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CAIA to Launch its Latin American Chapter

Screenshot 2021-11-16 085040 — Pixabay CC0 Public Domain. foto

Composed of representatives from Brazil, Mexico, Chile, Colombia and Peru, the CAIA Association prepares the launch of its 32nd Global Chapter: CAIA LatAm, which will work to provide opportunities for local CAIA members to network, share knowledge and create a environment that encourages the growth of the local alternative investment industry.

The chapter will also host educational events with opinion leaders, who will discuss a variety of trends and alternative investment strategies.

As Daniel Mueller, CAIA, director of the LatAm Chapter, commented to the Funds Society, “we decided to launch this chapter because of the great interest of CAIA Latin American Charterholders in having a local community that serves the needs of the local industry and allows continuous growth. The needs are multiple; to improve the education of alternative assets, to bring the best global practices to the local Latin American industry, and to have a community that encourages networking and career development.”

The official launch will take place on November 30, 2021 with a hybrid event via zoom, from Santiago de Chile.

Join CAIA Association Executive Director Bill Kelly, CAIA Executive Vice President John Bowman, and the LatAm Chapter Committee for this special launch event as they outline their mission and plans for 2022!

Kandor Global Expands its International Infrastructure with Four New Team Additions

| For Magdalena Martínez | 0 Comentarios

Captura de Pantalla 2021-11-15 a la(s) 10 — Foto cedida. ,,

Kandor Global, the Miami based RIA serving ultra-high-net-worth clients worldwide, has announced the addition of four new recruits that will strengthen the Investments and Reporting teams to enhance services to international clients. In a press release, the firm has also revealed that it has amassed 500 million dollars in assets under management after just a year of its launch.

One of the new recruits is Santiago Torres, who joins as an Associate in the Private Investments division. He previously accumulated 5 years of experience with Global Seguros de Vida, one of the largest institutional investors in the private markets sector of Colombia. “Kandor Global is confident that his experience will ensure best practices, spanning from due diligence to implementation, from an institutional perspective”, said the company. To support him in this mission joins Santiago López Zapata, who previously worked at Banco de Bogotá.

“Currently, the team has managed investments in 80 funds and we expect this number to increase as our clients have shown a strong interest in private investments due to performance and ability of a true long term investment. Our sharp and experienced team can effectively offer our clients a broad portfolio of managers while managing the processes efficiently for all parties involved”, stated Guillermo Vernet, Founder & CEO of Kandor Global.

Two additional members now reinforce the reporting team that manages a holistic view of the clients’ investments by using Addepar: Santiago López Cardona and Gabriela Díaz. According to the firm, their technological savviness will contribute to maximizing the use of Kandor Global’s current tools and incorporating others necessary in providing custom reports to clients.

“Since our launch, our focus has been in creating a strong, agile and enthusiastic team. We’re an effective team of 15 members spanning different locations in the U.S., Colombia, and Spain. In the next steps of expanding the business, we are avidly recruiting new advisors and focusing on intensive due diligence for domestic and international acquisitions,” added Vernet.

Kandor Global serves ultra-high-net-worth clients worldwide through a wide array of services: multi-family office, wealth management and private markets consulting. The firm is headquartered in Miami with an extended reach across Latin America and Europe. It is supported by Summit Growth Partners, LLC (“SGP), a partnership between Summit Financial Holdings and Merchant Investment Management.

Pictet Asset Management: Inflation Presents Greater Risk to Bonds than Stocks

| For Meritxell Sedo | 0 Comentarios

Times are tough for global financial markets. Monetary conditions are tightening while supply chain bottlenecks are starting to take their toll on the global economy. At the same time, inflationary pressures are proving more persistent than previously expected.

We believe fixed income markets will be particularly hard hit, as yields adjust to higher inflation and the prospect of tighter monetary policy. High yield bonds appear especially vulnerable. Equities won’t be immune to market jitters either. But, on balance, we believe they should hold up better than bonds because economic growth is still strong enough to allow for positive surprises in corporate earnings.

