Foto: Falkenpost. Deutsche Asset Management incorpora a Robert Thomas como co director de Real Estate Securities en las Américas
Deutsche Asset Management’s Alternatives business has announced that Robert Thomas will join the firm as Co-Head of Real Estate Securities for the Americas and Co-Lead Portfolio Manager. Bob will work alongside David Zonavetch, who holds the same position. Bob will be responsible for the co-portfolio management of US real estate securities strategies and the Americas real estate securities allocation within the global real estate securities strategies. Bob will report to John Vojticek, Head and Chief Investment Officer – Liquid Real Assets, and will be based in Chicago.
“We are pleased to welcome Bob to the firm and look forward to working with him. His professional experience and the passion he brings for real estate securities investing, including a similar investment philosophy, are a complementary fit for our team,” said John Vojticek, Head and Chief Investment Officer – Liquid Real Assets.
Bob has more than 15 years of experience in the analysis and management of public and private real estate securities. Prior to joining Deutsche Asset Management, he served as the Head of North American Property Equities and Portfolio Manager at Henderson Global Investors. Before this, Bob was the co-head of a four-person North American team and part of a 15-person global team responsible for managing global listed real estate strategies for institutional and retail clients at AMP Capital Investors. Bob also has extensive experience as a senior research analyst covering real estate securities across a wide range of property sectors.
The company recently announced the appointment of Petra Pflaum, as CIO for Responsible Investments, and David Bianco as Chief Investment Strategist for the Americas and Head of Equities in the US.
Pixabay CC0 Public Domain. ‘Lower for longer’: ¿Dónde se puede encontrar rentabilidad actualmente?
2016 was certainly the year of surprises –with Brexit and Trump shocking the world. Yet, besides short-lived market sell-offs, global markets were relatively resilient. So what might be on the horizon for investors in 2017? William Nygren , Partner and Equity Manager at Harris Associates (Natixis Global Asset Management), explains his views about growth in 2017, answering three key qestions.
1. Anemic growth?
“For several years, we’ve been anticipating that global growth would return to near the pre- Global Financial Crisis levels. And each year the World Bank started out by projecting that reasonable growth was just around the corner. Then as the year progressed, they had to consistently cut their expectations. Low growth has allowed interest rates to remain at near-zero levels, has allowed commodity prices to remain below prices needed to justify new exploration, and has resulted in the earnings of cyclical companies being below trend”.
2. Growth momentum?
“If 2017 is finally the year when growth surprises to the upside, it would likely be accompanied by very different sectors leading the stock market. That is why we favor companies that may benefit from rising interest rates (banks and other financial companies), rising commodity prices (energy companies), and higher earnings from industrial cyclicals”.
3. Unknowns of Trump administration.
“The U.S. political scene will be of key importance in determining whether or not global growth accelerates. Throughout a very nasty presidential campaign, many policies were promised from the prevailing party that were both pro-growth and anti-growth. If the new Trump administration focuses on tax reform and reducing the burden from regulations, the result would likely be a meaningful increase in growth. If instead the focus is on restricting global trade and deporting illegal immigrants, growth would likely decrease”.
“We believe the likelihood is much higher that pro-growth policies will prevail, but would also add that over many years the forces of global growth have proven strong enough to overcome misguided government policies. As long-term investors, we believe the valuations are compelling for the companies that would most benefit from renewed economic strength”.
One surprise that could catch us off guard
According to the expert, a return to growth could create a very unpleasant surprise for many investors, as investments widely perceived as safe could be riskier than those perceived as risky. “Investors tend to look at the risk of a stock as being the potential deviation of earnings from the anticipated level, and pay little attention to price. We have been saying for some time that low-volatility businesses priced at historically high relative P/E ratios are riskier than higher-volatility businesses priced at low relative P/Es. With interest rates so low, the stable, low-growth businesses that pay out a high percentage of profits as dividends have become favorite “bond substitutes” for investors seeking higher yield than is available in the bond market. These companies have typically been priced at lower-than-average P/Es, but today sell at substantial premiums”.
