. Nace FE fundinfo: proveedor global de tecnologías y datos de fondos
This Monday, over a year after the merger of FE, Fundinfo and F2C, UK-based FE Fundinfo has officially unveiled itself as a global fund data and technology service, which it says is “holistic” and connects fund managers, fund distributors and financial advisers across the world.
The combined entity benefits from the three companies’ investment expertise, technology, software and services. The company will now focus on further developing its products through its fundinfo.cloud information marketplace, it said.
FE Fundinfo will allow fund managers and fund distributors to connect and share information, given that information published on fundinfo.cloud will allow fund distributors, fund managers and financial advisers to research and select funds with the latest data.
Peter Little, Chairman of FE fundinfo, says: “It is an exciting time in the global investment industry. Like many others, it is undergoing some rapid and fundamental changes which present both opportunities and challenges for those working within it. As such, there is an intrinsic need for forward-thinking and innovative organisations to service the industry’s stakeholders and to help them navigate between the challenges and opportunities. FE fundinfo will play a crucial role in providing new solutions and supporting the investment industry at every stage. In an industry where success is determined by the accuracy and timeliness of its data, FE fundinfo’s commitment to trust, connectivity and innovation will ensure investment professionals have the technology, data and network they need to support their clients and drive better investment decisions.”
With roots stretching back to 1996, FE fundinfo has offices in the UK, Switzerland, Luxembourg, India, Czech Republic, Singapore, Australia, Hong Kong, Germany, Spain, France and Italy. With more than 650 members of staff across these offices, the organisation is truly global in outlook and capability.
The company also enjoys significant market coverage in the investment industry, working with more than 3.500 advisers, paraplanning companies and compliance consultants; 1,100 asset managers; 100 banks and brokers; 15 platforms and 70 international insurance companies across the globe.
In a massive boost for climate action and sustainability, leading banks and the United Nations launched on September 22nd, the Principles for Responsible Banking, with 130 banks collectively holding USD 47 trillion in assets, or one third of the global banking sector, signed up.
In the Principles, launched one day ahead of the UN Climate Action Summit in New York, banks commit to strategically align their business with the goals of the Paris Agreement on Climate Change and the Sustainable Development Goals, and massively scale up their contribution to the achievement of both.
By signing up to the Principles, banks said they believe that “only in an inclusive society founded on human dignity, equality and the sustainable use of natural resources” can their clients, customers and businesses thrive.
With global leaders coming together to share the actions they are taking to attain the Sustainable Development Goals and address climate change this week in New York, UN Secretary-General António Guterres said at the launch event, attended by the 130 Founding Signatories and over 45 of their CEOs, that “the UN Principles for Responsible Banking are a guide for the global banking industry to respond to, drive and benefit from a sustainable development economy. The Principles create the accountability that can realize responsibility, and the ambition that can drive action.”
The Principles are supported by a strong implementation framework that defines clear accountabilities and requires each bank to set, publish and work towards ambitious targets. By creating a common framework that guides banks in growing their business and reducing risks through supporting the economic and social transformation required for a sustainable future, the Principles pave the way for the transformation to a sustainable banking industry.
“A banking industry that plans for the risks associated with climate change and other environmental challenges can not only drive the transition to low-carbon and climate-resilient economies, it can benefit from it,” said Inger Andersen, Executive Director of the United Nations Environment Programme (UNEP). “When the financial system shifts its capital away from resource-hungry, brown investments to those that back nature as solution, everybody wins in the long-term.”
While action on climate change is growing, it is still far short of what is needed to meet the 1.5°C target of the Paris Agreement. Meanwhile, biodiversity continues to decline at alarming rates and pollution claims millions of lives each year.
More ambition, backed by a step change in investment from the private sector, is needed to tackle these challenges and ensure that humanity lives in a way that ensures an equitable share of resources within planetary boundaries.
The banking and private sectors can benefit from the investment they put into backing this transition. It is estimated that addressing the SDGs could unlock USD 12 trillion in business savings and revenue annually and create 380 million more jobs by 2030.