Our business cycle indicators for the world have turned neutral after a year in positive territory. However, they still suggest that economic growth will remain comfortably above the long-term trend, at 5.9 per cent this year and 4.8 per cent in 2022.

That is consistent with corporate earnings growth of around 15 per cent next year – double the pace of the consensus forecast. Upside surprises in profits are more likely in Europe and Japan, where the economic recovery has further to run.

Although growth momentum in the euro zone appears to be stalling, with industrial production weighed down by supply frictions, government and central bank policies remains supportive. The risk of monetary and fiscal tightening here is lower than in other developed markets.

In Japan, meanwhile, confidence is recovering from historically depressed levels and business activity surveys are improving.

The situation is more negative in China, however, where activity continues to slow, whether that’s in terms of industrial production, construction and fixed asset investment. However, sentiment surrounding the vital property sector (which account for around 25 per cent of the country’s GDP) appears to be stabilising. That is in part due to debt-laden property developer Evergrande coming good on coupon payments, averting a default at the last minute. Authorities in Beijing, meanwhile, have encouraged banks to lend to the property sector.

While we still expect more stimulus from China, it has been less forthcoming than we originally expected, with policymakers prioritising deleveraging over short-term growth. Elsewhere central banks are starting to drain liquidity, particularly the US Federal Reserve and the Bank of Japan. Private credit creation, meanwhile, remains dormant and is not expected to recover until next year. As a result, the total liquidity provision among the world’s five biggest economies has now dropped to the equivalent of 11.9 per cent of GDP, down sharply from last year’s peak of 28.7 per cent. This prompts us to downgrade our global liquidity score to neutral (1).

However this decline should be gradual in order to ensure the recovery remains on track. Indeed, central banks are likely to show higher tolerance for inflation, not least because their policy moves cannot address the most immediate cause of price increases – supply bottlenecks.

Nevertheless, tighter liquidity is sure to have a negative impact on valuations – both for equities and bonds. Our models suggest that a 100 basis points rise in real yields translates into a 20 per cent drop in stocks’ price-earnings ratios. However, we believe we have already seen most of that move.

Although equities look expensive relative to bonds, our estimate of the equity risk premium still points to relative upside for stocks in most regions. Companies’ sales figures are beating forecasts by less than the previous quarter, but corporate earnings surprises are still high, which points to healthy operating leverage (see Fig. 2). In the short-term, at least, we believe profit margins will be resilient to rising input cost pressures.

Valuations support our preference for defensive healthcare stocks (among the cheapest sectors in our model, in relative terms) and caution on expensive US high yield bonds.

Technical charts show positive seasonality for equities, as well as supportive medium-term trends. Some investor surveys, including the American Association of Individual Investors (AAII), indicate bullish sentiment.

In contrast, short-term momentum for bonds has deteriorated across the board. The Bank of America fund manager survey shows investors allocation to bonds sits at all-time lows. At the same, net short positioning for US Treasuries, especially in the 2- and 5-year maturities, has increased significantly.

Opinion written by Luca Paolini, Pictet Asset Management’s Chief Strategist.

Discover Pictet Asset Management’s macro and asset allocation views.

Notes:

(1) Measured as policy plus private liquidity flows, as % of nominal GDP, using current-USD GDP weights for US, China, euro zone, Japan and UK.

Information, opinions and estimates contained in this document reflect a judgment at the original date of publication and are subject to risks and uncertainties that could cause actual results to differ materially from those presented herein.

Important notes

This material is for distribution to professional investors only. However it is not intended for distribution to any person or entity who is a citizen or resident of any locality, state, country or other jurisdiction where such distribution, publication, or use would be contrary to law or regulation.

The information and data presented in this document are not to be considered as an offer or sollicitation to buy, sell or subscribe to any securities or financial instruments or services.

Information used in the preparation of this document is based upon sources believed to be reliable, but no representation or warranty is given as to the accuracy or completeness of those sources. Any opinion, estimate or forecast may be changed at any time without prior warning. Investors should read the prospectus or offering memorandum before investing in any Pictet managed funds. Tax treatment depends on the individual circumstances of each investor and may be subject to change in the future. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested.

