María Dolores Benavente, and Bjorn Forfagn. UniónCapital AFAP Becomes First Pension Fund in South America to Comply with the CFA Code
CFA Institute, the global association of investment professionals that sets the standard for professional excellence, has added UnionCapital AFAP to the growing list of asset owners that claim compliance with its Asset Manager Code (AMC). UnionCapital AFAP, a pension fund in Uruguay with $2.7 billion in assets under management – equating to 5% of the GDP of Uruguay – is now one of the more than 1,400 companies around the world that claim compliance with the code.
The AMC clearly outlines the ethical and professional responsibilities of pension funds or firms that manage assets on behalf of their clients. For investors, the code provides a benchmark for the behavior that should be expected from asset managers and offers a higher level of confidence in the firms that adopt the code.
UnionCapital is the first firm in Uruguay to comply with the code and shows leadership commitment to strengthening the capital markets and investment industry in the country by upholding investor-centric values and behaviors. It is also the first pension fund in South America and the second one in Latin America to comply with the code.
“Our investors expect and deserve the best governance and management practices when it comes to their retirement savings,” said Ignacio Azpiroz, CFA, CIO of UnionCapital AFAP. “UnionCapital is recognized in the industry for our high standards, ethics and professionalism, and we’re proud to reinforce this through our adoption of the Asset Manager Code.”
The Asset Manager Code is grounded in the ethical principles of CFA Institute and the CFA® Program, and requires that managers commit to the following professional standards:
To act in a professional and ethical manner at all times
To act for the benefit of clients
To act with independence and objectivity
To act with skill, competence, and diligence
To communicate with clients in a timely and accurate manner
To uphold the rules governing capital markets
“Building trust in the investment profession is at the core of the CFA Institute mission, as well as strengthening and ensuring the future vitality of the global financial system,” said Bjorn Forfang, deputy CEO at CFA Institute. “Compliance with the Asset Manager Code demonstrates dedication to raising standards in the financial system in Latin America, and we commend Union Capital, and all firms that have adopted the code, for displaying a resolute and tangible commitment to professional ethics and helping to build a better world for investors.”
UnionCapital serves 293,000 clients across Uruguay, and joins more than 1,400 other firms around the world claiming compliance with the Code. The pension fund also complies with the CFA Institute Pension Trustee Code of Conduct.
Pixabay CC0 Public DomainJohn Mensack, courtesy photo. Schroders' John Mensack Will Discuss EM Debt Today at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
Today, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as Schroders’ John Mensack.
Emerging Market Debt
John Mensack is a Senior Investment Director – Emerging Markets for the Schroder Emerging Market Debt Relative (NY) and the Emerging Market Equity teams. On today’s event, he will discuss about opportunities in emerging Market Debt. “We believe that value exists across the emerging market debt (“EMD”) opportunity set in every market cycle and episode of structural change and can be identified through fundamental research and time-tested investment tools. It makes no sense to structurally overweight any one sub-segment of this asset class. We advocate an integrated, dynamic asset allocation approach utilizing the entire EMD opportunity set as the best way to balance risk and return and optimize exposure to this asset class.” He mentions.
Mensack is embedded within both EM teams, and serves as a client portfolio manager. He joined Schroders in 2011. Prior to joining Schroders, John was Head of Institutional Distribution at Peachtree Asset Management, an insurance-linked asset management firm. From 2004 to 2009, he was a Managing Director of Hamilton Lane Advisors, where, among other duties, he was CEO of the hedge fund of funds unit. He also was Head of Institutional Sales for Hawthorne, the nation’s largest independent multi-family office, from 2001 to 2004. Mensack was also Senior Vice President of the Nationwide/Gartmore group of companies from 1999 to 2002. From 1987 to 1999, John worked in a series of senior roles for SEI Investments, rising to Head of Non-US Marketing for the Investment Management division. His research report The Case for Long/Short Equity as a Tool in Traditional Asset Class Construction was published in The Journal of Wealth Management in Spring 2003. Mensacks holds an MBA in Finance from the Wharton School at the University of Pennsylvania, and a BA in Finance/Economics (dual major) from Temple University.
For more information on the strategy contact Gonzalo Binello or Maria Elena Isaza. For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
Pixabay CC0 Public DomainPhoto: Gary C. Hampton, de MFS. MFS Investment Management's Gary C. Hampton will Discuss Multi-Asset Investing at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as MFS Investment Management’s Gary C. Hampton.
Multi-Asset Investing
Gary C. Hampton, CFA, investment product specialist with MFS Investment Management will talk about how a to combine equity, bonds, and cash to meet client objectives. “Investors have frequently sold assets in markets about to rise and bought into markets about to fall, in effect allowing emotions to guide short-term decisions at the expense of longer-term investment performance. Combining stocks and bonds in a multi-asset portfolios offers investors diversification and the opportunity to achieve improved risk-adjusted performance.” He explains.