“To transit to low-carbon and climate-resilient economies that support the goals of the Paris Agreement requires an additional investment of at least USD 60 trillion from now until 2050,” said Christiana Figueres, Convener, Mission 2020, who is credited as the architect of the Paris Agreement in her role formerly as Executive Secretary of the UN Framework Convention on Climate Change. “As the banking sector provides over 90 per cent of the financing in developing countries and over two thirds worldwide, the Principles are a crucial step towards meeting the world’s sustainable development financing requirements.”
To coincide with the UN Secretary-General’s Climate Action Summit, one day after the launch of the UN Principles for Responsible Banking, 31 of their Signatories with over $13 trillion in assets announced a Collective Commitment to Climate Action. With this groundbreaking pledge, Founding Signatories of the Principles are taking tangible steps towards putting their commitment to align their business with international climate goals into practice. The commitment was announced during a full-day event on the implementation of the Principles for Responsible Banking, hosted by the thirty banks that led their development.
The Collective Commitment to Climate Action sets out concrete and time-bound actions the banks will take to scale up their contribution to and align their lending with the objectives of the Paris Agreement on Climate, including:
aligning their portfolios to reflect and finance the low-carbon, climate-resilient economy required to limit global warming to well-below 2, striving for 1.5 degrees Celsius;
taking concrete action, within a year of joining, and use their products, services and client relationships to facilitate the economic transition required to achieve climate neutrality;
being publicly accountable for their climate impact and progress on these commitments.
Carlos Hank González, Chairman of the Board of Directors, Grupo Financiero Banorte, said: “Banks have to assume a true social commitment and align ourselves with people’s priorities. Signing the Principles for Responsible Banking commits us to continue contributing to the sustainable development of our country and to face together Mexico’s greatest challenges”
Banco Santander Executive Chairman, Ana Botin, said “Every business has a responsibility to tackle today’s global challenges. At Santander we’ve worked together to deliver profit with purpose – ensuring that our day to day operations help more people and businesses prosper in a sustainable way. We have ambitious targets for areas like financial empowerment, green finance, and gender diversity among others. And now we need to do more by collaborating, sharing best practice, and encouraging more businesses and individuals to act in a responsible way to the benefit of all.”
For a complete list of all banks that have become the Founding Signatories of the Principles for Responsible Banking today and quotes from CEOs please click here.
Foto cedida. Apoya a Bahamas asisitiendo a una plática con Gustavo Zerbino, sobreviviente del accidente de los Andes
Andes survivor, Gustavo Zerbino, will share how embracing adversity changed his life forever in a conference, to be held in Spanish, where proceeds will help support the Hurricane Dorian Response Fund.
The event will take place on Tuesday, October 29th at 7pm. It will be held at the St. Agnes Academy Auditorium, located on 122 Harbor Dr, Key Biscayne, FL 33149.
Key Rats Rugby Club, has offered to assist the Freeport Rugby Football Club, in the center of the Bahamas, by accepting donations on their behalf. All donations made by U.S. residents could be tax deductible, since both Key Rats Rugby Club and Freeport Rugby Football Club are qualified not- for-profit institutions.
Entry to the conference is $100 per person, and can be paid using this link.
In case you cannot go to the conference but are willing to help, please use this link.
Foto: PxHere CC0. La Amafore destaca otros cinco fondos mutuos internacionales para inversiones de las afores
More investing options for the Mexican Pension funds translates to more opportunities for workers. With this in mind, Amafore continues to evaluate funds to, in a monthly basis, include in the list of international mutual the afores an choose from for diversification purposes.
This month, five new funds were added to the list, which was created last month and now includes 47 international mutual funds from which Afores can choose.
The new list includes, via two Franklin Templeton strategies, funds with exposure to China and India, “two regions where, despite the global economic slowdown, one can still find stories of structural growth that make a case for equity investments in the region.”
Hugo Petricioli, Country Head for Mexico and Central America told Funds Society: “In Franklin Templeton we are very optimistic about the evolution of the Afores, since 1997 the system has experienced a continuous improvement, charging less and less to its customers, modernizing constantly and giving workers better and more options to be able to achieve a decent retirement, it is really a great system. I would very much like to see more workers get interested and involved with this part of their heritage as well as looking for options to increase their complementary savings. We have been investing in Mexico since the 80’s. We believe in Mexico, we believe in bringing quality products and giving more investment options to all Mexicans.”