This document has been issued in Switzerland by Pictet Asset Management SA and in the rest of the world by Pictet Asset Management (Europe) SA, and may not be reproduced or distributed, either in part or in full, without their prior authorisation.

For US investors, Shares sold in the United States or to US Persons will only be sold in private placements to accredited investors pursuant to exemptions from SEC registration under the Section 4(2) and Regulation D private placement exemptions under the 1933 Act and qualified clients as defined under the 1940 Act. The Shares of the Pictet funds have not been registered under the 1933 Act and may not, except in transactions which do not violate United States securities laws, be directly or indirectly offered or sold in the United States or to any US Person. The Management Fund Companies of the Pictet Group will not be registered under the 1940 Act.

Pictet Asset Management (USA) Corp (“Pictet AM USA Corp”) is responsible for effecting solicitation in the United States to promote the portfolio management services of Pictet Asset Management Limited (“Pictet AM Ltd”), Pictet Asset Management (Singapore) Pte Ltd (“PAM S”) and Pictet Asset Management SA (“Pictet AM SA”). Pictet AM (USA) Corp is registered as an SEC Investment Adviser and its activities are conducted in full compliance with SEC rules applicable to the marketing of affiliate entities as prescribed in the Adviser Act of 1940 ref.17CFR275.206(4)-3.

Pictet Asset Management Inc. (Pictet AM Inc) is responsible for effecting solicitation in Canada to promote the portfolio management services of Pictet Asset Management Limited (Pictet AM Ltd) and Pictet Asset Management SA (Pictet AM SA).

In Canada Pictet AM Inc is registered as Portfolio Manager authorized to conduct marketing activities on behalf of Pictet AM Ltd and Pictet AM SA.

Jupiter AM Names Matthew Beesley as New CIO

| For Beatriz Zúñiga | 0 Comentarios

Jupiter AM nuevo CIO — Foto cedidaMatthew Beesley, nuevo CIO de Jupiter AM. . Jupiter AM incorpora a Matthew Beesley como nuevo CIO

Jupiter AM has announced the appointment of Matthew Beesley as Chief Investment Officer (CIO), succeeding Stephen Pearson who is retiring following a 35-year career in the industry including nearly two decades at Jupiter. He will join the company in January 2022.

The asset manager has revealed in a press release that Beesley will initially work closely with Pearson to ensure a seamless handover. Besides, he will report to CEO Andrew Formica and join the Executive Committee. In his new role, he will have overall responsibility for the management of all of Jupiter’s investment professionals and strategies across equities, fixed income and multi-asset.

Supported by Jupiter’s eight-strong CIO office, “he will also have oversight of the associated functions that form the backbone of the company’s investment process”, including its dedicated stewardship, data science, dealing and performance analysis teams.

“The role of CIO is crucially important to the delivery of our strategic objectives through the guardianship of our dynamic, actively-driven investment culture at Jupiter. The fact that we have attracted a high calibre individual such as Matt is a testament to our talented fund management team and the enduring appeal of the Jupiter brand to an increasingly diverse global client base”, commented Formica.

In his view, Beesley shares their commitment to actively-driven returns and has “a well-deserved reputation” for being an “effective and inspiring” leader: “We are confident that, under Matt’s leadership, we will continue to deliver the strong investment results for our clients that is a hallmark of Jupiter”.

With nearly 25 years of experience in the investment industry, Beesley joins Jupiter from Artemis, where he has been CIO since April 2020. Prior to this, he was Head of Investments at GAM Investments from 2017 to 2020, where he was responsible for the management and oversight of its investment strategies managed by teams based in Europe, Asia and the US. Beesley has also been Head of Global Equities at Henderson, responsible for a team managing significant assets in global, international (World ex US) and Global Socially Responsible investment strategies.

Beesley claimed to be “excited” to take up the mantle from Pearson as the business develops, grows and adapts, to ensure they continue to meet clients’ needs “and deliver the superior investment performance that Jupiter is known for.”

