emerging markets in a global context, the companies in emerging markets represent less than one quarter of global stock market capitalization. This will very likely grow over time.
While the long-term investment opportunity in EM is compelling, there are portfolio benefits as well. Since its inception in 1988 through December 31, 2020, the MSCI EM Index has delivered a 10.2% annualized total return, which is similar to the S&P 500 Index’s 11% annualized gain and considerably more attractive than the MSCI EAFE Index’s 5.4% rise. Importantly, emerging markets tend to behave differently than their developed-market counterparts as they both under- and outperform each other at different points in time, providing meaningful asset diversification over market cycles.
Indeed, because EM economies and capital markets are less mature, emerging markets still experience pronounced business cycles. This attribute alone could provide a material performance advantage over time, particularly for portfolios that are actively balanced across the growth/value spectrum throughout the cycle. This balance can enhance diversification while positioning the portfolio to take advantage of sector and style rotations.
Although the S&P 500 Index extended its outperformance in the latter half of the last decade, the MSCI EM Index’s 18.7% return in 2020 slightly beat the S&P 500 Index’s 18.4% gain. And over the first two months of 2021, the developing country benchmark more than doubled the return of the S&P 500, perhaps signaling a turn in the cycle. If so, that would reinforce the long-term performance of emerging market equities as well as the portfolio diversification benefit of consistent exposure to emerging markets.
Putting the Last Few Years into Context
Emerging market equities frequently oscillate between strongly positive and sharply negative performance. Putting the moves of the last several years into context illustrates this dynamic nature of EM investing and supports our view that it’s always the right time to be invested in EM.
Following the 2008 Global Financial Crisis, emerging markets rebounded sharply on the back of strong domestic consumption trends and bold stimulus programs, particularly in China. Expectations and valuations grew quickly, but were subsequently disappointed as the debt-fueled stimulus programs began to wear off. Most emerging markets were left with a debt overhang. By 2015, the U.S. Federal Reserve had tapered its asset purchases and then steadily lifted its key rate from late 2016 through mid-2019, spurring a strengthening U.S. dollar. The dollar headwind was too much for most emerging market earnings translated into greenbacks, despite consistent underlying EM growth trends. And while relative valuations favored developing country stocks in recent years, the U.S.–China trade dispute and questions about the future growth rate of China also weighed on broader developing country equities.
Entering 2020, economic conditions looked strong for many emerging markets but the spread of COVID-19 and to a lesser extent an oil price war between Russia and Saudi Arabia ultimately resulted in the first quarter being the worst quarter for global equities since the Great Financial Crisis. A flight to safety ensued as a general sense of fear overcame the markets, resulting in elevated capital flows out of EM and into the perceived safety of the U.S. dollar. The impact was especially painful for EM economies with elevated macro sensitivity to oil as well as those seen as too dependent on foreign investment.
Ultimately, though, with vaccine developments stoking the reopen trade and the U.S. election easing geopolitical tensions, emerging market equities finished an unprecedented 2020 on a high note. The MSCI EM Index returned just under 20% during the fourth quarter, its highest quarterly return in more than a decade.
The years following the Great Financial Crisis have shown once again that emerging markets are volatile. However, investors who maintained consistent exposure to EM during this period would have realized an attractive return on their EM allocation, with annualized performance of 10% for the MSCI EM Index from December 31, 2008, through December 31, 2020. Note that during this period the MSCI EM Index outperformed the S&P 500 50% of the time on a quarter-by-quarter basis, illustrating again that EM markets behave differently than their developed-country counterparts and reinforcing the argument that maintaining a consistent allocation to EM can enhance asset allocation diversification.
What Lies Ahead?
Many of the structural drivers that were beginning to emerge prior to COVID will come back into focus, helping to position emerging markets to potentially outperform in 2021. Among them, capital markets that continue to broaden and deepen, improving consumption trends fueled by rising incomes and an expanding middle class and new types of products and services that are continuing to penetrate many EM economies. Combined with massive global liquidity injections, highly accommodative interest rates, a weakening U.S. dollar, accelerating global growth and the deployment of COVID vaccines, emerging market stocks should have the wind at their back in 2021. Indeed, a recent global fund managers’ survey from Merrill Lynch showed that a record 62% of global money managers were overweight EM and two-thirds predicted that EM will be the top-performing asset this year. Yes, emerging markets are volatile. But it’s our strong view that because of the compelling long-term returns and portfolio diversification benefits, emerging market equities should remain a consistent and material portfolio allocation.
