Foto cedidaRichard Graham, nuevo responsable global de relaciones con consultores de Janus Henderson Inverstors.. Janus Henderson Inverstors nombra a Richard Graham responsable global de relaciones con consultores
Janus Henderson Investors announced in a press release the appointment of Richard Graham as Global Head of Consultant Relations. He will be based in London and report to Nick Adams, Global Head of Institutional.
In this newly-created role, Graham will lead and drive Janus Henderson’s engagement with investment consultants on a global basis, developing and executing a coordinated coverage model. Additionally, he will have direct managerial responsibility for the UK based consultant relations team.
“Richard’s hire marks an important step in the continued growth of our institutional team, where we are dedicated to securing first-rate individuals to drive the development of this business”, Adams said. In his view, Graham’s arrival will allow them to “further build” upon their relationships with investment consultants across the globe, working alongside their local sales and client relationship teams.
Graham brings more than 20 years’ investment management experience, most recently at Schroders where he held various senior roles, including Global Head of Consultant Relationships where he had overall responsibility for the consultant intermediated business across North America, Europe, and Asia Pacific. Prior to this he held positions at HSBC Asset Management and Deutsche Asset Management.
Lastly, Janus Henderson pointed out that this appointment builds on its institutional team’s strength and reinforces the firm’s commitment to growing its institutional business on a global basis.
Foto cedidaJim O’Donnell, Head of Citi Global Wealth.. Citi unifica su negocio de wealth management bajo la dirección de Jim O’Donnell
Citi has announced that it has created a single wealth management organization, Citi Global Wealth, unifying its teams in Global Consumer Banking (GCB) and the Institutional Clients Group (ICG).
In a press release, the firm has revealed that Citi Global Wealth will be an integrated platform serving clients across the wealth continuum, from the affluent segment to ultra-high net worth (UHNW) clients. The new organization will be led by Jim O’Donnell, who joined Citi in July 1999, and will include the Citi Private Bank and Citi Personal Wealth Management.
O’Donnell will report to Anand Selva, CEO of Global Consumer Banking, and Paco Ybarra, CEO of the Institutional Clients Group. Prior to his appointment to this new role, he was Global Head of Investor Sales and Relationship Management, responsible for the distribution of global Markets products to Citi’s Equities, Fixed Income, Currencies and Commodities clients.
“Making wealth management a key differentiator and source of enhanced returns for Citi will be a key element of our strategy going forward, and putting the full force of our firm behind an offering in this way is indicative of the approach we’re taking to transforming our bank”, Citi CEO Michael Corbat and Citi President and incoming CEO Jane Fraser said in an internal memo announcing the new business.
Meanwhile, O’Donnell pointed out that their clients are increasingly global in presence and financial needs, and they are committed to helping them preserve and build wealth for themselves, their families and future generations. “Creating a unified Wealth organization will help us to deliver the full, global power of Citi to clients while ensuring that we preserve the products, capabilities and expertise of the Private Bank and Consumer Wealth businesses”, he added.
Citi Private Bank serves more than 13,000 UHNW clients, including 25% of the world’s billionaires and more than 1,400 family offices across 50 cities in over 100 countries. The firm points out that its business model enables them to focus on fewer, larger and more sophisticated clients who have an average net worth above 100 million dollars.
Furthermore, through its Citigold, Citigold Private Client and Citi Priority offerings, Citi’s Global Consumer Bank provides institutional grade, personalized wealth management services to clients. The unit has approximately 200 billion dollars in investment assets under management globally and serves clients in the U.S., Europe, the Middle East, Asia and Mexico.
Foto cedidaJeff Klingelhofer and Ben Kirby. Jeff Klingelhofer y Ben Kirby
As we enter 2021, Thornburg Investment Management’s Jeff Klingelhofer and Ben Kirby, portfolio managers and co-heads of investments, review the current state of the market, offer an outlook for the next twelve months, and discuss investment ideas to prepare for a year which poses many uncertainties, especially regarding inflation.
