Photo: Any Fuchok. Latin American Corporates Under Pressure: Downgrades Outpaced Upgrades by a Ratio of 3.5x
Fitch Ratings expects operating cash flows of Latin America credits to remain under stress during 2015. Governments have increased taxes on consumers and corporates in response to falling revenues. External conditions also remain weak, especially for oil, copper and iron ore.
‘Fitch foresees another tough 12 months for Latin American corporates and that the ratio of downgrades to upgrades will not reach a level of parity until the second half of 2016,’ said Joe Bormann, Managing Director at Fitch. ‘During the first seven months of 2015, downgrades for Latin American corporate issuers outpaced upgrades by a ratio of 3.5x; this compares with a downgrade ratio of 2.4x in 2014; 1.6x excluding Argentina.’
Refinancing risk is elevated for small, high-yield corporates rated ‘B+’ or lower that have issued bonds of less than US$ 400 million. Positively, exposure to this risk is light in 2015 and 2016. Posadas (Mexican hotel chain owner of Fiesta Americana) was the only high-yield issuer with a bond due in 2015, and it repaid its bond in January. Arendal (Mexican company specialized in the construction of pipelines and industrial plants, US$ 80 million), Ceagro (Brazilian commodities trading company, US$ 100 million) and Marfrig (Brazilian food processing company, US$ 375 million) are the ‘B’ rated issuers with non-benchmark-sized bonds maturing in 2016.
While there was only US$ 6 billion of Latin America debt amortization during 2015, this figure rises to US$ 14.2 billion in 2016 and to US$ 27.6 billion in 2017. High-yield issuers’ debt accounts for US$ 4.8 billion of the 2016 debt and US$ 14.1 billion for 2017. During 2017, nine issuers in the speculative ‘B’ and lower categories face US$ 11 billion of debt maturities. About US$ 9.2 billion of this is PDVSA debt, which is subject to high repayment risk.
Photo: Philippe Put. Loomis Sayles Joins UN’s Responsible Investment Initiative
Loomis, Sayles & Company, a subsidiary of Natixis GAM, announced that it is a signatory to the United Nations-supported Principles for Responsible Investment (PRI) Initiative. The PRI is recognized as the leading global network for investors who are committed to integrating environmental, social and governance (ESG) considerations into their investment practices and ownership policies.
As a signatory to the PRI, Loomis Sayles volunteers to work towards a sustainable global financial system by adopting the PRI’s six aspirational Principles for Responsible Investment, which includes incorporating ESG issues into investment analysis and decision-making processes; including ESG issues into ownership policies and practices; and reporting activities and progress towards implementing the six Principles.
“In 2013, Loomis Sayles senior management resolved to establish company-wide integration of ESG considerations into every team’s investment process. We did this independently and proactively, in order to ensure our business practices reflect the environmental, social and governance values that we, as an organization, believe are essential to creating a viable and enduring global financial system,” said Kevin Charleston, Chief Executive Officer.
Loomis Sayles adopted a set of guidelines and principles that articulate the interaction of its principal goal of providing superior investment results for its clients, as well as the satisfaction of its fiduciary duty under ERISA, and the use of easily accessible high quality inputs on ESG matters by its investment professionals. These inputs are meant to be used by the investment professionals in the benefit and risk analyses that inform their investment recommendations and decisions.
“We are delighted to welcome Loomis Sayles to the PRI,” said PRI managing director, Fiona Reynolds. “By putting ESG matters at the heart of their business, they have already demonstrated their commitment to responsible investment. Joining the PRI further underscores that commitment.”
. Receding Systemic Risks, But Cautious Risk Appetite
The Lyxor Hedge Fund Index was up +1.3% in July. 8 out of 12 Lyxor Indices ended the month in positive territory, led by the Lyxor CTA Long Term Index (+4.6%), the Lyxor Global Macro Index (+2.6%), and the Lyxor Variable Bias Index (+2.3%).
“Receding systemic risks following the Greek deal and the stabilization of the Chinese stock market haven’t opened a risk-on period. Instead the focus has shifted on the implications from the Chinese slowdown and from the Fed’s normalization.” says Jean- Baptiste Berthon, Senior Cross-Asset Strategist at Lyxor AM.
A macro month with markets left in the passenger seat driven by highly speculative catalysts. They were bound to follow the unpredictable jolts of the intensifying Greek saga ahead of the July 20th repayment deadline. The eleventh hour deal allowed a recovery in risky asset. 3000 km away from there, the Iran nuclear deal was another speculative catalyst with severe implications for the energy sector. Far East, the acceleration of the Chinese stock crash unsettled emerging markets and global assets, with concerns of a domino effect from the unwind of trading margins.