Charles Wilson, PhD is a portfolio manager at Thornburg Investment Management.
Founded in 1982, Thornburg Investment Management is a privately-owned global investment firm that offers a range of multi-strategy solutions for institutions and financial advisors around the world. A recognized leader in fixed income, equity, and alternatives investing, the firm oversees US$45 billion ($43.3 billion in assets under management and $1.8 billion in assets under advisement) as of 31 December 2020 across mutual funds, institutional accounts, separate accounts for high-net-worth investors, and UCITS funds for non-U.S. investors. Thornburg is headquartered in Santa Fe, New Mexico, USA, with additional offices in London, Hong Kong and Shanghai.
The views expressed are subject to change and do not necessarily reflect the views of Thornburg Investment Management, Inc. This information should not be relied upon as a recommendation or investment advice and is not intended to predict the performance of any investment or market.
This is not a solicitation or offer for any product or service. Nor is it a complete analysis of every material fact concerning any market, industry, or investment. Data has been obtained from sources considered reliable, but Thornburg makes no representations as to the completeness or accuracy of such information and has no obligation to provide updates or changes. Thornburg does not accept any responsibility and cannot be held liable for any person’s use of or reliance on the information and opinions contained herein.
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M&G has announced that Fabiana Fedeli will lead its 57 billion-pound (78.4 billion-dollar) Equities division from the newly created role of Chief Investment Officer. She will report to M&G’s CIO, Jack Daniels.
In a press release, the asset manager has highlighted that the appointment follows its commitment a year ago to revitalize its active equity investment capabilities, “which has focused on delivering more consistent investment performance and developing strategies to meet evolving customer and client needs”.
M&G has a rich heritage in active equities investment; from launching the UK’s first mutual fund in 1931 and continuing to develop innovative strategies since then, including the recent launch of a range of impact investment strategies to tackle global challenges such as climate change and healthcare.
With over 20 years of experience in the investment management industry, Fedeli joins from Robeco Asset Management where she was Global Head of Fundamental Equities; leading an international investment team managing a range of active equity strategies. She had direct portfolio management responsibility for three of those strategies and has extensive experience of integrating sustainability and impact into investment processes. Prior to Robeco, Fedeli held a number of roles both in portfolio management and equity analysis in London, New York and Tokyo.
“Equities will always have an essential role to play in an investor’s portfolio and we believe that active equity management will deliver greater value for clients over the long-term. Fabiana’s appointment demonstrates our commitment to this vital asset class, bringing a wealth of investment experience in both equities and sustainability. Fabiana will be working with M&G’s talented team of investors, to promote greater collaboration, idea-generation and innovation across the Equities division”, Daniels, CIO of M&G, said.
Meanwhile, Fedeli pointed out that M&G has “a long heritage in active equity management, a strong culture and clear investment values”. In her view, as the industry continues to evolve, it remains imperative for asset managers to anticipate and respond to their clients’ needs. “I look forward to working with the talented and experienced investment team to continue to develop M&G’s equities proposition”, she concluded.
Foto cedidaZeno Staub, CEO de Vontobel. Vontobel AM completa la compra de TwentyFour AM tras adquirir el 40% restante de la boutique
Vontobel Asset Management has completed the purchase of TwentyFour Asset Management after securing the remaining 40% of its capital. After acquiring a 60% stake in the fixed income boutique in 2015, Vontobel had intended to buy the remaining 40% in two tranches in 2021 and 2023. However, it has beaten its own deadlines and has already accomplished the operation.
In a press release, Vontobel AM has explained that it has taken “targeted steps” in recent years to develop a diversified range of products for its clients, and one of the main pillars was the acquisition of a majority stake in TwentyFour Asset Management LLP (TwentyFour), now a 24.2 billion swiss francs specialist fixed income boutique. Both firms have now agreed that Vontobel will have acquired the remaining 40% in one tranche as of 30 June 2021.
