Photo: Teamwork. Pivotal Role of Digital Media Prompts European Managers to Enlarge Teams
Managers boost specialized teams in recognition of their value in reaching and retaining clients, finds new Cerulli Report European Sales and Marketing Organizations 2014.
The number of digital media teams with more than 10 employees leaped by 15.5% in 2014 compared with the previous year. This increase suggests that managers are reacting to the latest technological trends by hiring specialized people, rather than pre-empting the changes by training existing staff to deal with the advances.
A total of 79% of managers expect digital media headcount to climb further-an increase of more than 50% on those polled the previous year. Only 21% of managers expect to keep their resources at the same level.
Company websites are the top digital media channel used by asset managers to target advisors, institutional investors, distributors, and end consumers, according to Cerulli research. Fully 100% of managers target advisors this way, while 80% of firms use their website to pitch to institutional investors.
It is no surprise that improving websites was asset managers’ most important digital strategy for 2013 and 2014. Several managers surveyed by Cerulli said their company had customized the website with “microsites” containing material that was relevant to specific countries.
Meanwhile, social media strategies were rated less important by managers, compared with the previous year. Cerulli research found that many asset managers allocate fewer resources to social media because of its limited take-up among some channels. Only 45% of managers use social media to reach institutional investors and 35% use it to engage with end consumers.
The challenge for asset managers is to connect with clients across all devices in real time. But social media is more challenging to use as a communications tool in the financial services industry owing to the intricacies of compliance.
“Compliance and regulation are always a big concern for asset managers and the industry in general,” says Barbara Wall, Cerulli Associates’ Europe research director. “Communication is tightly regulated and there is less flexibility to be playful or light-hearted when using social media, compared with other brands,” she adds.
“As regulation, technology, and its users mature, this could change,” says Angelos Gousios, an associate director at Cerulli.
“Several asset managers said that the institutional channel prefers face-to-face interaction and targeted industry information, which is easily accessible on blogs and company websites,” Gousios says. “Social networking on a mobile device in Europe is generally more popular with younger age groups, so we might see usage of social media increase as the workforce ages,” he adds.
Photo: Ares Nieto Porras, Flickr, Creative Commons. Lyxor Launches Currency-Hedged ETF Share Classes on Euro Stoxx 50
Paris headquartered Lyxor AM launched the first currency-hedged ETF share classes on Euro Stoxx 50 index, on 17 February. It has a total expense ratio of 0.20% per annum.
Lyxor said that these hedged ETFs, Lyxor Ucits ETF Euro Stoxx 50 Monthly Hedged C-USD and Lyxor Ucits ETF Euro Stoxx 50 Monthly Hedged C-GBP, are meeting investors’ needs “in an environment where monetary policies’ misalignment has contributed to an increase in currency volatility.”
Fluctuations in foreign-exchange rates can affect the performance between the index returns in its local currency and the returns of a non-hedged ETF listed in a different currency.
Arnaud Llinas, Lyxor’s head of ETFs and Indexing, commented: “Lyxor is always looking for new investment opportunities to meet investor needs and has expanded its ETF range accordingly. Our currency-hedged ETFs tracking the Euro Stoxx 50 Index therefore offer exposure to European equities, while mitigating the fluctuations of the Euro against the listing currency.”
Lyxor has currently $6.5bn (€5.7bn) of assets under management on the Euro Stoxx 50 index, covering 50 stocks from 12 Eurozone countries.
CC-BY-SA-2.0, FlickrPhoto: Jorge Elías. Morgan Stanley Recruits Team of Some of the Most Seasoned RBC WM Professionals in Miami
A team of some of the most seasoned investment advisors of the international private banking office of Royal Bank of Canada in Miami has joined Morgan Stanley. Robert Alegria, Richard Earle and Javier Valle began working at Morgan Stanley Wealth Management last January.
According to information confirmed to Funds Society by sources close to the company, this group of advisors hired by Morgan Stanley, could be increased in the weeks before the imminent closure of RBC Wealth Management’s international private banking services in Miami, which is scheduled for late February.
