Foto: Kreg Steppe
. Norteamérica lidera las adquisiciones respaldadas por private equity
Private equity-backed buyout deal activity saw continued growth in 2015, as 3,546 deals were recorded totalling $409bn. This represents an 18% increase on the $348bn of private equity-backed deals in 2014, and it is the sixth consecutive year in which global deal value has increased. These figures are expected to rise by a further 10-20% as more data becomes available, says Preqin.
Large cap deals in North America are the main source of this growth, with six of the 10 biggest deals in 2015 taking place in the region. Overall, North America saw $255bn of private equity-backed buyout deals take place, up 35% from the $189bn of deals recorded in 2014. Overall, deals worth $1bn or more accounted for 9% of the total number of deals globally and 70% of the aggregate deal value, up from 52% in 2014.
The number of private equity-backed deals was 3,546, down slightly from the 3,797 deals recorded in 2014. However, given that Preqin projects these figures to rise by 10-20% as new information becomes available, deal flow in 2015 looks set to be on a par with previous years.
Aggregate buyout deal value in Europe was $90bn in 2015, down slightly from $95bn the previous year. Total deal value in Asia stayed level, with $45bn of deals recorded in 2015, compared with $46bn in the previous year.
Partly fuelled by acquisitions such as EMC/Dell, add-on deals accounted for 39% of total buyout deal value in 2015, up from 19% in 2014. LBO deals also accounted for 39% of global deal value. Both deal types each also accounted for just fewer than 40% of the total number of deals recorded in 2015.
Total levels of uncommitted capital available to buyout fund managers have continued to climb through 2015, and are approaching the record levels seen in 2008-2009. As of the end of 2015, total buyout dry powder stands at $461bn.
“2015 has been a record year for global M&A, and this has been reflected within the private equity universe.The global buyout market recorded its sixth consecutive year of increases in aggregate deal value, with a surge in the number and value of large cap deals. North America drove this increase in activity as the overall buyout deal value there rose by over a third from 2014’s total, and the region saw the largest ever private equity-backed deal with the acquisition of EMC by Dell Inc. Dry powder has increased by $12bn over the course of 2015 however this represents a slow-down in the rate of dry powder growth over recent years. This is an encouraging sign as, despite concerns over valuations, managers have been able to find attractive investment opportunities and put investor capital to work.” Said Christopher Elvin, Head of Private Equity Products, Preqin
CC-BY-SA-2.0, FlickrPhoto: Skyseeker. Martin Currie Buys Japan Equity Boutique
Martin Currie has completed the acquisition of the business assets and investment management team of PK Investment Management, the London based long/short Japan Equity boutique.
Led by Paul Kirkby and including manager Claire Marwick, PK IM has overall AUM for the enlarged team are $425m (€395m).
Kirkby has also been appointed as lead manager of the Legg Mason Japan Absolute Alpha Fund the Luxembourg domiciled Ucits fund.
Andy Sowerby, head of Sales and Marketing at Martin Currie comments:- “This is an exciting milestone in the development of our Japanese long/short capability.
By capitalising on the combined strength of our collective resources we can further establish ourselves as a leading manager in this specialist area.
“Paul has over 30 years’ experience in managing Japanese equities and is backed by a proven team who together have combined experience of the Japanese market in excess of 97 years.”
CC-BY-SA-2.0, FlickrPhoto: OTA Photos. Groupama and Orange Enter Exclusive Negotiations for the Creation of “Orange Bank”
Groupama and Orange announced that they are entering exclusive negotiations with a view to working in partnership to develop a new banking model that will enable Groupama to strengthen its online banking business and Orange to successfully diversify into banking services.
The launch of “Orange Bank” is planned for the start of 2017 in France, followed by other European markets such as Spain or Belgium. The services offered will cover all standard banking services as well as savings, loans and insurance services.
These negotiations could result in the acquisition by Orange of a 65% stake in Groupama Banque, enabling it to benefit from an existing operational infrastructure for the launch of Orange Bank.
From its creation, Groupama Banque has positioned itself as a multi-channel bank. Orange will bring its digital knowledge to develop a 100% mobile offer corresponding to new uses increasingly employed by the two partners’ customers. The partnership with Orange will accelerate the deployment of such innovative banking offers and will leverage the network of local Orange stores as well as the highstreet branches of Groupama and its subsidiary Gan.
