Further to the announcement of 19 March 2023 regarding UBS’s acquisition of Credit Suisse, the Board of Directors of UBS have appointed Sergio P. Ermotti as Group Chief Executive Officer and President of the Group Executive Board, effective on 5 April 2023, after the Annual General Meeting.
He will succeed Ralph Hamers, who has agreed to step down to serve the interests of the new combination, the Swiss financial sector and the country. Ralph Hamers will remain at UBS and work alongside Sergio P. Ermotti as an advisor during a transition period to ensure a successful closure of the transaction and a smooth hand-over.
The Board took the decision in light of the new challenges and priorities facing UBS after the announcement of the acquisition.
Sergio P. Ermotti was the Group Chief Executive Officer of UBS for 9 years and successfully repositioned UBS following the severe challenges arising from the Global Financial Crisis. In particular, he built financial strength and improved resilience by putting the firm’s leading global wealth and asset management business, and Swiss universal bank, at its core. He swiftly transformed the investment bank by cutting its footprint and achieved a profound culture change within the bank which allowed it to regain the trust of clients and other stakeholders, while restoring people’s pride in working for UBS.
This unique experience, together with his deep understanding of the financial services industry in Switzerland and globally, make Sergio P. Ermotti ideally placed to pursue the integration of Credit Suisse. Sergio P. Ermotti is currently Chairman of Swiss Re. To facilitate an orderly transition at Swiss Re, Sergio P. Ermotti will stand for re-election at its AGM on 12 April 2023 and intends to step down after the AGM, following a short hand-over period.
Since assuming the role on 1 November 2020, Ralph Hamers, together with the Group Executive Board, has successfully managed UBS through a challenging market environment and has delivered record results in two successive years. He has encouraged a strong focus on clients and on shaping and executing our strategy, while ensuring tight cost management and strong risk discipline. He has driven the digital and sustainability agenda across the firm to make them important differentiators for our clients.
The financial performance and capital strengths of the group have allowed him to achieve record returns for shareholders through dividends and share repurchases, which has benefited the share price. Finally, Ralph was instrumental in delivering the acquisition of Credit Suisse under extreme circumstances, to the benefit of both banks and the stability of the Swiss financial system.
UBS Chairman Colm Kelleher said: “Ralph has been an outstanding CEO of UBS, driving the group to unprecedented success despite a challenging environment. Under his leadership UBS built the strengths that have put us in a position to stabilize Credit Suisse and ensure a successful integration. On behalf of the whole Board, I would like to express my deep respect and gratitude for all that Ralph has achieved over the last two-and-a-half years and for his instrumental role in delivering the Credit Suisse deal, as well as his understanding of the current situation and willingness to step down. While the acquisition will support UBS’s existing strategy, it imposes new priorities on us. With his unique experience, I am very confident that Sergio will deliver the successful integration that is so essential for both banks’ clients, employees and investors, and for Switzerland. I know Sergio will hit the ground running.”
Ralph Hamers said: “Integrating Credit Suisse is UBS’s single most important task and I am confident that Sergio will successfully guide the bank through this next phase. I am of course sorry to leave UBS, but circumstances have changed in ways that none of us expected. I am stepping aside in the interests of the new combined entity and its stakeholders, including Switzerland and its financial sector – it has been a pleasure and privilege to lead this great bank to where it is today. I would like to thank Colm and the Board for their support and guidance, and I wish Sergio every success. I will support him during a transition period and I know he will lead UBS very effectively in the interests of all.”
Sergio P. Ermotti said: “I am honored to be asked to lead this bank at a time that is so important for all its stakeholders and for Switzerland. I would like to express my gratitude to Ralph for steering UBS so successfully. The task at hand is an urgent and challenging one. In order to do it in a sustainable and successful way, and in the interest of all stakeholders involved, we need to thoughtfully and systematically assess all options. I am conscious of the uncertainty many feel and I promise that, together with my colleagues, our full attention will be on delivering the best possible outcome for our clients, our employees, our shareholders and the Swiss government.”
The Securities and Exchange Commission proposed amendments designed to modernize its information collection and analysis methods by, among other things, proposing that a number of filings be submitted to the Commission electronically on EDGAR using structured data where appropriate.
Under current rules, registrants are required to file or otherwise submit many Exchange Act forms, filings, or other submissions in paper form. During the COVID-19 pandemic, many submissions were made in electronic rather than paper form, which was generally well received.
As part of its efforts to modernize the methods by which it collects and analyzes information from registrants, the proposed amendments would require registrants to make these submissions to the Commission electronically.
