Javier Barrio and Juan Aguirre Join AzValor

  |   For  |  0 Comentarios

azValor ficha a Javier Barrio y Juan Aguirre tras la marcha de parte de su equipo a la gestora de Paramés
Foto cedida. Javier Barrio and Juan Aguirre Join AzValor

Spain’s AzValor has hired two new partners: Juan Aguirre, as director of Major Accounts, and Javier Barrio, who will be in charge of Execution Only.

Both partners will join Álvaro Guzmán de Lázaro, Fernando Bernad, Beltrán Parages and Sergio Fernández-Pacheco.

Aguirre started his career more than 20 years ago working for Citygroup, AB Asesores and the private banking division of Morgan Stanley, where he held various executive positions at the firm’s Madrid office.

He has also worked providing strategic consulting services and business intelligence to financial sector clients such as KPMG, Bankinter and JP Morgan.

With the appointment of Aguirre, AzValor strengthens its Investor Relations and Business Development team, where he will report to Parages.

Barrio, for his part, has also worked as an analyst at Intermoney and the asset manager of Capital Market. He has also been responsible for sales at the Portuguese bank BPI.

AzValor is expected to announce “new and outstanding” additions in the department of analysis in the coming days.

The asset manager, founded in 2014 by former executives of Bestinver, the asset management arm of Grupo Acciona, saw five of six analysts stepping down to join the new boutique of top asset manager Francisco García Paramés.

The analysts joined azValor with expectations of Paramés being the next addition of the Madrid based asset manager once its non-compete clause expired, two years after his departure from Bestinver. Since Paramés has decided to set up its own investment venture, the analysts had to chose and eventually opted for Paramés.

Carmen Pérez, Iván Chvedine, Juan Huerta de Soto, Juan Cantus and Mingkun Chan all resigned from azValor, with only Jorge Cruz remaining at the asset management firm.

AzValor’s director of trading Mayte Juárez and director of major accounts Santiago Cortezo also joined Paramés from azValor.

Spanish Sicav’s Are in the Line of Fire

  |   For  |  0 Comentarios

Spanish Sicavs are under scrutiny following allegations that wealthy individuals are obtaining tax advantages through this type of investment vehicle.

Resident Spanish taxpayers typically pay capital gains tax rates of between 19% to 23%. However, those investing through a Sicav typically pay just 1%. Given this premise, all major political parties in Spain have pledged to revise regulation of Sicavs, which have become associated with tax avoidance strategies for wealthy individuals.

Sicavs, however, offer the same tax benefits as investment funds, which are used by more than 8 million investors, according to fund industry association Inverco. Thus, those fiscal advantages are not enjoyed by just a handful of wealthy families.

Investors using Sicavs or investment funds pay 1% tax on capital gains as long as they hold their investment, but when they sell their holding – whether in a Sicav or fund – they pay the same progressive tax rate of 19% (€0-€6,001), 21% (€6,000-€50,000) or 23% (over €50,000).

Sicavs in this case do not offer more tax advantages than popular investment funds – the difference is instead centred on operational issues. For example, major shareholders of a Sicav control strategic decisions on investments, while an investment fund is managed by a management team.

Collective Vehicle?

The minimum capital threshold for Sicavs in Spain is €2.4m, and it requires at least 100 shareholders. However, there is no maximum percentage a single shareholder can own. This supposedly collective investment vehicle can be therefore be controlled by a single family or wealthy individual by naming a series of surrogate investors, commonly known as “mariachis”.

Jorge Sarró, partner and head of Tax at Barcelona-based legal firm Rousaud Costas Duran (RCD) agrees that there are more Sicavs used as a tool for large fortunes rather than as an instrument of collective investment. “The figure of the Sicav, for its flexibility, taxation and low cost, is used as an investment vehicle from €2m or €3m to large fortunes,” Sarró says.

Spain’s Sicavs are generally linked to family groups, says Luis Rodríguez-Ramos, partner of the Tax Department at Ramón y Cajal Abogados. “This doesn’t mean these vehicles are not collective investments. In theory, you can buy Sicavs shares [on Spain’s alternative market MAB] and if there’s nothing available maybe the best solution, instead of demonising Sicavs, is to force them to issue paper so anybody can subscribe,” Rodríguez-Ramos argues.

