Foto: Donna Cleveland
. Eaton Vance lidera la financiación de 40 millones para la tecnológica del WM SigFig
Eaton Vance announced recently its participation in a $40 million financing in SigFig, an independent San Francisco-based wealth management technology company. Eaton Vance is lead investor in the $33 million SigFig equity raise, whose other participants include major financial institutions New York Life, Santander InnoVentures and UBS, as well as venture capital firms Bain Capital Ventures, DCM Ventures, Nyca Partners and Union Square Ventures. Comerica Bank is providing $7 million of credit to SigFig through a lending facility.
This financing solidifies SigFig’s position as an industry-leading provider of digital technology to financial institutions across the wealth management, banking and insurance industries. SigFig will use the funding to accelerate the expansion of its team and technology platform as it scales its enterprise strategy of building investment technology for a wide range of financial institutions based on their distinctive corporate strategies and individual client needs.
SigFig has recently announced a series of partnerships with banks and wealth management platforms, including UBS Wealth Management Americas and Pershing Advisor Solutions, to build wealth management technology solutions for those firms’ financial advisors and clients.
“Eaton Vance’s investment in SigFig reflects our support for their vision to apply leading-edge digital technology to enhance the investing experience and improve outcomes for investors,” said Thomas E. Faust, Jr., Chairman and Chief Executive Officer of Eaton Vance Corp. “Their best-in-class technology platform and partnerships with leading financial institutions position SigFig as an emerging leader in the rapidly developing enterprise wealth management technology market. By affiliating with SigFig, Eaton Vance gains a seat at the table in the development of the tools that will guide the future of investment advice.”
Financial terms of Eaton Vance’s investment are not being disclosed.
Foto: faungg's photos
. Maitland abre en Miami su base para América Latina
Maitland, a global advisory and fund administration firm, has opened a new office in Miami, it´s15th across 12 countries. The office will provide the firm´s LatAm team with a regional base, giving their growing private and institutional client base access to on-the-ground support.
Economic and political instability in Brazil and LatAm – alongside regulatory changes such as Brazil’s recently announced tax amnesty program – are driving increased demand for the firm’s services, especially for clients who have based themselves outside their country of origin. The move ultimately allows the company to forge closer relations with its clients, prospects as well as the growing community of service providers in the vicinity.
Benjamin Reid, Senior Business Development and Client Manager, LatAm, said: “Since Maitland entered the LatAm market three years ago, we have been fortunate enough to work with some of the leading family offices in the region. As we continue to grow, it is paramount that we locate ourselves closer to our clients – almost all of whom have a foothold of some sort here in Miami. Being here allows us to provide a more seamless, local offering, and we have the expertise and linguistic skills to service this region to the highest standard.”
The office is located in downtown Miami. Benjamin Reid has relocated to Miami to continue to lead the group’s business development efforts in the region. Benjamin will be joined by Pedro Olmo and Camila Saraiva, as client relationship managers responsible for the day-to-day management of the growing book of LatAm clients. Pedro joined Maitland from Turim family office in Brazil where he was the group’s in-house counsel. Camila joins the team from Barbosa legal, a Miami based Brazilian law firm focused on servicing UHNW clients.
David Kubilus, Head of Business Development at Maitland added: “Our LatAm business has been growing quickly, so opening a Miami office fits perfectly with our strategy of expanding where clients are located. It’s a great new chapter in our global growth story, which happens to coincide with our 40th anniversary as a business.”
CC-BY-SA-2.0, FlickrPhoto: Photo Philde. Amundi And Oddo & Cie Reach An Agreement On The Acquisition Of Kleinwort Benson Investors
Amundi, Oddo & Cie and Kleinwort Benson Investors (KBI) today announced that they have signed a definitive agreement whereby Amundi is to acquire an 87.5% stake in KBI from Oddo & Cie, while the management team of KBI will acquire a 12.5% stake.
KBI, a subsidiary of BHF Kleinwort Benson Group which was recently acquired by the Oddo group, is a fast-growing equity management firm, headquartered in Dublin, Ireland with offices in Boston and New York and employing 62 people. Its highly experienced investment team manages 7.6 billion euros of assets as of 31 March 2016, mainly across global equity capabilities. KBI has delivered an excellent performance track record over the years, and enjoyed dynamic growth of its assets under management over the past few years (CAGR 2011-15: +28%).
KBI’s clients are well diversified between institutional, subadvisory and third party distributors. The firm has developed successfully in North America which represents 52% of assets under management by client domicile, while Ireland and UK account together for 26%, Continental Europe 14% and Asia 8%.
In 2015 KBI posted net revenues of 31 million euros and a net income of 9 million euros.
Amundi and KBI are highly complementary in terms of product and geographic focus. KBI’s global equities expertise will strongly augment Amundi’s equity franchise. Likewise, KBI will leverage Amundi’s strong Retail and institutional presence in Europe, Asia and the Middle East.
