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.
Place Vendome, Paris.. Carmignac Adds US-Oriented Global Expertise in Communications, Media, Internet and Information Technology
As part of the ongoing recruitment drive conducted over recent years, Carmignac is once again boosting its fund management team with the arrival of a senior fund manager, David Older.
David Older will work in London, commencing on July. Working alongside Edouard Carmignac, he will be in charge of global fund exposure to Communications, Media, Internet and Information Technology. David will also contribute to generating investment ideas for other Carmignac funds.
Edouard Carmignac, Founder of Carmignac : “Thanks to David Older joining our team alongside our analyst Tim Jaksland, we are significantly increasing our investment expertise in Communications, Media, Internet and Information Technology stocks, four key sectors in our current positioning that will shape tomorrow’s world. We are also gaining considerable experience in alpha generation and long-short management, which will help us generate performance under all market conditions and give us the complete range of risk management expertise.
The ability to manage market risks has become a hallmark of Carmignac’s management style, particularly in 2002, 2008 and 2011 in Carmignac Patrimoine. This risk management culture has gradually permeated all the Carmignac family of funds, becoming an integral part of our brand, henceforth Carmignac Risk Managers. The complexity of financial markets is such that managing risks, now more than ever, represents a vital aspect of long-term asset management, aimed at helping our clients grow their savings. Carmignac is relentlessly endeavouring to enhance its expertise in this area.”
David Older, 45 years old, spent the past 12 years at SAC Capital/Point72 Advisors in New York, most recently as co-Sector Head of the Communications, Media, Internet and Technology vertical. Prior to this, Mr Older was an Investment Banking Associate in the Communications and Media group at Morgan Stanley. He gained an MBA at Columbia University, New York, following a BA from McGill University in Montreal.
Foto: LenDog64. John Hancock Investments entra en el negocio de los UCITS
John Hancock recently announced the launch of John Hancock Worldwide Investors, PLC, a Dublin-domiciled UCITS platform designed to extend the reach of firm’s signature manager-of-managers approach. Effective this week, the firm will make available four of its highly rated investment strategies targeted at non-US residents and UCITS model programs of our U.S. distribution partners.
As part of its commitment to this strategic market, John Hancock Investments has hired industry veteran Angela Billick to lead the UCITS product platform. Mrs. Billick will leverage her nearly 20 years of international business development experience in UCITS to serve the needs of investors.
“We are pleased to be able to provide our industry-leading manager selection and oversight capabilities to a new market,” said Andrew G. Arnott, President and CEO. “Our new UCITS platform is a natural continuation of the rapid growth we have experienced in the United States and a reflection of the strong demand we have received from our US broker/dealer partner firms for offshore funds that mirror some of our most popular US mutual funds.”
John Hancock Worldwide Investors, PLC is making available four of the firm’s most sought-after strategies in a choice of five UCITS share classes. These initial strategies are managed by portfolio teams at Manulife Asset Management and GMO Europe LLC:
John Hancock Strategic Income Opportunities Fund
John Hancock High Yield Fund
John Hancock U.S. Large Cap Equity Fund
John Hancock Global Equity (Ex.-U.S.) Fund
“We believe these four strategies help address today’s investor need for new sources of income, along with proven equity strategies with a measure of downside protection,” said Leo M. Zerilli, CIMA, head of investments at John Hancock Investments. “These are not simply challenges for U.S. investors; these are global challenges.”
John Hancock Investments is a premier asset manager with a unique manager-of-managers approach, whereby the firm builds funds based on investor needs, then searches the globe for the best managers with proven track records to lead those funds. John Hancock Investments has more than 165 professionals specializing in manager research and oversight, vetting over 250 investment strategies annually and overseeing relationships with 72 portfolio teams at 27 elite firms worldwide.
More than half of the world’s mutual fund assets reside outside the United States. The UCITS market is estimated to consist of more than $8 trillion in assets, according to the European Fund and Asset Management Association.
As the crackdown on “closet trackers” gathers pace in Europe, concerns are growing that the metric used to identify those funds that charge active management fees while merely hugging the index could undermine performance, according to the latest issue of The Cerulli Edge – Global Edition.
The regulatory spotlight has fallen on closet trackers recently. In May the Swedish government launched an investigation in the wake of the Swedish Shareholders’ Association filing a lawsuit against a leading fund house, alleging that it had mis-sold closet trackers to retail investors. Regulators in Denmark and Norway have also been proactive.
Cerulli Associates, a global analytics firm, notes that in response to heightening regulatory scrutiny more managers are voluntarily disclosing data showing the extent to which a fund’s portfolio diverges from its benchmark. “Active share” is the most commonly used measure, with a score less than 60% deemed to be index hugging.