As Sicavs are widely used by wealthy individuals and families to channel their savings, the collective nature of these investment vehicles has been questioned.

Political Pressures

Spain’s main political parties have all announced changes in regards to Sicavs, so this investment vehicle is facing increasing legal uncertainty.

While anti-austerity party Podemos has pushed to eliminate Sicavs, the largest opposition party PSOE and centrist Ciudadanos have opted instead for increased control. The ruling conservative
PP party, for its part, has suggested only those with a minimum participation of 0.55%, based on a minimum number of 100 shareholders will count as Sicav investors.

But this proposal has been criticised by industry players who say this measure is going to raise the minimum investment to the point of limiting private investor access to Sicavs.

“This formula will punish Sicavs that are genuine collective investment vehicles,” Sarró says.

As a result of this situation, more than 120 Spanish Sicavs have merged with an investment fund so far this year, compared to just three over the same period a year ago. However, recent binding responses from Spain’s General Directorate of Taxes (DGT) are limiting the investor advantages seen stemming from mergers, which seems to have slowed the merger momentum.

According to law firm Ashurst, Spanish Sicavs are planning to move to other jurisdictions for fear of greater tax pressures in Spain and also with the aim of finding more legal certainty. “Luxembourg has been chosen as the best destination, because its tax regime is advantageous. Luxembourg Specialised Investment Funds (SIFs) are taxed at a 0.01% CIT rate on net assets,” pinpoints a report from the firm.

The transfer to Luxembourg is usually done through a merger with a Luxembourg fund but, Sarró says, this alternative poses the risk of international tax transparency, especially following the final draft for the OECD Base Erosion and Profit Shifting (BEPS) tax plan.

Patrick Dixneuf to Become Aviva’s New CEO in France

  |   For  |  0 Comentarios

Patrick Dixneuf has been appointed as CEO of Aviva France, effective from 1 November 2016. Patrick Dixneuf will succeed Nicolas Schimel who, after four years as the CEO of Aviva France, will leave the organisation at the end of October.

David McMillan, CEO Aviva Europe and chairman of the Board of Directors of Aviva France, said: “I am delighted to welcome Patrick to Aviva France. Patrick has a clear mandate to set in motion the strategic ambitions of Aviva France, as well as to accelerate the transformation of the business. Patrick brings a wealth of international experience across several European countries, as well as a strong finance and operational background.”

Patrick Dixneuf said: “I’m proud to join Aviva France, a key business and strong contributor to the Aviva Group. I’m confident that, in collaboration with our employees, partners and distributors, we will be able to delight our customers both in a traditional and digital environment.”

Patrick joined Aviva in January 2011 as chief operations officer for Aviva Europe and member of the European Executive Committee. He has held a number of roles across the organisation, most recently finance design, innovation and change director at Aviva Group. Previously, he was CEO of Aviva Italy between 2012 and 2016, leading the turnaround and transformation of the business, bringing it back to growth. Prior to joining Aviva, he held a number of executive roles at Allianz and Paribas before it merged with BNP. He started his career at Alcatel in 1986.

Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £319 billion in assets.

 

Cohen & Steers Celebrates 30 Years

  |   For  |  0 Comentarios

Cohen & Steers is celebrating its 30th anniversary. Over the past three decades, Cohen & Steers has achieved its vision of becoming a leading manager of real asset strategies, building on its long-standing renown as a pioneer in listed real estate investing.

Marty Cohen and Bob Steers launched the firm in 1986 and listed Cohen & Steers, Inc. on the New York Stock Exchange in 2004. As of September 30, 2016, Cohen & Steers managed more than $60 billion in assets and employed nearly 300 people in five offices across the U.S., Europe and Asia. Since its beginnings as a specialist investor in U.S. REITs, the firm has expanded its investment capabilities to include other liquid real assets, including listed infrastructure, commodities and natural resource equities, as well as preferred securities and other income solutions.

