Photo: Cheezepie, Flickr, Creative Commons. S&P Dow Jones Indices Launches First of Its Kind Index Tracking the Debt of the S&P 500® Companies
S&P Dow Jones Indices (“S&P DJI”), one of the world’s leading index providers, has launched the market’s first ever index that tracks the debt of the S&P 500 companies. S&P 500 Bond Index is priced in real-time throughout the day and directly corresponds to movement in the U.S. bond market. The Index offers previously unavailable intraday transparency to the pricing of debt on America’s most influential companies.
S&P DJI has contracted with Thomson Reuters to provide end-of-day prices, as well as terms and conditions data.
The introduction of the S&P 500 Bond Index allows for side-by-side analysis of the performance differential between U.S. equity and bond markets, a direct comparison that was unavailable until this launch. Weighted by the market value of the bonds and with a maturity requirement of greater than one month, the S&P 500 Bond Index is liquid enough to also serve as the basis for potential exchange traded products and structured products.
“S&P Dow Jones Indices is introducing the S&P 500 Bond Index at a critical juncture as two major trends converge,” says J.R. Rieger, Head of Fixed Income, for S&P Dow Jones Indices. “First, global markets are grappling with the potential end of a six-year bond rally, the end of which could have significant ramifications for portfolio debt holdings. Second, regulatory changes resulting from Dodd Frank, the post-Libor landscape, and Basel III for example, have many concerned about diminished liquidity in the bond markets. As a result, the market is begging for an intra-day measure that can provide broad transparency into company debt and that is liquid enough to potentially trade throughout the day via exchange traded and structured products.”
“We are delighted that S&P Dow Jones Indices will use our fixed income end-of-day pricing in conjunction with our comprehensive and high quality bond terms and conditions data for their new S&P 500 Bond Index,” says Marion Leslie, Managing Director, Pricing & Reference Services at Thomson Reuters. “Thomson Reuters is committed to partnering with the market’s leading service providers, ensuring market participants are able to benefit from our award winning content via multiple partners, platforms and applications.”
The S&P 500 Bond Index currently tracks the debt of 430 S&P 500 companies reflecting over $3 trillion in debt outstanding and $3.8 trillion in market value. S&P DJI is publishing over 20 years of daily historical data on the S&P 500 Bond Index on its website, www.spdji.com. The complete methodology for the Index is also posted to this site.
CC-BY-SA-2.0, FlickrFoto: Aedo Pulltrone, Flickr, Creative Commons. Hector Sants sustituye a Gian A. Rossi como presidente de Julius Baer London
Sir Hector Sants has joined Julius Baer International Limited as chairman -effective 1 July 2015-.
Sants succeeds Gian A. Rossi, head Northern, Central and Eastern Europe and member of the Executive Board of Bank Julius Baer & Co. Ltd., who will step down as Chairman after nine years but will remain actively involved with the firm’s business in the UK.
Sants worked at the Financial Services Authority (FSA) as Chief Executive Officer from 2007 to 2012 joining from Credit Suisse First Boston where he had been Chief Executive Officer for Europe, Middle East and Africa. After leaving Barclays Bank in November 2013, Sir Hector has been chairing the Archbishop of Canterbury’s taskforce on promoting responsible savings and credit and advising Abu Dhabi Global Market. From 1 July 2015 Sir Hector also is working as Vice Chairman and Partner at Oliver Wyman.
“It is a great honour to welcome Sir Hector to Julius Baer. With his appointment we continue to demonstrate our ongoing commitment to the UK, and I am sure that we will benefit greatly from his long-standing experience in the financial services industry,” said Gian A. Rossi.
CC-BY-SA-2.0, FlickrBill Gross volverá a trabajar con uno de los fundadores de Kapstream Capital, con el que coincidió en PIMCO durante 10 años.. Janus Capital compra el 51% de la gestora australiana de renta fija flexible Kapstream
Janus Capital Group Inc. has announced and closed the acquisition of a majority interest in Kapstream Capital Pty Limited, a global unconstrained fixed income asset manager with USD$6.6 billion in assets under management as of March 31, 2015. With this transaction, the total Janus Global Macro Fixed Income assets under management would be USD$8.7 billion as of March 31, 2015. The transaction includes an initial upfront cash consideration of approximately USD $85 million. Janus Capital has the option to purchase the remaining 49% interest in the future.