L/S Equity funds were strongly up overall, except for Asian funds. The – temporary – settlement of the Greek saga and the second down leg in commodities selectively favored Europe and to some extent Japan. Both regions also enjoyed a strong earning season. European L/S equity managers outperformed in July, benefiting from a strong beta contribution and exploitable themes. All of them were up in July. By contrast, the US trading environment was more challenging, facing a pending start of the Fed’s normalization and a poor Q2 earning season. However, the drop in US correlations and increased fundamental/company- specific pricing allowed US managers to extract a strong alpha both on their shorts and their longs. Almost all of them ended the month up. The laborious stabilization process in Chinese stock market continued to erode Asian managers’ returns. They were however much better protected than during the first phase of the Chinese de-bubbling.
Event Driven funds returns lagged. Merger Arbitrage underperformed Special Situation funds. The overall US regional bias of the strategy played out adversely. The poor US earning season added volatility in key healthcare, media and tech deals. It offset gains locked on the completion of DirectTV vs. AT&T operation or on the announcement of the Teva vs. Allergan jumbo deal. Such environment was much more challenging to navigate for Merger arbitrageurs. While Event Driven funds’ exposure to the resources sectors was limited, the magnitude of the collapse in energy and base metals in July was unexpected. It hit positions among both Merger Arbitrage and Special Situation funds. Besides the cautiousness building up on illiquid positions ahead of the Fed’s normalization didn’t help. The resilience of the liquid activist stakes allowed Special Situation funds end the month flat or so.
Quite an honorable performance from the L/S Credit Arbitrage funds. Very conservatively positioned, managers dodged most of the accelerating deterioration in the energy sector. They also were little affected by concerns rapidly building up in US credit market, both in IG (mainly from resources issuers) and in HY (factoring in poor earnings). They delivered increased P&L on their shorts. They were also able to benefit from the opportunity window opening in European periphery spreads, following the eleventh hour Greek deal.
CTAs outperformed in July thriving on commodities. They were initially hit by the cross-asset reversals following the surprise referendum announced in Greece. They fully recovered the lost ground thereafter. Their selective directionality paid off. The largest gains were recorded on their short energy, and their long on European risky assets.
They recorded milder gain on their long USD positions and their long US and UK bonds. In balance, gains in these bonds were eroded by losses in European bonds.
Global Macro funds performed well in constrained markets. Unlike CTAs managers, commodities were not key contributors. But they were well positioned to benefit from an environment with lower systemic risk, but concerned by the pace of global growth recovery. Renewed weakness in oil added support to reflation zones. To that regards, their overweight on Eurozone vs. US equities paid off. The volatility during the month was managed through their rate exposure, which provided a hedge. By month end, they held a zero net exposure to European bonds, and a 15% US net bond position.
Photo: Ian Sane
. U.S. On Track To Break $70 Billion In Venture Capital Funding In 2015
After reaching a record high of $56.4B spent in 2014, the U.S. is on track to smash that record and break $70B in Venture Capital (VC) spending by the end of 2015, according to “Venture Pulse Q2´15”, a report from KPMG International and CB Insights. With $36.9B already invested in the first half of the year, the final total money spent by VCs in 2015 could mark a five-year high for the U.S.
According to the report, the U.S. has collectively seen more than $15B invested in four of the last five quarters, including more than $18B in both quarters of 2015 (which contained large deals to airbnb, Zenefits, and Wish, among others). In addition, Q2’15 was a banner quarter for Unicorns – VC-backed companies with valuations in excess of $1 billion. During Q2’15, 24 VC-backed companies achieved Unicorn status (up from just 11 in Q1), including 12 in the U.S. and nine in Asia. Much of the growth in the number of Unicorns can be linked to the availability of late-stage funding.
“Activity is high and should remain so, with 2015 shaping up to be a record year,” said Brian Hughes, National Co-Lead Partner, KPMG LLP’s Venture Capital Practice. “This is driven by a number of factors, including low interest rates, strong participation by corporate investors, and new capital sources such as hedge and mutual funds. Companies are staying private longer and growing to an immense size as a result of access to investment and stronger investor interest, combined with a trend toward late stage mega-rounds.”
Hughes added, “While many analysts are predicting a slight decrease in VC investment in the months ahead, we believe the strength of such fundamental growth drivers have created strong conditions for continued investment.”