During the presentation of the “Essentiels2020” strategic plan in March 2015, Stéphane Richard, Chairman and Chief Executive Officer of Orange, announced the Group’s ambition to diversify its operations by capitalizing on its assets and in particular by concentrating its efforts on mobile banking, which offers important growth prospects. The plan’s objective is to reach 400 million euros of revenues in financial services in 2018.
Foto: Enrique Dans
. Legg Mason lanza sus primeros ETFs
Legg Mason announced that it has launched four new outcome-oriented index-based ETF fundsin partnership with its investment affiliate QS Investors. The four funds are branded under the Legg Mason name and began trading on the Nasdaq Stock Market on December 29, 2015.
Increasing concerns about macroeconomic risks, equity volatility and the continuing search for stable income are pressuring investors to look beyond traditional market cap weighted indices.
“We are excited to partner with Legg Mason to bring an investment approach we developed for institutions over a decade ago to retail investors in an ETF fund format. Many investors think of ETFs only as market cap indexed vehicles, but our macro diversification and sustainable income approaches target specific investment outcomes in a cost-effective format. This launch is part of our long-term focus on innovating to serve investor needs and create better solutions,” said James Norman, President of QS Investors.
Three of the new funds take a macro approach to building portfolios and balancing risk to deliver broad market exposure that can complement core portfolios. Based upon QS Investors’ proprietary rules-based methodology, Diversification Based Investing (DBI), the new funds are predicated on the understanding that capitalization-weighted indices are not balanced across opportunities and risks in the market place. Better diversification across macro exposures, like geography and economic sector can improve risk/return characteristics and mitigate unintended bets and therefore potentially lower drawdowns during macro-economic events. The funds are:
Legg Mason Developed Ex-US Diversified Core ETF
Legg Mason Emerging Markets Diversified Core ETF
Legg Mason US Diversified Core ETF
Legg Mason is launching a fourth fund, the Legg Mason Low Volatility High Dividend ETF, focused on income, risk mitigation and capital appreciation. It is based upon the idea that a stock’s ability to sustain a strong dividend payout is often associated with lower volatility, making these two characteristics complementary. Using a disciplined, rules-based methodology, the fund will screen for stocks with the potential for sustainable high dividends, while simultaneously screening out historically volatile stocks in the market.
“There are compelling opportunities to help investors achieve their objectives, whether capital preservation, income, or growth in an ETF format as the market grows and the ETF vehicle evolves. These innovative, outcome-oriented products have the potential to serve the needs of investors looking to better diversify across risks in their portfolios. We are excited to begin building our ETF offering and will continue to identify ways in which we can capitalize on the investment strengths of the Legg Mason investment affiliates,” said Rick Genoni, Head of the ETF business at Legg Mason.
The firm plans to launch additional ETF products in the coming months.
CC-BY-SA-2.0, FlickrFoto: John Walsh. Bill Gross Recomends Looking at Developed Countries, Long Inflation and Short Fixed Coupons
Bill Gross continues to believe that the overall situation is a very complicated one. In its latest publication the formerly known as the king of bonds warns of a demographic boom.
Gross believes that Fantasy Sports, cellphone game apps, sexting, and fast food are the new era “Cake” and “day at the Coliseum” to appease the masses. Used to distract the population of an incipient growth in the value of wages, and manipulation of monetary policies for Wealthy corporations… “It’s a wonderful life for the 1% and a Xanax existence for the 99″.
According to the investor, in the 2016 US elections nothing will change. However, the demographic situation in his country, should change the direction of financial markets in the not too distant future. “I speak specifically though to liabilities associated with the Boomer generation: healthcare, private pensions, Social Security and the unestimable costs of global warming,” Gross mentioned before emphasizing that the U.S. government has current outstanding debt of approximately $16 Trillion or close to 100% GDP, but that the present value of programs such as Medicaid, Medicare and other social totals $66 trillion or another 400% of GDP.