“Even if the businesses perform about as expected, there is substantial risk should the P/E ratios revert to their long-term averages. If interest rates rise, as we expect, then P/E reversion is the likely outcome. This is why we currently find most electric utilities, telecom providers, or U.S.-based consumer packaged goods businesses unattractive.
Additionally, in a higher interest rate environment, stocks would likely prove less risky than the long-term bonds that investors have bid up to historically low yields. 2017 could be a year that turns investor thinking about risk upside down”.
Pixabay CC0 Public DomainPhoto: mainblick. M&G: We Have Arrived at a Pivotal and Potentially Critical Moment in Time
For the M&G Multi Asset team, 2016 was not so much about learning new lessons as being reminded of some of its key rules for investing: avoid getting caught up in short termism, do not waste time on forecasting, and beware lazy assumptions about what ‘should’ happen based on previous experience.
They consider Brexit and Trump have been surprises, but even if we could have predicted the results, subsequent price action went against the consensus view. Markets bounced back quickly from an initial ‘Brexit’ sell-off and the ‘risk-off’ volatility expected to be triggered by a Trump victory in the US presidential elections did not materialize.
The team feels this demonstrates the point that it is more important to focus on the facts we can know today about asset pricing and the fundamental economic backdrop, than attempting to predict how geopolitical events will be interpreted by the market. In their opinion, it also proved that no asset will be a ‘safe haven’ at all times, as mainstream bonds sold off strongly after the US election, from the historically low yields they had reached in the summer of 2016. This supports their view that the risk characteristics of asset classes are not static, rather value should be the starting point of assessing risk.
“We have arrived at a pivotal and potentially critical moment in time, where a material change in investor thinking and behavior is needed. The strategies that have been successful for the last decade are now likely to struggle”. They say.
So when looking ahead to next year and beyond, it is not about predicting what events will dominate headlines, but about being ready to respond to the changing mood of the market. The team adds: “The biggest risks investors will face next year are probably ones that we are not even aware of today, or that have faded from the headlines.”
The market appears to be pricing in a more favorable environment, with profits picking up globally and positive trends in data such as Purchasing Managers’ Indices and employment in certain areas. There is also a perception of inflation picking up and we have seen breakeven move a long way.
“While global equities in aggregate may not be as compellingly valued as at the start of the year, there are still very attractive opportunities at regional and sector level. We are still strongly favouring Europe and Asia (including Japan), as well as US banks. There are also plenty of interesting opportunities within non-mainstream government bond and credit areas of fixed income.” They conclude.
Courtesy photo. Deutsche AM appoints Petra Pflaum as CIO for Responsible Investments
Deutsche Asset Management has announced the appointment of Petra Pflaum as Chief Investment Officer for Responsible Investments, effective immediately.
In this new role, Pflaum will manage a dedicated Environmental, Social and Governance (ESG) team responsible for the further integration of Deutsche AM’s ESG capabilities into its investment processes and growing its client offerings across its Active, Alternatives and Passive businesses. The existing ESG thematicresearch and governance teams will report to her.
Pflaum will continue in her role as EMEA Head of Equities for Deutsche AM, and will be joined by Britta Weidenbach who will become EMEA Co-Head of Equities effective immediately. Pflaum will also become a member of the Management Board of Deutsche Asset Management Investment GmbH representing Deutsche AM’s Equity and Equity Trading businesses.
Pflaum joined Deutsche AM in 1999, and prior to her current role served as Co-Head of Global Research and Global Head of Small & Mid Cap Equities. Weidenbach is currently Head of European Equities and has also been with Deutsche AM since 1999. She has managed European equity funds since 2001.
Nicolas Moreau, Head of Deutsche Asset Management and Member of the Deutsche Bank Management Board, said: “Deutsche AM has recognised the importance of ESG within its investment approach for many years. We are proud to have been amongst the early signatories to the UN supported Principles for Responsible Investment (PRI) in 2008. It is important we build on this heritage, and use our expertise to help clients who want support in this important investment area.”