“We live in a digital age. In 2023, one might think that all filings to the Commission already could be made electronically. That’s not yet true,” said SEC Chair Gary Gensler. “We have the important opportunity to require electronic filing for nearly all of the remaining paper filings required under the Exchange Act. I believe the proposal, if adopted, would save both registrants and the Commission time and resources.”
Specifically, the proposed amendments would require the electronic filing, submission, or posting of certain forms, filings, and other submissions that national securities exchanges, national securities associations, clearing agencies, broker-dealers, security-based swap dealers, and major security-based swap participants make with the Commission.
The proposed amendments would also make certain amendments regarding the Financial and Operational Combined Uniform Single (“FOCUS”) Report to harmonize it with other rules, make technical corrections, and provide clarifications. In addition, the proposed amendments would require withdrawal of notices filed in connection with an exception to counting certain dealing transactions toward determining whether a person is a security-based swap dealer in specified circumstances.
The public comment period will remain open for 30 days after publication in the Federal Register or until May 22, 2023, whichever is later.
Vontobel Asset Management has appointed Ignacio Pedrosa as Head of Latin America and US Offshore.
With 25 years of experience in distribution for asset and wealth management, Ignacio Pedrosa will be responsible for expanding and strengthening Vontobel’s partnerships in LatAm and US Offshore.
He joins Vontobel in its Miami office from BTG Pactual, where he was responsible for third party distribution and servicing institutional investors across LatAm and US Offshore.
Prior to that, he held senior-level positions at various investment firms in Madrid, including Tikehau Investment Management, EDM Asset Management and Bestinver Asset Management. He holds a Bachelor’s in Economics from the Universidad San Pablo-CEU in Madrid.
Additionally, Molly Katherine McVeigh, who has been with the firm since 2020 and a key contributor to business development and enhancing the client experience, will expand her relationship management responsibilities for LatAm and US Offshore.
“These appointments reinforce our client-centric priorities for growth in the US and the broader Americas regions, as well as our engagement with global banks,” said José Luis Ezcurra, Head of the Americas. “We are pleased to have Ignacio and Molly in these strategic roles, driving our commitment to providing quality solutions to investors and distribution partners.”
Vontobel has established its global success through differentiated investment expertise, bringing long-term solutions to investors in the Americas since 1984. Founded as a single boutique offering in the US, the firm has advanced its presence across the Americas as a multi-boutique manager with specialized investment solutions across asset classes to meet investors’
growing demands, the firm added.
Photo courtesyPaula Campbell Roberts Chief Investment Strategist at KKR
KKR announced the appointment of Paula Campbell Roberts as Chief Investment Strategist for Private Wealth. In this newly created role, Roberts will work closely with KKR’s Global Macro, Balance Sheet and Risk team to deliver actionable investment insights to KKR’s private wealth partners, which include wirehouses, private banks, independent/regional broker-dealers, registered investment advisors (RIAs) and fintech platforms.
“Investors are rethinking the traditional 60/40 portfolio construction model and are increasingly looking towards alternative investments as a source of uncorrelated returns. Given our nearly five decades of experience investing in alternatives, we believe we are well positioned to help individuals meet their retirement needs,” said Todd Builione, Global Head of Private Wealth at KKR. “Paula’s appointment underscores our commitment to building a market-leading wealth business that brings the best of KKR’s insights and alternative investment strategies to this important and growing segment.”
“Having worked closely with Paula for the past seven years, I am confident that her breadth of experience across macroeconomics, deal related work, and asset allocation will make her a trusted resource to financial advisors and our private wealth investors,” said Henry McVey, CIO of KKR’s Balance Sheet and Head of Global Macro and Asset Allocation (GMAA).
KKR manages nearly $70 billion in private wealth assets (as of December 31, 2022) through relationships with private wealth firms and a large network of Financial Advisors and RIAs, according the firm information.
Currently, individual investors can access KKR’s real estate and credit investments through its continuously offered registered funds, KKR Real Estate Select Trust (KREST) and KKR Credit Opportunities Portfolio (KCOP).
Beyond real estate and credit, KKR has previously stated that the firm intends to have ways for individuals to access its investments in private equity and infrastructure in 2023. KKR expects private wealth assets to account for 30-50% of its annual fundraising over the next several years.
“I am thrilled to work with Todd, Henry and the private wealth team to deepen our relationships with private wealth firms and Financial Advisors by providing differentiated and trusted insights that help them navigate and thoughtfully incorporate alternative investments into their portfolios,” said Roberts.