What should we expect from emerging markets in 2021?
Klingelhofer and Kirby, who both see emerging markets as an allocation that “can help reduce portfolio volatility, while generating potential upside performance,” say they are bullish on emerging markets for the year ahead. According to the Thornburg co-heads of investments, these markets are undergoing a process of profound transformation, marked by “a structural transition towards a model based on increasing disposable income in emerging markets and guided by domestic consumption,” in which other cyclical factors such as “the global fall in interest rates or the acceleration of GDP growth, particularly in relation to developed markets, are also involved.”
We must add to this the positive impact on global sentiment that both Biden’s victory in the U.S. and the first vaccination campaigns against Covid-19 are having. “In our opinion financial markets have underestimated the degree to which emerging countries have implemented thoughtful policies to stimulate their economies in the face of Covid, as well as the scale on which they are already returning to normality,” Kirby said. He noted that the combination of these elements makes many emerging markets very attractive.
However, Kirby observed that the pandemic is perpetuating a market environment of individual winners and losers. This dynamic requires careful stock picking to separate those businesses that have started 2021 heavily indebted, or whose operational quality has fallen, from companies with durable business models that are well positioned to weather different environments.
Will we witness inflationary pressure in 2021?
Thornburg’s Klingelhofer doesn´t believe so. He sees a lot of slack in the economy and notes that structurally there haven´t been any sustainable improvements. Therefore, while he expects that the return to normality from widescale deployment of the vaccine should boost consumption, driving the CPE up, he does not believe it will translate into a sustained rebound in inflation for some time yet. He cites the U.S. housing market as an example: “We have some asset price inflation, but labor and commodity price inflation do not seem to pose a threat in the short term.” Therefore, he recommends that investors watch consumer spending and inflation as the key leading metrics this year.
Klingelhofer notes that the Fed’s new inflation framework and the concept of average inflation targeting may be difficult to manage. The question is whether the Fed will be able to comply with this new framework and what will happen if inflation does indeed return, as the new target “suggests that there could be more volatility in rates and inflation going forward.” In conclusion, Klingelhofer doubts that the Fed will be able to meet an average inflation rate above 2% in the short term.
The portfolio managers propose investors should address the eventual inflationary environment through investment in TIPS (U.S. Treasury Inflation-Protected Securities). Alternatively, they recommend short duration equities that pay dividends or investing in equities with pricing power, gold, bitcoin and hard assets.
In order to provide further useful information for investors, Thornburg presents the following table with all its macro forecasts, focusing on the development of the U.S. economy in 2021.
Which is the biggest macro risk over the next twelve months?
Now that Brexit is behind us, there are still several concerns on Klingelhofer and Kirby’s list: the Covid-19 hangover and ongoing challenges from China, but also whether Biden’s agenda will be negative for long-term growth.
Added to this is the situation of a global savings glut, accrued during the months of confinement, because it could trigger a stock market bubble. “When it bursts, we could have collateral damage,” Kirby warns.
What role does fixed income play in the context of a diversified portfolio? Can fixed income continue to generate returns above inflation?
Both managers are very clear about this asset class: “Investment teams need to provide protection, not chase yields.” They refer to the fact that, with their investments, they can generate returns, but the fundamental mandate is not to lose money. “Fixed income has not been a great source of return for a long time. You have to think of it in a portfolio context first as protection and secondly as a source of income,” they conclude.
Therefore, the view of the experts is that, as with equities, we could be moving towards a more favorable market environment for bond selection, with tactical allocations that could add value to the asset allocation.
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.
Foto cedidaStephen Dover, responsable del nuevo Instituto de Inversión de Franklin Templeton. . Franklin Templeton crea un centro de investigaciones y conocimiento sobre inversión liderado por Stephen Dover
Franklin Templeton has announced in a statement the launch of its new Investment Institute, “an innovative hub for research and knowledge sharing that seeks to unlock the firm’s competitive advantage as a source of global market insights”.