“I am delighted that someone of Petra Pflaum’s capabilities will take on this important position as CIO for Responsible Investments and member of the Management Board for Deutsche Asset Management Investment GmbH, and that Britta Weidenbach will join her as EMEA Co-Head of Equities. Both are outstanding talents who have held a number of leadership roles over many years within Deutsche AM.
Foto: Geralt. Cuatro posibles escenarios para el asesoramiento digital
The CFP Board Center for Financial Planning announced the findings of its blue-ribbon panel of experts who explored the future impacts of digital advice on the financial planning profession.
Known as the Digital Advice Working Group, thought leaders and senior executives from the worlds of technology and finance gathered to explore the future of digital advice and the role humans will play in delivering financial advice. The goal was to stretch the professional’s way of thinking about how future environments and events may lead the industry down several conceivable paths.
“We convened this group of luminaries to look into the future and identify the challenges and opportunities we face as the worlds of human and automated financial advice collide,” said CFP Board CEO Kevin R. Keller. “The group’s insights and recommendations will prove valuable as our profession evolves to meet the needs of current and future clients.”
Utilizing a scenario-planning approach facilitated by the consulting firm Heidrick & Struggles, the group created a matrix of four potential future outcomes, taking into consideration the nature of consumer demand for integrated advice and the level of consumer trust pertaining to the digital experience.
“In a fast-changing and volatile world, business leaders must operate with speed and agility, and take advantage of strategic tools like scenario planning,” said Toomas Truumees, partner in Heidrick & Struggles’ Leadership Consulting Practice. “This is certainly true for the financial planning profession with with digital disruption on the immediate horizon.”
The four scenarios were:
Everyone Goes Digital – In this scenario, the same sophisticated digital advice platforms underpin both the direct-to-consumer online experience as well as the tools used by human financial advisors. While technology continues to advance within silos, regulatory concerns have prevented the creation of an integrated, holistic experience for seekers of financial advice.
Judgment Day – This scenario assumes that digital advice accelerates to the point of ubiquity, with some form of financial advice available for free to most consumers. Thanks to advances in machine learning, digital advice platforms can now “think” like a financial advisor and provide comprehensive financial plans that span investment management, wealth management, tax planning, retirement, and multiple other financial disciplines.
Rise of the Humans – In this scenario, growing complexity of financial products extends the time horizon to realize greater automation of financial advice. Unforeseen market events that catch robo advisors by surprise reduce credibility in the eyes of consumers and drive hiring of human advisors to emphasize the “human touch.” As digital advice platforms shift more of their focus to the B2B market, back office automation helps advisors reduce costs, reduce staff, and greatly scale their client portfolios.
Back to the Future – In this scenario, a cyberattack directed at an online digital advice platform turns consumers away from human-less systems and drives a preference for the financial advisor. Advancements in back office technology and automation, however, do not slow, freeing time for the advisor to focus on the delivery and implementation of advice. Elevated fiduciary standards in this future prevent advisors from providing more holistic advice that integrates all aspects of a consumer’s financial well-being.
“A great deal of uncertainty continues to surround the digital advice revolution,” said Joe Maugeri, CFP®, Managing Director for Corporate Relations at CFP Board. “The Digital Advice Working Group was born from the recognition that the fast-moving digital trend continues to cloud the future. “By looking at multiple probable outcomes – as opposed to just one scenario – we’re not banking our future on just one outcome, and participants were encouraged to imagine alternate futures where their business models might not be as successful as they are today or hope to be in the future.”
The world’s first sovereign green bond, issued by the Republic of Poland, lists at the Luxembourg Stock Exchange (LuxSE). The EUR 750 million green bond will, in parallel, be displayed on the Luxembourg Green Exchange (LGX).
