Foto cedida. Abbie Llewellyn-Waters, Rhys Petheram y Jon Wallace, nuevos cargos en Jupiter AM
Jupiter AM announced a number of senior appointments and changes within its sustainability suite, which also affect the Jupiter Global Ecology management team. In a press release, the asset manager pointed out that these decisions will allow them to continue to offer clients attractive returns through long-term sustainable investing.
In particular, the firm has named Abbie Llewellyn-Waters Head of Sustainable Investing, the fund manager Rhys Petheram has been promoted to Head of Environmental Solutions, and Jon Wallace has taken over the management of the Jupiter Global Ecology Growth Fund. Wallace will be replacing Charlie Thomas, Head of Strategy, Environment and Sustainability, who leaves after 20 years at the company.
“Drawing on Jupiter’s 30-year heritage of sustainable investing, this restructure and the series of appointments reinforce our commitment to this strategically important client proposition which we see as a cornerstone of our future business growth plans. We are pleased to be able to offer our clients a distinct choice of products, enabling them to achieve their sustainable investing goals in partnership with our dedicated and experienced team”, Andrew Formica, CEO, said.
She also claimed to be “delighted” to have Llewellyn-Waters and Petheram in these new roles where they will be “instrumental” in shaping, supporting and influencing the firmwide initiatives that they have been developing over the last year.
Meanwhile, Stephen Pearson, CIO, congratulated them on their new roles, created to drive forward Jupiter’s sustainability proposition, and paid tribute to departing manager Charlie Thomas: “Having taken on the management of Jupiter’s flagship Ecology unit trust fund nearly 20 years ago, he has become an important part of that fund’s long history and has made a strong mark at Jupiter and on the sector during his tenure. He has been a pleasure to work with and he leaves with our thanks for the valuable contribution he has made and our best wishes for the future”.
Three in-house professionals
With over 15 years of sustainable investment experience, Llewellyn-Waters will lead the firm’s sustainable investing capability, while also feeding into the work of Edward Bonham Carter, who has taken on a new role focusing on the company’s stewardship and corporate responsibility activities. As part of this, she will continue to play an important role in shaping best practice across the business in line with Jupiter’s commitment to ESG.
Meanwhile, Petheram is a recognised thought-leader in environmental fixed income investments with 20 years’ experience across fixed income and multi-asset portfolios. He has co-managed the Jupiter Global Ecology Diversified Fund since inception in 2016, delivering 27.5% relative to a sector average of 16.85% over this time.
In his new role, Petheram will work closely with Llewellyn-Waters, leading and evolving Jupiter’s expertise in investing in companies intentionally focused on providing solutions to sustainability challenges across key environmental themes. He will also oversee Jupiter’s environmental solutions range across asset classes, while continuing to co-manage the Jupiter Global Ecology Diversified fund.
Lastly, Jupiter AM highlighted that Wallace, who has worked closely with Thomas for over 10 years, has an in-depth knowledge of the portfolios and a strong expertise in seeking out the key innovators in the green technology space, making him “the natural successor” for this range. He will collaborate closely with Thomas to ensure a smooth transition of fund management responsibilities.
Pixabay CC0 Public DomainRana y mariposa. Rana y mariposa
GAMCO Investors, Inc. is pleased to announce the launch this month of the GAMCO Convertible Securities fund, a new sub-fund of GAMCO International SICAV (Luxembourg), managed by Gabelli Funds. The GAMCO Convertible Securities fund offers investors access to one of Gabelli’s core strategies within a UCITS compliant structure, providing daily liquidity via accumulating share classes and a distributing class. We are excited to bring an actively managed fund to the European and Global marketplace that will be dedicated to global convertible securities while factoring in ESG guidelines.
The Fund leverages the firm’s history of investing in dedicated convertible security portfolios since 1979. Multiple share classes will be available at launch and are tailored for Global institutional investors as well as select non-US retail investors. At the onset, the Fund will launch with an institutional founder’s class at a reduced fee.
