Citi has hired Stephen Roti as Managing Director and Global Head of Corporate Equity Derivatives (CED). In this position, Mr. Roti will be responsible for the overall strategy for originating high value added CED transactions and will lead the marketing and education efforts with business partners in Investment Banking, Capital Markets Origination, and Citi Private Bank. He will be based in New York and report to James Boyle, Global Head of Equity Derivatives, Tyler Dickson, Global Head of Capital Markets Origination and Andres Recoder, Global Head of Corporate Sales and Client Solutions.
Mr. Roti brings more than 20 years of structuring and origination of equity related products to Citi including equity derivatives, convertibles, and hybrid securities. He will join the Bank from Nomura where he was Head of Equity Capital Markets for the Americas. Before Nomura, he served at Barclays Investment Bank, where he was Global Head of Equity Linked Origination in New York.
“We are extremely pleased to have Stephen on board,” said Boyle. “He has extensive industry experience and a proven track record that will have an immediate, positive impact on our franchise.”
“This hire complements our existing team well and underscores our commitment to the sector,” said Derek Bandeen, Global Head of Equities. “As our platform evolves, we will continue to invest in the business and expand our services globally.”
Mr. Roti earned a JD from Yale Law School and a BA in Economics and Japan Studies from Macalester College.
Investors remain open to risk despite market jitters around crises such as China and Greece, according to the findings of the latest Risk Rotation Index by NN Investment Partners.
The research revealed that 28.3% of the panel of global institutional fund managers surveyed said that they had increased their appetite for risk over the previous six months compared to 18.3% who said that their appetite had decreased, leaving overall net risk appetite at +10%.
However, in spite of this confidence, investors have growing concerns over a potential Eurozone crisis, with 49% of respondents citing it as a ‘significant’ threat to their portfolios – up from 35% in the previous quarter – while one in eight (13%) view it as a ‘very significant’ threat.
Valentijn van Nieuwenhuijzen, Head of Strategy, Multi-Asset at NN Investment Partners, says: “A Eurozone crisis was viewed as significant threat by almost half (49%) of investors who appear to be approaching the current situation with both caution and confidence.
“Greece may have jolted markets but the Eurozone survived. The Chinese crisis – we think we can call it a crisis by now – is creating serious problems for the commodity exporters and the countries that sell the most capital goods to China.”
“Despite market jitters investors still have confidence in the market and retain some optimism with the recent pick-up in growth in the US and Japan. As we are back in calmer waters (at least temporarily), we upgraded equities from neutral to a small overweight which was our stance before Greece and China spoiled the party.”
Away from the Eurozone, other potential dangers such as a black swan event (24%) and a Chinese slowdown (21%) were also named by investors as events of which they were wary.
As well as indicating a preference for risk amongst investors, the research also hinted at growing stability within investors’ portfolios. Indeed, more than half (53%) of the panel stated that they had not adjusted their risk profile over previous six months – the highest proportion since the index was launched in 2013.
In order to mitigate potential risk over the coming months, investors appear to be most in favour of using multi-asset (74%) and equity strategies (56%). When broken down there is little difference in preference between balanced and total return multi-asset strategies – 37.3% vs. 36.3% – meaning that individually both strategies are more favoured amongst investors than illiquid assets such as private equity and mortgages (26%), hedge funds (22%) and high dividend (18%).
Van Nieuwenhuijzen continues: “In the current investment climate there are a great number of pockets of opportunity for investors – but also a great number of potential pitfalls. It is therefore important for investors to deploy the right strategy to ensure yield whilst simultaneously mitigating market turbulence. Indeed, our survey reveals that 46% of investors have diversified their portfolios to manage risk over the past year, and we believe that multi-asset strategies such as balanced or total return funds provide investors with the exposure to risk that provide them with a steady yield stream – even in an uncertain economic landscape.”
When looking at the asset classes most favoured in terms of risk versus return over the coming three months, investors stated a preference for equities (34%), followed by real estate (17%) and government bonds (14%). The most favourable geographical regions in terms of risk versus return were the US (46%), Japan (38%) and the Eurozone (29%).
Photo: Natesh Ramasamy
. Deutsche Bank Group Announces The Sale of Its India Asset Management Business
Deutsche Bank Group announced that it has entered into an agreement to sell its India asset management business to Pramerica Asset Managers Pvt. Ltd., subject to customary closing conditions and regulatory approvals.
