Wikimedia CommonsFoto: Tangopaso . Crédit Agricole Private Banking se transforma en Indosuez Wealth Management
Crédit Agricole Private Banking, one of the world’s leading international wealth managers, announces that its operations across Europe, the Middle East, Asia-Pacific and the Americas will henceforth be united under a new organisational structure and a unique worldwide brand Indosuez Wealth Management, which will become the global wealth management brand of Crédit Agricole group.
This rebranding is the culmination of the Indosuez Wealth Management group’s strategic transformation that began in 2012 and is based on the foundations of the bank’s identity – its 140 year heritage, business model, ambitions and footprint across the globe. According to a press release, the single brand “reflects Indosuez Wealth Management’s international reorganisation and is part of a wider process of aligning subsidiaries in different geographies to offer a streamlined and cross-border service to families and entrepreneurs across the globe.”
Globalising the brand is a major step for Indosuez Wealth Management, creating a single identity for clients and employees alike. Jean-Yves Hocher, Deputy CEO of Crédit Agricole S.A., in charge of Major Clients, commented: “The Wealth Management business is fully in line with Crédit Agricole’s customer-centric, universal banking model. Our aim is to offer our customers the full range of the Group’s expertise. The transformation of Indosuez Wealth Management is clear evidence of our ability to provide high value-added services to the broadest possible range of clients, while continuing to work in synergy with the Group’s other business lines, in the very best interest of our clients.”
Christophe Gancel, CEO of CA Indosuez Wealth (Group), said: “This is a major milestone in the company’s development. We have been committed to a major overhaul of our organisation since 2012 in order to optimise our resources and enhance our offering. This new organisation, combined with the new Indosuez Wealth Management global brand, will help us pursue our strategic goals while enhancing our visibility, supporting improved co-ordination and skills transfer. Indosuez Wealth Management conveys the commitment and high expectations we set ourselves in serving our clients, wherever they are across the globe.”
The name Indosuez has a rich heritage dating back to Banque de l’Indochine, founded in 1875. Since then, the bank has built a strong reputation advising entrepreneurs and families across the world, providing bespoke financial advice and tailored investment services. Today, Indosuez Wealth Management has 30 offices in 14 countries serving high-net-worth and ultra-high-net-worth clients worldwide and manages client assets totalling €110 billion (at 31.12.15).
The bank’s core offering is organised around three divisions:
‘Structuring Wealth’, which helps families and entrepreneurs develop efficient wealth structures covering private and professional assets and liabilities (this division now includes a global corporate finance offering);
‘Investing Wealth’, for best-in-class, tailored investment solutions, in all asset classes, with high value-added services;
‘Banking and Beyond’, which covers precision banking, lending, privileged access to our network and opportunities to meet and discuss with experts through our events.
According to Juan Nevado, Fund Manager at M&G, over the past weeks, negative sentiment triggered by China’s economic slowdown and continued declines in the oil price have driven a bear market across ‘risk’ assets such as equities and credit. “Investor pessimism has reached levels where some have begun to ask whether we are about to enter the next global recession. The M&G Multi Asset team’s base case at present is that, while there are very real risks in parts of emerging markets, this is unlikely to trigger a global recession. As such, we view markets movements in some areas at least as somewhat ‘episodic’ and are therefore watching carefully for potential opportunities to exploit,” Nevado says.
In summary, the team’s view is that:
Weighing the magnitude of the sell-off against the fundamental backdrop suggests to us that we are in an ‘episode’ in which market movements are being driven by fear, not facts. With valuations in some areas having been behaviourally driven to attractive levels, we believe this could present a chance to exploit compelling opportunities across selected risk assets. When it feels most uncomfortable to be buying assets is exactly the point at which we should be, one of the strongest indicators to us that we are in an Episode is that is feels so emotionally challenging to take it on.
Fundamentals in developed economies are strong enough that we have conviction that the West is not entering recession.