The institute will be led by Stephen Dover, who has also been named Chief Market Strategist. In his new roles, he will continue to provide market insights for the firm and will head the institute’s operations, facilitating the sharing of research through multiple channels, including bespoke data analysis, proprietary content and academic partnerships. Meanwhile, Terrence Murphy, CEO of ClearBridge Investments, will take on Dover’s current role as Head of Equities for Franklin Templeton.
“With these appointments and the launch of the Investment Institute, we are doubling down on what sets our firm apart: unmatched insight and research from experts on the ground in over 70 offices around the globe,” said Jenny Johnson, President and CEO of Franklin Templeton.
“In this time of significant uncertainty, we are uniquely positioned to help clients find signal amid the noise. Whatever the issue, whatever the region, we will marshal diverse perspectives and proprietary analysis to best serve our clients. I am thrilled to have Stephen Dover leading this new effort”, she added.
Johnson pointed out that Murphy has done “a phenomenal job” at ClearBridge and believes that, more broadly, this appointment demonstrates their commitment to propelling the business forward “by harnessing the great talent” across their organization.
Dover and Murphy will begin their new roles on February 1 and both will report to Johnson.
“A hub for knowledge-sharing”
The asset manager pointed out that its new institute will serve as a center of excellence to harness the firm’s global investment expertise and extensive in-house research capabilities. “The Franklin Templeton Investment Institute brings together our deep research capabilities and global insights to create a hub for knowledge-sharing across the firm’s multiple autonomous specialist investment managers,” said Dover.
He also highlighted that the ultimate mission of the institute is to provide research and data-driven insights for clients to help them navigate the financial markets, “armed with the power of our diverse investment expertise”.
Foto cedidaEuan Munro, CEO de Newton, parte de BNY Mellon IM. . Euan Munro, nombrado nuevo consejero delegado de Newton
Newton Investment Management (Newton), part of BNY Mellon Investment Management, announced in a press release the appointment of Euan Munro as its chief executive officer (CEO), subject to Financial Conduct Authority (“FCA”) approval in the UK.
Munro will join Newton on June 23 and will report to Hanneke Smits, CEO of BNY Mellon IM. With an investment career that spans three decades, most recently, he was CEO of Aviva Investors and a member of the global executive committee for seven years. Under his leadership, Aviva Investors was transformed into a leading UK asset manager with total assets under management growing significantly. Prior to this, Munro was head of global multi-asset and fixed interest investing at Standard Life Investments.
Commenting on the appointment, Smits claimed to be “delighted” that Munro is joining the firm, as he is “an exceptional leader” with a proven track record in the investment industry. “His investment credentials and extensive experience leading one of the UK’s larger asset managers with a presence in the institutional, intermediary and retail markets, are highly relevant to Newton and we look forward to warmly welcoming him soon”, she added.
Munro recognized that this is an exciting time to be joining Newton, as, in his view, it’s a global asset manager full of talented people, high quality investment solutions and a strong heritage in responsible investment. “I’m looking forward to building upon this strong foundation and continuing to enhance Newton’s investment offering to help clients achieve their goals”, he said.
Andrew Downs will continue as Newton’s interim CEO until Munro joins the company and receives approval from the FCA, and then will resume his role as chief operating officer. Downs assumed the role of interim CEO in August when Smits began her transition to CEO of BNY Mellon Investment Management.
Preqin predicts that the alternatives industry will hold 17.16 trillion dollars by the end of 2025, wich means a Compound Annual Growth Rate (CAGR) of 9.8% and an overall 60% increase.
In its research series Future of Alternatives 2025, the firm points out that private equity and private debt will be the biggest drivers of growth, respectively increasing their assets by 16% and 11% annually. In that sense, private equity will be the fastest-growing asset, coming to account for around half of the total alternatives industry by the end of 2025, increasing up to 9.11 trillion dollars. Meanwhile, private debt will go from 848 billion dollars at the end of 2020 to 1.46 trillion.