Looking ahead to the construction of portfolios, Gross believes that-taking into account that developing countries have a younger population, “then developed nations could and should transfer an increasing percentage of their financial assets to emerging markets to help foot the demographic bills back home. Long-term then, as opposed to currently, think about increasing your asset allocation to the developing world… It’s also commonsensical that if higher Millennial wages are the probable result of a shortage of healthcare workers relative to Boomer requirements, then an investor should go long inflation and short fixed coupons.” U.S. 10-year TIPS at 80 basis points seem like a good hedge in that regard. Looking at particular sectors, Gross is optimistic about the healthcare sector, and believes that insurance companies as well as the bonds of underfunded cities and states such as Chicago and Illinois have a bleak future.
To conclude the manager mentioned that if you think things are bad today, the coming decades will be even worse and “extra dose of Xanax” will be needed.
CC-BY-SA-2.0, FlickrFoto: Gary Buxton, nuevo director financiero de Source. Gary Buxton asume el puesto de director financiero en Source
Source, one of the largest providers of Exchange Traded Products (ETPs) in Europe, announced on Wednesday the appointment of Gary Buxton as the firm’s Chief Financial Officer. “Buxton has been an integral part of Source since the company was founded and will continue in his role as Chief Operating Officer as well as a member of the firm’s management committee,” a press release mentioned.
Lee Kranefuss, Source Chairman, said of the appointment: “In undertaking the search for a CFO, we wanted someone who could combine financial and tax expertise with the ability to think strategically and understand not only the specifics of the ETF industry but also the unique aspects of Source. Fortunately for us, we had the ideal candidate already here. Gary comes from an accountancy background and, since joining Source, has been heavily involved with almost every function within the business. In fact, Gary was the very first person employed by Source. When a company is going through a growth phase, as Source is now, it helps to have a certain amount of continuity, which Gary brings. The qualities he brings to the role of CFO also illustrate the depth of expertise we have available to us at the firm.”
Buxton will continue with his responsibilities in the Investment Management Group and Capital Markets. These include overseeing new product execution, trading, risk management and operations.
Buxton began his career at the accountancy firm Deloitte & Touche. He has a Bachelor of Science from the University of Bristol and is a chartered accountant.
Bank Julius Baer informed that it has appointed Torsten Linke as Head Private Banking South East Asia with immediate effect. Subject to regulatory approval, he will also become Branch Manager Singapore. He will be responsible for Julius Baer’s operations and development in Singapore and expanding the Bank’s business presence and client base in South East Asia. He will report to Jimmy Lee, Head Asia Pacific at Bank Julius Baer.
Torsten Linke joins Julius Baer with 30 years of experience in the financial industry. Prior to joining the Bank, he was Market Leader Indonesia at Credit Suisse. Before that, he was Market Manager for Indonesia at Standard Chartered Private Bank from 2009. Previously he held a number of senior leadership and management roles at Deutsche Bank Private Wealth Management during 24 years in Singapore, London, Frankfurt and Hamburg, including Head Strategy and Business Development for South East Asia, Deputy Head South East Asia and Market Manager for Indonesia. He has lived in Singapore for more than 13 years, first from 2001 to the end of 2004 and then again since 2006.
David Lim, currently Head Private Banking South East Asia and Branch Manager Singapore, will become Vice Chairman South East Asia to focus on deepening and broadening Julius Baer’s client relationships. He will also continue to contribute his wealth of expertise by providing advice on strategic initiatives. In this new role, he will report directly to Jimmy Lee.
“Our South East Asia and Singapore businesses have seen significant growth in recent years. We are strongly committed to these markets. We are pleased to welcome Torsten to take on this important role. At the same time, I would also like to thank David for his strong contribution in the past years and for taking up new responsibilities. Since joining the Bank in 2006, David has been instrumental in building up the Julius Baer franchise in South East Asia and Singapore and has played a pivotal role in the successful integration of the Merrill Lynch International Wealth Management business in Singapore,” said Jimmy Lee.
According to Detlef Glow, Head of EMEA research at Lipper, assets under management in the European mutual fund industry enjoyed net inflows of €2.3 billion into long-term mutual funds for November.
While Ireland (+€20.4 bn), France (+€5.2 bn), Luxembourg (+€3.8 bn), Germany (+€2.1 bn), and the United Kingdom (+€1.3 bn) were the single fund markets with the highest net inflows for November, Switzerland (-€2.2 bn), Norway (-€2.2 bn), and Spain (-€1.5 bn) stood on the other side.