Areas such as Europe and Japan have been growing, but slowing a little and missing inflation targets. Therefore, we think policymakers in these areas are likely to be inclined towards further easing. We also think it’s plausible that the Federal Reserve will not seek to continue raising US interest rates in this environment, echoing the Bank of England’s statement this week that it will not raise rates for now. So central bankers are likely to remain in supportive stance.
There are genuine risks in China and other Asian/emerging markets to worry about.
However, even if Asia continues to weaken, we are unlikely to see a contagion effect developing into a global recession. A slowdown in China will not have the same impact at the aggregate global level as a similar slowdown in a major developed economy would.
The collapse in the oil price is partly fundamentally driven because OPEC are operating at maximum output. We still believe the boost this provides to consumers, businesses and oil-importing countries should be a net positive for the global economy.
Those predicting these two factors (Chinese slowdown and the oil price) will trigger a global recession need to provide better evidence and explanation of how this would happen to persuade us that they are right.
We do not believe there is much evidence for this. It is sentiment, not facts, driving the market sell-off. Investors are overly fearful, partly because the memory of 2008 still lingers, and when investors are in pessimistic mood, they will seek the negatives and ignore the positives in any situation.
In this context, when we see valuations cheapen so significantly in a relatively short period of time (six weeks in this case, perhaps not as clearly ‘episodic’ as August 2015 in terms of the speed, but certainly in terms of the magnitude) we start to look for opportunities to exploit.
With valuation as our guide, we are not forecasting the future, we are simply aiming to put the odds in our favour. The risk premium on growth assets has skyrocketed since November 2015 and this suggests to us potential opportunities on which to position for the most attractive prospective returns.
From February 2016, Robert Senz will be the new Head of the 20-strong cross-border Fixed Income team of Erste Asset Management. He will report directly to Gerold Permoser, Chief Investment Officer (CIO) of EAM. The current Head, Alexander Fleischer, will take an educational leave at his own request.
Robert Senz has more than 25 years of experience in the fixed income area as well as a successful professional track record for example as Chief Investment Officer for bonds with Raiffeisen Capital Management. Gerold Permoser said “with Robert Senz we ensure the continuity of our successful active investment approach. Mr Senz has years of experience, he has received numerous awards, and is highly client-oriented. This will help us strengthen and further expand the already high degree of acceptance displayed by our clients and sales partners.”
“I am very much looking forward to this task, and I am convinced that I will continue the successful path together with the team of Erste Asset Management,” Rober Senz, concluded.
Foto: Giordano Lombardo, CEO and Group CIO of Pioneer Investments. Pioneer Investments alcanza un récord de más de 15.000 millones de euros en ventas netas en 2015
Global asset manager Pioneer Investments continued to deliver strong results posting record inflows of €15.2 billion globally in 2015. Year-on-year net sales were up 15% and assets under management were €224 billion at the end of December 2015, up 11% from December 2014. Reflecting asset growth across all business units, Pioneer Investments saw notably robust flows from Italy and Germany, as well as positive momentum in Asia and Latin America.
According to Morningstar mutual fund flows data, the firm ranked 4th worldwide in the multi-asset space and 9th in the alternative fund segment, thanks to the strong flows into Pioneer Investments’ multi-asset and liquid alternative strategies. These growing asset classes complemented Pioneer Investments’ longstanding fixed income and equity franchises, which continued to contribute to the firm’s results in 2015.
Giordano Lombardo, CEO and Group CIO of Pioneer Investments, commented, “It’s gratifying to see the continued trust our clients have shown in us. We are singularly focused on this responsibility, particularly given the current market volatility and liquidity conditions, as well as macro concerns such as the effectiveness of monetary policies at this stage, the outlook for China, and the trajectory of emerging market economies.
“We are committed to preserving our clients’ capital by continuing to adhere to our time-tested investment approach including remaining focused on risk-management, seeking opportunities for our clients during periods of market weakness, investing with a long-term view for our clients,” he added.