Roberts was most recently Managing Director and Global Head of Consumer and Real Estate Macro and Thematic Investing (CREM).
In this role, Roberts helped drive thematic investing efforts across KKR’s global real estate, consumer private equity and credit businesses. Prior to joining KKR in 2017, she was an executive director at Morgan Stanley, where she managed coverage of the U.S. consumer sector.
Roberts is a member of the Federal Reserve Bank of New York’sEconomic Advisory Panel. She also serves on the board of the American Friends of Jamaica and is a Lincoln Center Leadership Fellow.
CC-BY-SA-2.0, FlickrReserva Federal de Estados Unidos (Adam Pagen)
The Federal Reserve is “strongly committed to returning inflation to its 2 percent objective” and, in that context, re-announced an interest rate hike despite the banking crisis. The increase is 0.25 points and brings interest rates to 5%.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 4-3/4 to 5 percent. The Committee will closely monitor incoming information and assess the implications for monetary policy,” the statement said.
In addition, the FOMC “anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.”
In determining the extent of future increases in the target range, “the Committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
According to the Fed’s March 22 statement, “recent indicators point to moderate growth in spending and output. Job creation has picked up in recent months and is running at a solid pace; the unemployment rate has remained low. Inflation remains elevated.”
“The U.S. banking system is sound and resilient. Recent developments are likely to result in tighter credit conditions for households and businesses and to weigh on economic activity, hiring, and inflation. The extent of these effects is uncertain. The Committee remains highly attentive to inflation risks,” the monetary authority concluded.
Franklin Templeton announced the appointment of James Andrus as Vice President of Sustainability Global Markets, a newly created leadership role within the firm’s Global Sustainability Strategy Team.
Andrus joins Franklin Templeton from the California Public Employees’ Retirement System (CalPERS), where he served as the Interim Managing Investment Director for Sustainable Investing and led CalPERS’ sustainable investment strategy across its US$443 billion investment portfolio, according the firm information.
“James is deeply experienced in corporate governance and brings a wealth of knowledge and expertise in the effective management of financial, human and natural capital to Franklin Templeton,” said Anne Simpson, Franklin Templeton’s Global Head of Sustainability. “We are committed to building dedicated resources as the profound evolution and increasing complexities related to sustainable investing continue in the industry globally. I am delighted for James to join our growing team as we accelerate our efforts in this important area.”
Based in California, Andrus will oversee execution of Franklin Templeton’s sustainability and stewardship initiatives and serve as an advocate and spokesperson with clients, external organizations, policymakers, regulators and internal stakeholders.
He will manage the firm’s Global Sustainability Strategy Team, which implements the firm’s sustainable investment strategy and consists of professionals located across Europe, Asia and the United States with additional recruitment underway for data, content, stewardship and product roles.
He will also work closely with the firm’s Global Public Policy team. Andrus will report to Simpson, who is responsible for the firm’s overall strategic direction on stewardship and sustainable investment in her role of Global Head of Sustainability. Simpson reports to Jenny Johnson, CEO and President of Franklin Templeton.
“I am excited by the opportunity to join Franklin Templeton, a world-renowned global investment firm with dynamic leaders, at an important point in time to focus on sustainability,” said Andrus. “I look forward to adding value by advancing the sustainable investment priorities and contributing directly to global regulation and policy initiatives while emphasizing enhanced financial information.”
Andrus brings deep industry and regulatory knowledge from his diverse background. Most recently, in serving as Interim Managing Investment Director for Sustainable Investing at CalPERS, he advocated for transparency in the financial markets at the national and international levels to ensure that investors like CalPERS have appropriate regulatory environments for investing their assets. Prior to CalPERS, he was a partner at K&L Gates, a global law firm.
Andrus is an experienced advocate for asset owners as a member of the SEC Investor Advisory Committee, Public Company Accounting Oversight Board (PCAOB) Investor Advisory Group, Financial Accounting Standards Advisory Council (FASAC) and the International Financial Reporting Standards Advisory Council.
He is also co-chair of the Financial Capital Committee of the International Corporate Governance Network (ICGN), representing investors overseeing approximately US$70 trillion.
Andrus is a former U.S. Army officer and a graduate of West Point. He received his J.D. from the University of Texas School of Law.
Fiduciary Trust International announces that Allison Chance Carter and Timothy Barton, CFA, have joined the firm as managing directors and senior trust officer/trust counsel and senior portfolio manager, respectively.
They are based in Atlanta, a region where Fiduciary Trust International is expanding its presence, the firm said.