In commemoration of the 30-year milestone, the co-founders rang the opening bell of the New York Stock Exchange on October 10, 2016. At its initial public offering on August 16, 2004, Cohen & Steers, Inc. debuted at $13 per share with $15 billion in assets under management (AUM). Twelve years later, as of October 10, 2016, shares traded at $40.69, with September 30, 2016 representing a quadrupling of AUM during that period.

“I am excited and humbled to be celebrating this special milestone,” said Bob Steers, the firm’s Chief Executive Officer. “Seeing the firm grow and evolve over the years has been incredibly gratifying and I look forward to the tremendous possibilities that lie ahead. Just as we saw the opportunity in REITs 30 years ago, we believe investors are just beginning to recognize the potential of real assets.”

Cohen & Steers’ strategies are available through a wide range of investment vehicles, including institutional accounts, U.S. registered mutual funds, European institutional and retail funds, collective investment trusts, as well as limited partnerships.

 

Advisors Spend Less Than 20% of Their Time Making Investment Decisions

  |   For  |  0 Comentarios

According to new research from global research and consulting firm Cerulli Associates, advisors spend less than 20% of their time making investment decisions.

“While investing is a key component of any financial plan, advisors spend more time tending to client-related activities such as acquiring new clients and meeting with current clients,” comments Emily Sweet, senior analyst at Cerulli. “They allocate the remainder of their time to administrative tasks, including office management and compliance-related work.”

Framing their role as relationship-focused could be difficult for many advisors because their value proposition has historically been investment-centric,” Sweet explains. “Our data shows that after tending to important client needs, time available to manage investments is limited. Outsourcing elements of investment management can enhance efficiency.”

“With so many outsourced resources available, and given the regulatory environment, it is time for advisors to consider how investment management fits into their day-to-day job description,” Sweet explains. “One method of outsourcing investment management is using models. Whether home office, proprietary, or third party, models serve as solid starting points for client portfolios. Models paired with shorter-term, tactical strategies help advisors set a baseline for client portfolios and lessen the time they spend making investment decisions.”

“Fewer investment decisions frees up advisors’ time, allowing them to focus more on the broad scope of their client relationships,” Sweet adds. Cerulli suggests that advisors view models and other outsourced resources not as a conflict to their value proposition, but as a complement to their investment process. Creating a standard starting point for investing client portfolios can help advisors scale their efforts while allowing room to tailor the end portfolio to suit individual clients’ needs.

These findings and more are from the 4Q 2016 issue of The Cerulli Edge – Advisor Edition, which examines the benefit of outsourcing and how asset managers are revamping distribution.
 

TD Ameritrade to Acquire Scottrade

  |   For  |  0 Comentarios

TD Ameritrade and Scottrade Financial Services, have entered into a definitive agreement for TD Ameritrade to acquire Scottrade in a cash and stock transaction valued at $4 billion.

The transaction combines two highly complementary organizations with long histories of helping millions of people invest in their financial futures. For TD Ameritrade, the transaction adds significant scale to its retail business, extends its leadership in trading, and more than quadruples the size of its branch network.

The company expects to realize approximately $450 million in combined annual expense synergies, and more than $300 million in additional longer-term opportunities. The first 25 percent of the expense synergies are expected to be realized in Year 1 post-close and the remainder realized in Year 2. Furthermore, the transaction is expected to generate double-digit EPS accretion post-conversion.

The transaction, which has been approved by the boards of directors of TD Ameritrade, TD Bank Group (TD) and Scottrade, will take place in two, concurrent steps. First, TD will purchase Scottrade Bank from Scottrade Financial Services, for $1.3 billion in cash consideration. Under the terms of the proposed acquisition, Scottrade Bank will merge with and into TD Bank, N.A., an indirect wholly-owned subsidiary of The Toronto-Dominion Bank. Additionally, TD will purchase $400 million in new common equity (11 million shares) from TD Ameritrade in connection with the proposed transaction, pursuant to its preemptive rights.

Then, immediately following that acquisition, TD Ameritrade will acquire Scottrade Financial Services, for $4 billion, or $2.7 billion net of the proceeds from the sale of Scottrade Bank.