By actively managing the fund and investing in convertible securities, we seek the opportunity to participate in the capital appreciation of underlying stocks, while at the same time relying on the fixed income aspect of the convertible securities to provide current income and reduced price volatility, which can limit the risk of loss in a down equity market.
The portfollio investments will be in convertible securities, as well as other instruments that have economic characteristics similar to such securities, across global markets (but the fund will not invest in contingent convertible notes). The fund may invest in securities of any market capitalization or credit quality, including up to 100% in below investment grade or unrated securities, and may from time to time invest a significant amount of its assets in securities of smaller companies. Convertible securities may include any suitable convertible instruments such as convertible bonds, convertible notes or convertible preference shares. The strategy remains robust as the convertible markets continue to provide a strong flow of new issuances as well as attractive investment opportunities.
What is going on in the convertible market?
Global converts, as represented by the ICE BofA G300 Global Convertibles Index, increased another 5.4% in December. Global CBs added 32.6% in 2020, the best year for global CBs since 2009 on an absolute total return basis, ahead of each global stocks, High Yield and IG bonds.
In December 2020 CB issuance maintained its record pace as $12.6bn was priced globally, well-above the historical average for the month of December. While all regions were active last month, the US primary market saw the most volume as $8.1bn was priced, topped by the $2.0bn offering from Dish Network and $1.15bn offering from Uber. As of year-end, $158.6bn of new CB paper was launched globally, the most in a year since 2007 when nearly $163bn came to market. Of this, the US saw $105.8bn, just shy of 2001’s $106.4bn record, while Europe, Asia, and Japan saw $31.1bn (the most since 2009), just under $20.0bn (the most since 2007), and $1.7bn, respectively.
With the surge in net-new issuance discussed above and the impact of very strong CB performance last year, the global market ended 2020 with a $509bn market value, the most it’s been since May 2008. Regionally, the US has reached $351bn, also its largest size since 2008, with Europe at $89bn, Asia $54bn, and Japan $15bn. Europe’s size is now its largest since 2014, while Asia’s is its best since 2008. In contrast, given its lackluster returns and negative net-new supply, Japan was the only region to contract in 2020.
Top-performing pockets of the global CB market in 2020 were generally high growth, high delta, large-cap, tech, and consumer discretionary, mostly in the US and Asia. Overall, Asian equity alternatives (deltas above 0.8) were the top-performing regional bucket with a 199% gain, followed by US consumer discretionary (+195%), Asia discretionary (+120%), US HY (+115%), and Asia tech (+104%). As noted earlier, these segments of the market benefitted from the pandemic-driven rally in work-from-home names.
On the other side, the leading underperformers for 2020 included mostly lower-delta energy, transportation, and small-caps, mainly from Japan and Europe, though notably US energy was the biggest underperformer overall driven by the likes of Chesapeake and Nabors. Behind US energy (-30%) was European energy (-18%), Japan transportation names (-5%), European industrials (-4%), and Japan materials (-4%).
In our analysis it is clear that a handful of issuers dominated 2020’s large returns, mostly in the US and Asia. In the US, Tesla’s three tranches of CBs contribute about 41% of the US benchmark’s top-line performance, while Microchip, Zillow, Square, and Wayfair made up about 3%, 3%, 3%, and 2%, respectively. In fact the top ten issuers comprised about 61% of the index’s total return. In Asia, the single-issuer trend was even more pronounced as the top three names (the Sea, NIO, and Pinduoduo ADRs) made up 78% of the Asia benchmark’s performance. At the global level, the top CB names in 2020 were Tesla, Sea, NIO, Microchip, and Pinduoduo, which comprised 33%, 6%, 3%, 3%, and 3% of year-to-date returns, respectively.