The list of authorized managers consists of:
AllianceBernstein
Amundi
AXA
BlackRock
Franklin Templeton
Investec
Janus Henderson
Morgan Stanley
Natixis
Schroders
Vanguard
Gio Onate, Head of Mexico Institutional Business at BlackRock, toldFunds Society: “At BlackRock, we value the long-term relationship we have built with Mexican Afores since 2005, starting with ETFs and evolving into active mandates, our technology and risk platform Aladdin and now, international mutual funds. We look forward to continuing our work as the Mexican pension fund industry evolves, always keeping in mind our purpose of helping more and more people experience financial well-being.”
Courtesy photo. Glovista Investments Hosts Executive Briefing on Global Macro Outlook & Themes
Glovista Investments presented its views on the global macro cycle and highlighted key themes and opportunities for members of the private wealth community on October 8th, 2019, at the JW Marriott Miami, featuring the firm’s founders, Chief Investment Officer Carlos Asilis and Deputy CIO Darshan Bhatt, along with Ignacio Gil, Strategic Advisor for the firm.
“Today, investor concerns range from the potential of further global economic deceleration resulting from a late cycle US economy – with recession risks looming in the horizon – to the ongoing reversal of the market-friendly trade globalization dynamics that defined the post-1990 period and the potential for increased tax pressure in the developed world over the coming years. Today more than ever, we believe a tactical global investment approach is to be favored so as to navigate such treacherous investment waters,” said Asilis.
The discussion included Glovista’s 10 year performance outlook for major asset classes and the investment case for emerging market equities both in absolute and relative terms versus developed peers in light of secular trends that are transforming the investment landscape. The firm also spoke about its opportunity to drive positive change in the regions where it invests via the strategic use of corporate philanthropy.
“The greatest value that I took away from the presentation is simplicity, especially in the Emerging Markets area laden with factors not easily digested by an average investor. Dr. Asilis capably simplified what otherwise is a rather complex topic. Our firm emphasizes a minimalistic approach to investing, that is, a straightforward assessment of binary investment return payoffs that either work or don’t work. This presentation helped clarify for me how to choose the right targets while avoiding traps that exist in these complex markets,” said Eli Butnaru, Chief Executive Officer, Boreal Capital Management.
“I appreciated the quality of the presentations. Dr. Asilis and Mr. Bhatt shared detailed market views on the global asset classes including the emerging markets universe,” commented Ricardo de la Serna, Partner, Alvarium.
Glovista Investments is an SEC-registered and GIPS-compliant investment advisory firm with offices in New Jersey, Miami and the San Francisco Bay area. Glovista specializes in emerging market equities and multi-asset investment strategies for institutional and high net worth clients.
Brazil is a country full of contrasts. The biggest Latin American country is not only known for its sunny beaches, vast Amazon jungle, samba and passion for football, but also for poverty and social inequality, mostly seen in places like the country’s famous favelas.
The Brazilian economy has long benefited from the world’s, and particularly China’s, strong appetite for Brazil’s abundant natural resources, such as soya, oil and iron ore. The commodity boom led to strong economic growth. From 2000 to 2012, brazil was one of the fastest-growing major economies in the world with an average annual GDP growth of over 5%. However, the economy started to slow down in 2013 and entered a recession in late 2014 that lasted until 2016, driven by an economic slowdown in China that caused a sharp decline in commodity prices. The Brazilian economy shrank by more than 7% in two years, which made it the longest and deepest recession in its history.
The recovery process after the recession has been desperately slow, held back by political uncertainties, corruption scandals and external shocks (crisis in Argentina, global trade war). However, the current president, Jair Bolsonaro, has started to push through an ambitious reform agenda that should improve structural growth in Brazil. More importantly, there is still a lot of overcapacity and slack in the economy, which has helped to keep inflation under control. The central bank’s policy rate has come down from 14.25% in 2016 to 5.5%, and additional cuts are likely. Structurally lower rates and economic reforms should improve Brazil’s competitiveness and stimulate economic growth.
Investors can get access to Brazil via its stock market, the Bovespa. But investing in Brazilian stocks has proven to be a very volatile ride with massive ups and downs, and typically concentrated exposures to some large stocks with political influences, such as Petrobras, Itaú Unibanco, Bradesco, AmBev and Vale.