Richard Earle and Javier Valle had worked for over 10 years as investment advisors at RBC WM, since 2002. Robert Alegria, CFA, had been working at the Canadian firm since 2001, first as a portfolio manager, and later also as an investment advisor.
RBC Wealth Management has decided to end its international private banking business in the US, confirming the closure of its offices in Miami, Houston, Toronto, and the Caribbean, as well as its international brokerage service known by the company as its International Advisory Group. The US broker dealer business continues to function throughout the country. The closure, which was released exclusively by Funds Society last September, has been carried out gradually in stages, culminating at the end of this month.
Quite a number of investment advisors from RBC’s Wealth Management office in Miami have joined other private banking projects within the market.
. Safra Appoints 12 Private Bankers from RBC Wealth Management in Miami and Aventura
Safra National Bank of New York, Safra Securities, and J. Safra Asset Management, have finalized the recruitment of a large group of investment advisors from RBC Wealth Management, which is closing its international business later this February.
Safra’s Office in Miami
Safra Securities’ Miami office has recruited Julian Stienstra, former Managing Director Americas Private Banking at RBC Wealth Management. Stienstra has been involved in the RBC group since 1976, when he joined the group in Argentina, his home country. Since then, he has worked at several divisions of the Canadian bank, both in its retail banking division and in wealth management, based in different countries, including Brazil, Canada, and finally USA (Miami). Stienstra joins the Safra team in Miami as Executive Vice President, along with three Senior Vice Presidents, Diana Gangone, Arlette Ctraro and Julio Revuleta, a Vice President, Lupe Wong, and four Assistant Vice Presidents, Nanci Zarate, Claudia Foco, Jocelyn Gonzalez, and Monica Forgang. All of them worked previously at RBC Wealth Management.
Appointments to the Aventura office and to J. Safra Asset Management
In addition, Safra Bank’s New York Aventura office has hired Diana Duys and Cybelle Marinello, also from RBC Wealth Management, both as first VPs; finally, Michael Dejana joins J. Safra Asset Management as investment advisor and Senior Vice President. Michael Dejana worked as CIO for RBC WM in New York for over12 years, and had previously held the same position for 15 years at Barclays Wealth. Mr. Dejana will be working between Ney York and Miami.
Photo: Stephanie Ouwendijk, new a vice president and portfolio manager at Franklin Templeton Investments. Franklin Templeton Hires Portfolio Manager From Ashmore
Franklin Templeton Investments has announced that it has appointed Stephanie Ouwendijk as a vice president and portfolio manager.
Ouwendijk joined Franklin Templeton on 16 February 2015, as part of its Emerging Markets Debt Opportunities team which sits within the Franklin Templeton Fixed Income Group.
She is based in London and reports to William Ledward, senior vice president and portfolio manager, who leads the Emerging Markets Debt Opportunities team. The team currently manages over $10bn for institutional investors.
Ouwendijk joins Franklin Templeton from Ashmore Group, a London-based emerging markets asset management firm, where she served as fund manager since June 2010. Most recently, she was part of a team responsible for External Debt and Blended Debt funds, and in particular was responsible for CEE and Africa sovereign and quasi-sovereign credits.
Prior to working at Ashmore, she was an emerging markets analyst/portfolio assistant at Gulf International Bank Asset Management. She holds an MSc in investment management from Cass Business School in London, and MSc and BSc in business administration from Vrije Universiteit in Amsterdam. She is a Chartered Financial Analyst (CFA) Charterholder.
The Franklin Templeton Fixed Income Group is an integrated global fixed income platform comprising over 100 investment professionals located in offices around the world. The group launched its first fixed income portfolio more than 40 years ago and has been managing money for the institutional market for more than 30 years.
Photo: Jacob Ehnmark. Investec Asset Management Announces Use of Stock Connect in UCITS Fund Range
Investec Asset Management announced today that funds within its flagship Luxembourg-domiciled UCITS Global Strategy Fund range will now have the capability to invest in the Chinese domestic equity market using Shanghai-Hong Kong Stock Connect. Regulatory approval was received in December 2014 and it is believed that Investec Asset Management is the first global investment manager of UCITS funds set up to invest using Stock Connect.