Stagflation?

| For Alba Menéndez | 0 Comentarios

autumn-gaaa5939b6_1920 — Pixabay CC0 Public Domain. mundo

Production losses and rising commodity, energy and logistics costs are dampening economic growth and could lead to increased bankruptcies among companies with low earnings. Emerging markets such as India and Cambodia are also increasingly suffering from energy shortages and dramatic price increases. More than 50 per cent of energy production is based on coal, whose price has skyrocketed. Developing new deposits takes a long time and is politically undesirable. Inventories are empty and in addition to hitting the economy of the region, the power shortages that are expected would also worsen global supply-chain problems.

To what extent these losses can be compensated by higher prices depends on the structure of the economy. Net exporters of energy and commodities (e.g. Russia) currently have the advantage over net importers (e.g. Germany). Energy- and commodityhungry China will also likely see a decline in growth. September saw the first decrease in manufacturing activity since the beginning of the pandemic, due to production losses caused by the shortage of electricity in many parts of the country.

There are also signs of a crisis in the Chinese real estate market, where the difficulties of China’s largest real-estate developer Evergrande are causing unrest. The company has more than EUR 250 billion in liabilities, with bonds and bank loans accounting for around 30 per cent of this amount. The largest share is for liabilities to customers and suppliers, i.e. construction companies. It is common practice for property buyers to make advance payments for properties that are still under construction. A collapse of the company would therefore not only affect shareholders, bondholders and lending banks, but also property buyers and suppliers. The situation could become especially precarious if real-estate prices were to fall across a broad front, thereby causing difficulties for other real-estate companies. Given the great importance of the real-estate sector, which economists Kenneth Rogoff and Yuanchen Yang calculate contributes 29 per cent of China’s economic output, and real-estate assets that represent around two thirds of the total assets of Chinese households, a collapse in prices would have serious consequences for the Chinese economy.

The crisis, however, also reveals the structural weakness of the Chinese economy. Credit-financed investments in unproductive residential towers caused private household debt to grow strongly and inflated bank balance sheets. Since the financial crisis in 2008, total debt (private households, companies, government) has grown significantly faster than the growth rate of the economy (see Figure 1).

More and more yuan of additional debt must be incurred for each yuan of additional growth. This model has now reached its limits. The Chinese government is aware of this and Xi Jinping’s call to “strive for real and not excessive growth” may be taken as an indication that other areas of the economy, such as consumption and technology investment, will take priority in the future.

The Evergrande case will likely also make an example of the widespread problem of moral hazard, since a rescue of all interest groups is not expected. Ultimately, the Chinese state banks will work with the central bank and government to manage the crisis in a way that avoids social unrest in order to maintain the legitimacy of the leadership. Shareholders and bondholders will probably go away emptyhanded. It is exaggerated, however, to compare this to the Lehman Brothers bankruptcy and subsequent financial crisis, since there are practically no loans with parties abroad. The expected slowdown in the Chinese real-estate market will nevertheless also have a negative effect on global economic growth.

Given the strong growth in the USA, however, it would be premature to talk of global “stagflation”. This term, which was coined in the seventies, describes the simultaneous combination of falling or stagnant economic output and rising prices. At that time, an oil embargo by Arab exporters caused the price of oil to increase from three to 12 dollars within a year. Inflation rose to 12 per cent in the USA in 1974, while real growth was minus 0.5 per cent and remained below zero in 1975 (see Figure 2).

Although the current situation is not comparable to the seventies, a new inflation regime could become established if the inflation bump continues longer and leads to higher inflation expectations.

So-called second-round effects, in particular higher wage demands in future collective bargaining, will play a role in this. Even if the inflation bump has already receded again by then, the unions will not simply forget the increase in inflation this year but will instead demand extra compensation. This would increase the inflation base.

There are also structural factors that are likely to lead to a higher level of inflation in the long term: deglobalisation, decarbonisation and demographics.

• Deglobalisation: Supply-chain problems are causing companies to distribute their production facilities more broadly and, in some cases, renationalise them. However, choosing resilience instead of efficiency also increases costs.