But there is a much more conservative way to invest in Brazil via receivables-backed funds called Fundo de Investimento em Direitos Creditórios (FIDCs). FIDCs are mutual investment funds that apply the majority of their financial resources in receivables. They offer relatively high yields and huge diversification benefits. Brazil is a fantastic example for the deficiency of the traditional banking sector with a concentration of almost 80% amongst the top four banks. These banks tend to focus on mortgages and long-term loans for larger corporates. Small- and medium-sized enterprises (SMEs) are often struggling to get access to traditional sources of funding. Also, bank spreads in Brazil are much larger than in any other major country. While interest rates have come down, banks are still widely lending at rates above 30%.
Alternative financing options, such as accounts receivable factoring, may provide the working capital SMEs need. Accounts receivable factoring is financing that comes from a business selling its accounts receivable to a factoring company. Given the lack of lending provided by traditional banks, the Brazilian authorities implemented an investor friendly regulation for the factoring industry. In Brazil, FIDC are fully regulated and monitored by the Brazilian Securities Commission (CVM). The concept was first introduced in 2001 but since then, the transparency and accountability has been improved significantly. Today, FIDCs must comply with a number of rules that guarantee strong governance and independent controls through regulated fund administrators, independent auditors, registered managers, custodians, etc., which gives investors a very high level of transparency and accountability. Brazil is probably the country with the highest standards in terms of the regulation of the factoring industry, a real factory paradise, and definitely a positive aspect to be added to the list of contrasts. The strong regulatory framework that protects the interest of investors paved the way for sizable capital inflows, that helped to meet the strong demand from SMEs. Currently, there are around 800 different FIDCs with a total asset size of around B$ 120 billion (around USD 30 bn).
Investors have many advantages if they invest in FIDCs compared to corporate bonds or equities, for example. First, receivables portfolios usually contain receivables from a diverse group of debtors, which means that there is much less concentration compared to traditional corporate bond or equities portfolios. Second, investors mainly face the credit risk of the buyer (obligor), which tends to be a bigger, more established company, typically multinationals, that have a much lower credit risk. What is more, the credit risk of the obligors can be insured against default at relatively low costs. Third, FIDCs can also get guarantees from the suppliers, such as real estate and personal guarantees of key executives. This gives a strong incentive for suppliers to buy back the receivables in the rare case that the buyer does not pay the invoice to the factor. Therefore, expected default rates are below 2% and expected loss rates (after renegotiation and recovery) are below 1% in the Brazilian factoring industry. Interestingly, loss rates remained below 1% even during the deep recession of 2015/2016, which has been an excellent stress test of the resilience of the Brazilian factoring industry. And last but not least, the expected performance for international investors is highly attractive. Even if we deduct hedging costs (that have come down a lot thanks to the lower rates in Brazil) and any other costs related to the origination, management and administration, net returns for USD investors should be in the 8-10% range.
Opinion by Pascal Rohner, CIO at Katch Investment Group
Foto cedidaFoto: Andrés Valdivieso director de distribución global de Participant Capital . Foto: Andrés Valdivieso director de distribución global de Participant Capital
Participant Capital, a leading South Florida private equity real estate investment firm, with over US$2.5B in projects under development, has announced today the promotion of Andres Valdivieso to Director of Global Distribution. With over 15 years of experience in international real estate sales and team management of seasoned distributors and real estate international brokers, Andres will focus on strengthening relationships with strategic partners and expanding the firm’s global distribution capabilities.
Participant Capital currently runs over 40 distributors operating throughout Latin America, Asia, Europe, and the Middle East. Its investment portfolio continues to expand with new world-class developments in South Florida and beyond.
“As we bolster our global presence and seize new opportunities of untapped markets, our focus is to bring uniquely positioned real estate assets to all of the investors worldwide – individuals and smaller institutions – that have historically lacked access to leading alternative investments,” said Claudio Izquierdo, Chief Operating Officer. “I believe Andres, with the support of our highly dedicated team, will allow us to drive growth in key distribution channels and deliver our products with high-quality deal execution, transparency, and accuracy.”