The $2.7 billion will be comprised of:

  •     $1.0 billion in new common equity (28 million shares) issued to Scottrade shareholders; and
  •     $1.7 billion in cash, which includes TD Ameritrade cash ($900 million), a new debt offering ($400 million), and the proceeds from the sale of 11 million shares to TD ($400 million).

Additionally, following the transaction’s close, Scottrade Founder and CEO Rodger Riney will be appointed to the TD Ameritrade Board of Directors.

For the 12 months ended Sept. 30, 2016, TD Ameritrade and Scottrade, on a pro-forma combined basis, had $944 billion in total client assets.

“For more than 40 years, TD Ameritrade has been committed to breaking down the barriers that stand between American investors and Wall Street. That means delivering an investing experience grounded in technology and innovation that educates and enables investors with all levels of ability and wealth to work toward their financial goals,” said Tim Hockey, TD Ameritrade president and chief executive officer. “We’ve found in Scottrade a partner with an equally-strong passion and a proven track record for delivering exceptional client experiences. This combination will allow us to leverage our strengths and increase our scale, further accelerate our asset gathering capabilities and introduce our award-winning line-up of trading tools, products and education services to millions of new investors.”

“Since founding Scottrade in 1980, our mission has been to lower the cost of investing and trading while treating clients fairly and honestly. Over the last 36 years, thanks to the tireless efforts of our talented associates, we have expanded our services and evolved the business while maintaining our commitment to helping people overcome barriers to financial success,” said Rodger Riney, Scottrade founder and chief executive officer. “We are confident we have found a great partner in TD Ameritrade, who shares our client-first focus. Joining forces will enable us to offer clients an expanded array of trading tools, enhanced education resources and advanced option capabilities with broader geographic reach. Together, we will be well-positioned to compete in today’s rapidly evolving financial services industry.”

The transaction is subject to regulatory approval and customary closing conditions. The parties expect it to close by Sept. 30, 2017, with an anticipated clearing conversion to TD Ameritrade systems in 2018.

Deutsche Asset Management Expands Currency-Hedged International Fixed Income ETFs Suite

  |   For  |  0 Comentarios

Deutsche Asset Management amplía su suite de ETFs de renta fija internacional con cobertura a divisa
CC-BY-SA-2.0, FlickrPhoto: Luis Alejandro Bernal Romero http://aztlek.com . Deutsche Asset Management Expands Currency-Hedged International Fixed Income ETFs Suite

Deutsche Asset Management announced on Tuesday the launch of two fixed income exchange traded funds (ETFs). Deutsche X-trackers Barclays International Treasury Bond Hedged ETF (Ticker: IGVT) and Deutsche X-trackers Barclays International Corporate Bond Hedged ETF (Ticker: IFIX) will provide investors access to a broad variety of international fixed income exposures without the often high individual bond investment minimums and with the liquidity offered by an exchange-traded product.

“During times of sharp market movements, investors are looking for stable sources of revenue. Through the new Deutsche X-trackers currency-hedged international bonds funds, we are offering investors an opportunity to potentially reduce volatility and drawdown risks while strengthening returns,” said Fiona Bassett, Head of Passive Asset Management in the Americas. “In our view, the currency hedging aspect of IGVT and IFIX allows investors an opportunity to preserve the reliable sources of income, stable and consistent cash flow typically associated with bond investments, decreasing the risk brought on by currency exposure.”

In addition, Deutsche X-trackers is also reducing management fees on two other funds in their fixed income line-up. The new fee for Deutsche X-trackers High Yield Corporate Bond – Interest Rate Hedged ETF (Ticker: HYIH) is 35 basis points, or 0.35%, and the new fee for Deutsche X-trackers Emerging Markets Bond – Interest Rate Hedged ETF (Ticker: EMIH) is 45 basis points, or 0.45%.

“If US interest rates rise, international fixed income may help investors diversify away from concentrated US-rate exposure. Our new suite gives investors access to a variety of bonds on a currency hedged basis within the international space covering the Treasury and investment-grade corporate bond segments of the fixed income market,” Bassett said. “We are committed to providing relevant, innovative and cost-effective solutions to our clients for their international investing needs.”