The reseach also shows that 55 percent of all VCs in Q2’15 were based in either California, New York, or Massachusetts; Deal activity in California continues to top 400 per quarter (488 in Q2 ’15); and New York has now outpaced Massachusetts in 4 of the last 5 quarters (142 to 117 in Q2 ’15), with the exception of Q1’15 when both states had the same number of deals (121).
In the past year, Internet companies have dominated the marketplace of VC-backed deals, and, in Q2 ’15, they have continued to trump all other sectors with 45 percent of the share, followed by Mobile & Telecommunications (16 percent), Healthcare (14 percent), Non-Internet/Mobile Software (6 percent), Consumer Products & Services (3 percent) and all other sectors (15 percent).
According to the report, Internet companies also topped other sectors based on dollar shares, jumping from 34 percent in Q1 ’15 to 51 percent in Q2 ’15. This increase was primarily led by airbnb’s $1.5B financing in late June. Mobile companies’ dollar share followed with 14 percent in Q2 ’15 (a decrease of 13 percent from Q1 ’15). This decrease can be attributed to Uber’s multiple billion dollar financings in Q1 ’15 compared to the largest Mobile financing of Q2 ’15 (Snapchat at $337M).
“Numerous disruptive technologies and applications are also spurring interest and investment from the VC community,” said Conor Moore, National Co-Lead Partner, KPMG LLP’s Venture Capital Practice. “The growth of new on-demand platforms continues to be particularly robust. This trend, which escalated with Uber and airbnb, is now expanding into new verticals and well beyond North America.”
The analysis by KPMG and CB Insights also found that early-stage deals into VC-backed companies remained steady at 49 percent in Q2’15, while seed deal share dropped to a five-quarter low of 24 percent. Average early-stage deals were $5.3M in Q2’15, breaking $5M for the first time in five quarters.
Additionally, mid-stage (Series B – Series C) deal share reached a five-quarter high, accounting for 26 percent of all deals to U.S.-based VC-backed companies. Interestingly, average late-stage (Series D+) deals in North America rose for the third consecutive quarter, with an average late-stage deal size of $56.3M in Q2’15. This can be partially attributed to the rise of mutual funds, hedge funds, private equity firms and corporations in recent mega-financings.
Moore added that “the availability of these late-stage mega-deals continues to delay potential IPO exits. If companies can raise similar amounts of money through private financing, many companies will opt for it.”
Photo: Derek Gavey
. Where to Seek Returns When Traditional Investments May Not Be Enough?
Much has been said, and written, recently regarding the end of the “Golden Age” of fixed income. Since the late 1970’s, we have seen a continuous increase in bond prices, coupled with decreasing interest rates across all developed countries. However, since overcoming what was arguably the most catastrophic economic crisis to occur in the last 50 years in the United States, a gradual increase in the cost of money is to be expected. This increase will have a potentially significant impact on nearly every other financial asset and investors will be wise to understand these broad impacts on their own portfolios and investment strategies.
In the past, conservative investors, along with many traditional savers, were able to deposit their money in a highly-rated bank to earn a fixed interest rate, or invest in high-quality bonds and conceivably live off of the income generated from the interest with relatively little risk. Presently, and going forward, this will likely no longer be the case because the income generated by these fixed income related investments will not be sufficient to satisfy the cash flow and income requirements they may have previously provided. In addition, the historically low cost of money has led to a situation in which potentially negative real rates (when discounted for inflation) in the short- and intermediate-term, may become reality.
So, we find ourselves in a new age requiring a modified framework for how to invest capital and achieve returns commensurate with objectives.
Faced with this situation, investors are forced to look for alternative ways to invest their capital. The strategy most widely promoted by many banks and brokers, in the face of this challenge, is to generate income by allocating investments to stocks of publicly-listed companies that pay relatively high dividends. This comes with a commensurate increase in risk exposure to the equity markets – which over the long term will likely result in real growth, but over the short term could expose the investor to significantly greater volatility in portfolio values. This requires a significantly greater tolerance for risk than the historical strategy of achieving income through fixed income and bank deposit type investments. This opens the typical investor to the traps of behavioral finance, which lead them to let their emotions drive their decisions in times of crisis, and sell at precisely the wrong time, subsequently incurring a permanent impairment of capital.