“The Atlanta region is a terrific wealth management market with many families and institutions that can benefit from our customized investment, trust and estate, and wealth planning services,” said David W. Edmiston, Fiduciary Trust International’s regional managing director for Greater Atlanta. “Allie and Tim are highly respected wealth management professionals with deep experience and strong ties to the Atlanta community. My teammates and I are excited to welcome them to Fiduciary, and we look forward to working with them to help more clients in Atlanta and across the Southeast achieve financial peace of mind.”
Fiduciary Trust International announced in November 2021 its entry into the Southeast with a local team in Atlanta led by Edmiston who had previously worked with Abbot Downing, Wells Fargo Private Bank, and its predecessor companies for more than 30 years.
The growing Atlanta hub strengthens Fiduciary Trust International’s East Coast presence from Massachusetts to Florida and west to California.
Carter was most recently a senior trust advisor and senior vice president at Northern Trust in Atlanta, where she served high-net-worth and ultra-high-net-worth families and individuals for the past 10 years.
She was previously a senior trust advisor at Wells Fargo Private Bank. She began her career in the trusts and estates practice group at King & Spalding in Atlanta. Carter formerly served on the board of directors of the Atlanta Estate Planning Council, and she is a member of the State Bar of Georgia’s Fiduciary Law Section as well as the Atlanta Bar Association’s Estate Planning & Probate Section. Carter obtained her law degree from the Georgia State University College of Law, and graduated magna cum laude from Sweet Briar College with a BS in psychology.
For the last 10 years, Barton served as a senior portfolio manager and senior vice president at Northern Trust in Atlanta where he developed investment strategies for families and individuals. Prior to Northern Trust, he was an investment strategist at Wells Fargo Private Bank. Barton is a CFA Institute member, a CFA® charter holder, and a member of CFA Society Atlanta. He earned his MBA from Campbell University, where he also received his BBA in trust and investment management.
A new survey from Principal Financial Group identifies the leading disruptors to the retirement industry that employers and financial professionals believe will reshape plans, services, and solutions by 2030.
An aging workforce, Generation Z, the growing demand for personalized investment advice, and financial wellness are top of mind for more than 250 plan sponsors and 200 financial professionals that responded to the Principal® Future of Retirement Survey.
Each are viewed as priorities in the next 5-7 years to help address the widening retirement gap that is approaching $4 trillion in the U.S.
“Understanding the evolving needs of participants and employers is critical to building relevant and meaningful retirement plans, solutions, and advice,” said Chris Littlefield, president of Retirement and Income Solutions at Principal®. “We are relentlessly focused on what our customers need to help meet their financial and retirement goals. Whether it’s more customized products, holistic guidance, or mobile-friendly, digital tools and resources, we will continue to leverage our relationships with financial professionals and strategic partners to help innovate and enhance the customer experience.”
Competing generational needs
Employers are often choosing retirement plans to help meet the needs of five generations of Americans. More of Gen Z will enter the labor market in the next 5-7 years while the number of people aged 75 and older in the workforce is expected to grow 96.6 percent by 2030.
To support an aging workforce, three out of four plan sponsors and financial professionals agree participants should have the ability to make recurring withdrawals from their employer-sponsored retirement savings as they take a phased approach to retirement.
“Choosing to retire is no longer a single-step life decision. Many individuals approaching 60-65 years of age need or prefer a phased retirement, working part-time to get relief from the 40-hour work week without fear of outliving their nest eggs,” Littlefield said.
On the opposite end of the workforce spectrum, 76% of plan sponsors agreed the expectations of millennial and Gen Z investors will be the driving change in retirement markets by 2030. In particular, the preference Gen Z has to conduct most financial business online is viewed by both financial professionals (55%) and plan sponsors (47%) as the top disruptor from this generation.
Personalization is paramount
According to the Principal® Future of Retirement Survey, one growing expectation to better serve participants is an ability to provide individualized advice.
More than 70% of both plan sponsors and financial professionals agreed personalized investment portfolios and managed account services will be common offerings within defined contribution plans by 2030.
To offer more holistic and personal guidance, 78% of plan sponsors and 77% of financial professionals also agreed there will be a shift from improving the enrollment process for employees to improving the retirement process, which can include services such as advice, retirement planning, and creating retirement income.
Financial wellness programs are also expected to emerge as an additional plan resource to further personalize the participant experience by 2030, with 85% of plan sponsors and 90% of financial professionals agreeing plan sponsors will increase the adoption of them.
