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”.
Schroders has reached an agreement with Brookfield Investment Management to acquire its securitised products investment management team with more than $4 billion in assets under management.
The team is led by Michelle Russell-Dowe, Managing Director and Head of Securitised Products Investments at Brookfield, and will combine with Schroders’ existing New York based ABS team. The combined team will oversee more than $8 billion, with significant capacity for further growth.
The team also manages an Irish qualifying investor alternative investment fund (QIAIF), which will become an important component of the firm’s extension into alternative investments. These assets will be managed under the Schroders brand, with full access to the firm’s asset management platform, economists, research and risk management capabilities.
Karl Dasher, CEO North America at Schroders said: “This acquisition deepens our capabilities in one of the largest and most research intensive credit sectors globally. The process developed by Michelle and her team over two decades has delivered one of the longest and strongest track records in the sector with an extensive network of industry relationships. This will strengthen our investment capability for both US and non-US investors seeking higher return opportunities within fixed income.”
Michelle Russell-Dowe, Managing Director and Head of Securitised Products Investments at Brookfield said: “Our team is very excited to become part of Schroders. We feel the organisation, investment approach and environment will be a great fit for our team and our clients, which will benefit from the deep resources and capabilities Schroders has to offer globally. We look forward to working with Schroders to build on the exciting opportunities available in a changing fixed income landscape.”
CC-BY-SA-2.0, FlickrPhoto: Dronepicr. Credit Suisse Closes its Panama Office
Just as it was expected since early 2016, Credit Suisse closes its Panama advisory office. This decision has nothing to do with the Panama Papers, a scandal started with an unprecedented leak of 11.5m files from the database of the world’s fourth biggest offshore law firm, Mossack Fonseca.
Until now, Credit Suisse served the Panama Private Banking clients from their offices at the MMG Tower, in Panama City.
In an email, Drew Beson, Vice President, Corporate Communications at Credit Suisse told Funds Society: “Credit Suisse remains committed to Latin America, a key growth region for our private banking and wealth management businesses supported by our market-leading investment bank. By closing our Panama advisory office, we expect to deliver the same high-quality advisory services to clients out of Switzerland and allow Credit Suisse to strengthen presence on local locations with growth prospects. Other local presences in Latin America are not affected.”.
CC-BY-SA-2.0, FlickrMeraville Retail Park. TH Real Estate’s European Cities Fund Completes First Acquisition
TH Real Estate has acquired Meraville Retail Park in Bologna, Italy, on behalf of its European Cities Fund for a net initial yield of circa 5.96%. This is the first acquisition for the Fund, which was launched on 1 March 2016 as a pan-European open-ended real estate investment vehicle with €200m of equity.
Totalling 35,975 sq m (387,232 sq ft), Meraville Retail Park has been open since 2003 and boasts very strong sales performance, making it one of the top-two performing retail parks in Italy. Featuring a diverse mix of top retail tenants including COOP, Mediaworld, Leroy Merlin and top fashion retailers such as OVS, Pittarello, Alcott and Piazza Italia, the retail park has an occupancy rate of 99.7%.
Liz Sworn, Fund Manager, Europe, TH Real Estate, comments: “Measured against other European cities, Bologna continues to outperform in areas such as employment, growth and GDP per capita. In addition, retail sales growth in the city is predicted to average 1.4% per annum in the next five years, outperforming the Italian average. We strongly believe in the investment fundamentals of Bologna and feel that Meraville Retail Park will prove to be a strong asset for the Fund.”
Located in Bologna, the capital of Emilia Romagna and Italy’s second wealthiest city, Meraville Retail Park benefits from a 30-minute drive time catchment of nearly 800,000 people. In a rating of 1,200 European regions by TH Real Estate’s research team on factors such as employment growth, employment structure, unemployment, population growth and GDP per capita, Bologna rated in the top 12%.
Mario Pellò, Head of Investment, Italy, TH Real Estate, adds: “With its high occupancy rate, strong sales performance and location in Italy’s second wealthiest city, Meraville Retail Park perfectly meets our investment requirements for the European Cities Fund. We believe that the retail warehouse market will be a sector where we will continue to see yield advantage and that Meraville specifically presents strong asset management opportunities.”
The retail park adds to TH Real Estate’s strong presence across Italy, where its current portfolio of 11 assets totals c.€1.3bn AUM.
CC-BY-SA-2.0, FlickrPhoto: Robert S. Donovan. Matthews Asia Renames Fund to Matthews Asia Innovators Fund
Matthews Asia has announced the renaming of the Matthews Asia Science and Technology Fund to the Matthews Asia Innovators Fund.
Managed by Michael J. Oh, CFA, the Matthews Asia Innovators Fund seeks to generate long-term capital appreciation by investing in companies that the investment team believes are innovators in terms of their products, services, processes, business models, management, use of technology or approach to creating, expanding or servicing their markets.
Matthews Asia believes that as Asia’s economy has grown, many sectors such as manufacturing and technology have moved up the value chain in order to improve productivity and enhance their products and service offerings. In addition, Asia is moving beyond its reputation as a region of copycat production, with companies now focused on building market-leading positions through developments that disrupt existing business models.
Underlying these important developments in the region’s economy has been a strong focus on fostering technology, encouraging entrepreneurship and increasing emphasis on creativity. The Fund seeks to identify companies that Matthews Asia believes demonstrate innovation in their businesses and that, over the long term, can generate opportunities for attractive returns for investors.
Michael J. Oh, CFA, Lead Manager: “We believe Asia represents a significant opportunity for investors seeking innovative companies that offer the potential for long-term capital appreciation. The region’s economy is now home to many leading companies within the Internet, e-commerce, software, health care and consumer discretionary sectors. Innovation has been a key driver of success for many of these companies. Since its inception in 1999, the Fund has focused on identifying and investing in businesses such as these, and a broader investment strategy better reflects Asia’s growing, more innovative economy.”
Robert Horrocks, PhD, Chief Investment Officer: “Investing in innovative companies has been central to our investment process for over 20 years. As we celebrate the firm’s 25th anniversary this year, the renaming of the Fund to the Matthews Asia Innovators Fund highlights just how far the region’s economy has progressed during this time. Far from being an economy dominated by export-led companies, we are now seeing innovative companies occupying market-leading positions in sectors as diverse as education, e-commerce and health care. Key to their success has been the ability to deliver products and services that are more closely aligned to the region’s consumers, and I believe over the long term, it is these types of businesses that will make a much greater contribution to the region’s economy.”
