CC-BY-SA-2.0, Flickr. Pictet Asset Management Launches Robotics Fund
Pictet Asset Management, a pioneer in thematic investing, has announced the launch of Pictet-Robotics, one of the first funds of its kind to invest in robotics and artificial intelligence technologies. A Luxembourg Sicav, the fund aims to capitalize on the growth of an industry that is forecast to expand as much as four times faster than the global economy over the next decade.
Advances in IT, such as cloud computing and the emergence of powerful new microprocessors, are revolutionizing robotics and automation technologies, which are expanding beyond the factory floor into our everyday lives. Modern robotic devices are now equipped with a remarkable capacity to sense, gather, process and act on information, endowing them with dexterity, versatility and cognition. Robots that can detect changes in facial expressions and tones of voice are being used in services and security industries. In the health care industry, sophisticated robots already assist surgeons in complex procedures, while in transport smart sensor technology is being deployed in driverless cars.
Karen Kharmandarian, Senior Investment Manager, Thematic Equities, said, “Robots have long been used in factories to automate dangerous, dirty or dull tasks. But the pace of invention is accelerating as robots are becoming indispensable to our professional and personal lives. Companies active in robotics seem bound to enjoy strong growth from this new wave of innovation”.
The Robotics fund is the most recent addition to Pictet Asset Management’s range of thematic strategies which already include, among others, specialist funds in digital communication, security, health and water. Thematic funds allow investors to capitalize on long-term socio-economic trends shaping our world.
The official launch date of Pictet-Robotics is 8th October 2015 and the initial subscription period for the fund is 2-7 October.
The fund is currently registered in the following countries: Austria, Belgium, Cyprus, Denmark, Finland, France, Germany, Greece, Liechtenstein, Luxembourg, Netherlands, Portugal, Spain, Sweden and the UK. It will be available in other countries soon.
Following the European Commission’s publication of its Action Plan for a Capital Markets Union, EFAMA voices again its continued backing to the Commission’s plan to promote further the financing of the European economy through a well-functioning CMU.
EFAMA has always been a strong supporter of the EU Single Market and supports the Commission’s Action Plan. It is consistent with its aspirations for more single market, more capital market union, and less cross-border barriers, and includes a sensible step-by-step approach that travels in the right direction.
The recent European regulatory momentum has led to considerable improvements within the regulatory environment. The new rules take time and effort to be put in place, and it is crucial to first properly implement them, and then carefully evaluate their impact.
Alexander Schindler, President of EFAMA, commented: “We applaud the Commission’s plans to assess the impact of previous regulatory reforms. This should also serve the purpose of addressing, sooner rather than later, we hope, the current overlapping requirements that are either not fully consistent with each other, or which inadvertently create an unlevel playing field among financial sectors.”
Legal and other barriers still remain. Goldplating practices are one of them. Peter De Proft, Director General of EFAMA, said: “These practices go against the idea of developing further the European single market, and we welcome the Commission’s objective to tackle this issue with Member States”.
In line with developing the single market, EFAMA equally welcomes the Commission’s suggestion to improve the functioning and effectiveness of existing European fund passports. The European asset management industry supports this as an appropriate way to address remaining cross-border barriers, lower the regulatory costs of setting up funds and facilitate the cross-border distribution of investment funds.
EFAMA also supports the creation of a truly single market for personal pensions in the EU. The current market fragmentation makes economies of scale impossible to achieve and limits the choice of pension products and pension providers. A shift in focus is needed towards, yet again, more single market and long-term saving. The creation of a Pan-European Personal Pension Product (PEPP) would have the potential to boost the flow of retail savings into capital markets and therefore to provide long-term funding to the EU economy.
Inherent to more single and capital market is also more investor trust and protection. EFAMA wholeheartedly agrees with the Commission that regulatory consistency is a key element to enable investors to compare between different types of products and make informed investment decisions. The quest for a coherent and workable EU regulatory framework should seek to create a level playing field for investment products in the EU, more transparency, and consequently, increase investor confidence. EFAMA sees no reason for the coexistence of different levels of consumer protection in the current EU regulatory landscape (MiFID II, IDD, PRIIPs). Retail investors should be offered similar disclosure requirements that will allow them a fair and meaningful comparison of similar investment options. Alexander Schindler, President of EFAMA, commented: “We regret this is not the case at the moment, and believe the Commission’s planned assessment of European markets for retail investment products will shed light on how to re-evaluate and improve the current unlevelled situation”.