• Decarbonisation: Climate protection is not without cost. This is politically intended. In addition to significantly increasing CO2 prices, which will have a direct effect on consumer wallets (electricity, petrol, natural gas), the energy transition will also increase production costs, which will indirectly lead to higher consumer prices.

• Demographics: The Baby Boomers will retire in coming years, thereby further worsening the already noticeable shortage of skilled workers. This will drive up labour costs. A growing number of older people who are no longer working will increase the costs of health and pension insurance, therefore also increasing labour costs.

A column by Bert Flossbach, cofounder at Flossbach von Storch

Rigid Prices in the United States?: Comments on October Inflation Data, a 30 Year Record

| For Magdalena Martínez | 0 Comentarios

Captura de Pantalla 2021-11-10 a la(s) 13 — Piqsels. ,,

In October, inflation in the United States reached 6.2% year-on-year, a figure not seen in 30 years that coincides with supply problems, strong consumer demand and, consequently, an increase in prices. At this point, analysts move away from the transient/structural dichotomy and point to a scenario that will see rising and rigid prices appear in some sectors, while not in others.

The new data

Price growth was led by categories such as housing, used and new cars and, of course, energy, since these components have witnessed strong simultaneous restrictions on demand and supply in some areas. In a first analysis this Wednesday, BlackRock considers it likely that “inflation will remain on the high side for a while and the risks of rigid inflation persist.”

Thus, Rick Rieder, head of global fixed income investments at BlackRock, points out that “over time pandemic distortions and extreme base effects are likely to decrease, causing aggregate prices to recede towards a 2% growth rate and allowing quantities to continue expanding once supply pressures are eased, but this will not happen quickly. However, this is not a normal set of historical patterns that can be easily modeled; many inflation factors are likely to remain rigid for a while, even when the aggregate inflation metric of the PCE can normalize in the coming year.”

“It is fascinating to note that, while the supply chain interruptions we are experiencing are clearly a global phenomenon, the U.S. stands out for the dramatic way in which longer delivery times and higher prices are affecting the economy. This is likely to be due in part to the fact that the United States committed itself to an extraordinary stimulus during (and after) the acute phase of the crisis, which boosted savings, household wealth and, ultimately, an extraordinary demand for goods,” Rieder adds.

The manager considers that some cost pressures may begin to decrease in the first and second quarters of 2022. For example, the nature of the pandemic crisis, with initial blockades, social distancing and mobility restrictions, temporarily reversed a trend of more than seven decades towards greater participation of consumption in services, with a marked rebound in the share of goods in consumption.

The data does not justify a stagflation situation

“However, although many easy comparisons have been made with other historical periods of high inflation (such as the 1970s and early 1980s), and the term “stagflation” has spread quite lately, we do not believe that the data justify such concerns,” Rieder considers.

“To be more specific, in terms of rising energy costs, the lack of energy investment in recent years reflects overinvestment in the sector during the period 2012 to 2014. In fact, capital expenditure in the energy sector as part of the S&P 500 has decreased from a peak of more than 30% to recent lows of only 5%. As such, energy prices around current levels may persist or even worsen during a cold winter, but there is no structural shortage of oil, but what we are witnessing is a seasonal or perhaps cyclical phenomenon, “they add from the asset management firm.

Rieder believes that the risks derived from inflation have increasingly become a priority for Federal Reserve policymakers, since excessive accommodation for too long, or essentially making the economy warm up, could well have unintended consequences on the market that further erode confidence and eventually harm the recovery: “We were pleased to see the Fed’s recent decision to start reducing asset purchases, which will be an important evolution for policy, but our eyes (and those of those responsible of policy formulation) will focus on inflation data in the coming months.”

Julius Baer: there is no need to fear slower growth and high inflation

Shortly before the publication of October inflation data in the United States, Julius Baer analyzed the situation in two axes:

Economic growth is slowing down due to supply constraints, while demand remains solid.
Inflation remains largely transitory, since autonomous inflation dynamics are the exception, not the rule.