“This transaction underscores three key commitments at Janus,” said Dick Weil, Chief Executive Officer of Janus Capital. “First, we want to be the place where great investors come to invest. Kapstream’s Kumar Palghat, Steve Goldman and Nick Maroutsos are simply great people and great investors. Second, we passionately believe that given volatility in global rates, investors need excellent fixed income choices that offer less exposure to interest rate risk. Third, the acquisition of Kapstream furthers our commitment to expand our fixed income capabilities as part of the firm’s intelligent diversification strategy. Kapstream has a rapidly growing business in one of the world’s best asset management markets. In addition, this transaction will reinforce our efforts to build a global macro fixed income team offering best-in-class global unconstrained bond strategies.”
Fixed income veterans Kumar Palghat and Nick Maroutsos founded Kapstream in 2006. Kapstream is one of the pioneers in managing global unconstrained fixed income. Gross, Weil and Palghat worked together at Pacific Investment Management Company for 10 years. The Global Macro Fixed Income team will remain a separate, autonomous and distinct capability from the Fundamental Fixed Income team. Janus is firmly committed to supporting and investing in both its Global Macro and Fundamental Fixed Income platforms, which offer highly complementary strategies.
Bill Gross, who joined Janus in September 2014, will remain the primary portfolio manager of the Janus Global Unconstrained Bond strategy, with Palghat supporting him as co-portfolio manager. Palghat will remain portfolio manager of the Kapstream Absolute Return Income Fund, and Goldman will assume a greater leadership role in managing Kapstream’s strategies. The strategies for both will not change. The combined Janus Global Macro Fixed Income team (comprised of 15 professionals following the completion of the transaction) will operate jointly from Kapstream’s existing base in Sydney, Australia, and Janus’ Newport Beach, California, office.
“We are delighted to offer our clients the highest level of macro fixed income investment expertise with Bill Gross, Kumar Palghat and the highly sophisticated professionals that make up the Kapstream team,” Weil said. “Combining the success and experience of Kapstream’s unconstrained fixed income business with Bill’s reputation as one of the world’s most successful fixed income investors creates a powerful opportunity for our clients and for Janus Capital.”
Kapstream’s unconstrained bond business in Australia will continue in essentially its current form. The flagship Kapstream Absolute Return Income Fund has delivered consistent, positive returns over the one-, three- and five-year periods ending March 31, 2015 (net of fees).
“I look forward to working with my old colleague, Kumar Palghat and the rest of the Kapstream team as we deliver value for our clients,” said Bill Gross, Portfolio Manager of the Janus Global Unconstrained Bond strategy.
“While our U.S. expansion plans began in 2013 with Kapstream’s Newport Beach, California, office opening, the opportunity to work with Bill again and create a truly global team, was not one we could pass up. Our combination brings a number of advantages, primarily giving our existing clients the benefit of additional input from Bill, one of the most highly regarded fixed income portfolio managers in the world, enabling us to deliver more value to our client portfolios,” Palghat said.
CC-BY-SA-2.0, FlickrIleana Salas será la responsable de mantener las relaciones en mercados clave de Europa y LatAm y del desarrollo de nuevos mercados. Foto cedida. Ileana Salas: nueva responsable global de Ventas Institucionales de Santander AM
Santander Asset Management (SAM) has appointed Ileana Salas as Global Head of Institutional Sales, as the business looks to further develop its institutional capabilities globally.
Based in London, Ileana will be responsible for building and leading SAM’s global institutional sales capability, and introducing SAM to new markets, whilst leveraging its large and long standing presence in key countries in Europe and Latin America, including the UK, Spain, Portugal, Germany, Mexico, Brazil and Chile. Ileana will also lead the development of SAM’s key relationships with Sovereign Wealth Funds, Pension Plans, Investment Consultants, Corporates, Insurers, Wholesale clients and Family Offices.
Ileana joins SAM from Bradesco Asset Management where she served as Head of Business Development and Sales for Europe and the Middle East for over four years. Prior to this, Ileana held senior business development roles at ABN Amro, Gartmore Investment Management, and Schroders. Ileana holds an MBA from Babson College.
Juan Alcaraz, Santander Asset Management Global CEO, said: “Developing our institutional business globally is a core part of our strategic growth plans, and reflects our overall ambitions to be a global leading provider of investment solutions to clients”.
“With over 20 years experience in institutional sales, Ileana has a long and strong track record of success in developing and building institutional businesses and leading global distribution teams. She is a strong addition to our senior leadership team and Executive Committee. We look forward to working with her to drive our institutional business forward, and supporting our overall growth ambitions”.