Pramerica Asset Managers is the asset management business in India of Pramerica Investment Management (PIM), whose multi-manager asset management businesses collectively rank among the top 10 institutional money managers in the world, according to Pensions & Investments. The sale is a continuation of Deutsche Asset & Wealth Management’s global initiative to further focus its business on developing and strengthening its regional centres of investment excellence, with the ultimate aim of delivering consistently superior performance to clients across all asset classes and investment strategies.
Ravi Raju, Head of Deutsche Asset & Wealth Management, Asia Pacific, said: “Deutsche Bank Group’s asset management business was established in 2003, and is now the second largest foreign asset manager in India. We have built a strong brand with a well respected investment and coverage team. This solid foundation will be passed on to Pramerica, which is an internationally respected asset manager with broad product capabilities and expertise. We are confident that with Pramerica’s global footprint and track record of integrating and working with local partners in key markets, the business will continue to perform well following the integration. We are committed to working with Pramerica to ensure a smooth transition for clients, staff and other stakeholders.”
Ravneet Gill, Chief Executive Officer, Deutsche Bank Group India said: “The divestment of our asset management business is in line with our strategy of focusing on our core businesses where we can achieve a leadership position. Deutsche Bank Group’s overall India franchise has posted strong financial results, and we remain absolutely committed to further investment and development of our business here given that India is strategically important to the bank’s global growth aspirations.”
Glen Baptist, Chief Executive Officer of Pramerica International Investments, said, “The strong track record of Deutsche Bank Group’s asset management business in India, its talented leadership team, and deep relationships with institutional clients and distribution partners, perfectly complement the sales, investment and product capabilities of our existing business. When the transaction is completed, we will have the scale and platform necessary to make our investment strategies available to clients across India and put us within sight of the top 10 asset management businesses. We are confident that the combined business, and our new joint venture with DHFL, will enable us to achieve our strategic priority of building an industry-leading India asset management business.”
Pramerica’s new JV with DHFL, which will benefit from DHFL’s 30 years of financial services experience in India when the transaction is completed, will be renamed DHFL Pramerica Asset Managers upon regulatory approval.
Deutsche Asset Management established its business in India in 2003 and today has INR 20,720 crore (EUR 2.9 billion) average assets under management (as of quarter Apr-Jun 2015), making it the second-largest 100% foreign-owned asset manager in India.
Over the last decade, the firm has built a strong investment performance track record. Its product portfolio spans debt and equity schemes; domestic and offshore funds.
Deutsche Asset Management (India) is the Mutual Fund business of Deutsche Asset & Wealth Management in India.
Foto: Victor Camilo, Flickr, Creative Commons. Peter Röhrenbach: nuevo responsable de Real Estate de UBS Global AM para Benelux, Francia, Iberia y países nórdicos
UBS Global Asset Management has appointed Peter Röhrenbach as its regional head of Benelux, France, Iberia and the Nordics for its global real estate business, according to Investment Europe. Röhrenbach will leave its role of head of Iberia with immediate effect but will continue to be based in Madrid.
He will oversee and support the acquisitions and dispositions as well as asset management activity in the region in addition to defining the long-term strategic priorities for these markets.
Röhrenbach will retain his Senior Investment Advisor role for a key pan-European institutional investment mandate, according to the publication.
Röhrenbach has joined UBS in 2003 where he set up the Iberian property business currently managing assets exceeding €700m. Prior to joining UBS, he worked for Lend Lease as head of Real Estate Investments and Eurohypo AG as head of Iberia (Spain and Portugal).
Jesus Silva Gallardo: New Head of Iberia
Röhrenbach will be replaced by Jesus Silva Gallardo as head of Iberia. Gallardo was working as head of Asset Management for the Iberian Peninsula.
Foto: Robert Sheie
. OMGI lanza un fondo de rentas y bolsa global para el mercado offshore y cierra su homólogo onshore
Old Mutual Global Investors has confirmed that the offshore Old Mutual Global Equity Income Fund, managed by Ian Heslop, Amadeo Alentorn and Mike Servent has now launched. The Fund is a sub-fund of the Dublin domiciled Old Mutual Global Investors Series plc umbrella fund.
According to the company, the fund has been developed in response to client demand for an income-generating product managed by the award winning Old Mutual Global Investors Global Equity Team. The Fund is designed to service Old Mutual Global Investors’ UK and offshore client base and targets a total return through a combination of income and capital growth, with a monthly income targeted at 30% above that of the benchmark (MSCI All Countries World Index).