“The slowdown in economic growth that has fallen from the highest growth rates of all time in the first half of the year and, together with high inflation rates, gives the remarkable impression of stagflation. At the same time, demand remains robust, which contradicts concerns of stagnation. Strong demand in many areas and insufficient supply are in fact the main cause of high inflation. But the response on the supply side is increasingly visible,” they announced from the entity.

The U.S. labor market and inflation

The U.S. labor market added 531,000 new jobs in October and the September data were revised upwards to 312,000 new jobs. Unemployment fell and hourly pay continued to increase, although at a slower pace than in the previous month. As a result, the U.S. labor market remains quite tight, “which fuels fears that high inflation will not only be less transitory, but vicious circles between wages and prices are emerging,” Julius Baer points out.

“While a spiral of prices and wages is a clear possibility, it is unlikely to happen. Formal links in wage contracts between inflation and wage increases remain quite rare and current wage increases are, in most cases, in line with productivity growth, which reduces the pressure to increase prices due to higher wages. The risk of other types of vicious inflationary circles also remains remote, at least in the U.S. and the Eurozone,” explain the bank analysts.

“The depreciation of exchange rates due to high inflation, which leads to higher import prices, is not a problem. In addition, credit dynamics are quite mediocre, despite historically low interest rates and flexible credit conditions, which prevents high inflation from further boosting demand. Therefore, high inflation remains largely a transitory phenomenon, with some more permanent driving factors such as higher rental inflation in the future, while autonomous inflation dynamics are largely absent,” they conclude from Julius Baer.

Leste Group Plans to Reach 8 Billion Dollars in AUM by 2025

| For Gabriela Huerta | 0 Comentarios

Screenshot 2021-11-04 121806 — Stephan de Sabrit, foto cedida. , foto cedida

Since its creation in 2014, Brazilian-born firm, Leste Group, has been consolidating its presence in the alternative asset market, with offices in Miami, London, Sao Paulo and soon New York.

In an interview with Funds Society, Stephan de Sabrit, the firm’s managing partner and co-founder, shared that something that makes them special is their revolutionary partnership model, whereby Leste, as a holding company, partners with world-class investment managers, which are completely dedicated to their line of business.

Leste supports them with compliance issues, and all they need to launch their business, “leaving the front office to the partners, while Leste takes care of everything that goes on behind the scenes,” says Sabrit, adding: “We bring capital and structure, but we also support them as investors and participate in their investment committees.”

An example of this is its partnership with Cassio Calil, through which they recently launched a new mobility strategy that will invest in solutions related to mobile device financing, subscriptions and early updates.

Its clients are mainly UHNWI in Latin America, but they also offer solutions to US residents. “In the case of Brazilians, with rates of 14.5% it was difficult to imagine them taking risk in alternatives, but when rates dropped to 2% there was a change in mentality… [clients] began to look at alternatives and they also realized that they invest abroad,” recalls the manager.

The firm offers investors a wide range of strategies in real estate, credit, risk, liquid markets and other alternative asset classes. Regarding the situation generated by the COVID-19 pandemic, the manager mentions that “not everything is always rosy”, and that the parts related to hotels of both his real estate portfolio in the US and the one in Brazil were affected, but that “little by little they are recovering, and fortunately, we with the partners in this business we were able to cope”. For de Sabrit, being very transparent and explaining the situation to clients allowed them to maintain trust.

His team, which is close to 100 people, coming from different cultures and geographies, seeks to connect and leverage their local knowledge of the markets in which they invest “so that nothing is lost in translation.” Another advantage that he highlights is the ability of his team to originate operations and business, “which allows us to be one step ahead.”

The manager hopes to open an office in New York in the short term, which will be driven by a Venture Debt strategy in the US that has already had its first closure. By 2022 they are preparing a Permanent Capital Strategy for Real Estate in the United States, which will be available to the firm’s foreign investors, “allowing them to take advantage of the largest real estate market in the world, with professional management, and without sacrificing liquidity,” he mentions.

“We have significant ambitions and we want to grow three to four times to reach 8 billion in AUM in 2025,” Sabrit concludes.