Foto: OTA Photos. Beamonte Investments México invertirá en Master Kiwi
Beamonte Investments, along with its affiliate, Beamonte Mexico Holdings SAPI de CV (“Beamonte”), has announced their investment inOrigin Bit SAPI de CV (“Master Kiwi”), an innovative platform that simplifies video game creation for designers and helps with marketing campaigns. The transaction is scheduled to close during the summer and the value was not disclosed.
Master Kiwi is the winner of the first Venture Academy in Mexico. Venture Academy in an intensive boot camp divided in six modules, including Management 101, Valuations, Term sheets, and Financing. The first Boot Camp was held in Mexico City May 27, 2015 to May 29, 2015. More than 45 entrepreneurs participated.
Claudia Yan of Venture Academy said “We are exited to be creating a platform where we can teach entrepreneurs like Alejandro and Master Kiwi and help them to develop the skills needed to raise institutional money. The first Boot camp was a tremendous success thanks to partners like Cinepolis, Posible, and Coopel.” The next Venture Academy boot camp will be held in late August in Monterrey, Mexico and will accommodate up to 50 entrepreneurs.
Master Kiwii was founded in February of this year by CEO Alejandro Hernandez, and has been incubated in class of 2014 by Wayra Mexico the accelerator of Telefonica, the company offers a platform with a wide catalog of pre-designed games where, through a visual, simple, and intuitive interface, it is possible to generate games in minutes aligned to the branding and image of a company potentiating the marketing campaigns.
Luis F. Trevino, Senior Managing Director at Beamonte Investments commented, “We are exited to invest in Master Kiwi and help them to grow the company to the next level. We see a huge potential in a platform like Master Kiwi that can create a video game in seconds
CC-BY-SA-2.0, FlickrPhoto: European Parliament
. Three Elements Key to Watch After the Greek Population Voted "NO"
The Greek population voted “NO” by a comfortable margin (61%- 39%) and handed the Syriza government another political victory. This will probably energize Prime Minister Tsipras and his team, but will also create huge uncertainty over the future of Greece in the Eurozone and lead to intensifying immediate economic hardship in Greece. At this time it remains unclear if and when banks will be able to re-open. Also, it might well be that deposit and savings haircuts (of those people the Syriza government claims to protect) will be on the table to prevent complete banking sector meltdown.
Without a deal in the near-term between Greece and its creditors, a renewed and sharp recession in Greece seem likely. Both length and depth of such a contraction are still very uncertain and will depend on the evolution of domestic politics within Greece, the ability to get some kind of a deal that will allow for Greece to stay within the Eurozone or the social and political stability in the aftermath of Grexit.
Three elements now key to watch
NN Investment Partners thinks there are three elements will be key to watch in the ECB’s policy response to this political crisis. The way the Emergency Liquidity Assistance (ELA) is managed (to what extent will it remain open for Greek banks), the application of haircuts to the collateral that Greek banks need to post at the ECB and new measures to tackle liquidity issues in other parts of European financial markets. The balance between these three potential ECB measures will be crucial for the sentiment in financial markets and, thereby, the degree of damage to the European economy.
“In the end, however, we have a high conviction that the ECB is willing and able to limit lasting damage from short-term contagion into other European markets. Especially since it is now operating against backdrop of a more unified political front in all of the other member states of the Eurozone that will allow for effective political support for creative policy action, if needed”, point out the firm.
This basically means that significant declines in some market segments (peripheral equities/bonds, European equities, the euro) over the next couple of days cannot be excluded, but also that Eurozone break-up risk remains very small. The latter is a completely different situation than 2-3 years ago and therefore leads to different investment conclusions. As long as the global cycle remains on track, the upcoming period of market volatility might provide an entry point for investors once visibility on the future direction for Greece increases and the accompanying policy response is clear.
“In the short-term, it keeps us cautiously positioned and more focused on reducing rather that adding risk. However, we’ll keep our asset allocation stance “close to the middle” and would only move more defensive once we see significant contagion in combination with disappointing policy response. For now, the latter is not our base case. As soon as more visibility on politics, policy and the impact on the global cycle is there, it could well be that we move back towards a more risk-on stance later in the summer. Obviously the situation remains very uncertain and we will be monitoring very closely if additional changes in our allocation stance are needed once the facts change in an unexpected way”, concluded.
. Standard Life Investments Expands Multi Asset Team
Standard Life Investments, the global fund manager, is pleased to announce that Gerry Fowler has been appointed as Investment Director, Idea Generation, within the Multi Asset Investment (MAI) Team.