OMGI has also confirmed that its$60.75m (£38.8m) onshore Old Mutual Global Equity Income Fund will be closing on 15 September 2015, subject to regulatory approval. This fund was sub-advised by O’Shaughnessy Asset Management.
In a press release, OMGI informs that this onshore fund has seen a gradual decline in assets over the last few years. Given the small size of this fund and the associated operating costs, they believe that it is no longer in the best interest of clients to continue running this fund and that investors will be best served by having their proceeds returned in order for them to reinvest in other products.
Warren Tonkinson, Managing Director at Old Mutual Global Investors, comments: “We’ve experienced a high level of client demand for an offshore global equity income fund managed by Ian Heslop and his team. We are delighted that this fund is now live and will become a core part of our global fund range, available to both UK and offshore investors.
“We believe our decision to close the onshore Old Mutual Global Equity Income Fund is in the best interest of investors. Clients have been informed of our decision to close this fund and of the options available to them. We would like to thank O’Shaughnessy for their management of the fund.”
Photo: Mark Moz
. Citi Sales Alternative Investor Services Business for $425 million
Citigroup announced that it has reached a definitive agreement to sell itsAlternative Investor Services business, which comprises Hedge Fund Services and Private Equity Fund Services, to SS&C Technologies Holdings for $425 million.
The entire operations of this business, including approximately 1,500 employees, will be transferred to SS&C upon closing.
This transaction is a positive outcome for Alternative Investor Services, including its employees and clients. As a result of this deal, Alternative Investor Services will become part of a known leader in financial services with a demonstrated track record of delivering high-quality products and services to its clients.
The deal is expected to close in the first quarter of 2016, and is subject to regulatory approvals and other customary closing conditions.
Foto: Steven Depolo
. Guggenheim Lanza un ETF sobre el índice S&P 500 Equal Weight Real Estate
Guggenheim Investments recently announced the launch of Guggenheim S&P 500 Equal Weight Real Estate ETF (EWRE). The ETF tracks the newly created S&P 500 EWRE Index, which equally weights the index constituents in the S&P 500 that are classified in the Global Industry Classification Standard (GICS) Real Estate Industry Group with an emphasis on exchange- traded equity REITs and real estate management and development companies, and excluding Mortgage REITs.
“Recognizing that real estate is evolving into a separate asset class as a result of its growing importance to advisors and investors searching for income and capital appreciation and underscoring our firm’s commitment to providing clients with innovative investment solutions, Guggenheim is first to market today with a new equal-weighted sector ETF which could have considerable impact on portfolio planning and research,” said William Belden, Managing Director of Product Development for Guggenheim Investments.
The new real estate sector includes equity REITs and real estate management and development companies. Mortgage REITs, which facilitate the financing of commercial and residential real estate, will remain in the financials sector. On September 16, 2016, S&P Dow Jones will implement the GICS real estate sector change as a part of their annual index rebalancing.
“There are several reasons real estate can be considered an attractive asset class,” Belden said. “First, real estate securities offer potentially attractive long-term total returns coming from both capital appreciation and higher-than-average income when compared to other equities. Second, EWRE’s underlying portfolio will be comprised primarily of equity REITs, which have a history of providing consistent, above-average dividends which can be used to meet current income needs or reinvested to accumulate wealth. Also, investing in real estate securities can be used as a hedge against inflation.”
EWRE becomes the 15th equal-weighted ETF in Guggenheim’s product line. Guggenheim pioneered the concept of strategic beta with the launch of Guggenheim S&P 500 Equal Weight ETF (RSP) in April 2003. The Firm’s strategic beta ETFs assets totaled $18.7 billion as of July 31, 2015.
“The time-tested equal weight strategy can help long-term performance by reducing the bias towards the largest individual companies within a particular cap-weighted strategy,” Belden said. “An equal-weight approach also may enhance portfolio diversification by reducing concentration risk often found in cap- weighted indices and provide a more balanced exposure across market capitalizations.”
Foto: John
. Cantor Fitzgerald refuerza su equipo de Portfolio Solutions
Cantor Fitzgerald has announced the continued expansion of the Portfolio Solutions team with the appointments of Filip Skala, CFA and Kenneth Wong inNew York, and Khairul Hussainand Jemma Broadgate in London. The team will report to Michael Gardner, Global Head of Portfolio Solutions.