Investment Opportunities in China and Beyond: a New V.I.S. with Pictet Asset Management

| For Constanza Ramos | 0 Comentarios

Next Thursday, November 18, at 11:00 am EDT, at a new Virtual Investment Summit organized by Funds Society and entitled “Investment opportunities in Asia: China and beyond“, Jorge Corro, Head of US Offshore, along with his colleagues Kiran Nandra, Head of Emerging Equity Management and Senior Client Portfolio Manager, and Qian Zhang, Senior Client Portfolio Manager in the Emerging and Greater China Corporate Debt team, will talk about the opportunities and challenges for investors interested in Asia

For the first time since the 1980s, the return on a 50/50 global portfolio is below the expected inflation rate. Consequently, global investors will have to diversify into new asset classes, markets and topics like they have never done before. Higher returns, lower inflation, higher growth and cheap currencies are, in Pictet Asset Management’s opinion, a convincing argument for emerging Asian assets.

The panelists at this Virtual Investment Summit will also discuss how recent events in China are affecting the region and the growing influence of the area on the world stage, bringing the world’s economic center of gravity constantly to the East.

You can register to attend through this link: Virtual Investment Summit with Pictet Asset Management, November 18, at 11:00 am EDT.

Kiran Nandra, Head of Emerging Equities Management, Emerging Equities

Kiran Nandra joined Pictet Asset Management in 2016. She is the Head of EM Equities Management and Senior Client Portfolio Manager for the Emerging Equities team.

Previously, Kiran worked at Wellington Management where she was most recently a Portfolio Specialist.

She joined Wellington in 2003 in a Relationship Management role before becoming a Research Analyst covering European and Latin American banks.

Kiran graduated from University College London with an LLB (Honours) degree in Law and is currently enrolled at The University of Chicago Booth School of Business.

Qian Zhang, Senior Client Portfolio Manager, Emerging Corporate and Greater China Debt

Qian Zhang joined Pictet Asset Management in 2019. She is a Senior Client Portfolio Manager for the Fixed Income Emerging Market Corporate and Greater China Debt team.

Before joining Pictet, she was a client portfolio manager in J.P.Morgan Asset Management Global Fixed Income team and Emerging Markets Debt team, based in both London and Hong Kong. Prior to JPMorgan, Qian worked for Merrill Lynch in Tokyo where she focused on Interest Rate Derivatives.

Qian obtained a B.A. in Economics and Statistics from Peking University, Beijing, China and an M.Sc. in Mathematical Risk Management from Georgia State University, U.S. Qian is a Chartered Financial Analyst (CFA) charterholder

U.S. Bitcoin ETFs Expand Crypto Exposure Amid Evolving Risks

| For Magdalena Martínez | 0 Comentarios

Captura de Pantalla 2021-11-09 a la(s) 13 — Pxhere. ,,

The recent U.S. listings of futures-based bitcoin exchange-traded funds (ETFs) expand the range of channels for investors looking to obtain cryptocurrency exposure. However, according to Fitch Ratings, synthetic or direct fund exposures present trade-offs around risk transparency, pricing, operational complexity and the evolving path and scope of regulation.

In Fitch’s opinion, the lack of opposition from the U.S. Securities and Exchange Commission (SEC) for the first ETF based on bitcoin futures reflects the relative comfort of regulators around the trading of instruments within regulated venues rather than an endorsement of the underlying cryptocurrency and is likely to advance the development of similar products.

The current market capitalization of bitcoin ETFs and mutual funds is dwarfed by the Grayscale Bitcoin Trust, a Canadian trust invested in cryptocurrencies. This trust had approximately CAD26 billion in AUM at end-July 2021. However, the firm points out that the U.S. is poised to become the global leader in crypto ETFs with significant market interest and a focus on regulation. Conversely, China recently banned crypto investing.

According to Fitch Ratings, investors in futures-based ETF funds will be exposed to additional price volatility risk and tracking discrepancies between bitcoin and futures prices. Futures-based funds may also underperform funds with physical crypto exposure due to the associated costs of entering into new future contracts and from lack of upside from any software updates – so-called “hard forks” – that yield new coins. In addition, contango (or backwardation) markets may result if the futures price is above (or below) the expected future spot price, further increasing risks for less experienced retail investors.