Equally, EFAMA reiterates its view that consistency is yet to be achieved between the broader objectives of building a CMU and pending EU legislation, most notably the proposed Financial Transaction Tax, whose approach is in full contradiction to that of the CMU. EFAMA urgently advises that the Commission address this issue.
EFAMA welcomes the priority given to ELTIFs as a key vehicle to support infrastructure investment. The EU label of ELTIFs as new products has the potential to unlock and shift important capital towards investments in longer term projects. However if ELTIFs are to become a market success, it will be necessary to align the interests and needs of those investors that ELTIFs seek to attract. The flexibility of the ELTIFs structure and the incentives offered to potential investors will be important factors of their take-up and market success.
For that reason, EFAMA welcomes the Commission’s steps in encouraging fiscal incentives at national level, and in proposing to re-calibrate the capital requirements for insurance companies in Solvency II with regards to the ELTIFs units and shares. Lower risk factor attributed to them can become an important incentive for insurers, which are natural providers of such funds.
Foto: Hiroyuki Takeda
. Los roboadvisors tendrán que crecer un 60% anual en los próximos seis años para subsistir
According to The Cerulli Edge – U.S. Edition released in September 2015 electronic registered investment advisors (eRIAs) in the United States will need to grow aggressively to compensate their investors after six years.
“eRIAs have gathered significant assets during the past several years,” states Frederick Pickering, research analyst at Cerulli. “Although the technology of the eRIA space has allowed them to scale at a much faster rate than existing traditional financial advisors, they will still need to reach end clients. Cerulli has constructed several scenarios that approximate the annual growth rate necessary for eRIAs to realize the multiples required for their venture capital and remain standalone direct-to-consumer businesses.”
Through their research, the company believes that eRIAs’ ability to remain a standalone enterprise will be threatened due to commoditization of the eRIA model from traditional firms entering the space and massive fee compression.
“We project eRIAs will need to grow approximately 50%-60% per year for the next six years and gather approximately $35 billion in AUM to remain a standalone direct channel for consumer business,” Pickering explains. “Given the threat of commoditization within the software-only eRIA business-to-consumers marketplace and the lack of an economic moat to charge a price premium, eRIAs should consider pivoting to a business-to-business model.”
“The eRIA channel has created a business model that undercuts traditional advisory firms, but may lack the financial resources to compete if the business model becomes commoditized,” Pickering continues. “New entrants from traditional advisory firms and start-ups threaten to commoditize the space, drive down fees, and eliminate any remaining premium in eRIA fee structures.”
Foto: Elliott Brown. El 80% de los inversores institucionales invierte al menos en una clase de alternativos
Research for Preqin’s latest “Investor Outlook” has found that four out of five institutional investors invest in at least one alternative asset class. Private equity, hedge funds and real estate are the most targeted alternative asset classes, with over half of investors having an allocation to each of them in their portfolios. Although the benefits vary significantly between asset classes, common reasons cited by investors for holding allocations to alternative assets include diversification, high returns, reliable income streams and inflation hedging characteristics.
Investment in almost all asset classes is likely to increase over the coming year. In particular, 42% of private equity investors, 38% of private debt investors, and 36% of infrastructure investors plan to invest more capital in the next 12 months than they have in the previous year. A third of hedge fund investors are looking to invest less capital over the coming year compared to the last 12 months, compared to 19% that are looking to invest more.
The vast majority of investors have a positive or neutral view of each asset class. For investors in private equity and real estate, this stands at 95% and 94% respectively. Twenty percent of investors in hedge funds have a negative perception of the asset class.
Growth in investment also looks set to continue in the longer term, as the largest proportion of investors plan to increase their allocations to each asset class. In particular, 51% of private equity investors, and 44% of infrastructure investors are aiming to allocate more capital to these asset classes.
Over 60% of investors in real estate, infrastructure and private debt target returns of at least 8% annually. Just under 60% of private equity investors seek returns of at least 14%. A significant 15% of private equity investors target annualized returns of 20% or more.
The majority of investors in all asset classes believe that their interests align with those of fund managers. Private debt and real estate have the highest level of investor satisfaction, with 83% and 80% of investors respectively stating that their interests are representedby fund managers.