Against a backdrop of record low yields and diminishing returns from traditional asset classes, Pioneer Investments has continued to evolve its product offering, providing innovative investment solutions to its clients. For example, Pioneer Investments’ target income range, designed to provide investors with an enhanced income stream garnered over €10 billion in assets in less than four years since launch. Pioneer Investments’ high-conviction equity offerings such as the US Fundamental Growth, and European Potential strategies were also amongst the top asset gatherers. On the fixed income side, Pioneer Investments expanded its offering in 2015 with the launch of an innovative global GDP-weighted bond strategy and an Emerging Markets Bond short-term strategy.
Foto: B Rosen
. La desaceleración de los EM y los resultados corporativos encabezan la lista de preocupaciones de los advisors
A slowdown in emerging markets, U.S. corporate earnings and U.S. economic slowing ranked as the top three concerns among investment managers polled in Northern Trust´s fourth-quarter 2015 survey. Fewer managers than in the past expect U.S. economic activity and corporate earnings to accelerate, a developing trend Christopher Vella, CIO, and Mark Meisel, SVP, Northern Trust Multi-Manager Investments, noted last quarter that continued this quarter. A large percentage of managers expect U.S. economic activity to remain stable, yet a small but increasing segment of managers expect a period of deceleration.
The study shows that only 21% of managers view U.S. equities as undervalued, down from 34% last quarter and the lowest percentage since the survey began in the third quarter 2008. Investment managers view the valuation of European equities in the best light, with approximately 85% rating them as either undervalued (54%) or appropriately valued (32%). Investment managers are most bullish on non-U.S. developed equities. Emerging market equities ranked second. Within economic sectors, information technology and financials ranked first and second in bullishness.
The results also show that two-thirds of managers expect little to no impact on global equity markets from the Fed’s interest-rate increase; If the price of oil remains low for another year, only 25% of managers believe it will be negative for the U.S equity market; 84% of managers believe the probability of a global recession due to a slowdown in emerging markets is 25% or lower; Only 23% of managers expect corporate earnings to increase, the lowest reading in this survey since the first quarter 2009; A large percentage of managers, 64%, expect U.S. GDP growth to remain the same, but only 23% versus 48% last year expect GDP to accelerate; 41% of investment managers view U.S. equities as overvalued, the largest percentage of managers since the survey began in the third quarter 2008.
Northstar Financial Services Limited, a Bermuda based financial solutions firm announced that Mark Rogers is due to play a more prominent role going forwards and that the firm is to begin operations in the Middle East and Africa.
Mark joined Northstar as a Director in July 2015 but, in his new position as Vice Chairman, he will be more actively involved in the global activities of the company and will spearhead the Middle East and Africa initiative. Northstar is in the final stages of establishing its office for the Middle East and Africa in the DIFC and is set to make an announcement regarding the Key Representative to be based in the region imminently.
Northstar’s Head of Distribution, Alejandro Moreno commented: “Having enjoyed such a successful relationship as colleagues at our previous firm, I am thrilled to be working so closely alongside Mark again. His vast experience and global network of relationships should prove to be invaluable as we continue to enhance our product range and expand into new territories. The Middle East and Africa in particular represent a significant opportunity for Northstar and I look forward to working with Mark in those regions.”
Mark Rogers commented: “I couldn’t resist the opportunity to play a more central role at Northstar. With a robust operating history stretching back 17 years, a compelling range of products and a highly experienced team, Northstar is perfectly positioned to support the growing demand for international investment products.”
Ariel Bezalel, fund manager of Jupiter Dynamic Bond Fund, explains in this interview with Funds Society the opportunities he sees in the Fixed Income space.
In the current low yield scenario and bearing in mind the US rates hikes we are starting to see, do you believe fixed income still offers value?
We do not believe that the US Federal Reserve will hike rates aggressively this year. Nevertheless, our portfolio is defensively positioned and our allocation to high yield is the lowest it has been in a while. We see pockets of value in fixed income.
Are there more risks than opportunities in the bonds markets?
Policy mistakes by the US Fed, a China hard-landing and the broader emerging markets’ crisis are some of the risks in the bond markets at the moment. Opportunities persist and one of our top picks at the moment is local currency Indian sovereign bonds.