Mr. Skala will serve as Head ofU.S. Portfolio Solutions, and focus on business development and implementation across the team’s main lines of business. Mr. Wong will serve asSenior Vice President and Portfolio Manager, focusing on the portfolio restructuring process and on developing, managing, and executing trading strategies for client events. Mr. Hussain joins as Director of IT, focused on managing technology and developing applications for the Portfolio Solutions group. Ms. Broadgate will serve as Director of Institutional Sales, responsible for growing the business in the UK.
Prior to joining Cantor, Mr. Skala led the U.S. implementation and strategy team of transition management at J.P. Morgan. Mr. Skala holds a BS from Rutgers University, an MBA from Pace University, and is a CFA charter holder.
Previously, Mr. Wong held senior positions in the Transition Management and Business Intelligence Group at J.P. Morgan. Mr. Wong has a BA in Economics from the University of Michigan Ann Arbor.
Before joining Cantor, Mr. Hussain served on the Transition Management trading desk and the Electronic Client Solutions trading desk at J.P. Morgan. Mr. Hussain received a degree in Computer Science from Kings College London at the University of London.
Prior to joining Cantor, Ms. Broadgate served as the Head of UK Pensions and Charities in the Investor Services Group at J.P. Morgan. Before that, she was the head of UK Pensions Sales for Northern Trust’s custody business. Ms. Broadgate received a degree in French and German from Queen Mary College at the University of London.
Foto: Archer10Dennis, Flickr, Creative Commons. De Grecia a China: los inversores mundiales temen una recesión en China y vuelven la espalda a los emergentes
Global investors have shifted their attention from Greece to China amid continued concern of a Chinese recession, according to the BofA Merrill Lynch Fund Manager Survey for August. Respondents are scaling back their expectations for economic growth.
China recession is now rated the number one “tail risk” by 52 percent of panel. And fifty-three percent of investors say the global economy will strengthen in coming year, down from 61 percent in July. “Investors are sending a clear message that they are positioned for lower growth in China and emerging markets,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research.
The survey reports the lowest allocations to emerging markets equities since April 2001 and to the Energy sector since February 2002. More investors say Global Emerging Markets is the region they most want to underweight; Europe is the region they most want to overweight.
“European stocks remain in favour – but investors like domestically focused names and are avoiding anything exposed to China or commodities,” said James Barty, head of European equity strategy.
The survey notes a rising consensus that the Fed will raise rates in third quarter; the majority of panel now expects the yield curve to flatten in next 12 months.
An anti-commodities stance is evident with moves out of Energy and Materials while defensive weightings increase.
An overall total of 202 panelists with US$574 billion of assets under management participated in the survey from 7 August to 13 August 2015. A total of 162 managers, managing US$449 billion, participated in the global survey. A total of 100 managers, managing US$224 billion, participated in the regional surveys. The survey was conducted by BofA Merrill Lynch Global Research with the help of market research company TNS.
Photo: Elliott Brown . Mediobanca to Acquire a Majority Stake in London-Based Credit Manager Cairn Capital
Mediobanca and Cairn Capital Group Ltd have agreed terms for a strategic partnership in which Mediobanca will acquire a majority interest in the London-based, credit asset management and advisory firm.
Cairn Capital was established in 2004 and provides a full range of credit asset management and advisory services, with a particular focus on European credit. As at 30 June 2015, Cairn Capital had $5.6bn of discretionary and legacy assets under management, with a further $9.1bn of assets under long term advice.
Under the terms of the transaction, Mediobanca will acquire 51 per cent. of the share capital of Cairn Capital on completion. The majority will be purchased from Cairn Capital’s institutional shareholders and following which The Royal Bank of Scotland will have no remaining interest. Mediobanca will have the ability to increase its interest in Cairn Capital after three years with an option to acquire some or all of the remaining 49 per cent., the majority of which is held by the management and staff of Cairn Capital.
As part of its overall strategy, Mediobanca is strongly committed to the development of an international Alternative Asset Management business, achieved through strategic partnerships with selected asset managers, having strong track records, high quality management teams, and scalable platforms. Cairn Capital will fulfill a central role within the MAAM credit platform and is well positioned to benefit from Mediobanca’s distribution channels, network of investor relationships and market access, as well as its institutional infrastructure and support.
Paul Campbell will continue to be CEO of the company and has agreed, together with the rest of Cairn Capital’s management team, to enter into new, longer term contracts in conjunction with the transaction, ensuring continued strength and stability to the business.
The transaction value does not have a material impact on CET1 of Mediobanca Group.