The transaction benefits from the full support of KBI’s management team, who will hold a material stake in the company. Going forward KBI will retain its distribution, operating and portfolio management autonomy. Sean Hawkshaw will continue as Chief Executive Officer and Noel O’Halloran as Chief Investment Officer. All employees are expected to remain with the firm.
The transaction is fully in line with Amundi’s financial criteria for acquisitions: the deal will be immediately accretive to Amundi’s EPS and will comply with the target of an expected return on investment superior to 10% within three years.
In parallel with this transaction, Amundi and Oddo & Cie will strengthen their cooperation, namely via the cross selling of their investment expertise.
Foto: Giovanna Baldini. La Autoridad Monetaria de Singapur retira su aprobación al banco BSI Bank Limited
The Monetary Authority of Singapore (MAS) announced on Tuesday that it plans to remove the status as a merchant bank in Singapore of BSI Bank Limited (BSI Bank) “for serious breaches of anti-money laundering requirements, poor management oversight of the bank’s operations, and gross misconduct by some of the bank’s staff.” This is the first time that MAS is withdrawing its approval for a merchant bank since 1984.
In addition, MAS has referred to the Public Prosecutor the names of six members of BSI Bank’s senior management and staff to evaluate whether they have committed criminal offences. These are:
Hans Peter Brunner, former CEO
Raj Sriram, former Deputy CEO
Kevin Michael Swampillai, Head of Wealth Management Services
Yak Yew Chee, former Senior Private Banker
Yeo Jiawei, former Wealth Planner
Seah Yew Foong Yvonne, former Senior Private Banker
The Monetary Authority of Singapore (MAS) will allow the transfer of the assets and liabilities of BSI Bank Limited (BSI’s Singapore subsidiary) to the Singapore branch of EFG Bank AG. MAS and the Swiss Financial Market Supervisory Authority (FINMA) are working closely to oversee an orderly transfer.
“Clients of BSI Bank Limited are assured that both BSI and EFG are working for a fast and smooth transition. The Singapore subsidiary also has the full support of its parent bank, BSI,” said a statement by BSI, which also mentions that the bank has taken “note of the announcements by FINMA and MAS in relation to past compliance gaps related to the 1MDB case.”
MAS has also served BSI Bank notice to impose financial penalties amounting to $13.3 million for 41 breaches of MAS Notice 1014 – Prevention of Money Laundering and Countering the Financing of Terrorism. The breaches include failure to perform enhanced customer due diligence on high risk accounts, and to monitor for suspicious customer transactions on an ongoing basis.
Ravi Menon, Managing Director, MAS, said, “BSI Bank is the worst case of control lapses and gross misconduct that we have seen in the Singapore financial sector. It is a stark reminder to all financial institutions to take their anti-money laundering responsibilities seriously. Controls need to be robust, surveillance vigilant, and the management culture must emphasise professional integrity and risk consciousness.” Adding that “MAS is absolutely committed to safeguarding the integrity and reputation of Singapore’s financial centre. On this, there can be no compromise.”
Foto: Rob Gallop
. Hasta 200.000 millones de dólares en ingresos pueden cambiar de wealth manager
Globally, up to US$200b in revenue may be at stake, as 40% of all clients surveyed are open to switching wealth managers under the right circumstances, according to EY’s 2016 global wealth management reportThe experience factor: the new growth engine in wealth management. Firms that fail to make strategic investments to deliver a superior client experience may risk losing a substantial portion of their current business, the report finds.
The vast majority (73%) of clients surveyed have relationships with multiple wealth managers. Fifty-seven percent of those would be willing to consolidate their assets with fewer wealth managers for various reasons, including “better pricing,” “better portfolio returns,” and “breadth of products and services.” While some of the motivations may sound familiar, what clients actually mean when stating these reasons has changed significantly, the research finds.
More than 2,000 wealth management clients representing a broad spectrum of segments including wealth level, age, region and gender were surveyed by Oxford Economics for this report. EY also conducted interviews with more than 60 wealth management executives globally to better understand how wealth managers are thinking about and investing in key growth initiatives.
Alex Birkin, EY’s Global Wealth & Asset Management Advisory Leader, says:
“This research should make the industry sit up and take notice. The rules of the game have changed. In order to attain growth, managers must now learn to compete with man, machine and hybrid-based firms to retain and attract new assets.”
Revenue growth is a top priority
With client assets in play, 50% of wealth managers interviewed globally indicated that revenue growth will be the top focus of their strategic business priorities in the next two to three years, especially in Europe and the Americas. Specific revenue growth initiatives will focus on enhancing the client experience.