Other asset classes are predicted to see slower growth, but all are set to expand in size over the next five years. For example, real estate assets will grow from 1.05 trillion dollars to 1.24, while hedge funds will increase from 3.58 trillion dollars to 4.28 in the same period.
Regionally, Preqin reveals that Asia-Pacific will be a key driver of global growth: with assets under management focused on the region increasing by a CAGR of 25%, they are set to hit almost 5 trillion dollars by the end of 2025. That said, North America will still hold half of total global alternatives and in five years it will have 8.6 trillion dollars in assets.
“Private markets are a core part of the investment landscape, and have seen an incredible rate of growth in size and influence in recent years. The fundamentals are strong: alternatives funds keep offering investors strong, uncorrelated long-term returns, even through the sustained low-interest rate environment and volatile market cycles of recent years”, says David Lowery, Head of Research Insights at Preqin.
Investors in turn have been committing more and more capital to alternatives, and, in his view, this is unlikely to slow in the coming years. “In fact, our model shows that growth will continue, buoyed by an uptick in private equity activity and booming participation in Asia-Pacific. It’s a very exciting time to be a part of the industry”, he concluded.
Foto cedidaCaroline Gibert is Head of ESG at Flexstone Partners. Flexstone Partners Appoints Caroline Gibert as New Head of ESG
Flexstone Partners, an affiliate of Natixis Investment Managers, has appointed Caroline Gibert as Head of ESG to further enhance its sustainability approach. In this newly created role, Gibert will lead Flexstone Partners’ ESG strategy at both a firm and portfolio level, responsible for strategy, policies, data collection, reporting, and processes.
In a press release, the asset manager explained that they follow an inclusive approach with a diverse and value-driven team dedicated to tackling social, environmental and governance issues. “In 2020, we worked on a concrete approach to reinforce our ESG engagement and new thinking on how to use responsible investment to benefit both our clients and company as a whole”, commented Gibert.
Flexstone Partners employees has selected four Sustainable Development Goals in order to guide its role as a “citizen firm”. Above all, its aim is to continue contributing to the protection of the environment (goal 13); promote social equality and opportunity (goals 4 & 5); and enhance diversity and inclusion (goal 8).
The firm has also reshaped its proprietary ESG analytical and reporting tools to implement an active approach throughout its investment process. “Our mission is to deliver attractive risk adjusted long term performance to our clients. The objective of ESG integration is to enrich our mission by making sure all portfolio managers and underlying companies are well-placed to develop a sustainable business model”, said Eric Deram, Managing Partner at Flexstone.
Gibert will be supported by a working group with interdisciplinary responsibilities to ensure a consistent ESG integration across the firm. They have set three concrete objectives have been set: to produce dedicated ESG reports to each client and a Global ESG report; to reach a target for women to represent 40% of the investment teams by 2030; and to become a neutral carbon company by 2050. “We will also work actively and take part in initiatives in the investment industry to drive changes and find new ways of investing capital”, concludes Gibert.
The asset manager highlighted that the appointment is a new step in its “ESG journey”. Giber’s new function will come in addition to her current role of head of investor relations and business development, working hand in hand with Flexstone’s clients to adapt dedicated ESG reports to their own values and guidelines.
Wells Fargo´s Wealth & Investment Management is exiting its international segment business to focus on the resident client, as well as Americans abroad for reasons related to foreign or military service, as confirmed by the firm to Funds Society. This change affects Wells Fargo Advisors (its brokerage), Wells Fargo Private Bank, and Abbot Downing.
“We understand this is a difficult change for our international-focused advisors (located in its Miami, NY, Texas and California offices) and this business will take many months to exit,” said Shea Leordeanu, SVP of Communications at Wells Fargo.