“The rapid growth in funds may also push the limits on the number of contracts that a fund can own, increasing the challenges of fund/ETF management. Custodial considerations stemming from the physical investing in crypto assets may leave ETFs and funds vulnerable to additional financial and operating risks. Financial institutions with exposure to or that facilitate bitcoin ETFs face increased financial, operational, regulatory and reputational complexities and risks. However, benefits could include higher, more diversified revenue and AUM growth from increased market share and franchise position in cryptocurrencies”, says the firm.

In its view, trading interruption, redemption risks and price volatility are key risks for funds and ETFs investing in cryptocurrencies. Liquidity, while likely still available to ETF investors in periods of elevated price volatility (i.e. crypto price declines), would likely be at substantial discounts. However, until regulatory further clarity is established, including addressing critical definitional questions, crypto investments not only run the risk of becoming substantially devalued due to inherent volatility of the underlying asset, but also from regulatory change or other development that could ban some investments, which could negatively affect investors accessing the sector through trading or fund accounts.

The existing vehicles in Canada demonstrate some of the risks associated with volatility in the underlying assets. Specifically, a number of Canadian Bitcoin ETFs issued market disruption notices in May 2021 indicating that continued stress could force the ETFs to temporarily suspend trading. However, Canadian ETFs were able to continue operating normally through a period of significant volatility, suggesting that ETFs functioned as intended. This may add weight to applications to regulators for cryptocurrency-backed ETFs and mutual funds in other markets.

According to Fitch Ratings, “physical” crypto ETFs are not exposed to futures market dynamics but instead face custody and bankruptcy-remoteness risks, alongside cybersecurity risks associated with electronic wallets holding crypto assets. These represent just some of the risks that the SEC is focused on, ahead of a November deadline for approving (or not opposing) the launch of physical bitcoin ETFs.

In-depth analyses, macroeconomic projections, and plenty of networking opportunities

| For Constanza Ramos | 0 Comentarios

After more than a year of uncertainty in the markets due to the pandemic, the future of the global economy is back into focus. In many ways, COVID-19 has advanced that future by accelerating some pre-pandemic market trends and driving entirely new ones. In the current context of high volatility and the specter of long-term inflation clouding the global economic landscape, Global Markets Outlook is set to become the destination for in-depth market analyses.

Unquestionably, the post-Covid-19 world will be the starring theme of StoneX’s Global Markets Outlook. Specifically, the three-day conference will provide an overview of new technologies and macroeconomic perspectives through four highly specific tracks: Correspondent Clearing, Wealth Management, Global Agriculture, and Dairy. As usual, event will feature some of the world’s leading market experts and thought leaders who will provide a comprehensive view on what to expect for the financial and commodity markets in 2022 and beyond.

Roger Shaffer, StoneX Financial Inc.’s Managing Director, Correspondent Clearing Division, noted that with this event, “our clients will have the opportunity to hear from the company’s CEO and other senior officers as well as key members of the Correspondent Clearing Division.” Mr. Shaffer also said that technology and new initiatives will be front and center. “Basically, we are going to share how we want to help our clients grow their business. That’s the key. One of our most important roles is to help our clients grow their business.”

On the importance of attending Global Markets Outlook, Steven zum Tobel, StoneX Financial Inc.’s Managing Director, Correspondent Clearing Division, said that “the culture that permeates throughout our organization is to provide a high level of service for our clients. Everything we do is for their benefit. We believe strongly in having face-to-face conversations with our clients. There is no substitute for that.”

“It is so important for them to have contact with our people. I believe this one of the biggest benefits of attending this conference. We deepen the relationships with our clients, we spend quality time with them, it’s real face-to-face, without the day-to-day distractions,” he concluded.

Besides participating in the sessions, attendees will also have the chance to interact with StoneX executives and visit the global trade show and participate in special events planned just for the Correspondent Clearing attendees. To learn more about Global Markets Outlook and register for the event, please visit https://stonex.cventevents.com/GlobalMarketsOutlook2022