Balancing yield, time, liquidity and potential return become ever more important for investors in light of these market conditions. In particular, the historical relationships between these factors that investors have relied on may need to be re-interpreted in light of current conditions. For instance, what has traditionally been viewed as a safer, more conservative investment could become, at least for the short term, riskier than other investment strategies. Fixed income strategies in particular may be subject to loss of capital and purchasing power, unlike what investors have experienced over the past 30 years.
It is in this context that we have begun to look at private, illiquid investments as an important component of a family’s investment portfolio. Within private investments, we include investing in the private markets for both debt and equity, and across asset types that include real estate, operating companies, venture capital, etc.
Illiquid Investments
When we speak of investments which are illiquid, or private investments, there are generally three categories:
Private equity in the most traditional sense. Private equity refers to investment in private (non-listed) companies with the objective to generate returns by providing resources, management expertise, a long-term strategic vision, and value purchases at ideal pricing. The investments of capital and resources ideally lead to value creation and attractive earnings within 5 to 10 years.
Real estate. Within this group of investments there are several subsectors with differing levels of risk, liquidity and in many cases cash flows originating from leases. Diversifying between the local market and constantly changing opportunities in different international markets should also be taken into consideration.
Credit markets. Within this categorization we include direct financing for firms, projects, and even governments, with fixed or variable interest rates which provide reasonable cash flows and potentially, capital appreciation.
Within this universe there exist several “sub-groups,” in venture capital – some which serve to support entrepreneurs starting a venture from scratch, and others which involve debt restructuring for companies in complicated situations, as in the case of financing acquisitions through debt (Management Buy-Outs).
The Action Plan
Our view is that including a diversified set of private investments sourced in the illiquid markets can add both income and capital appreciation potential to a family’s investment portfolio, as long as the trade off of having more illiquid investments is fully understood and vetted for each particular family and their objectives. This is particularly true as we look at the potential challenge of a lower-return public market environment (in both fixed income and equities) which is likely to be the case for the near to medium term.
Sourcing illiquid investments is not as straightforward as sourcing investment opportunities in the public markets. Information is harder to come by, evaluation of the investment strategy requires more time, understanding and negotiating the potential terms of investment can be more challenging, and assessing the alignment of interests between the opportunity “sponsor” and the investor is critical.
We have been seeing wealthy families adopting greater exposure to the illiquid, private investment markets with the objective of diversifying and increasing their returns and yields, relative to the apparently diminishing potential in the public markets.
By: Santiago Ulloa, Managing Partner, WE Family Offices
Courtesy photo. TotalBank Adds Ana Olarte as SVP To Private Client Group
TotalBank announced Ana M. Olarte is joining the recently created Private Client Group as Senior Vice President and Private Banker. In her new position, Olarte will service and augment existing Private Client relationships, and will develop relationships with new clients, targeting professionals and high-net-worth individuals.
Olarte was most recently a Senior Vice President and Private Banker at Gibraltar Private Bank & Trust. She began her career at BankUnited almost a decade ago, and her experience includes consumer lending and international private banking in addition to domestic private banking.
“Ana will be a tremendous asset to our private banking team. Having had the pleasure of working with her in the past, I know firsthand that she has the skills and experience needed in acquiring, developing, and retaining clients. She is also actively involved in the community and local professional groups, an essential component to growth and development in this important market,” stated Jay Pelham, EVP of the Private Client Group.
Olarte holds a Bachelor of Science degree in finance and international business from Florida State University. She is a member of numerous organizations including Bankruptcy Bar Association, Legal Services of Greater Miami, and Women’s Chamber of Commerce.
Photo: Cristian Eslava. A Time To Reflect — Not React
China’s attempts to shore up its domestic growth through currency devaluations and aggressive monetary stimulus have unnerved many investors around the globe. As a result of this and other macroeconomic events like the drop in oil prices and the uncertainty surrounding rate lift-off in the US, equity markets have sold off sharply and volatility has spiked. On Aug. 17, the CBOE Volatility Index (VIX) was around 13; just one week later, however, it had jumped to nearly 411 – a level last seen in October 2011 during the eurozone sovereign debt crisis.
These extreme short-term gyrations can be quite stressful, but are an excellent time to reflect, not react. The investing horizon for most investors is measured in years, if not decades — not days. Therefore, it is most appropriate — and fiscally responsible — to consider the implications of risk over a time frame that extends beyond today’s headlines.
A long-term view of risk
Within Invesco Quantitative Strategies, we have been managing risk as well as return for over 30 years. Throughout that time we have quite deliberately used models that forecast risk over a longer horizon in all our equity strategies. This has led to more stable risk profiles in those strategies because long-term average volatility is simply easier to predict — and therefore manage — than short-term volatility. It’s a bit like the weather. I can’t tell you if it will rain next Friday, but I can tell you with a high degree of certainty that we’ll get an average of about three inches of rain over the summer months.