Gerry, who was previously Global Head of Equity and Derivatives Strategy with BNP Paribas, will be part of the 57 strong team providing idea generation, investment recommendations and detailed implementation strategies for the range of MAI funds. Gerry will report directly to Guy Stern, Executive Director of Multi-Asset and Macro Investing at Standard Life Investments.
Commenting on the appointment, Guy Stern said: “Gerry is a highly skilled strategic analyst with a wealth of experience in equities and equity derivatives and will add to the already impressive range of knowledge and experience within the MAI team. Our Absolute Return and Multi Asset mandates draw on a range of sophisticated investment strategies investing across all asset classes. I’ve no doubt that Gerry’s depth of knowledge will add to our research capability and idea generation for our whole offering.
“Over the last 18 months we have launched four new Multi Asset products, the team is well resourced and we have excellent collaboration across all the fund management teams globally supporting the long term performance of our funds. We constantly strive to provide investors with the best possible solutions and that means having the right people in place to help understand and meet investor’s needs and expectations.”
The Board of Directors of Santander Consumer USA Holdings Inc. announced the appointment of Jason A. Kulas as Chief Executive Officer. Mr. Kulas succeeds Thomas G. Dundon, the company’s former Chairman and Chief Executive Officer, in line with SCUSA’s Board-approved succession plan. Mr. Dundon will continue to serve as a member of the SCUSA Board of Directors and as a senior adviser to the company.
After successfully growing the SCUSA business over the last 20 years, including nine years as CEO, Mr. Dundon has decided to pursue new opportunities.
The Board of SCUSA has appointed Lead Outside Director Stephen Ferriss as interim Chairman, effective until the July 15 SCUSA annual meeting.
Mr. Dundon said: “I am proud to have been part of the company’s success and fortunate to have worked with so many outstanding, driven colleagues over the years. This is a great company and with Jason Kulas at the helm, supported by our talented management team, I am confident SCUSA will become an even stronger player in the consumer finance industry.”
Scott Powell, Chief Executive Officer of Santander Holdings USA and head of Santander’s operations in the United States, said: “We thank Tom for his vision and leadership as a founder of SCUSA, and a driver of its growth and success. Jason Kulas has the experience and strategic vision to lead SCUSA. Jason has been with SCUSA for eight years and has a deep understanding of its business, operations and people. I am confident in his ability to lead this business into the future.”
Mr. Kulas joined the company in 2007 as Chief Financial Officer, after covering SCUSA, since its founding, as an investment banker at JPMorgan. As CFO, he oversaw the company’s treasury, accounting, financial planning, capital markets and corporate strategy divisions. Mr. Kulas became President in 2013 and, since SCUSA’s IPO in 2014, has overseen the company’s corporate development, asset management, investor relations and various regulatory functions including the Comprehensive Capital Analysis and Review. Mr. Kulas will join the Board of Directors of SCUSA and, subject to regulatory approvals, Santander Holdings USA.
Mr. Kulas said: “I am honored by the Board’s decision to name me as Tom’s successor. Tom was pivotal in growing the Company from a local start-up to a leading, national technology-driven consumer finance business. The changes in Tom’s role at SCUSA have been amicably agreed and are unrelated to the company’s performance or regulatory standing. On behalf of the company’s management team, I thank him for his valuable contributions and wish him well in his future endeavors. This is an exciting time for the business and I look forward to working with my colleagues as we seek to grow the business in the months and years ahead.”
Jason Grubb, Chief Operating Officer, Originations of SCUSA, will succeed Mr. Kulas as President. Mr. Grubb joined SCUSA in 2004 as Senior Vice President of Servicing. He was Chief Operating Officer from January 2007to October 2014 and became Chief Operating Officer, Originations in October 2014. Prior to joining SCUSA, Mr. Grubb held positions at WFS Financial, Nissan Motor Acceptance Corp, and Commercial Financial Services.
Jennifer Popp has been appointed interim Chief Financial Officer of SCUSA while a search is underway for a permanent replacement. Ms. Popp has served in the finance industry since 2001, and joined SCUSA in July 2012. She most recently served as Chief Accounting Officer and Deputy Chief Financial Officer.
In connection with Mr. Dundon’s departure as SCUSA’s Chief Executive Officer, Santander Holdings USA will, subject to the applicable regulatory approvals, exercise a call option to acquire all of the approximately 9.68% of SCUSA common stock held by DDFS LLC, an entity solely owned by Mr. Dundon.
Additional details regarding Mr. Dundon’s separation will be filed by SCUSA with the Securities and Exchange Commission.