In terms of asset classes, Equity funds with €5.2 billion enjoyed the highest net inflows for the month, followed by alternative UCITS products with €2.8 billion and mixed-asset funds with €2 billion. Meanwhile, bond Funds, which in October had the highest net inflows, suffered during November from the highest net outflows, loosing €7.8 billion.
Money market products enjoyed net inflows of €23 billion for November.
The best selling sectors within the segment of long-term mutual funds in November where:
· Equity Europe with €2.1 billion
· Absolute Return EUR Medium Term with €1.9 billion
· Bond EUR Corporates with €1.8 billion
Amongst ETF promoters, Blackrock’s iShares with €5.46 billion, Goldman Sachs with €5.42 billion and Aviva €4.81 billion, were the best selling ones.
The best selling ETF for November was the SLI Global SICAV Global Absolute Return Strategies A EUR, which accounted for net inflows of €966.26 million
Federal Street Advisors, an independent investment consultant and wealth management firm for individuals, families and nonprofit organizations, and Pathstone Family Office, a Multi Family Office offering in house expertise in investments, tax planning and compliance, estate planning, family education, and philanthropy jointly announced today that Federal Street has merged with Pathstone to create Pathstone Federal Street, a wealth advisory firm with enhanced capabilities to provide truly independent advice and services to both high-net-worth and institutional clients.
“This marks an exciting new chapter for us – it expands our capabilities and offerings in wealth management,” said Steve Braverman Co-CEO of Pathstone Family Office and the new Pathstone Federal Street. “We feel this combination of talents, founded on a strong mutual heritage of multigenerational stewardship and independent advice, will offer broader perspective, deeper services and a robust organization built for the long-term.”
“Pathstone Federal Street integrates and leverages each organization’s strengths and expertise,” John LaPann, Founder of Federal Street Advisors and Chairman of the new organization. “Pathstone combines its solid legacy in providing integrated family office services, state-of-the-art technology and operating efficiencies with Federal Street’s long-respected internal manager research, due diligence process, and leadership in sustainable and impact investing.”
“The combination of the two firms will allow many more opportunities for all our clients as it will leverage the talents of our now 65 employees across our 4 offices serving 190 clients representing in excess of $6.5 Billion in total advisory assets,” said Allan Zachariah, Co-CEO of Pathstone Family Office and the new Pathstone Federal Street. “Our partnership and expanded services provide significant opportunities for our employees to grow and uniquely contribute to the individual outcome of each client.”
Matthew Fleissig of Pathstone Family Office will become President of the new organization, joined by Eric Godes and Jennifer Murtie of Federal Street Advisors who will share the Chief Operating Officer title at Pathstone Federal Street. Jennifer will also serve as the firm’s Chief Marketing Officer. Kristin Fafard of Federal Street will continue as Chief Investment Officer for the combined organization. Matthew Sher will serve as the new firm’s Chief Compliance Officer and Chief Technology Officer. In addition, Pathstone Federal Street is proud to name new Managing Directors: Daniel Gross, Kelly Maregni, Janet Mertz, Mark Peters, and Charles Walsh.
CC-BY-SA-2.0, FlickrPhoto: AlfonsoBenayas, Flickr, Creative Commons and I will treat emerging markets as emerging (yet again), among them. UBS AM: Market Resolutions for 2016
The latest edition of UBS Asset Management’s Economist Insights, authored by Joshua McCallum and Gianluca Moretti, speaks about market resolutions for 2016. Joshua has been Senior Economist with UBS Asset Management’s Fixed Income area since 2005, and prior to this he was a macroeconomist at the UK Treasury. Gianluca joined the firm in 2010 from the central bank of Italy.
Based on the experiences of 2015, they once again suggest some New Year’s resolutions for the market. Among others:
I must behave like an adult if I want central banks to treat me like an adult;
I must acknowledge that lower potential growth mean searlier rate hikes;
I will start the year with more humble expectations of growth;
I will treat emerging markets as emerging (yet again);
I will think of Greece as a holiday destination, rather than as destroyer of the Euro;
I will recognize that the global economy is diverging.
You can download the full document in the following link.