In his role at MFS, Hampton communicates investment policy, strategy and tactics, performs portfolio analysis and leads product development for several of the rm’s value and core equity strategies.
He joined MFS in 1996 and has held a number of roles during his tenure at the rm. He spent more than ten years in the rm’s retirement/DC plan division, working with plan sponsor clients on compliance and new business implementation projects. He joined the MFS Global Product team as an investment product analyst in 2007 and was appointed to his current role in 2013.
For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
Pixabay CC0 Public DomainPhoto: Robert Schumacher, de AXA IM. AXA IM's Robert Schumacher Will Talk About Dynamic High Yield at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as AXA Investment Managers’ Robert Schumacher.
Dynamic High Yield
Robert Schumacher, Chief US Strategist and Client Portfolio Manager de Fixed Income at AXA Investment Managers, will discuss about dynamic high yield opportunities on the first day of the event.
“AXA IM’s U.S. Dynamic High Yield Bond fund offers a flexible exposure to the broad US high yield market and reflects the investment team’s top-down views through a tactical approach with a higher beta than our traditional core high yield strategy.” He mentions.
In his opinion, the higher risk tolerance of the strategy results in more concentrated positions in his high conviction investments. The portfolio is mostly invested in high yield cash bonds issued by companies that they believe to have solid business fundamentals and improving credit characteristics. “We aim to invest in specific credits where we believe that our credit research process creates an informational advantage and where we believe securities are mispriced. Additional alpha is targeted through the leverage provided by an overlay of single name credit default swaps (CDS) positions.”
Robert Schumacher is the Chief US Strategist and a Client Portfolio Manager for Fixed Income at AXA Investment Managers (AXA IM). He has over 30 years of industry experience in sales, trading, management and marketing across both retail and institutional asset management. His primary responsibility is to provide in-depth analysis of emerging financial and economic developments with specific orientation toward actionable investment themes within US dollar-denominated credit portfolios. Prior to joining AXA IM, he was with Van Kampen Investments, where he worked on developing investment trusts and later as the Chief Investment Strategist providing insight, perspective and solutions to the firm’s clients.
For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as RWC Partners’ Davide Basile.
Convertible Bonds
“Convertible Bonds offer conservative equity participation whilst providing capital preservation which we believe is ideally suited for this market environment. Characteristics such as; inherent low duration, ability to benefit from a rising volatility environment, conservative equity exposure, contained valuations and recovery of the primary market all make for a compelling investment case today. Convertible bonds tend to outperform many asset classes in times of rising rates and increased volatility, and our fund is aimed at providing long only convertible exposure preserving the asset class’ asymmetry of returns to maximise the asset class’ long-term benefits.” Says Davide, Head of the Team and lead portfolio manager for the RWC Convertible Bond strategies.
The RWC Global Convertibles Fund, since its inception, invests purely in physical convertible bonds and does not use synthetic instruments or other investments which may dilute away the core benefits of the asset class.
Davide joined RWC in January 2010 to lead the team and he brought with him a long history in convertible bonds having worked at Morgan Stanley since 2001. At Morgan Stanley Davide worked with in both the Private Wealth and Investment Management divisions, and most recently held the Head of Convertible Bonds position. Davide graduated from Imperial College London with a degree in Material Science Engineering.
For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
Pixabay CC0 Public DomainMark Holman, courtesy photo. TwentyFour's Mark Holman (of Vontobel AM) will Talk About Fixed Income at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as TwentyFour’s Mark Holman.
Fixed Income
Holman, CEO and portfolio manager at TwentyFour, a Vontobel AM’s boutique, will talk about fixed income and its Strategic Income Strategy, which aims to provide an attractive level of income with an opportunity for capital growth. “The fund combines the best sources of fixed income risk from around the globe in one portfolio. It uses unconstrained, no leverage, long only bond funds, managed independent of market indices.” He explains.
The strategy may invest in, or otherwise obtain exposure to, debt instruments from the whole range of fixed income assets including investment grade bonds, high yield bonds, government bonds, asset-backed securities and other bonds as determined by TwentyFour’s view on risk and reward over time.
Mark is one of the founding partners of TwentyFour and serves as the firm’s Chief Executive Officer. He has 29 years of experience in fixed income markets gained across a variety of senior roles Asset Management and investment banking, including positions at Barclays Capital, Lehman Brothers and Morgan Stanley.
For more information about Funds Society’s Investments & Golf Summit 2018 follow this link.