The portfolio team is concerned that growth names may be a headwind in 2021 if the cyclical shift plays out the way we see hints of in the marketplace. We think that the CB market’s high concentration of growth and tech names, which proved to be a tailwind to performance in 2020 especially in the US and Asia, may become a headwind in 2021 if a cyclical rotation from growth to value persists. We think there is a likelihood of this happening if the economy reopens faster-than-expected and the vaccine optimism endures. Overall we believe the Global Convertible market performance will still achieve the asymmetrical returns we have seen in the past few years.
What should we expect from 2021?
U.S. equities closed 2020 with a December and fourth quarter rally as many stock indices continued to set multiple record highs. All of 2020’s net S&P 500 gain occurred during the second half as the upbeat economic outlook, Covid-19 vaccines, hope for more fiscal stimulus, and the Fed’s big monetary policy easy outweighed the resurgent pandemic. U.S. Senate control and Biden’s agenda prospects await the final outcomes of the two January 5 Georgia runoff elections.
Shares of small cap cyclically sensitive companies should benefit in 2021 as well as companies that will benefit from a long overdue focus on U.S. infrastructure.
The Gabelli stock selection process for researching and investing globally in various ‘Green Energy Wave’ companies and industries is centered on the ‘Environmental’ (E) aspect of the Environmental, Social, and Governance (ESG) framework that is being increasingly applied to companies worldwide. Our Green Team’s belief is that ‘our planet and people’ are essential to the future of Planet Earth. Our ‘Love Our Planet & People’ (LOPP) equity research methodology uses social screens and a holistic “E” overlay that have the potential to deliver enhanced returns by awarding relatively high ratings to selected companies that prioritize environmental sustainability. Low financing costs and improving economics should produce multiple clean energy winners, including select utility stocks, renewable developers, and clean energy equipment suppliers. We expect to see advancements in battery storage technology, grid modernization, green hydrogen, electric-vehicles and charging ports, rooftop solar, and energy efficiency. Substantial amounts of investment capital are needed to transition the global power industry toward a 100% renewable and net zero carbon goal. This is likely to provide long-term revenue and earnings growth for clean energy companies.
GAMCO’s risk arbitrage team expects 2021 merger and acquisition activity to continue the rising trend that started in the second half of 2020. Deals will likely include friendly and hostile, local, cross border, mega and bolt on transactions. Catalysts for industry consolidations and SPAC related deals should set the pace.
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552 Class I EUR – LU0687944396 Class A USD – LU0687943745 Class A EUR – LU0687943661 Class R USD – LU1453360825 Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648 Class I EUR – LU1216601564 Class A USD – LU1216600913 Class A EUR – LU1216600673 Class R USD – LU1453359900 Class R EUR – LU1453360155
GAMCO CONVERTIBLE SECURITIES
GAMCO Convertible Securities’ objective is to seek to provide current income as well as long term capital appreciation through a total return strategy by investing in a diversified portfolio of global convertible securities.
The Fund leverages the firm’s history of investing in dedicated convertible security portfolios since 1979.
The fund invests in convertible securities, as well as other instruments that have economic characteristics similar to such securities, across global markets (but the fund will not invest in contingent convertible notes). The fund may invest in securities of any market capitalization or credit quality, including up to 100% in below investment grade or unrated securities, and may from time to time invest a significant amount of its assets in securities of smaller companies. Convertible securities may include any suitable convertible instruments such as convertible bonds, convertible notes or convertible preference shares.
By actively managing the fund and investing in convertible securities, the investment manager seeks the opportunity to participate in the capital appreciation of underlying stocks, while at the same time relying on the fixed income aspect of the convertible securities to provide current income and reduced price volatility, which can limit the risk of loss in a down equity market.
Class I USD LU2264533006
Class I EUR LU2264532966
Class A USD LU2264532701
Class A EUR LU2264532610
Class R USD LU2264533345
Class R EUR LU2264533261
Class F USD LU2264533691
Class F EUR LU2264533428
Disclaimer: The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
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.