“Poland is one of the leading sovereign issuers listed on our exchange. We are delighted that we were chosen as the listing venue for the country’s first green bond; it is at the same time the first sovereign green bond issued in international capital markets,” comments Robert Scharfe, CEO of LuxSE.
Asked about the selection criteria when choosing the listing venue for the green bond, Poland’s Deputy Minister of Finance, Piotr Nowak, explained: “LuxSE is one of the biggest stock exchanges for international bonds in Europe, and a very innovative one. The recent implementation of the Green Exchange is a proof of an open-minded approach towards the needs of financial markets. On top of that, we received strong recommendations from market participants to list there”.
Poland lists EUR 50 billion worth of bonds in Luxembourg. The green bond is listed on the EU-regulated market and its maturity date is 20 December 2021. The proceeds, as stated in the framework and prospectus, will be used for renewable energy, clean transportation, sustainable agriculture operations, afforestation, national parks and reclamation of heaps.
Pixabay CC0 Public DomainFoto: hugorouffiac. Apex Fund Services nombra a Daniel Strachman como director de desarrollo de negocio para Estados Unidos
Apex Fund Services has announced the appointement of Daniel Strachmanas as Head of US Business Development. Strachman is a well known industry expert who boasts an impressive background in the investment management industry.
He brings with him more than twenty years of in-depth financial services experience having held positions at Cantor Fitzgerald & Company, Morgan Stanley & Company and having led A&C Advisors LLC for sixteen years delivering strategic guidance, counsel and support to investment management companies and institutional investors.
Strachman is the author of nine investment strategy books including ‘The Fundamentals of Hedge Fund Management and Getting Started in Hedge Funds’. In his new role at Apex he will drive U.S. growth initiatives and deliver fund management clients with proactive fund administration solutions.
Peter Hughes, Founder & Chief Executive Officer, Apex Fund Services, said:
“Daniel is a really important addition to our US team at this time and he brings with him unrivaled experience of the local asset management space. The appointment of such an experienced investment expert demonstrates our commitment to expanding Apex’s US market presence and providing clients with the best and most knowledgeable local support available. Daniel’s career speaks for itself and his background and subsequent knowledge base will help drive our North American presence forward as we continue to expand our local footprint.”
Daniel Strachman, Head of US Business Development, Apex Fund Services (US) Inc, said:
“I am truly excited and thrilled to be joining Apex at this pivotal time in the fund management industry. Never before has the industry been under so much market, fee, performance and regulatory pressure where a truly independent fund administrator is needed and warranted by investors and managers alike. I look forward to expanding Apex’s reach in the market by delivering exactly what the market needs.”
Foto: LuckyCavey, Flickr, Creative Commons.. Man Group completa la compra de la gestora de real estate Aalto
Man Group has announced it has completed the full acquisition of London-headquartered real asset manager Aalto for €25m, after plans to buy the boutique were unveiled on 14 October 2016.
Man Group payed $25m (€22.7m) to purchase Aalto – two thirds in cash and one third in new Man Group ordinary shares.
Luke Ellis, CEO of Man Group, commented: “We are delighted to have completed the acquisition of Aalto, which is a key step in the development of Man Global Private Markets, our new investment engine for private asset classes, and in the ongoing diversification of Man Group.
“The acquisition of Aalto represents an attractive opportunity for clients, who will have access to longer term investment strategies offering a complementary risk reward profile to our current products.”
Aalto is set to become a component of the newly formed Man Global Private Markets (“Man GPM”).
Mikko Syrjänen and Petteri Barman, the founders of Aalto, will become co-heads of Real Assets within Man GPM, taking on a leading role in the strategic development of the unit’s offering in real assets.
Aalto has offices in the US and Switzerland, and had $1.7bn (€1.5bn) of assets under management as at 30 September 2016.
As at 30 September 2016, Man Group’s assets under management were $80.7bn (€73.3bn).