Prior to Participant Capital, Andres Valdivieso worked with Fortune International Group, where he was recognized as a top real estate producer for three consecutive years. In 2012, Andres moved to New York City to manage the exclusive sales for a luxury condo-hotel. He was once again named a top-producing executive in the region for his efforts in coaching a team of real estate salesassociates and international real estate brokers to provide high-quality client service.
“I am excited to be part of Participant Capital and contribute to the firm’s international expansion,” said Andres Valdivieso. “Our experienced distribution team, decades of expertise in real estate development and local market knowledge, give us an exceptional advantage in terms of sourcing new opportunities to diversify an investment portfolio in a strong currency.”
. Natixis IM refuerza su equipo con dos nuevos fichajes
Natixis appoints Joseph Pinto as Chief Operating Officer of Natixis Investment ManagersandPhilippe Setbon as Chief Executive Officer of Ostrum Asset Management.
Joseph and Philippe will both be members of the Natixis Executive Committee and of the Natixis Investment Managers Management Committee.The creation of the COO role for Natixis Investment Managers and the appointment of Joseph Pinto–who will take up his role in the coming months –reinforce Natixis Investment Managers’management team and enhance its operational efficiency.
Joseph Pinto will report to Jean Raby, CEO of Natixis Investment Managers, member of the Senior Management Committee of Natixis in charge of Asset and Wealth Management.
Philippe will replace Matthieu Duncan who has resigned from his role as Chief Executive Officer of Ostrum Asset Managementin order to pursue other interests. Philippe will take up his role at the end of November, until which time Matthieu will remain in his role.
François Riahi, Chief Executive Officer of Natixis said: “With Philippe Setbon and Joseph Pinto, we welcome to the Natixis Executive Committee two leading asset management professionals. Joseph Pinto, whose international background perfectly fits with our setup, will bring significant added–value to our multi–affiliate business model at a truly transformative moment for the industry. Philippe Setbon will lead one of our key strategic initiatives; the creation and development with La Banque Postale Asset Management of a European leader focused on insurance–related euro fixed income.”
Jean Raby said: “Joseph and Philippe’s recognized experience and expertise will bolster Natixis IM and Ostrum AM’s growth and operational efficiency and will contribute to further power the continued developmentof our business. I thank Matthieu Duncan for his contribution to the successful transformation and repositioning of Ostrum AM that he has overseen over the past three years.”
Joseph Pintobegan his career in 1992 with Crédit Lyonnais, working in the securitization business in New York before moving to Lehman Brothers in London in the Corporate Finance division. From 1998 to 2001, Joseph was Project Manager at McKinsey & Cie in Paris. From 2001 to 2006, he was Deputy CEO and member of the Board of Directors of Banque Privée Fideuram Wargny. He joined AXA IM in January 2007 as Head of Business Development for France, South Europe and Middle East. He then took the leadership of the Markets and Investment Strategy Department in 2011 and became Chief Operating Officer in 2014, also serving as a member of AXA IM’s Management Board.
Philippe Setbonbegan his career in 1990 as a financial analyst at Barclays Bank in Paris. Between 1993 and 2003, Philippe was with Groupe AZUR–GMF, first as a portfolio manager for European stocks, then as Head of Asset Management. He then moved to Rothschild & Cie Gestion as Head of Equity portfolio management before joining Generali Group in 2004 where he held a succession of senior roles including CEO of Generali Investments France,CEO of Generali Investments Europe Sgr and CIO of Generali Group. He joined Groupama in 2013 as CEO of Groupama Asset Management.Philippe serves as vice president of the French Asset Management Association (AFG).
CC-BY-SA-2.0, FlickrRockefeller Center in New York, home to one of WE Family Offices' locations. . ,,
WE Family Offices strengthens its investment team with the hiring of Sam Sudame and Matt Farrell. Sudame joins as Senior Investment Associate and will be responsible for Public Markets, Asset Allocation, Portfolio Construction and Risk Management. Farrell joins as Senior Investments Manager and will be responsible for Private Markets.
Joe Gutierrez will continue to be responsible for Macro and Santiago Ulloa remains as the firm’s CIO.
Ferrell has more than 15 years of experience in the financial services industry. Before joining WE, Matt worked for nine years at Credit Suisse as an alternative investment specialist, and before that, he worked several years in investment banking where he advised clients on mergers and acquisitions, capital increases and strategic initiatives.