The largest proportion of investors in all asset classes believes that fund terms are changing in their favour. Forty seven percent of hedge fund investors, and 44% of private equity investors, feel that terms are becoming more favourable for investors
“Institutional investors allocate to alternative assets to diversify their portfolios and to achieve a broad range of other objectives. The high absolute returns generated by private equity, hedge funds’ ability to reduce volatility, the reliable income generated by private debt and the inflation-hedging characteristics of real assets are just some of the attractions for sophisticated investors.
It is clear that the institutional community remains confident in the ability of alternative assets to help them meet their return objectives. The majority feel returns are meeting or exceeding expectations and, as a result, a much larger proportion of investors plan to increase their exposure to alternatives than plan to reduce it. There remains huge scope for the alternative assets industry to grow in future years, both as investors build up existing allocations, and as they also further diversify their portfolios to include a wider range of asset classes.” Mark O’Hare–CEO, Preqin- comments on the subject.
CC-BY-SA-2.0, FlickrFoto: Oliver Schnücker. Reacciones exageradas del mercado: el enfoque ‘Episode’ de M&G para encontrar oportunidades
Amundi ETF announces the launch of the first ETF in Europe leveraging the theme of European share buybacks, by tracking the MSCI Europe Equal Weighted Buyback Yield strategy index. The launch represents another innovative expansion of Amundi ETF’s European equity Smart Beta range.
The ETF is designed for investors seeking to capture yield from the European equity market via a return-oriented Smart Beta approach, by providing exposure to companies performing share buybacks, a method of distributing income to shareholders which is likely to grow in Europe.
Share buyback programs allow cash-rich companies to repurchase their own stocks. Already widely used in the US, they should become more popular for European companies as they represent a more efficient use of cash in a low rate environment and give companies more flexibility than dividend programs. Moreover, buyback programs are compelling for investors as they can provide higher returns in a low rate environment.
The MSCI Europe Equal Weighted Buyback Yield strategy index reflects the performance of MSCI Europe securities that have performed buybacks in the previous 12 months . Moreover, this strategy index applies an equal weight methodology, thus increasing diversification and providing a purer exposure to the share buyback theme with a reduced bias.
Amundi ETF is launching this new product in response to client demand, following the launch of its US buyback ETF earlier this year, which prompted interest in a European version based on the same theme. The ETF has a TER of 0,30% and will be made available in Paris and subsequently the major European exchanges.
Valerie Baudson, CEO at Amundi ETF, Indexing and Smart Beta, said: “This innovative ETF adds to our broad mono and multi Smart Beta range and reinforces the positioning of Amundi as a leading innovative player in the European ETF market.”
Private banks and trust companies’ assets are projected to reach $5.3 trillion by year-end 2019, according to the latest research from Cerulli Associates “Asset Management Opportunities in Banks 2015: Capitalizing on a Resurgent Focus on Wealth Management”.
“With growing competition, most banks can no longer consider asset allocation their core differentiator,” states Donnie Ethier, associate director at Cerulli. “Delivering comprehensive goals-based planning that includes the softer nonfinancial elements of wealth is more important than ever.”
The research focuses on investors, asset managers, and banks. Particular attention is given to best-practice banks that have centralized the investment decision-making process across all of their wealth management platforms, including broker/dealer, trust department, RIA, and family office.
“Banks have unique characteristics that most other channels cannot fully replicate,” Ethier continues. “Such as the ability to be an all-in-one provider for any household. Banks that are not promoting their full offering are doing their firm and their clients a disservice.”
“The channel’s most promising trends include: client-centric advisory models, integrating wealth management platforms, consolidating research teams and portfolio construction processes, and centralizing fee discounting decisions,” Ethier explains.
The work finds that asset allocation is no longer a main distinguisher, which is only being validated more by the increase in direct-to-consumer providers and the electronic registered advisors (eRIAs)/robo-advisors. Delivering holistic goals-based planning that can incorporate the softer nonfinancial aspects of wealth is more important than ever for banks to differentiate themselves from the low-cost investments provided by the eRIAs.
Asoka Wöhrmann es el Chief Investment Officer de Deutsche Asset & Wealth Management hasta que asuma sus nuevos roles el próximo 1 de diciembre.. El CIO de Deutsche AWM Asoka Wöhrmann y Stefan Bender, nuevos responsables de Banca Comercial y Privada en Deutsche Bank
As part of the realignment of retail and commercial banking operations in Germany, Asoka Wöhrmann (50) and Stefan Bender (46) will be the new heads of Deutsche Bank’s Private and Commercial Banking in Germany. They have been appointed to succeed Peter Schedl and Wilhelm von Haller, who resigned from their offices effective September 30, 2015. Stefan Bender will assume his new role over the course of October, and Asoka Wöhrmann as of December 1, 2015.