The Deutsche X-trackers Barclays International Treasury Bond Hedged ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Barclays Global Aggregate Treasury Ex USD Issuer Diversified Bond Index (USD Hedged). The Deutsche X-trackers Barclays International Corporate Bond Hedged ETF seeks investment results that correspond generally to the performance, before fees and expenses, of the Barclays Global Aggregate Corporate Ex USD Bond Index (USD Hedged).

Hillary or Trump? How Much Does it Matter to Markets?

  |   For  |  0 Comentarios

Hillary or Trump? How Much Does it Matter to Markets?
Wikimedia CommonsFoto: BU Rob13 & Gage. ¿Hillary o Trump? ¿Cuánto le importa a los mercados?

Democratic presidential candidate Hillary Clinton is leading Republican Donald Trump in opinion polls, though her edge over the billionaire has narrowed. What might the outcome, as well as all of the heated political rhetoric, mean for the global economy and financial markets? Are concerns mounting among investors? Is it time for investors to re-adjust portfolio allocations?

According to David Lafferty, Chief Market Strategist at Natixis, when speaking to investors both in and outside of the U.S., the presidential election is almost always the number one question on their minds. He mentions their first caveat is to remind investors that proposal differences pre-election are always bigger than implementation differences post-election; divided government ensures that presidents get only a small portion of what they want. In general, this means that investors tend to put too much weight on election outcomes vis-à-vis portfolio expectations. “Guessing whether Mrs. Clinton will be bad for healthcare stocks or Mr. Trump will be good for defense/military stocks is a poor way to build a durable portfolio.”

Second, there is still a lot of time left. Due to the Electoral College math and superior fundraising and organization, Mrs. Clinton seems the odds-on favorite to win. But we still have a few weeks left. We’ve got one more debate to go, and with these two candidates, the final weeks offer a higher-than-usual chance for more bombshells (perhaps something in Donald’s tax returns or Hillary’s missing e-mails?).

“For sport, we’ll continue to handicap the outcome like everyone else, but if Brexit has taught us one thing, it’s that betting on the conventional wisdom can be dangerous. With too many variables still unknown, including the election winner, the make-up of Congress, or how proposals will morph into policy, long-term market implications are uncertain. To be sure, neither candidate has presented a convincing pro-growth policy that would boost economic activity or the equity markets. Regardless of the winner, Washington gridlock won’t likely produce major policy changes, although some modest corporate tax reform is possible. While long-run return implications are uncertain, we still believe that Mr. Trump’s newcomer status and lack of policy history would make him the source of more short-term volatility.” concluded Lafferty.

Natixis’ latest 2016 Global Financial Advisor Survey top findings include:

U.S. advisors say neither candidate will be better

U.S. advisors appear to be ambivalent or unconvinced when it comes to who they think could have the most positive impact on five key factors: the stock market, bond market, global economy, global trade, and geopolitical risk.

Given the choice between Clinton, Trump, either, or neither, 40% of respondents in the U.S. chose “neither” for all factors with the exception of global trade, where 32% believe Clinton will fare better, and geopolitical risk where Clinton received the highest number of responses at 35%.

Globally, advisors say Clinton will be better

Outside the U.S., it appears that financial professionals believe Hillary Clinton would have a more positive impact on all five factors. Clinton’s numbers in each run in the mid-40s and mid-50s, while those believing Trump would result in better outcomes numbered in the mid-teens. Country to country there are some variances in responses. But overall, advisor sentiment was relatively consistent from country to country.

What advisors think about next U.S. President
-Stock markets
U.S. respondents over the age of 47 believe Trump will be better for the market
(34%) compared to Clinton (21%) while 37% answered neither.
57% of women advisors globally believe Clinton will be better for the stock market.
– Bond markets
47% of advisors globally give Clinton the edge for bonds compared to 14% who believe Trump will be best.
Colombia (65%), Chile (61%), Spain (57%), Italy (55%) and Panama (55%) report the strongest inclination that Clinton will be best for bonds. France is a significant outlier from this trend with 47% of advisors choosing “neither.”
– Global economy
43% of U.S. women advisors believe Clinton will be better for the global economy
compared to 19% who believe Trump will be better.
Globally, 44% of advisors favor Clinton on the global economy, 27% say neither, 16% favor Trump and 13% call it a toss-up.
– Geopolitical risk
42% of U.S. Independent Advisors and 45% of U.S. women advisors believe Clinton will be better on geopolitical risk. For women globally, the number reached 62%.