Reacting to short-term volatility and chasing the accompanying trends can be quite dangerous. First, it’s a certainty that the incremental turnover and related transaction costs will eat into your portfolio’s returns. Second, and even more importantly, there’s a very good chance that you will get whipsawed by the sharp moves — selling after prices have already fallen, and buying back after prices have reverted to former levels. Rather than fret about the right tactical decisions to make against a rapidly shifting backdrop, these times are a good opportunity to reflect on your strategic allocations. Is my risk properly balanced and diversified across strategies? Am I getting the diversification I thought I had? Are there strategies to consider that have historically performed well during stressed market conditions?
Compared to the longer market history, investors have enjoyed a generally low level of volatility since 2012. This may have led to some complacency regarding strategic asset allocation decisions. Given the generally low levels of volatility in recent years, and the uncertainty in the macroeconomic environment, it may be likely that after we get through this current spike, average volatility will creep higher. Therefore, investors and their advisors may want to consider strategic allocations to strategies that have historically held up in periods during which volatility increased and equity market returns were less robust. Should you find an unmet need, it is likely prudent to wait for the dust to settle before making any changes. Volatility spikes, by definition, are short-lived, but regret lasts quite a bit longer.
Kenneth Masse is Client Portfolio Manager at Invesco.
Photo: R. Nial Bradshaw. Why High-Yield Bonds Are Compelling Now?
High-yield bonds occupy a special niche within the fixed-income market. These bonds, which are issued by companies with below-investment-grade credit ratings, offer higher yields to compensate investors for accepting exposure to additional credit risk. Generally, the lower the bond rating, the higher the yield.
Traditionally, companies with poorer credit ratings have issued high-yield debt to finance mergers or buyouts to help meet expanding capital needs. However, in recent years, more high-yield bonds have been issued to refinance existing debt. Companies have taken advantage of low interest rates and investors’ increased appetite for higher-yielding income investments to lock in relatively cheap financing. Situations where companies refinance their debt at more favorable rates generally put them in better financial health. Consequently, they tend to involve significantly less risk of default.
High-yield bonds are atractive to a wide range of investors because of their unique set of attributes. They appeal to investors who seek equity-like returns at much lower volatility levels than equities and to those who seek income with relatively low interest-rate sensitivity.
For the past five years, the high-yield market generally has been improving. These are, for Eaton Vance, four reasons to invest now in high-yield:
1. Low default rates.
The default rate has been below 2% in each calendar year since 2010, and as low as 0.6% in 2013 and early 2014, before rising to 2.0% with the default of TXU, a large high-yield bond issuer. This compares very favorably to the
10.3% default rate that was briefly reached in 2009, in the early aftermath of the credit crisis. It also stands well relative to the asset class’s long-term average default rate of 3.9%.
2. Healthy balance sheets.
Corporate balance sheets of below-investment-grade firms are generally in good shape and likely to improve as the economy gradually continues to recover.
3. Higher-quality issues.
The quality of new high-yield bond issues has been relatively good for several years, with 56% of issues currently being used to refinance debt, which is generally a positive scenario, bolstering company financial health. Conversely, fewer high-yield bonds being issued are lower-rated or being used to finance acquisitions and buyouts.
4. Low leverage
Another positive trend is that the leverage ratio of debt to EBITDA now stands at around 4, which is roughly where it’s been for about four years after peaking at about 5.2 in mid-2009. This is a reflection of the diligent work by many corporations to strengthen their balance sheets as well as more prudent stances taken by financial institutions and by investors in general.
With all that said, it is important to be mindful of market changes and the risks of deteriorating credit standards as the credit cycle changes at some point. For instance, a rise in the issuance of CCC-rated lower-quality debt could be a warning that the credit cycle is nearing an end. These riskier bonds tend to accompany an upswing in aggressive leveraged buyouts and indicate an increase in the high-yield market’s overall risk exposure.
Eaton Vance is mindful of quality within the high-yield market and the importance of being compensated appropriately or sufficiently for higher levels of risk. If yields are only rising incrementally for much higher levels of risk, it may be wise to pass rather than take on higher or excess levels of risk. “In brief: Ask if you are being paid appropriately or if risk is being appropriately priced“, said the firm.