In their new functions, Wöhrmann and Bender will take on responsibility for Deutsche Bank’s more than eight million private, commercial and corporate clients in Germany.
Within the Private and Commercial Banking management team, Asoka Wöhrmann will be head of retail banking and Stefan Bender will be head of commercial banking. They will both report to Christian Sewing, member of the Management Board of Deutsche Bank and Head of its Private & Business Clients (PBC) Corporate Division.
Regarding the new appointments, Christian Sewing said: “In Asoka Wöhrmann and Stefan Bender, we have gained two renowned and successful managers from within our own Bank for the realignment of our domestic Private and Commercial Banking business. This realignment will involve significantly strengthening our advisory banking business with private clients, further expanding our business with small and medium-sized enterprises, Germany’s ‘Mittelstand’, and closely networking our branches with our rapidly growing digital banking service.”
Both of them have worked for Deutsche Bank for many years: Wöhrmann joined Deutsche Bank in 1998 and has most recently been Chief Investment Officer in Deutsche Asset & Wealth Management.
Stefan Bender has been with Deutsche Bank since 1997. Until he takes up his new functions, Bender is Head of Global Transaction Banking in Germany (GTB, Trade Finance and Payments) and Co- Head of Corporate Finance in Germany. In his new role, Bender will remain head of Global Transaction Banking in Germany and will continue building on GTB’s strong ties with commercial banking.
Photo: Mark Mobius, Guru of emerging market equities at Franklin Templeton. Star Manager: Hero or Villain?
Each asset management firm has a star portfolio manager or at least a manager who’s held as the role model. This is typically a PM with years of experience, a track record to die for, and a renowned reputation within the industry. If at Franklin Templeton we have Mark Mobius and Michael Hasenstab, or at Matthews Asia Andy Rothman, we must not forget Russ Koesterich when speaking of BlackRock, or Greg Saichin of Allianz GI.
They lead teams with good results and are in major mutual fund firms. For years, their management attracts clients, and therefore increase the flow of capital. The problem comes when they want to start new projects, change companies, or retire without further ado.
What for years was a sweet dream for any company suddenly becomes its nightmare overnight. The most recent example is Bill Gross, who after years as a star manager at PIMCO, a company which he helped to establish, he decided on a change of scenery and joined Janus Capital.
The Allianz subsidiary then experienced capital outflows amounting to $176 billion worldwide in 2014, i.e. 26% of the assets it managed in 2013. The losses of the PIMCO Total Return, Gross strategy, amounted to over $96 billion dollars in just five months. A genuine catastrophe.
Something similar happened in Spain with Francisco Garcia Paramés’ departure from Acciona Group’s Bestinver, after 25 years of service to the company. Known as “Europe’s Warren Buffett”, he achieved a placing for the company’s funds at the top of the rankings within their class. When he decided to start a new project, however, the outflow of funds began. Assets under management fell by about 30%, especially with the exit of institutional clients.
The capital outflow requires companies to react quickly in searching for the most suitable replacement, but, even so, prefer to choose other managers with similar reputation. The damage to the company is twofold. Not only do they leave, they also do so to join the competition.
Recently, Morningstar left the door open to hope by giving an example of an orderly transition with low impact for the company when placing Jupiter UK Growth in the hands of Steve Davies, who replaced Ian McVeigh after his departure. Among the lessons to be learnt from this is that the longer the star manager and the manager who shall replace him work together, the less impact on the firm.
Maria Elena Lagomasino, CEO y MP de WE Family Offices, es ahora consejera independiente de The Walt Disney Company. Foto: We Family Offices. Maria Elena Lagomasino: elegida consejera independiente de The Walt Disney Company
The Walt Disney Company Board of Directors has elected Maria Elena Lagomasino, the CEO and Managing Partner of financial advisory firm WE Family Offices,as an independent director, effective Dec. 1.
“Ms. Lagomasino is a respected leader in the finance and investment field and also has a wealth of experience with, and keen understanding of, global consumer brands,” said Robert A. Iger, Disney’s chairman and chief executive officer. “I know the Company and its shareholders will benefit greatly from her Board service.”