Foto: Asja Boro. Los activos de los hedge funds de mercados emergentes marcan niveles récord
Emerging Markets hedge funds ended the third quarter at a new record asset level, eclipsing the prior record from 2Q15. Assets dedicated to Emerging Markets hedge funds increased to $199.66 billion in 3Q, up $9.8 billion from the prior quarter as a result of strong performance-based quarterly gains and despite a net investor outflow of $850 million, according to the latest HFR Emerging Markets Hedge Fund Industry Report, the established global leader in the indexation, analysis and research of the global hedge fund industry.
The HFRI Emerging Markets (Total) Index gained +5.06 percent in 3Q and added +1.10 percent in October, led by regional exposures to Latin America, Russia, and Emerging Asia; the HFRI EM Index is up +9.1 percent YTD through October.
“Emerging Market hedge fund capital increased to a record level in 3Q as currency, fixed income and commodity markets adjusted to the impacts of shifting trade and monetary policies from both Brexit and the U.S. election,” stated Kenneth J. Heinz, President of HFR.
“As regional EM equity markets have surged, EM hedge funds have effectively complemented these directional gains and mitigated risks with tactical, non-directional trades created by shifting policies and temporary dislocations. The coming period of US and UK trade and monetary policy adjustments are likely to produce compelling opportunities for EM hedge funds, extending their performance leadership and capital expansion into 2017,” points out Heinz.
Hedge funds focused on Latin America extended the powerful YTD surge, leading all areas of hedge fund performance through October. The HFRI EM: Latin America Index vaulted +6.2 percent in 3Q, and added another +5.4 percent in October, bringing YTD performance to +33.0 percent. Recent gains for the volatile LatAm Index follow performance declines in four of the last five years, including the last three. The total number of hedge funds focused solely on investing in Latin America remained at 107, while total capital increased to $6.7 billion in 3Q.
Hedge funds investing in Russia and Eastern Europe also posted strong gains, with the HFRI EM: Russia/Eastern Europe Index gaining +6.5 percent in 3Q16 and +1.0 percent in October, increasing YTD performance to +20.7 percent, driven by gains in both Russian equities and the Rouble. As of 3Q, over 170 hedge funds were regionally focused on Russia/Eastern Europe, with these managing an estimated $28.9 billion.
Foto: geralt. PCR: Bob Miller sucede a Rob Fiore como CEO
PCR, the wealth data aggregation and reporting service for UHNW Advisors and Clients, has announced that Bob Miller has succeeded Rob Fiore as CEO. Mr. Miller was formerly the founder and CEO of CorrectNet and a pioneer in ultra-secure client reporting solutions for the top global institutional wealth managers.
Mr. Miller joined PCR as its Vice Chairman and Strategic Advisor last year to help bring the company’s recent technology investments to market. During this period, PCR crystalized its value proposition, introduced disruptive non-basis point pricing, and launched a distributor program that is now enabling software and other technology providers to re-sell the company’s unique UHNW services.
“My mandate from our owners is crystal clear. First, make sure the 1,200 families we currently serve benefit from the innovations we are now bringing to market – they helped build our business and we are committed to their continued success. Next, capitalize on our unique capabilities and recent investments to grow the business in new ways from our current $125B to $500B in assets aggregated,” said Mr. Miller.
The company also announced executive team promotions. Adam Carta, formerly Senior Director of Operations, was promoted to COO with responsibilities over every aspect of the delivery platform. Bill Hiza, formerly manager of the financial analyst team, was promoted to Sr. VP Client Experience. Bill Lichtwald, a 20 year FinTech enterprise sales veteran, has been moved to Sr. VP Head of Sales.
Mr. Miller added, “We address the needs of the almost 72,000 North American UHNW families different than many of the new comers – primarily the software providers. We were founded by wealthy families that felt they could not get a complete and accurate picture of their wealth. As the industry evolved and many UHNW advisors connected with this need, our business grew to include major private banks, registered investment advisors and MFO’s. PCR clients value that we deliver more than technology. We understand the critical nature of client interactions and provide the people and processes to make sure data is right and communications are accurate.”