He received his bachelor’s degree from North Carolina State University and earned his MBA from the University of North Carolina at Chapel Hill. He holds the Chartered Alternative Investment Analyst (CAIA) certification and has approved Level 1 of the Chartered Financial Analyst (CFA) program.
Sam Sudame has more than 25 years of experience in both traditional and alternative assets. He holds the CFA, CAIA and CFP designations, a BA from Oberlin College and an MBA from Thunderbird International Graduate School.
Before joining WE Family Offices, Sam was the Director of Research at Singer Xenos Wealth Management in Coral Gables, FL. Prior to this he lived and worked in Asia for over a decade and held investment banking roles at Bayerische Hypovereins Bank (HVB) and Lehman Brothers.
Pixabay CC0 Public Domain. Crisis de liquidez en el mercado estadounidense de repos
September 2019 saw a ‘liquidity crisis’ in the US repo market, a market principally operated by private banks. This liquidity stress led to a spike in funding costs. As a response, the Federal Reserve intervened through cash injections to restore an operational normality to this market.
The last time this event occurred was in 2008 at the height of the financial crisis. Back then, two main causes for this malfunction had been identified: a mistrust between commercial banks in their interbank lending operations and a growing discomfort on the collateral proposed for repo transactions (especially collateral backed by real estate loan portfolios. The US property market was in turmoil in 2008).
The September 2019 funding stress was a surprise to many. Present-day economic conditions are a far cry from the subprime meltdown eleven years before. In addition, Fed policy had been recently adjusted with the end of ‘Quantitative Tightening’ program in August. Yet despite this preemptive monetary action, the liquidity made available as a result seems to have been grossly inadequate.
New York Fed’s ex-President Bill Dudley provided his account of the current repo situation. He pointed to the corporate tax payment season and recent treasury auctions as having dried up market liquidity. These explanations have left many perplexed. Why could such liquidity flows not have been anticipated by the Fed? What other reason would eventually lie behind the present funding crisis in the repo market?
To delve deeper into this phenomenon, certain analysts have put forward structural arguments, based on recent world Central Bank policy, as well as other cyclical events. The first structural issue concerns the collateral used in the repo market. Traditionally, this kind of financial transaction uses US government bonds as collateral because they are considered to be the best quality instrument available. Since 2008, Central Bank interventions have progressively soaked up government debt making them more difficult to come by.
As a result, more and more corporate bonds are being put up as collateral in repo transactions instead. However, corporate debt is considered to be of lower quality by dealers in this market place. Following recent economic data showing a downturn in world activity, corporate bonds are being increasingly perceived as carrying a higher risk than in previous months. This has led to a rise in their risk premium and by extension the funding cost for those who use them as collateral.
The second structural issue involves around bank reserves. American Banks have been encouraged through regulation and the remuneration of their deposits to park their excess liquidity as reserves with the Fed rather than make it available as funding for the repo market.
In sum, the US repo market has been exposed to decreasing collateral quality and uncertain funding flows for its large banking liquidity providers. To top it all, additional cyclical factors have come into play.
International demand has been increasing for US dollar cash and fixed income assets, over the last few months. Geopolitical uncertainty in Hong Kong and the Middle East, rising bond prices on the back of lower US interest rates, plus international investment capital desperately seeking yield, have combined to disrupt the traditional bond and liquidity flows associated with the repo market. All these structural and cyclical elements seem to have come to a head in September 2019.
In a recent interview, Jeffrey Gundlach from DoubleLine described how the repo market has been under pressure since the end of 2018. He believes this situation could last for a while longer and he views the recent Fed liquidity injections to be on the road to fresh asset purchases by the American central bank.
Michael Howell of Crossborder Capital brings a different perspective to this liquidity crisis. For him, monetary accommodation in Europe, China and Japan must be viewed in the context of a currency war against the US dollar. He anticipates the Trump administration and the Fed will not be able to allow the current liquidity stress to last for any period of time. He believes the Fed will have to react at some point by opening up more aggressively the liquidity channels, notably for the US repo market.
Column by Steven Groslin, executive board member and portfolio manager at ASG Capital