Foto cedidaCourtesy photo. Old Mutual Sold 100% of its LatAm Operations to CMIG International
CMIG International, a Singapore-based holding company, has signed a contract with the South African group Old Mutual to acquire 100% of its business in Latin America. The operation, which is still pending approval by the corresponding authorities, would include, as it has transpired, the companies Old Mutual Mexico, Old Mutual Colombia and the Latin American investment adviser Aiva. It is also speculated if Old Mutual plans to sell its business in China.
The buyer, China Minsheng Investment Group International (CMIG), is a private investment holding company founded in August 2014 with 59 companies and with a registered capital of 50,000 million yuan. CMIG focuses on emerging sectors and actively promotes industrial modernization and economic transformation. The price of the transaction was not disclosed but according to international media, CMIG would have paid close to 400 million dollars in this operation.
The executive president of CMIG International, Kevin E. Lee, wanted to emphasize that “Old Mutual Latin America is a well-managed company with constant and sustained growth. It has always prioritized the interests of its clients, which is aligned with our values as a company. At CMIG International, we have a long-term commitment to strengthen and grow the company in the region. The acquisition of Old Mutual Latin America is an excellent platform for CMIG International and its entry into the regional market, which has great potential.”
In this regard, Lee added that, after carefully analyzing Old Mutual Latin America, “we are very excited about the prospect of becoming its shareholders. Our investment thesis is to find good assets, managed by exceptional teams, in such a way that we can guarantee the continuity of the business.”
According to the firm, Old Mutual’s decision to sell its business in Latin America follows a strategic review of its business, which concluded with the decision to concentrate on its operations in Africa. The presence of the firm in Latin America dates back to 1959 in Mexico, where it began to operate as a reinsurer under the Skandia brand. Subsequently, the company was established as an insurer and an operator and distributor of investment funds under the same Skandia brand; which had a very important growth in Mexico. Now this brand, recognized in the institutional field, will come back to represent the business in the region.
David Buenfil, CEO of Old Mutual for Latin America and Asia, said that “we are very proud to have an international investor of the stature of CMIG International, who believes in the growth potential of our region. This is a well-known company in Asia, and with a very good reputation. We are also very excited to know that they value our much-loved Skandia brand, and that they plan to return it to the market once the transaction is closed.”
Old Mutual Latin America includes pensions, life insurance, mutual funds, a broker-dealer, and an investment advisory with assets under management of over 13.5 billion dollars.
According to Julio César Méndez Ávalos, CEO of Old Mutual Mexico, “this is great news for all our clients, employees, advisors and strategic allies. CMIG International is a company that has valued our great potential and is committed to a continuity of our business model, as well as our human capital and management team, all our clients can rest assured with their investments and products because they will continue under the professional management that has distinguished us in these almost 25 years that we have participated in the Mexican market.”
In late February, President Trump promoted trade policy adviser Peter Navarro to assistant to the President. As a trade policy adviser, Mr. Navarro reported directly to White House Economic Adviser Gary Cohn. It is well known that Mr. Navarro (a Harvard-trained economist who wrote a book titled Death by China) has very protectionist ideals in regards to trade, while Mr. Cohn (the former President of Goldman Sachs) is a proponent of free trade. Effectively, Mr. Cohn served as a buffer between Mr. Navarro and President Trump. However, once Mr. Navarro was placed in a position where he could advise the President directly, we felt that some more extreme trade policies were on the horizon.
In less than a month, Mr. Navarro’s influence on President Trump was plain for all to see. Furthermore, Mr. Cohn resigned from his position following his futile attempt to convince President Trump not to go through with the tariffs. The equity markets suffered an immediate pullback on the announcement of Mr. Cohn’s resignation due to fears that the US would become even more protectionist without the influence of his globalist views. Fortunately for the market, Mr. Cohn’s replacement is CNBC commentator Larry Kudlow. Before embarking on a television career, Mr. Kudlow had been the chief economist at Bear Stearns and is known for having a very globalist view on trade. We believe the market will draw comfort from the appointment of Mr. Kudlow as Economic Adviser rather than Mr. Navarro.
This has happened before
In 2002, the administration of George W. Bush placed tariffs on steel products ranging from 15 to 30% in an effort to save the US steel industry. Back then, several steel producers had declared bankruptcy amidst a surge in steel imports. The government decided it needed to protect the companies of the steel industry for a period of three years to give time to restructure and emerge as more competitive players. Just like now, Canada and Mexico (thanks to NAFTA) were excluded from the tariffs of 2002.
Almost immediately, the European Union imposed tariffs and filed a case with the WTO. Several other countries filed similar cases and the WTO eventually ruled against the US. Following the international backlash and disappointing results for the economy, President Bush rescinded the tariffs only 18 months after their implementation.