She also mentioned that the firm “will work very directly with all affected advisors about their individual options,” adding that they will continue to focus on providing their clients excellent service during this transition, “and will work directly with advisors so they can assist their clients with a smooth transition of their accounts out of the company in a manner that is consistent with regulatory expectations.”
According to an internal memo cited by other news outlets, advisors have until next September to close accounts that do not comply with residency requirements, and they will not be able to open new accounts after January 19th.
“Wells Fargo is focused on meeting our regulatory requirements, managing risk, and simplifying operations across the company. We are also committed to focusing on our core businesses. For Wells Fargo Advisors, Wells Fargo Private Bank, and Abbot Downing, our core business focus is serving clients who primarily reside in the U.S. We will also continue to service accounts for active duty U.S. military and U.S. government employees who may be stationed abroad,” she stated.
Pixabay CC0 Public Domain. BNP Paribas manifiesta su intención por adquirir el 100% de Exane
FE fundinfo has announced in a statement the acquisition of the consulting and research house CSSP (Center for Social and Sustainable Products AG) to expand its ESG capabilities.
Specifically, the fund data and technology provider has acquired all of CSSP’s share capital, including its yourSRI.com platform which provides ESG screening and labels on thousands of funds. As part of the deal, CSSP founders Oliver Oehri and Christoph Dreher will co-head the ESG product group at FE fundinfo.
“At a time when ESG investing and reporting is rapidly becoming the major consideration for the investment industry, our acquisition of CSSP will enable us to expand upon our driving principle of connecting and supporting the global fund industry, through both a deep understanding of the market and the provision of clear, accurate and transparent data and reporting“, said Philipp Portmann, Head of Business Development & Strategy at FE fundinfo.
In his view, Oehri’s and Dreher’s vision of how important ESG investing will become, alongside their ambition to support investors to make better informed decisions, “clearly matches” their own.
The transaction will bring another important capability to FE fundinfo’s existing range of services, which help fund managers and distributors access accurate data and fulfill their regulatory obligations. The firm highlights that, as ESG due diligence requirements and reporting standards become more formalized in 2021, including the forthcoming introduction of the sustainable finance disclosure regulations (SFDR) across Europe from March 2021, they will continue to work with clients to meet these changes.
Meanwhile, Oehri and Dreher claimed to be “delighted” to be joining the FE fundinfo team at a pivotal moment in the evolution of ESG investing. “The reporting on extra-financial criteria has gained in importance in recent years and investors are rightfully asking for multi-dimensional risk assessments at portfolio level to effectively measure the corresponding exposure. Our services and bespoke solutions, that have been trusted by hundreds of clients, provide a holistic overview of the ESG profile”, they added.
Foto cedidaGuy Wagner, director general de BLI.. Banque de Luxembourg unifica sus unidades de gestión de activos
BLI – Banque de Luxembourg Investments, the asset manager of Banque de Luxembourg, and Conventum Asset Management, fund management company for third-party fund initiators and also subsidiary of the bank, have announced in a press release that they are combining their activities with effect from 1 January 2021.
This operation means that BLI will manage the 60 employees that constitute the workforce of the two entities, under the leadership of Guy Wagner, its Managing Director. Services to third-party fund initiators will be offered by BLI under the Conventum TPS (Third Party Solutions) brand.
“The merger of the two companies will enable us to enhance our expertise as a portfolio management company and provider of services for third-party funds, and share the necessary investments to strengthen our operational, technical and control systems,” explained Wagner.
The asset manager pointed out that this merger will strengthen its positioning by “capitalizing on the combined skills, expertise and systems of Conventum Asset Management and BLI”. It also revealed that their ambition is to continue to develop a full range of offers within two key business lines: portfolio management services and investment fund management company services for third-party initiators.
Michèle Biel, Director of Conventum Asset Management, highlighted that by pooling the resources of both companies, the new entity will enable them to combine their respective expertise in the best interests of or current and future clients. “The teams’ formidable experience will be the foundation for the development of our business in a constantly-evolving market and regulatory environment”, she added.