Patrice Dussol, Responsible for Spain and LatAm. The Oddo Group Gives Rise to Oddo Meriten Asset Management
Following BaFin’s approval in Germany, Oddo & Cie has closed the acquisition of Meriten Investment Management. Together with Oddo Asset Management, the newly formed asset manager will be named Oddo Meriten Asset Management. With €45bn assets under management, the Franco-German player becomes a Eurozone’s independent asset manager leader. The Oddo Group confirms its expansion on the German market as well as its long term commitment to the asset management industry.
The Franco-German DNA of Oddo Meriten Asset Management translates into its current clients’ geographic breakdown: 55% in Germany, 37% in France, 8% in other markets of which globally 76% are institutional investors and 24% are third-party distributors.
The two key investment centers and geographical pillars of Oddo Meriten Asset Management are Paris and Düsseldorf with additional distribution offices in Milan, Geneva and Singapore. The two legal entities in France and Germany will be led as before by Nicolas Chaput and Werner Taiber. Nicolas Chaput becomes Global CEO and co-CIO of Oddo Meriten Asset Management while Werner Taiber, based in Düsseldorf, becomes Global Deputy CEO in charge of Sales Development.
Oddo Meriten Asset Management, a specialist focused on European markets, enhances its investment capabilites on all main asset classes. As of today, assets under management breakdown as follows: €17bn in Fixed Income, €8bn in Equities, €9bn in Asset Allocation, €2bn in Convertibles Bonds, €6bn in Systematic Strategies and other €3bn.
“Our existing clients will benefit from our enhanced combined capabilities. Our German institutional clients will be offered access to convertible bonds and fundamental European Equities expertises. As for our French and international institutional clients, they will get access to corporate Investment Grade and High Yield, Euro Aggregate capabilities as well as quantitative strategies (Trend Dynamics, Quandus). On the German Wholesale and IFA side, clients will benefit from a targeted mutual fund range, focused on asset allocation (Oddo Patrimoine, Oddo ProActif Europe, Oddo Optimal Income) and European stock picking (Oddo Génération, Oddo Avenir Europe, thematic funds on real estate and banks)”, according to the firm.
Oddo Meriten Asset Management’s 276 employees are committed to ensure continuity of client satisfaction.
Philippe Oddo, Managing Partner of Oddo Group says: “We are pleased to welcome our Düsseldorf colleagues. Thanks to them we are creating a Franco-German group. 25% of our revenues and teams are from now in Germany. Oddo’s partnership will be opened to Meriten’s talents. We want to continue to retain and to attract the best people.”
“Our unmatched understanding of French and German markets will enable us to bring a unique set of European investment solutions to our clients”, says Nicolas Chaput. “This is a major change of dimension, as we have become one of the top independent players in the Eurozone. We are committed to provide sustained top notch performance to our clients and to keep investing into proprietary fundamental and quantitative research.”
“The merger of Oddo Asset Management and Meriten Investment Management ensures the consistency in our investment approach as well as the continuity with our clients in Germany and abroad. In addition it supports our ambition to further grow the business with existing and new clients,” says Werner Taiber.
Photo: Garry Knight. Columbia Threadneedle Investments Grows UK Equities Team
Columbia Threadneedle Investments has appointed Jeremy Smith to the new role of Head of UK Equity Research. He joins in September to lead the UK research team and further develop Columbia Threadneedle’s UK equity research capabilities. His appointment follows that of new analyst recruits Phil Macartney and Sonal Sagar.
Jeremy will be based in London and will report to Leigh Harrison, Head of Equities, Europe. He joins from Liberum Capital where he was part of the Equities Sales team. He has 23 years of experience and has held various roles in asset management including Head of UK Equities at Neptune Investment Management and Director in the UK large cap team at Schroders.
Leigh Harrison, Head of Equities, Europe, said: “Jeremy’s appointment comes at a fantastic time. We have been experiencing great success across the product range; with our UK and European funds AUM at record highs this year and the UK Absolute Alpha Fund reaching £500m this month. Active management and insight are a key part of our ability to deliver successful outcomes for our clients and Jeremy’s strong track record and extensive experience will further enhance our client proposition.”
Jeremy’s appointment follows Mark Nicholls who joined the European Equity team as a Portfolio Manager in May this year. Phil Macartney joined the UK Equity team in March 2015 from Bramshott Capital where he was a senior equity analyst and Sonal Sagar also joined the UK Equity team in May 2015 from Jefferies International where she was an equity research analyst. Phil has eight years and Sonar has nine years of investment experience.