“I don’t think it was smart policy to do it…The results were not what we anticipated in terms of its impact on the economy or jobs.” Andrew Card Jr., White House Chief of Staff under George W. Bush
Back in 2002, one of the actions considered by the EU was to place tariffs on oranges from Florida. For those not familiar with US regional politics, Florida is considered to be a swing state and President Bush won the state (and the overall election) by the narrowest of margins in 2000. The EU does not blindly select products on which to place tariffs; it wisely chooses products produced in politically sensitive states.
This time around, the EU is targeting Harley Davidson, which has manufacturing plants in Pennsylvania and Wisconsin, states that were important to Trump’s victory. Furthermore, Wisconsin is the home state of Speaker of the House Paul Ryan. Another product being targeted is Kentucky Bourbon which is made in the home state of Senate Majority Leader Mitch McConnell. The immediate economic impact seems mild but might only be the tip of the iceberg.
To be fair, steel and aluminum represent less than 2% of the country’s imports. Considering solely these two products, the overall impact to global trade should be modest. Unfortunately, these tariffs are not occurring in a vacuum and they might only be the tip of the iceberg as we await the outcome of the pending Section 301 investigation.
The investigation is focused on determining whether China’s actions relating to intellectual property and the forced transfer of technology discriminate against the US. The White House has signaled that there could be an announcement in regards to the investigation within a few weeks. Media reports are already speculating that the White House is considering imposing several new tariffs on $60 billion of Chinese products due to disagreements on intellectual property rights.
In fact, indirect actions against China may have already started. President Trump recently ordered Broadcom to “immediately and permanently abandon” the acquisition of Qualcomm for reasons of national security. The government did not disclose the details of why it is in the interest of national security for Qualcomm to stay independent, but Wall Street analysts are speculating that there was a fear that Broadcom would cut the R&D budget at Qualcomm, allowing Chinese telecommunication equipment company Huawei take the lead in the development of 5G wireless technology.
Pixabay CC0 Public DomainPhoto: Longines Global Champions Tour. The Longines Global Champions Tour is Set to Begin Next Thrusday
The 2018 season of the Longines Global Champions Tour is about to start. Spread over four days, the magical destination of Mexico City will welcome the world’s best horses and riders to the stunning Campo Marte grass arena for what promises to be an electric season opener.
Between march 22nd and March 25th, top riders will compete in Mexico before continuing the tour in Miami, Shanghai, Madrid, Hamburg, St Tropez, Cannes, Cascais, Monaco, Paris, Chantilly, Berlin, Londron, Valkenswaard, Rome, Doha, and Prague. The prizes top over 40 million euros, a new record.
The Mexico program with 1.165.380 in prizes along with each Longines Global Champions Tour and GCL event can be separated into two categories – CSI5* and CSI2* classes. The CSI5* is the top level competition, where the top ranked riders in the world will compete for the highest prize money, over the biggest fences – up to 1.60m which is the highest in the sport. The CSI2* classes are slightly smaller in height, and offer opportunities for many local athletes as well as international rising stars.
All the CSI5* rounds will be streamed live via our website featuring exclusive studio interviews, expert commentary and of course all the action from the arena.
Last year over 20,000 fans watched as the world’s best battled it out for top honours at the spectacular debut of Mexico City, with the grassy picture perfect arena of Campo Marte the stunning setting for the first even of the season. With the top riders in the world hungry to get the season started and lay down an early gauntlet for the 2018 Champion of Champions title, the event promises to be full of fierce rivalry, top entertainment and world-class sport.
Pixabay CC0 Public DomainPhoto: Mark Heslop. Columbia Threadneedle Investments' Mark Heslop Will Shed Light on Investing in Global Small Caps at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as Columbia Threadneedle Investments’ Mark Heslop.
Global Small Caps
Mark Heslop joined Columbia Threadneedle Investments in 2008 as a smaller companies analyst in the European equities team. He manages the Threadneedle (Lux) Pan European Small Cap Opportunities, the Threadneedle European Smaller Companies Fund and the Threadneedle (Lux) Global Smaller Companies Fund. Before joining the company, he spent nine years as an analyst with Citi. He began his career as an accountant and consultant at PriceWaterhouseCoopers.
The Global Smaller Companies Portfolio seeks to achieve capital appreciation by investing principally in the equity securities of Global Smaller Companies. It invests at least two thirds of its assets in shares of smaller companies worldwide, typically no bigger than the largest company included in the MSCI World Small Cap Index. The Fund invests in what the manager believes to be the most attractive smaller companies investment opportunities globally, providing access to a portfolio of well researched companies from around the globe, with country, sector and industry diversification. It gives access to an investment process with a ‘quality growth’ approach, managed by a team that have broad experience of different market conditions. “Smaller companies can be a source of long-term growth: seeking the industry leaders of tomorrow”, he states.
To learn more about the Investments & Golf Summit, follow this link.