This news follows the award of an RQFII (Renminbi Qualified Foreign Institutional Investor) licence by the China Securities Regulatory Commission (CSRC) and the allocation of its RQFII investment quota by the Chinese State Administration of Foreign Exchange (SAFE).
In the near future, Investec Asset Management intends to utilise its RQFII licence and quota to launch two new daily dealing UCITS funds in its GSF range, one focusing on Chinese equity exposure and the other on onshore Chinese bonds. This builds on its range of dedicated Asian investment strategies, including the Investec 4Factor All China Equity Strategy and the Investec Asia ex Japan and Investec EM Equity Strategies.
These developments allow Investec Asset Management to provide clients with direct access to mainland Chinese equity markets across both global and regional products in a product structure offering both flexibility and liquidity.
Greg Kuhnert, Manager of the Investec Asian Equity Strategy commented, ‘The A share market represents the other 50% of the China pie previously closed to foreign investors. Because of our long-term investment in the region and investment hub on the ground, this market appears rich with opportunities for investors such as us who are focused on companies demonstrating improving profitability, return on capital, capital discipline and valuations.’
Amadeo Alentorn, Manager and Head of Analysis for the Global Equity team at Old Mutual Global Investors, who was recently in Madrid . “The ECB has Disappointed by Acting too Late; There Was an Opportunity to Change the Sentiment a Year Ago”
After the last few years of constant increases in the equity markets, uncertainty is once again starting to make an appearance, in response to aspects such as the divergence in worldwide monetary policies, or the political and electoral events which could cause significant changes over the course of the year. In this current backdrop of greater uncertainty and volatility, the proposal of Old Mutual Global Investors, which recently presented in Madrid its long / short global equity strategy with an absolute return perspective (Global Equity Absolute Return), makes complete sense.
It is a totally neutral market strategy with zero exposure to market or beta, and uncorrelated with the market behavior, which makes it a good strategy to diversify risks. “It has an absolute return profile that is generating much interest among Spanish investors and looking for a 6% return over liquidity,” says Amadeo Alentorn, Manager and Head of Analysis for the Global Equity team at Old Mutual Global Investors. Something that has been achieved in recent years with a volatility of around 5% and which has allowed it to increase its assets to 3 billion dollars (of the total 5 billion which the company manages in equity, between this and other long only strategies).
Behind their success lies a systematic model, which, out of a global universe of 3,500 companies with the largest capitalization and liquidity in the world, selects 700, through the implementation of five criteria of a fundamental nature: valuation, growth, sentiment analysis, business management, and market dynamics.
These criteria change their weight and become more or less important depending on the market situation. Thus, the model has a number of historical situations by which it analyzes which factors have worked better, and acts accordingly. Therefore, the emphasis changes depending on the economic climate: if the market falls, the greatest weight will be on the quality of the companies, business management, etc., factors that tend to work better. “Currently, the sentiment is neutral: there is still risk aversion, despite the ECB. Although volatility will grow, and is greater than in the past, it’s still not too high. The current economic climate values strong balance sheets and the quality of the companies, the most defensive stocks; and valuation criteria do not work too well,” says the manager. In his opinion, the ECB has disappointed markets by acting too late, and a year ago would have had the opportunity to change the sentiment; hence he predicts lateral movements in the markets and increased volatility.
The model, which gets its profitability mainly from stock selection (i.e. choosing the securities on the long side to be better than short), also gets profitability through sector positions, which can afford to have some exposure: for example, they are short on energy securities and long in defensive sectors such as the health sector or utilities. In fact, amongst their long positions in Spain these sectors stand out, in securities such as Iberdrola and REE, for the strength of their balance sheets and sustainable growth of the sector. But regardless of sector positions, exposure is zero in currency, regional positions, or by country, the manager explains.
Amadeo Alentorn, Manager and Head of Analysis for the Global Equity team at Old Mutual Global Investors, works from London within a team consisting of two others managers, analysts, and training experts.