Outside of retirement savings programs, plan sponsors believe the top five financial wellness benefits that should be offered include helping participants establish a budget and financial plan, retirement income planning, credit card and debt counseling, healthcare planning for early retirees, and investment education.
Allfunds Alternative Solutions is the result of Allfunds’ response to strong demand among its clients, especially those from the wealth management segment, for better access to alternative assets and private markets.
Although Allfunds already has experience in this area and assets under administration in specialized vehicles (UCITs, ELTIFs, UCI Part II, RAIFs y FCRs) until today it was a service performed only on an on-demand basis.
Borja Largo, Chief Fund Groups Officer, will lead a team composed of a combination of new hires and existing Allfunds employees, whose task will be to channel current demand and drive Allfunds’ growth in services related to illiquid strategies.
As it did for ELTIFs in the past, Allfunds Alternative Solutions will adopt a similar strategy and will initially focus on improving operational efficiency for all vehicles, including global structures such as ELTIFs, RAIFs, UCIs Part II, and local ones, such as the Spanish FCR, to meet the needs of a broad and diverse client base.
Borja Largo, Chief Fund Groups Officer states, “It was essential for us to have a team dedicated exclusively to alternative assets, this was the only way we could meet the growing demand from our clients and offer them a service that matched their expectations and past experience with Allfunds. We decided to build this team and launch the project on the solid foundation of Allfunds’ success in the traditional asset market, which puts us in a unique position to understand the requirements and preferences of both General Partners and distributors of illiquid strategies.”
Juan Alcaraz, CEO of Allfunds adds, “This is another step in our ongoing effort to have the best value proposition in the market and to enhance our one-stop shop model, covering all our customers’ needs in a single point of access. We have been developing our alternative offering for some time and believe that with the combination of our experience, human capital and technology, we are perfectly positioned to capitalise on these opportunities”.
CONTI Capital has partnered with iCapital to offer investment opportunities in CONTI’s U.S.-based, multifamily real estate funds.
“We’ve seen a surge of interest from investors seeking access to U.S. real estate investments for portfolio diversification, capital preservation, and income enhancement,” says Carlos Vaz, founder and CEO of CONTI Capital. “We’re pleased to introduce broader access to CONTI Capital’s investment strategies and funds to the financial advisory community and their accredited clients. iCapital’s technology and service platform offers investors transparency, efficiency, and a user-friendly, digital investment experience.”
Lawrence Calcano, Chairman and CEO of iCapital, says: “We’re thrilled to be working with CONTI Capital, a recognized leader in multifamily real estate investing, to bring efficiency and ease to the alternative investing process for advisors and their clients.”
Investment fund focused on multifamily properties in the U.S. Sun Belt
iCapital’s platform now features the CONTI RE High-Growth Fund IV, a $200 million fund concentrated on acquiring multifamily properties in select rapidly growing U.S. Sun Belt markets. Focused on newly built, Class A multifamily properties, the Fund has already acquired properties in Tampa and Orlando, Florida, and Austin, Texas. The Fund will seek a target return of 10-14% IRR3 (net of all fees and expenses) with approximately a 3–5-year hold period.
“The Sun Belt states boast solid job markets with a combined GDP of $6.23T4, pro-business environments, and a low cost of living, so the pressure of migration to those states continues to have housing demand outstrip supply. Coupled with inflation pressures and record-high home sales prices, the demand for rental properties remains strong,” Vaz continues. “At CONTI Capital, we feel the multifamily sector is a strong investment choice, regardless of market conditions, because everyone needs a place to live. Our analysis demonstrates that necessity-based CRE is far more resilient during economic downturns than other product types.”
Investment approach is driven by real-time, data-led research and analysis
“This past year, in 2022, CONTI quickly adapted to market changes and sold the most assets in the company’s history, 14 of which consisted of 3,989 units when Fund I and Fund II were fully realized,” states Vaz. “We continue to prepare for other opportunities by constantly monitoring the economic and demographic drivers affecting the multifamily industry. To ensure we are at the forefront of market dynamics and able to use data to support our portfolio acquisition strategies, we embraced technology in a very dynamic way.”
CONTI’s proprietary data modeling tool, the CONTI Index, tracks more than 400 weighted indicators from millions of data points and is grouped into six categories: housing supply and affordability, demographics, labor market durability, risk and reward, quality of life, and fiscal health. Based on rankings generated by the CONTI Index, the company releases its Top 10 Markets for Multifamily Investment Report semi-annually and its quarterly CONTI Report for insights impacting real estate investing.