Is it harder than ever to be a fixed income manager?
We may be in a more challenging environment for bonds but the advantage of a strategic bond fund like ours is that we can move in and out of different fixed-income asset classes, helping us to steer clear of riskier areas.
Some managers in charge of mixed funds used to see the fixed income as a source of protection and returns. Do you believe that this asset plays now a much more limited role?
Fixed income can still provide protection for investors – default rates are far from recent highs.
Where can you find investment opportunities in fixed income right now (high yield, investment grade, public, private, senior loans…)? Any particular market or sector?
We are running a bar-bell strategy in the funds – in which we have a large allocation to low risk, highly rated government bonds and a balancing exposure to select higher-yielding opportunities. We like legacy bank capital and pub securitizations within the UK. Within EM, we like local currency Indian sovereign bonds, Russian hard currency corporate debt and Cypriot government bonds.
What is going to be the effect of the US interest rates hike we saw last week? Which will be the next steps of the Fed in 2016? Will we see a decoupling between the US and the European yields?
It will be several months before we can assess the impact of the Fed’s move on the US economy. However, a number of leading indicators suggest to us that the US economic recovery is less secure than is commonly believed. The Evercore ISI Company Surveys, a weekly sentiment gauge of American companies, has weakened this year and is currently hovering around 45, suggesting steady but not spectacular levels of output. The Atlanta Fed’s ‘nowcast’ model indicates underlying economic growth of 1.9% on an annualised basis in the fourth quarter, a level consistent with what many believe is a ‘new normal’ rate of US growth of between 1.5% and 2%.
More worryingly, the slowdown in global trade now appears to be affecting US manufacturing. The global economy is suffering from acute oversupply, not just in commodities but across a range of sectors, and industrial output in the US is now starting to roll over. In this climate, there is a genuine risk that the Fed will end up doing ‘one and done’. In some ways, it seems that the Fed is looking to atone for its failure to begin normalizing monetary policy earlier in the cycle, before the imbalances in the global financial system became so pronounced.
Longer term, the ability of central bankers to normalise policy is constrained by powerful deflationary forces, including aging demographics, high debt levels and the impact of disruptive technology and robotics, a reason why we are comfortable maintaining an above- consensus duration of over 5 years.
What are the forecasts for the emerging debt in 2016? Do you see a positive outlook for the bonds of any emerging country?
We have adopted a cautious stance towards emerging markets (EMs) recently at a time when many developing countries have been experiencing economic and financial headwinds. Currencies and bond markets in countries such as Brazil, Turkey and South Africa have been uncomfortable places for investors to be over the past 12 months as the strengthening US dollar, lower commodities prices and high dollar debt burdens have proved to be a toxic combination.
We have benefited though from situations where indiscriminate selling has left opportunities, and we have found a couple of stories that we really like.
In Russia, we have been investing selectively in short-dated names in the energy and resource sectors including Gazprom and Lukoil. Russian credit sold off last year as the conflict in Ukraine, the country’s involvement in Syria and the oil price sell-off caused the rouble to depreciate. Investor aversion towards Russia has meant we have been able to find companies with what we believe are double A and single A rated balance sheets whose bonds trade on a yield typically more appropriate for double B or single B credits.
India is another emerging market story we like. Monetary policy has become more prudent and consistent. Inflation has fallen from a peak of 11.2% in November 2013, aided by lower oil prices which has supported the rupee against major currencies. Our approach has therefore been to seek longer-duration local currency bonds. We rely on rigorous credit analysis to select what we believe are the right names, particularly as the quality of corporate governance remains low in India.
Will emerging currencies keep depreciating vs the US dollar?
With the US Fed raising rates in December and economic weakness persisting in emerging markets, we believe the trend will be for gradual depreciation of emerging currencies.
Which are the main risks for the fixed income market these days?
US Fed policy mistake, China hard-landing, emerging markets crisis.
We have seen a notorious crisis in the high yield market in the last weeks. What is exactly happening? Does the lack of liquidity concerns you?