“Active share, however, is no panacea and used in isolation is more likely to be misleading. It should be used alongside other relevant metrics, such as information ratio data showing the portfolio returns above the benchmark in relation to the volatility of those returns,” says Barbara Wall, Europe research director at Cerulli Associates.
Noting that there are times in an investment cycle when it might be prudent to stay close to the benchmark, Cerulli warns that a manager who feels obliged to maintain a certain active share is at risk of picking the wrong stocks simply to increase the deviation from the benchmark. Strict adherence to the tool may also prevent a manager from buying stocks that have a large weight in the index, even if they are expected to outperform.
Another limitation concerns the definition of being “active”, which typically refers to the actual shares that are owned. But “active” can also apply to a portfolio that largely adheres to the index, provided the manager has not simply taken a buy-and-hold approach and that performance is influenced by the timing of trades in those constituents.
Firms that are already disclosing the active share figure tend to have house management styles that are unconstrained in relation to benchmarks. Firms where the emphasis is on delivering outperformance with a relatively low-risk, low-active share element would be understandably anxious, says Cerulli, about publishing their active share figure. “They would also point out–with some justification–that a low active share doesn’t mean they are a closet tracker and that they should be judged on performance alone,” says Wall.
Cerulli believes that, used in conjunction with other metrics, active share can be a useful tool in promoting accountability and transparency. Laura D’Ippolito, a senior analyst at Cerulli, says: “Views within the European fund industry on the value of the active share figure differ widely, but what is clear is that the debate–which also takes in the active/passive issue–is only going to intensify.”
Other Findings:
With active exchange-traded funds (ETFs) at long last gaining traction in the United States, active mutual fund managers should seriously consider offering their strategies in these securities, advises Cerulli. It notes, however, that the path to success remains difficult. Another structure the firm recommends is the new exchange-traded managed fund.
The penetration rate of mutual funds in Asia ex-Japan has dropped to about 6.5% of household financial assets (HHFA) in 2013 from 9% in 2009, despite HHFAs expanding at, or close to, double-digit rates annually. Cerulli believes that the decline can in part be attributed to the short-termism that drives investment–in Taiwan, for instance, Cerulli has found that fund retention ranges from about six to nine months for the average investor, while in China it can be as short as a month. The firm says that analysis of the decision-making provides useful insights for determining product selection.
In the United Kingdom, active management is no longer the be-all and end-all for discretionary investment managers, says Cerulli, noting that a combination of regulatory change and the low-growth environment is forcing firms to review costs and portfolios. Not only are passive funds now more common in discretionary portfolios, but their role–and that of active funds–is changing. The analytics firm says that active managers face a challenge in staying relevant in a world in which cost is king, passives are core, and sustainable alpha is key.
CC-BY-SA-2.0, FlickrPhoto: Ana Montreal. Man Group Change Chairmanship of Remuneration Committee
Man Group has announced that Phillip Colebatch, Senior Independent Director, will resume the role of Chairman of the Remuneration Committee from 1 July 2015, replacing John Cryan who took on the role from Mr Colebatch in May 2015.
This reflects the change in Mr Cryan’s circumstances following the announcement of his appointment as Co-Chief Executive Officer of Deutsche Bank with effect from July 2015. Mr Cryan will continue to serve as a non-executive director of Man Group and as a member of the Nomination Committee but he will no longer be a member of the Remuneration Committee.
Man Group is currently undertaking a search to appoint an additional non-executive director to take up the role of Remuneration Committee Chair.
Phillip Colebatch was appointed to the Board as a non-executive director in September 2007 and is the Senior Independent Director. John Cryan was appointed to the Board as a non-executive director in January 2015.
New research from Standard Life Investments suggests that improvements in corporate governance at Japanese companies have the potential to raise the value of the Japanese stock market by 15% to 30%.
Prime Minister Abe’s administration has announced a range of policies designed to embolden corporate risk-taking – one area with high prominence in this growth strategy is boardroom reform. In the latest edition of Global Perspective, Govinda Finn, Senior Japan Analyst and Chris Faulkner-MacDonagh, Markets Strategist, Standard Life Investments, examine whether this governance reform will be the catalyst for a wider revitalization of the Japanese economy.
Govinda Finn, Senior Japan Analyst, Standard Life Investments, said:
“Many global investors have moved heavy or overweight in Japanese equity markets since the Abe government gained power. Yet Japan faces a growth conundrum. With a declining population and high levels of economic development, the prospect of future growth led by capital accumulation is low.
“To ensure that global investment in Japan becomes a longer term phenomenon, rather than a short term tactical trade, efforts to improve the capital efficiency of Japanese companies, and raise the return on equity for shareholders, become ever more important.