Bridging the client experience gap
Client experience in wealth management is unique and complex, as it spans an individual’s life journey of managing and preparing for the unknown, the report notes. As a result, wealth managers have lacked a common definition of client experience or a standard against which firms can measure themselves. Yet, the report identifies a common view of client experience, as respondents say they value performance, engagement and trust the most in their wealth managers.
Clients and firms are aligned on most of these values, but there are three areas where firms appear to be out of step with client expectations, the report finds:
Transparency— Clients are eager for a new level of transparency that includes rating their advisors and connecting with similar clients in public forums.
Advice channels— Clients are significantly more open than firms to adopting digital channels for wealth advice, not just service.
Role of the advisor—The financial advisor may become more like a financial therapist in the future, helping clients with spending habits or reaching life goals instead of strictly providing standard asset allocation advice or other activities that could be automated.
Nalika Nanayakkara,EY’s US Wealth Management Leader, says: “In an industry where advances in technology, new types of competition and client expectations are changing rapidly, firms that challenge traditional norms while remaining true to their core value proposition will be better positioned to succeed. Delivering a comprehensive client experience is the linchpin that will make or break a firm in this wealth management landscape.”
Standard Life Investments announced some changes to the real estate team including the appointment of Svitlana Gubriy to head of Global REIT funds and James Britton to fund manager of the Global Real Estate Fund.
Svitlana Gubriy joined Standard Life Investments in 2005 and is currently fund manager for the Global REIT Focus Fund (SICAV), and deputy fund manager on the Global REIT Fund (unit trust) – she will become fund manager of the unit trust. Svitlana worked with Andrew last year in respect of the distribution of our funds with John Hancock.
James Britton is fund manager of both the Standard Life Unit Linked Life Fund and the advisory South Yorkshire Pensions Authority mandate. He worked as portfolio manager on the Global Real Estate Fund from 2009 to 2013 managing a specific strategy in Brazil. James joined Standard Life Investments in 2006.
Andrew Jackson, Head of Wholesale & Listed Real Estate Funds, has resigned from Standard Life Investments after 25 years of service. Andrew will remain with the business until October 2016 to ensure there is a smooth period of transition. A further member of the listed real estate team will be recruited.
Andrew started in the property research team in 1991, and became head of the team in 1999. He moved into fund management in 2003 and launched Standard Life Investments’ first direct property UK mutual fund in 2005. He managed and launched various direct and listed property funds and investments trusts over the years, before being appointed to manage the wholesale and listed team in 2008.
Foto: highfithome. Mac Kirschner, nuevo responsable de la relación con el cliente en MUFG
MUFG Investor Services, the global asset servicing arm of Mitsubishi UFJ Financial Group, has appointed McAllister (Mac) Kirschner as Global Head of Client Relationship Management.
Mac will be responsible for deepening relationships with existing clients across MUFG Investor Services’ alternative asset servicing platform. He will work in close partnership with client managers to develop client strategy and ensure continued client satisfaction throughout the investment lifecycle.
With more than 15 years of experience in platform development, client management and product administration, Mac will also drive market intelligence across the asset servicing business and assist sales and client development teams with both new and incremental business pipelines. He will report to John Sergides, Managing Director, Global Head of Business Development & Marketing, in New York.
Mac joins from BlackRock, where he was managing director in its Global Fund Services business, overseeing operational teams responsible for shareholder servicing, fund administration and trade operations. He joined BlackRock in 2007 following the acquisition of the fund of funds business of Quellos Group, where he served as an associate director focusing on client relations.
The announcement follows the recent appointments of Mark Catalano who joined from Atlas Fund Services, Michael McCabe from BNY Mellon’s Alternative Investment Services business and Daniel Trentacosta from Och-Ziff Capital Management Group.
John Sergides commented: “Mac’s extensive experience in managing operations and client relationships in the alternative investment industry is a huge asset to our business. His appointment is another important step in our strategy to grow organically and continue to provide high-quality asset servicing solutions to our clients. We are excited to have him on board and look forward to strengthening our client-centric offering across our asset servicing platform.”
Mac Kirschner, Global Head of Client Relationship Management, MUFG Investor Services, added: “As a former evaluator of asset servicing platforms, I’ve experienced MUFG Investor Services’ commitment to exceptional client service first hand. It truly is industry leading, and I look forward to strengthening this quality in my new role. Our aim is not just to be a provider but a valued partner, helping our clients achieve their growth ambitions.”
According to Henry H. McVey, Head of Global Macro and Asset Allocation at KKR, “A recent visit to China gives us more assurance that there is a base rate of economic growth that the government will – using a variety of monetary and fiscal tools – work hard to achieve in 2016, however, our bigger picture conclusion remains that the Chinese economy is structurally slowing, driven by disinflation, declining incremental returns, demographic headwinds, and the law of large numbers. How these transitions unfold have major implications not only for China, but also for a global economy that now relies on one country, China, for more than one-third of total GDP growth.”