CC-BY-SA-2.0, FlickrPhoto: Giuseppe Milo
. Old Mutual Global Investors will Launch an Offshore Global Equity Income Fund
Old Mutual Global Investors announces its intention to launch the Old Mutual Global Equity Income Fund during the summer of 2015, subject to regulatory approval. The Fund, which will be managed by Ian Heslop, Amadeo Alentorn and Mike Servent will be a sub-fund of the Dublin domiciled Old Mutual Global Investors Series plc umbrella fund. This product will be core to Old Mutual Global Investors’ UK and offshore client base.
The Fund’s objective will be to achieve a total return through a combination of income and capital growth. The Fund will be designed to deliver a total return by targeting dividend yield and capital growth through a highly diversified global equity portfolio. The Fund will aim to provide monthly income above the benchmark (MSCI All Countries World Index). The investment team pursue a dynamic investment process, focused on stock selection through analysis of fundamental company data, but taking account of the macro environment and investor sentiment. The unique approach will generally provide significant diversification from concentrated, style-biased global equity income funds.
Ian Heslop, Head of Global Equities, comments: “We are really excited about the forthcoming launch of our Global Equity Income Fund. We believe that our unique approach to stock selection realises the appeal of being invested in a truly diversified fund. Unlike some of our peers who remain heavily weighted towards certain sectors, we are able to seek out compelling investment opportunities wherever these exist globally, irrespective of sector, country or region. We are also flexible so that the prevailing conditions and outlook can be incorporated in our process to ensure we have the greatest scope to deliver sustained outperformance. We believe our investment approach should therefore deliver an above industry level of monthly income whilst continuing to deliver capital growth”
The Fund benefits from the investment team’s strong, proven performance-driven culture which leverages a dynamic process, including continuous monitoring of the whole market in order to capture value across the broadest spectrum of larger-capitalisation stocks. The investment team will offer a significantly different source of alpha in global equity markets, run from the same platform as the multiple award winning Old Mutual Global Equity Fund, Old Mutual Global Equity Absolute Return Fund and the Old Mutual North American Equity Fund.
Warren Tonkinson, Head of Global Distribution, adds: “This is another important development for Old Mutual Global Investors, one that focuses on meeting the needs of our clients. From talking to investors it is very apparent that income generating strategies continue to be in demand and we have received a number of client requests for our highly respected, award-winning global equities team to launch a global equity income strategy. The investment performance track record this team, which consists of Ian, Amadeo and Mike, has delivered for investors in their current funds is outstanding. We are confident that the new fund will be equally successful.”
Old Mutual Global Investors is currently reviewing the UK Domiciled Old Mutual Global Equity Income Fund which is sub-advised by O’Shaughnessy Asset Management, LLC.
Sophie del Campo, Managing Director, Natixis Global AM, Iberia, Latin America and US Offshore. Courtesy photo. Natixis GAM Announces Completion of DNCA Finance Acquisition
Natixis Global Asset Management recently announced the completion of the acquisition of DNCA Finance (DNCA), expanding its list of global affiliates and strengthening its position in European retail markets
As an affiliate of Natixis Global Asset Management, DNCA, a well renowned European investment management company, will have access to Natixis Global Asset Management’s centralized global distribution capabilities. DNCA will immediately broaden its European footprint, entering new markets including Spain and expanding its business in Germany and Switzerland. DNCA will maintain its independence while over time expanding its global presence as an affiliate of Natixis Global Asset Management.
DNCA has seen important growth in the last 2 years, tripling its assets from €5 billion to €16.5 billion today. Through the acquisition, DNCA will maintain its independent management approach and will offer institutional and retail investors expertise in European equities, long only and absolute return, multi-asset, convertible bonds and euro-zone bonds.
“The combination of DNCA’s proven track record, solid investment performance, controlled risk profile and strong brand name will make a substantial contribution to the further expansion of Natixis Global Asset Management’s multi-affiliate model and our strategy of growing the business in the European retail marketplace,” said Pierre Servant, CEO of Natixis Global Asset Management and member of the senior management committee of Natixis in charge of Investment Solutions.
“As an affiliate of Natixis Global Asset Management we will be able to replicate the success that we have had in France and Italy over the past 15 years and step up our international expansion. We believe that Natixis’ centralized global distribution platform will help us develop our retail and institutional business and provide investors with a range of simple and understandable funds that deliver results that strengthen their portfolios,” said Eric Franc, CEO of DNCA Finance.