1% of advisors with books of business above average ($29.5 million is sampling’s average size) favor Clinton on geopolitical risk, 29% say neither and 23% say Trump. Those with books below average are more likely to say neither (39%).

Chris Wallis, CIO Vaughan Nelson Investment Management, recommends investors to ignore the election, reminding them that looking back at U.S. presidential history for over 180 years, one can see that the elected president has never really had a big impact on the financial markets. “There is no doubt about it – the U.S. has an interesting pair of presidential candidates this election season. They are offering very different policy choices across the board – from foreign, trade, tax, economic, healthcare to immigration policy. But that being said, I really don’t believe it makes any difference to the markets and long-term investors’ portfolios whether Hillary Clinton or Donald Trump wins on November 8.”

 

Fund Selectors and Buyers Got Together with Four Management Companies at the Funds Society Fund Selector Forum New York 2016

  |   For  |  0 Comentarios

Selectores y compradores de fondos se reunieron con cuatro gestoras en el Funds Society Fund Selector Forum New York 2016
Photos of the Funds Society Fund Selector Forum New York 2016. Fund Selectors and Buyers Got Together with Four Management Companies at the Funds Society Fund Selector Forum New York 2016

The first Funds Society Fund Selector Forum New York was held a few days ago following the success of the two editions of the Summit in Miami, which Funds Society also organized in collaboration with Open Door Media. In this first edition, 20 fund delegates / selectors and financial advisors within the US offshore sector met at the Waldorf Astoria hotel in Manhattan to listen to the explanations of experts from Brandes Investment Partners, Carmignac, Edmond de Rothschild Asset Management, and Henderson Global Investors.

Kevin Loome, Head of US Credit, highlighted key aspects of Henderson Global Investors’ high yield debt investment philosophy; Sandra Crowl, a member of Carmignac Investment Committee, outlined her vision of leadership in global asset allocation; Kevin Thozet, product specialist of Edmond de Rothschild Asset Management, spoke about how to generate absolute returns in the fixed income universe; and Jeffrey Germain, of Brandes Investment Partners, shared his vision on the ‘value’ opportunities in European equities and emerging markets.

According to Loome, between 6 and 8 billion dollars in fixed income are yielding negative results “which we, as investors, must fight against.” Referring to the risk of corporate default, the Henderson executive pointed out the extensive repair damage that has occurred, and said he had noticed better quality in newly issued debt. The fixed income market is an inefficient market composed of 1,700 companies globally, while ETFs are limited as to what they can access, he explained. In reference to the daily liquidity, according to Loome, the global high yield market is “impossible to index”. Loome affirmed that his company’s analysts are finding incorrectly rated bonds, with CCC, for example, and that in the seventh year of the credit cycle it is increasingly important to analyze them, and not to simply follow the ratings. Finally, regarding the energy sector, he pointed out that markets are open to buying new issues of companies in the sector with oil at $ 50, but that at 70 would be even better.

Following Loome, Sandra Crowl was of the opinion that the Chinese situation is a key factor for macro evolution. Government movements in China have had an effect on the price of commodities and on private credit growth and a stabilizing effect is taking place. With regard to oil prices, she said she expected it to reach $ 70 within 18 months and said she could see evidence of recovery, for example, in recent US corporate results, but believes it is too early for rejoicing yet. Regarding Europe, the speaker from Carmignac said she expects changes in government policy, and encourages greater fiscal involvement, because the QE program is not working as intended, and believes the British government will have no choice but to negotiate a smooth exit, given the strong impact of Brexit in its economy. As regards the United States, she seems convinced that regardless of who wins the elections, infrastructure spending will be increased; and advised that it is prudent to reduce exposure to equities before the US elections and before the Italian referendum, as it was prior to the British referendum on Brexit. Finally, she pointed out that in future, natural sources of alpha will be related to millennials, technology, longevity and growth in emerging markets, and declared she was buying Argentinean government debt denominated in dollars, and that she found Polish public debt attractive.