In his newest macro Insights, titled China: Mounting Macro Paradox, McVey discusses the following short-term and long-term investment conclusions:
As it relates to the short term, we are lifting our 2016 GDP forecast for China to 6.5% from 6.3%. This change represents the team’s first uptick in forecasted Chinese GDP growth since arriving at KKR in 2011.
Longer-term, however, we do not think that the recent stimulus can help the Chinese economy to re-establish a higher sustained growth rate.
Corporate credit growth remains outsized relative to GDP, which has implications for – among others – the country’s banks, insurers, and brokers.
There is no “One China” anymore, as the country’s economy is undergoing a massive transition.
To offset the slowdown in global trade and flows, China is also repositioning its export economy to take market share in higher value-added services.
China Inc.: Coming to a theater near you. Without question, this trip’s consensus view centered on the desire by many Chinese business leaders to acquire companies, properties, and experiences outside of China.
CC-BY-SA-2.0, FlickrPhoto: Bernd Zube
. Global Investor Services and Dynasty Financial Partners Create a Strategic Alliance to Expand Their Global Wealth Platform
The network of independent Financial Advisors, Dynasty Financial Partners announced yesterday that it has formed a strategic relationship with Global Investor Services (GIS), a Hencorp company and a U.S. regulated Broker-Dealer (member FINRA/SIPC), with more than 100 Registered Representatives and Associated Persons in offices including Miami, Houston, Chile, Peru and Uruguay and clients entrusting more than $2.5 billion of their wealth to its care. For over 25 years, the firm has been providing its clients with a trading platform, a custodial platform and a full-service, client-oriented back office support team.
Dynasty will be providing GIS advisors its investment capabilities including the firm’s Turn Key Asset Management Platform as well as Dynasty Select, the company´s approved and recommended list of long only, separately managed asset managers and alternative hedge fund and private equity managers. In addition, the broker-dealer will have access to the awarded Dynasty’s Outsourced Chief Investment Officer (OCIO) platform.
“We are committed to our clients and ensuring that we provide the right solutions to meet their increasingly complex needs,” said Daniel Schwartz, CEO of Global Investor Services. “We look forward to working with Dynasty on cross-border solutions for all of our clients, as well as cross-border opportunities for both our financial networks. In addition, Dynasty’s investment solutions will provide GIS representatives access to more competitive pricing as well as operational efficiencies which allow for a robust wealth management platform.”
This partnership comes on the heels of Dynasty’s April 5th announcement of its partnership with Florida-based RIA Premia Global Advisors and the hiring of Javier Rivero to lead firm´s new office in Coral Gables.
“Daniel and the GIS team bring significant quality and depth to the international independent market,” said Ed Swenson, Chief Operating Officer of Dynasty. “We believe this unique relationship with GIS will leverage both of our networks and platforms and we are now positioned to capture an increasing share of the international business going to the RIA space.”
According to Javier Rivero, SPV of Dynasty’s International Division, “We both see a bright future ahead: GIS and Dynasty want to be top-of-mind for international advisory teams seeking to set up independent RIAs in their market.”
CC-BY-SA-2.0, FlickrPhoto: Chris Saulit. Euroclear And Lyxor Asset Management Collaborate To Bring Greater Transparency To Fixed Income Liquidity
Euroclear and Lyxor Asset Management are cooperating in the launch of “e-Data Liquidity,” an innovative tool enabling fixed income market participants a method of accessing the true intrinsic liquidity of an asset, therefore providing the full liquidity profile.
Against the backdrop of increasing regulatory requirements, accurately monitoring the liquidity of an asset plays a key role in helping investors adequately price assets and allocate their funds. Measuring liquidity can prove particularly challenging for fixed income securities, which mainly operate over-the-counter and offer less transparency by nature than other markets.
Stephan Pouyat, Global Head of Funds and Capital Markets at Euroclear said: “The current market climate is prompting investment managers, treasurers, risk managers, insurers, collateral takers, central counterparties and other buy-side institutions to better manage their asset portfolios and strengthen their balance sheets, including liquidity buffers. e-Data is a modular tool and the liquidity module provides key indicators founded on our neutral settlement data and presented in its simplest form, relying on the infrastructure stamp of Euroclear. This first module, designed in close collaboration with Lyxor, focuses on supporting the management of fixed income and more specifically high quality liquid assets.”
Jean Sayegh, Co-Head of Sovereign Bonds Investments, Lyxor Asset Management added: “Lyxor has always helped its clients understand and adjust to a rapidly changing environment. By teaming up with Euroclear we are participating in the current regulatory drive for market transparency and providing fixed income investors with an innovative tool helping them better manage their portfolios. This partnership confirms our expertise as an innovative and growing fixed income asset manager. By leveraging on the depth of Euroclear data, Lyxor creates value for its clients”.