Much was written at the end of last year concerning certain US funds that have frozen redemptions. In addition to this we have seen material outflows from US high yield mutual funds. We have been concerned about US high yield for some time, and have limited exposure to this market. Furthermore, the other concern we have had for a while is some sort of contagion to European credit as credit in emerging markets and US credit have continued to come under pressure. For this reason we have been reducing our European high yield exposure and within our high yield bucket we have been improving the quality and also preferring shorter dated paper.
Yes, liquidity has been the other big risk for the credit market. Due to regulatory reasons investment banks simply cannot support the markets as well as they did in the past. At this late stage of the credit cycle, and with the Fed tightening policy even further (the combination of a strong dollar and quantitative easing coming to an end in the US is a tightening of economic conditions in our opinion) caution is warranted.
What are the prospects for inflation in Europe? Do you see value in the inflation-linked bonds?
We think inflation will remain low in Europe driven by stagnating economic growth and lower oil prices. One of the key measures of inflation expectations, the 5y5y forward swap, demonstrates that investors do not expect inflation to increase materially.
Foto: aehdeschaine. Legg Mason sigue creciendo: adquiere Clarion Partners, una minoría en Precidian Investments y combinará Permal con EnTrust Capital
As we published earlier this month, Legg Mason has announced that it has agreed to acquire a majority equity interest in Clarion Partners, a leading diversified real estate investment firm based in New York that manages approximately $40 billion across the real estate risk/return spectrum. Clarion Partners will operate as the primary independent real estate investment affiliate for Legg Mason and Steve Furnary, Chairman and CEO of the firm, will continue in his current role.
Under the terms of the transaction, Legg Mason will acquire an 83% ownership stake in Clarion Partners for $585 million.In addition, Legg Mason will pay for its portion of certain co-investments on a dollar for dollar basis, estimated at $16 million as of December 31, 2015. The management team will retain 17% of the outstanding equity in Clarion Partners. Legg Mason’s ownership percentage and the purchase price may be adjusted lower if the management team elects before the closing to retain more than 17% (not exceeding 20%). The firm’s previous majority partner, Lightyear Capital, will sell its entire ownership stake in the transaction. The deal is expected to close in the second calendar quarter of 2016.
The company also announced it has entered into a definitive agreement to combinePermal, Legg Mason’s existing hedge fund platform, with EnTrust Capital. EnTrust is an independent hedge fund investor and alternative asset manager headquartered in New York with approximately $12 billion in total assets and complementary investment strategies, investor base and business mix to Permal. The business combination will create a global alternatives firm with over $26 billion in pro-forma AUM and total assets of $29 billion. As a result of the combination, Legg Mason will own 65% of the new entity, branded EnTrustPermal, with 35% being owned by Gregg S. Hymowitz, EnTrust’s Co-founder and Managing Partner. The new company will be led by Mr. Hymowitz, who will become its Chairman and Chief Executive Officer. Key investment and business professionals from both firms will continue to serve the investors of the new organization.
And, last, the same day Legg Mason also announced that it has acquired a minority equity position in Precidian Investments, a firm specializing in creating products and solutions related to market structure issues, particularly with regard to the ETF marketplace. Precidian powers its own ETF products subadvised by unaffiliated managers and works with financial services firms to jointly develop solutions, structures and products to meet investor needs. Under the terms of the transaction, Legg Mason purchased a new class of preferred equity, entitling it to the rights of a holder of 19.9% of common equity, with the option to acquire a majority interest in the common equity. Other terms of the transactions were not disclosed.
CC-BY-SA-2.0, Flickr. Guillermo Ossés joins Man GLG as Head of Emerging Market Debt Strategies
Man GLG, the discretionary investment management business of Man Group plc, announced on Monday that Guillermo Ossés joined the firm as Head of Emerging Market Debt Strategies, based in New York.