Jeffrey Germain followed, and focused on value investing; he said that it’s easier to find “value” opportunities in Europe than in the United States and that European stocks are at historic lows, setting Russia as an example, which is so cheap that “you are paying for the cash balance “. He pointed out that some British value companies could benefit from the post Brexit inflation, and mentioned British Isles food sector companies as an attractive sector for value investing. Furthermore, the Brandes Investment Partners representative said that copper has good behavior as compared to iron, competing increasingly stronger in the Chinese market, where it’s pushing prices downward. Finally, he agreed with the preceding speakers pointing out that oil is cheaper than it should be given the current economic situation.

Finally, Kevin Thozet was optimistic with respect to bonds linked to inflation ,and said it is unlikely that the rates of short –term debt in Germany, Austria, Holland, Belgium, and France fall below those of deposits the European Central Bank. Regarding emerging markets, he was of the opinion that although the risk may be lower than what the consensus on emerging markets suggests that there are still risk factors involved such as US interest rates and fluctuations in crude oil prices. The Product Specialist from Edmond de Rothschild Asset Management does not expect a hard landing for the Chinese economy, but noted that debt related to real estate weighing 20% of GDP, is a risk factor. Finally, he pointed out that emerging market debt is 12% of global debt and that market size has implications on liquidity.

Eaton Vance to Acquire Calvert Investment Management

  |   For  |  0 Comentarios

Eaton Vance anuncia la compra de Calvert Investment Management
CC-BY-SA-2.0, FlickrPhoto: Joe Cheng. Eaton Vance to Acquire Calvert Investment Management

Eaton Vance recently announced the execution of a definitive agreement to acquire the business assets of Calvert Investment Management, an indirect subsidiary of Ameritas Holding Company.  In conjunction with the proposed acquisition, the Boards of Trustees of the Calvert mutual funds have voted to recommend to Fund shareholders the approval of investment advisory contracts with a newly formed Eaton Vance affiliate, to operate as Calvert Research and Management, if the transaction is consummated.

Calvert is a recognized leader in responsible investing, with approximately $12.3 billion of fund and separate account assets under management as of September 30, 2016.   The Calvert Funds are one of the largest and most diversified families of responsibly invested mutual funds, encompassing actively and passively managed U.S. and international equity strategies, fixed income strategies and asset allocation funds managed in accordance with the Calvert Principles for Responsible Investment.  As a responsible investor, Calvert seeks to invest in companies that provide positive leadership in their business operations and overall activities that are material to improving societal outcomes.

Founded in 1976, Calvert has a long history in responsible investing.  In 1982, the Calvert Social Investment Fund (now Calvert Balanced Portfolio) was launched as the first mutual fund to oppose investing in South Africa’s apartheid system.  Other Calvert innovations include the first responsibly managed fixed income and international equity funds, and pioneering programs in shareholder advocacy, corporate engagement and impact investing.      

“I am extremely pleased that Eaton Vance has chosen to make Calvert the centerpiece of its expansion in responsible investing,” said John Streur, President and Chief Executive Officer of Calvert. “By combining Calvert’s expertise in sustainability research with Eaton Vance’s investment capabilities and distribution strengths, we believe we can deliver best-in-class integrated management of responsible investment portfolios to investors across the U.S. and internationally.  Eaton Vance is the ideal partner to help Calvert fulfill its mission to deliver superior long-term performance to clients and achieve positive impact.”

“As part of Eaton Vance, we see tremendous potential for Calvert to extend its leadership position among responsible investment managers,” said Thomas E. Faust Jr., Chairman and Chief Executive Officer of Eaton Vance. “By applying our management and distribution resources and oversight, we believe Eaton Vance can help Calvert become a meaningfully larger, better and more impactful company.”

Completion of the transaction is subject to Calvert Fund shareholder approvals of new investment advisory agreements and other closing conditions, and is expected on or about December 31, 2016.  Because the transaction is structured as an asset purchase, liabilities in connection with Calvert’s previously disclosed compliance matters and other pre-closing obligations will remain with the seller. Terms of the transaction are not being disclosed.