TwentyFour and Vontobel are thus underscoring the very positive development of the partnership. “By bringing the transaction forward it gives clients and investors clarity and ensures focus remains on delivering outstanding performance and client service for the long term”, the statement said.
After the transaction, TwentyFour will remain operationally independent and will continue to service its clients from offices in London and New York, as well as via Vontobel’s international network. Since the acquisition of the majority stake of 60% in 2015, all TwentyFour Partners have continued to play an active role in the company’s day-to-day operations. Besides, the asset manager has highlighted that the partners and portfolio management teams “remain committed to serving the interests of clients and ensuring the investment boutique’s ongoing success, hence will continue to serve as a driver of growth for Vontobel”.
Both parties have agreed not to disclose the purchase price but have revealed that the acquisition of this stake will be fully financed out of Vontobel’s own funds. Part of the transaction will be paid in the form of Vontobel shares, further underscoring the commitment of TwentyFour’s Partners.
“From the very beginning, we have been impressed by TwentyFour’s expertise and entrepreneurial culture, as well as its continuous growth. The acquisition of the remaining 40% stake is therefore the logical next step in our diversification and growth strategy. I look forward to our ongoing collaboration with our colleagues at TwentyFour, who are all supportive of this acquisition,” stated Zeno Staub, CEO of Vontobel.
Mark Holman, CEO of TwentyFour, claimed that after six years of working very closely together with Vontobel as a majority shareholder, the decision to move to full ownership was not a difficult one. “As a direct consequence of our partnership we have been able to spread our investment expertise to a far greater audience as we have moved from being a domestic player to genuinely global. Importantly though we have preserved the independence and entrepreneurial spirit of being a boutique, which I know is something that both our clients and staff really value and was at the core of our decision making for this transaction”, he added.
TwentyFour was founded in 2008 as a partnership, and has since grown to employ around 75 staff, responsible for providing a broad range of fixed income products to institutional investors. It is known for its disciplined investment philosophy and its proven investment process that generates sustained attractive risk-adjusted returns. The firm’s funds have been rated by Morningstar, which has assigned 99% of them (asset weighted) a four- or five-star rating. Furthermore, the quality of its products has been recognized by a variety of industry awards.
Foto cedidaWilliam Davies, CIO para EMEA y responsable global de renta variable, y próximo CIO global en enero de 2022.. William Davies asumirá el papel de CIO global de Columbia Threadneedle
Columbia Threadneedle Investments has put its Global Chief Investment Officer transition plan into action. The asset manager has announced the retirement of Colin Moore, who currently holds this position, after nearly 20 years at the firm. He will be replaced by William Davies, currently EMEA CIO and Global Head of Equities, in January 2022.
The firm has highlighted the “key role” that Moore has played in shaping its global investment capability, including its “well-established and highly successful investment process based on collaboration across asset classes, research intensity and independent oversight to foster continuous improvement.” Under his leadership, Columbia Threadneedle has generated consistently strong long-term investment performance for individual and institutional clients, and today has 103 four- and five-star Morningstar-rated funds globally.
“I would like to recognise and thank Colin for his numerous contributions, including establishing our global investment capability that has delivered an enviable track record of consistently strong investment performance for our clients. We have built an outstanding and experienced team of more than 450 investment professionals across our global footprint, and as we look forward, William is well positioned to assume the Global CIO role. He is both an exceptional investor and respected people leader with a deep understanding of our firm having joined us in 1993. I look forward to working with William and Colin to ensure a smooth transition”, said Ted Truscott, Chief Executive Officer of the firm.
Meanwhile, Mooreclaimed to be grateful for the opportunity he’s had to establish a broad and deep investment capability for their clients. “We have spent considerable time ensuring a thoughtful succession, and I am extremely pleased that William will assume the Global CIO role next year. It has been a privilege to lead our team of dedicated, experienced investors who will continue to focus on delivering consistent, competitive investment performance for our clients under William’s leadership”, he added.
Lastly, Davies commented that his focus is unchanged: “I will continue to work with my colleagues to consistently deliver the investment performance our clients expect. I am honoured to lead our talented global investment organisation and look forward to continuing our partnership with colleagues across the business to help our individual and institutional clients achieve their investment goals.”