Guillermo, who brings 24 years of experience in emerging markets fixed income investing to Man GLG, joins the firm from HSBC Asset Management. Guillermo joined HSBC in 2011 and led the firm’s emerging markets fixed income capabilities, managing in excess of $20 billion. Prior to this, Guillermo was an emerging markets fixed income portfolio manager at PIMCO and held emerging markets positions at Barclays Capital and Deutsche Bank. He holds a BA in Business from Universidad Católica de Córdoba in Argentina and an MBA from the Massachusetts Institute of Technology Sloan School of Management.
The recruitment of Guillermo follows the acquisition of Silvermine and the recent hire of Himanshu Gulati last year, demonstrating Man GLG’s commitment to expanding its presence in the US, and further strengthening the firm’s capabilities.
Guillermo Ossés will report to Man GLG’s co-CEO Teun Johnston. According to whom, “it is with great pleasure that we welcome Guillermo to Man GLG. He has extensive experience in investment management and a distinctive investment process, alongside a proven track record of investing and managing investment teams in the emerging markets fixed income space. As Head of Emerging Market Debt Strategies, Guillermo will be instrumental in broadening our capabilities in the fixed income space and enhancing our client offering.”
Guillermo Ossés said: “Man GLG is a performance-focused business and its institutional framework, combined with an entrepreneurial environment and collaborative culture, make this a very compelling opportunity. I am very excited to be joining the firm, and working alongside Teun and his team as we strive to build a world class emerging markets fixed income investment management business.”
Barings Investments, a firm specialized in providing financial services for agribusiness, M&A and Wealth Management in Latin America, has just launched its new office in Asuncion, due to the high demand which exists in Paraguay for specialized financial services.
Emerson Pieri, head of Latin America for Barings Investments, hired Carlos Avila, who will be heading the new office and developing the business in Paraguay. Carlos Avila previously worked for Credit Andorra Group’s Valores Casa de Bolsa, as private banking financial advisor dedicated to buying and selling stocks and bonds on Paraguay’s stock exchange.
Barings Investments is diversifying participation in various business areas, looking for new opportunities outside the agribusiness and WM sectors. The company’s first venture is to try to attract a group of financial institutions to Paraguay to invest in the infra-structure sector. The first meetings, which aim to capture about half a billion dollars to build toll roads and airports with public and private funding, took place during the second week of January. For the first time, local companies like BYB Construcciones, Ferrere Abogados and private investors will have the support of an international firm such as Barings Investments to bid for a PPP project.
Paraguay, with a population of 7 million people, is a country with a vast wealth of natural resources. The country is crossed by several rivers which make up the Rio de la Plata Basin, which provides hydroelectric power to the Itaipu and Yacyreta power plants which are shared with Brazil. Other key activities in the country include highly automated agriculture and livestock production.
The latest data published on activity in Paraguay could not be more favorable for promoting investment and business in the country. According to the World Bank, Paraguay rates higher than Brazil on the scale of ease of doing business. According to a study by Brazil’s National Confederation of Industry, labor is 21% cheaper in Paraguay than in Brazil and electricity is 64% cheaper. Foreign direct investment to Paraguay grew by 230% between 2013 and 2014, compared with a 2% drop in Brazil. Indeed, Paraguay stands out in a region where overall FDI fell 16% in 2014 and which is expected to fall by as much as 10% this year. The International Monetary Fund expects Paraguay to expand by 3.8% next year, while a growth of only 0.8% is expected in the rest of the region.
In 1997, Paraguay reviewed their industry views by offering incentives to foreign companies willing to assemble low-end factory goods for the world market. Given the country’s inclination to political turmoil, (the overthrow in 2012 of President Fernando Lugo didn’t help) investors were opposed at first, but the situation has changed with the recent political changes.
Since Horacio Cartes, a tobacco magnate, was elected president in 2013, promising to turn Paraguay into a stable democracy with an improved economy, the government’s fiscal responsibility is improving and the country’s debt remains stable. Prior to his election as president, Horacio Cartes endorsed a bill passing an income tax (until then Paraguay lacked this type of revenue collection) to pay for public services and control the underground economy.