Wikimedia CommonsPhoto Luc Viatour. Leading Entrepreneurs from U.S., Latin America and Europe will meet at eMerge Americas’ 2015
eMerge Americas, a global technology conference focused on innovations transforming industries across the Americas, will host a world-class array of early and later-stage companies to highlight innovation and disruptive technology through its Startup Showcase to be held in May, 1st to 5th, in Miami Beach.
As part of the eMerge Americas 2015 program, the Startup Showcase takes place in front of hundreds of investors and industry innovators. The showcase will culminate with the top companies pitching on eMerge’s Center Stage for the chance to walk away with up to $150,000 in cash and prizes. The companies selected for the Startup Showcase will also gain valuable insight from mentors in the lead up to eMerge Americas through an innovative virtual boot camp followed by an live boot camp for entrepreneurs in Miami during the event.
Registration is currently open and until MArch 15th. Startups interested in participating can visit www.emergeamericas.org/startups/
Wikimedia CommonsPhoto: Coolcaesar. FATCA Deadlines for 2015
Even though FATCA officially went ‘live’ on July 1st last year, APEX Funds Services reminds us sthat many of the key implementation deadlines will take place in the following years. FATCA generally imposes registration, due diligence and reporting obligations on Foreign Financial Institutions (“FFIs”).
Last year, FFIs were required to implement new account opening procedures and register with the US Internal Revenue Service (“IRS”). There was a surge in registrations on the IRS portal in late December as Model 1 FFIs rushed to register and obtain their Global Intermediary Identification Number (“GIIN”) before the year end deadline. For FFIs that have failed or were unwilling to register and comply, then 2015 will bring a number of challenges e.g 30% withholding tax on certain US source payments, stiff penalties and/or enforcement action by their local tax authority along with reputational, legal and other operational headaches.
Acording to Karen Wallace, Global Head of Compiance at APEX Funds Services Holdings, for FFIs that have registered under FATCA then their focus for 2015 should be on the following upcoming deadlines:
March onwards: registering for an on-line account with the IRS or relevant local tax authorities in order to comply with the reporting obligations e.g registration required by the Cayman tax authority by 31 March 2015.
31 March 2015*: reporting deadline to the IRS for Model 2 IGA jurisdictions and FFIs in non-IGA jurisdictions.
31 May/30 June 2015: typical reporting deadlines for Model 1 IGA jurisdictions.
30 June 2015: review of pre-existing individual high value accounts as at 30 June 2014 must be completed
*The IRS has advised an automatic 90-day extension is granted to all filers (without the need to file any form or take any action) with respect to calendar year 2014 only.
For the above reporting dates, FFIs must report the name, address, U.S. TIN (date of birth for pre-existing accounts if no U.S. TIN), account number, name and identifying number of the reporting institution, and account balance or value for US reportable accounts for calendar year 2014. Reporting obligations will increase in 2016 and 2017 respectively. It is essential that FFIs have a comprehensive FATCA compliance programme in place to limit non-compliance risk and meet the obligations of the relevant IGAs and/or the IRS.
Photo: Jorge Royan . The Role of the Advisor as Master Builder of the Integrated Wealth Plan
Family Office Exchange (FOX), a global membership organization of private family enterprises and their key advisors, will celebrate the 2015 Wealth Advisor Forum at the Biltmore in Coral Gables, FL, April 27-29.
The event will show how the family’s key advisor serves as the architect and integrator for the advisor ecosystem, and how advisors can contribute meaningfully toward solutions for families by embracing the mindset of a master builder. Advisors that work in a mindful and complementary way with other advisors to create the integrated wealth plan serve their clients more effectively.
The Forum will reveal new FOX insights on what families say they want and need from their advisors and will document the critical factors for building an integrated wealth plan.
Speakers include NYU’s Ben Dattner and Yale lecturer Sarah Biggerstaff. They will be joined by FOX experts Alexandre Monnier, President, and Amy Hart Clyne, Executive Director of the Knowledge Center.
Registration for the event is open to FOX members and non-members, but seating is limited. Attendees are also encouraged to join FOX for the Michael Brink Memorial Golf Outing on April 27 at the Biltmore Golf Course.