“Disney is a brand that embodies the values I believe in, with its unwavering commitment to creating high-quality entertainment, exceeding consumer expectations, and delivering outstanding financial performance for its shareholders,” Ms. Lagomasino said. “I am honored to have the opportunity to serve on the Board of such an iconic and beloved company.”
Ms. Lagomasino will stand for election along with the company’s other directors at Disney’s annual meeting next March.
Before founding WE Family Offices, Ms. Lagomasino served as CEO of GenSpring Family Offices, a leading wealth management firm. Prior to that she served as chairman and chief executive officer of JP Morgan Private Bank. Her career began in 1977 at Citibank. She joined Chase Manhattan Private Bank in 1983 and was named head of Chase’s worldwide private banking business in 1997. Following the Chase-JP Morgan merger, she became chairman and CEO of JP Morgan Private Bank.
Ms. Lagomasino is a founder of the Institute for the Fiduciary Standard, and serves on the boards of The Coca-Cola Company, Avon Products, Inc., and the Americas Society. She is also a member of the Council on Foreign Relations.
In August 2015, Private AssetManagement named Ms. Lagomasino one of the 50 most influential women in Wealth Management. American Banker named her one of 2012’s Top 25 Women in Finance. Hispanic Business Magazine namedher “Woman of the Year” in 2007.
Ms. Lagomasino earned her B.A. at Manhattanville College, an M.S. at Columbia University and an M.B.A. at Fordham University.
BNP Paribas Investment Partners (BNPP IP) has announced a series of new appointments within its Institutional business line, headed by David Kiddie, in order to enhance investment expertise, research and thought leadership capabilities.
Guy Williams has been appointed Chief Investment Officer for BNPP IP’s Institutional business. Guy will be responsible for promoting collaboration across investment teams, and developing investment strategy and market views. Formerly Chief Investment Officer of BNPP IP’s global fixed income affiliate Fischer, Francis, Trees & Watts (‘FFTW’), Guy successfully developed BNPP IP’s global fixed income platform across a range of strategies, and with three decades of experience he is ideally suited to this new role.
Joining Guy’s team are Senior Investment Strategist Daniel Morris and Senior Economist Richard Barwell. In their newly-created roles, Daniel and Richard will promote collaboration between investment teams and formulate alpha-generating investment views across all asset classes.
Morris’ wide-ranging experience encompasses advising clients and providing investment recommendations, as well as offering a strategic perspective to senior management and portfolio managers. He is a frequent commentator in print and broadcast media.
Barwell’s background is as a monetary economist within investment banking and central banking, covering both the UK and Eurozone economies. His thought-provoking insights combine academic rigour, strong analytical skills and deep knowledge with an innovative approach to macroeconomic issues, and his work has been published widely.
Replacing Guy as Chief Investment Officer and Head of Institutional Fixed Income is Dominick DeAlto, who will be instrumental in further strengthening BNPP IP’s fixed income platform, which currently has over 75 investment professionals and manages 40 investment strategies ranging from traditional to alternative fixed income, as well as driving its investment and commercial success. Dominick, who prior to this appointment was Head of Global Multi-Sector and Sector Rotation, has considerable experience managing a range of strategies, making him well placed for today’s changing fixed income environment, which lends itself to the development of contemporary investment strategies in order to address the requirements of clients.
Dominick has also made two changes to his team, with Timothy Johnson being appointed Head of Total Return Multi-Sector, which is a combination of the Global Multi-Sector and Global Sovereign teams, and Dan Singleman joining as Senior Portfolio Manager in the Sector Rotation Alpha team.
Timothy joined FFTW in early 2013 and has over two decades of experience, gained within both asset management and central banking. The Total Return Multi-Sector includes global aggregate, global unconstrained and global sovereign portfolios.
Dan has spent most of his career within BNPP IP. For eight years he was a credit analyst and then portfolio manager, before leaving last year to take up a broader asset allocation role and now re-joining BNPP IP to pursue a similar opportunity.
David Kiddie, Head of Institutional business at BNP Paribas Investment Partners, comments:
“I am very pleased to welcome such seasoned professionals. These appointments are designed to further strengthen our investment culture, as well as to enhance our research and investment capability. The strength of our investment culture is one of the key drivers of our future success and these appointments are a further step towards developing an environment in which our business can flourish, helping us to achieve our goal of offering our clients a world class investment proposition.”