“Key engagement and governance policies for shareholders and institutional investors to monitor for progress over the coming months are: increasing board independence; expanding investor relations efforts; M&A activity; return on equity strategies; shareholder voting practices; restructuring of business operations; plus environmental and social policies.
“There is hope that a transition to a more market based engagement approach will encourage businesses in Japan to make better investment decisions and boost shareholder value. This approach, when combined with other initiatives in the nation’s revitalization plan such as trade liberalization and labor market reform, may unlock further productivity growth.”
Oficinas centrales de Banco Ficohsa Guatemala - Foto cedida. Grupo Financiero Ficohsa toma el control de las operaciones de Citi en Nicaragua
Grupo Financiero Ficohsa (GFF) announced that it has completed the purchase of Banco Citibank de Nicaragua, S.A. and Cititarjetas de Nicaragua, S.A., after the Superintendency of Banks and Other Financial Institutions of Nicaragua (SIBOIF) and the Superintendency of Banks of Panama (SBP) authorized the transaction.
“Today we begin to deliver on our commitment to invest in Nicaragua,” stated Camilo Atala, president of Grupo Financiero Ficohsa. “We arrive with great expectation and with responsible practices to contribute to the country’s development.”
With the entry to Nicaragua, and following an expansion process both in Honduras and the Central America region, Ficohsa establishes its presence in four countries. In May, the Group successfully completed the integration of Citi’s consumer banking unit in Honduras, an experience that Ficohsa is using to ensure a smooth transition for clients and employees in Nicaragua.
Within the next few days, Citi’s agencies, ATMs and service points will be rebranded to Banco Ficohsa Nicaragua. However, customers will continue to conduct their transactions through the usual and customary processes and the channels they typically use. Additionally, all customer benefits and obligations, will remain the same. Ficohsa will honor its commitments to customers, who will retain points, miles and awards accumulated.
Ficohsa informed that the group’s plans in Nicaragua include the expansion of its network, which will entail expanding its workforce. Additionally, the group indicated that they would integrate various Ficohsa products and services gradually, to ensure a seamless transition.
Ficohsa takes over the totality of Citi’s operations in Nicaragua, including the more than 600 employees who join the group. “We are thrilled to welcome our new employees in Nicaragua into the Ficohsa family,” said Atala. “They will be the key to our success in the Nicaraguan market and in this integration process that begins today.”
The financial group, the first of Honduran capital to enter Nicaragua, appointed Marco Antonio López as executive president. López, a renowned Nicaraguan banker, until today served as regional vice president of business development at Ficohsa.
“I am pleased to come back home with Ficohsa and with a clear mandate to support the country’s productive sector and reinforce existing SME and consumer banking services, as well as expand the business into new areas, such as corporate banking,” added López. “The idea is to offer the most innovative financial services in the market.”
Today, Grupo Financiero Ficohsa includes the largest bank and insurance company in Honduras, as well as banking operations in Guatemala, Panama and Nicaragua, and financial services in the United States. After the acquisition, the group encompasses US$ 4.016 billion in assets, US$ 2.645 billion in loans, US$ 522 million in equity, US$ 2.577 billion in deposits, and more than 6,600 employees (using figures as of May 31, 2015.) This enables Grupo Ficohsa to strengthen its position among the 10 leading financial groups in Central America.
Claude Ewen. Courtesy Photo. Columbia Threadneedle Investments Appoints Sales Director in Luxembourg
Columbia Threadneedle Investments announces the appointment of Claude Ewen as Sales Director Luxembourg with immediate effect.
In his role, Claude will be responsible for broadening and deepening relations with Luxembourg-based professional investors. Claude will report to Prosper van Zanten, Country Head for the Benelux.
Claude has over 10 years’ experience in the Luxembourg financial market. He joins Columbia Threadneedle Investments from Fidelity Worldwide Investment where he had been senior sales manager since October 2009. Before that, Claude was portfolio manager for several years at Lux- Investment Advisors (now BCEE-Asset Management) where he contributed to the strategic and tactical asset allocation of UCITS funds and discretionary client portfolios and where he had responsibility for the analysis of the energy, commodities, industrial and utilities sectors. Claude started his career in 2000 at Banque et Caisse d’Epargne de l’Etat, Luxembourg as client relationship manager. He graduated from Louis Pasteur University of Strasbourg with a Master in Economics and Business Management.
Gary Collins, Head of Wholesale Distribution for EMEA and Latin America at Columbia Threadneedle Investments, said: “I am delighted to welcome Claude Ewen to our Benelux team. Claude has spent several years building and nurturing relationships with Luxembourg-based professional investors. We look forward to benefitting from his experience and insight as we grow and harness our presence in this market, significant both in its own right and as a central decision-making hub in Europe”.
