Photos of day 1 at the event, in Key Biscayne
. Photos of Day 1 at Funds Society’s Fund Selector Summit in Miami
Over 50 fund selectors from the US offshore industry attended the first Fund Selector Summit, which was held in Key Biscayne (Miami) last week by Funds Society in collaboration with Open Door Media. The first day opened with a meal, after which five asset management firms (Amundi, NN Investment Partners, M&G, Goldman Sachs AM and Matthews Asia) presented their investment strategies. The day ended with a cocktail and dinner at which investors were able to share ideas with representatives from the 11 asset management companies which participated in the event.
One of the five concurrent sessions which brought together 45 investors with five asset managers on the first day of the 2015 Fund Selector Summit in Key Biscayne, Miami. Five Attractive Investment Solutions on the First Day of the Fund Selector Summit
The Fund Selector Summit, which was held in Miami on the 7th and 8th of May and organized by Funds Society and Open Door Media, started its first day with the participation of five asset management companies, whose professionals offered interesting solutions to deal with a challenging backdrop of uncertainty in the markets.
MariaMunicchi, Investment Specialist in Multi Asset and Convertibles Strategies at M&G Investments, explained the different perspective they apply to the M&G Dynamic Allocation Fund when investing in multi-assets, which is based on a strategic perspective (valuations and fundamentals), tactics (understanding the reasons for the volatility, whether it is due to fundamentals or to investor behavior, and taking advantage of it), and the construction of portfolios analyzing and contextualizing the current correlations in the markets. While remaining aware at all times that making predictions about the markets “may lead to dangerous ground, because the opposite may occur.”
M&G is currently positive with equities, especially European and Japanese, and with the dollar (although they’ve reduced exposure) and they advocate for flexibility on fixed income to adopt relative value positions. Convertibles and real estate also bring diversification to the portfolio. The expert pointed out the recent launch of a similar but more prudent fund, M&G Prudent Allocation.
Sunil Asnani, Senior Manager of the Indian equities fund at Mathews Asia, focused on rejecting arguments which recently explained the great interest in the asset class, and advocated for getting into the country’s equity for the good reasons rather than for the bad. In his opinion, investing for the expectations that the asset will generate diversification (when in fact it is closely related to other markets), for the desire for a short-term gamble (with all the associated risks); for the good macro situation which the country is currently experiencing (even though it’s very difficult to predict what will happen in the future), or trying to invest in firms which grow faster or are thematic investments (when they aren’t necessarily the best options) is an erroneous perspective.
“The potential for economic growth and market accessibility are good reasons to invest in India,” he said, and he defended bottom-up active management focused on company analysis and fundamentals, and always with a long-term horizon. “The problem with India is that investors are either too optimistic or too pessimistic with the asset class,” he complained.
Also on the subject of equities, Sam Shapiro, Client Portfolio Manager and member of the Quantitative Investment Strategies team at Goldman Sachs Asset Management, explained the company’s vision on the technological transformations in recent years, focusing his presentation on how to apply Big Data to the asset management industry. With three distinct ideas: Big Data and technology are transforming the world and determining the winners and losers in each sector; data itself does not provide solutions and requires the application of skills and work; and that this data can be applied not only in analyzing trends and market sentiment, but also in understanding the company better from a fundamental perspective. Therefore, he defended the good use of data by fund managers in order to improve their work, applying it to the management of equities.
Fixed Income
Opportunities are also available in fixed income. Laurent Crosnier,CIO at Amundi London, defended flexible and dynamic global asset management (across the entire spectrum of fixed income and geographies), which the management company applies to its Amundi Global Aggregate Fund. And of utmost importance in the current environment: “The worst thing for a fixed income investor is yet to come: the worst is to invest and pay a negative return,” he said, pointing out that much of the public debt universe, especially in the developed world, offers negative returns or returns of less than 1%.
This is why he advocated for solutions to avoid “paying to invest”, which their company is trying to achieve with very active and flexible investment strategies. Within the current environment, he is positive with credit (preferably European and with an overweighting in the financial sector), negative with the duration due to the next interest rate hike (although preferring European government debt over German, so as “not to fight the ECB”), positive with the dollar and the pound against other currencies like the yen and the euro, and also possitive in some emerging markets, such as Mexico and Brazil, versus the commodity currencies. Regarding emerging debt, he defends the need to be selective, with some commitments in countries like Brazil, Mexico, or South Africa.
Also within fixed income, Jeff Bakalar, Managing Director and Senior Loan Group Head at Voya Investment Management (formerly ING US Investment Management), focused on the opportunity offered by senior loans in an environment of rising interest rates. “In an environment of rising interest rates, even if these are minor or gradual, having this asset in the portfolio is a good idea,” he defended. Partly due to the stability offered in returns but also due to its attractive profitability when compared to other assets such as high yield debt and noting that it can offer a competitive reward-to-risk ratio.
The event was held at the Ritz Carlton in Key Biscayne, Miami. Fresh Insights for Investment in Equities, Credit, and Hedge Funds on the Last Day of the Fund Selector Summit in Miami
On Friday, the Fund Selector Summit, organized by Funds Society and Open DoorMedia, saw its second and final day, in which six managers explained their different perspectives of investment in equities and fixed income: Henderson, Carmignac, Robeco, Old Mutual, Lord Abbett, and Schroders analyzed different strategies with which they seek to generate returns in the current environment.
The day’s events were preceded by a conference by Javier Santiso, Vicepresident of ESADE’s International Centre for Economics and Geopolitics, in which he explained how a new world is emerging, with two background forces: the technology and digitization wave, and the growing importance of emerging markets. “The change in the wealth of nations is also related to digitization and technology, an issue which is also linked to the emerging world and its growing strength, and which has the potential to change the world and create disruptions in all sectors, including asset management,” Santiso explained.
For this expert, digitization is essential as an element which shall determine the future wealth of nations and he advised asset management professionals that they must not only take into account macroeconomic and microeconomic indicators when selecting their investments, but also the progress in digitization of the different markets. And he warned: management companies’ biggest competitors may be in companies like Facebook or Google rather than in other management companies. Santiso concluded his presentation with his vision of how Latin America is positioned in this environment.
The investment solutions presented at the conference covered various assets. In fixed income, Brian Arsenault, Leveraged Credit Investment Strategist at Lord Abbett, explained how in a world “starving for yield” it’s still possible to obtain returns on fixed income. The key? Flexibility, which they apply to negative duration funds in preparation for a rising interest rates environment, or high yield products, an asset which he still considers attractive in the US, even though he admits that spreads have fallen as compared to the past, and valuations are somewhat tighter.
The expert also spoke of his multi-asset fund with income prospects which may have up to 20% in equities: although it is focused on high yield, which occupies more than half of the portfolio, and in investment grade credit (over 20%), equities currently weigh almost 15% (the maximum is 20%), especially in mid-cap firms. Stock market investments, rather than seeking dividends, focus on shares which have a short-term appreciation catalyst, for example, US energy companies, with preference for natural gas over oil, which he doubts has a sustainable rally due to increasing supply. Some companies in the technology and healthcare sectors may also be interesting, because they have corporate movements as catalyst and can be bought. “When we like a company very much we study it from the point of view of bonds, loans, and equity, and can enter any of them, several, or all. We will go where we see value,” he added.
Regarding the last sell off in European public fixed income, he claims it’s normal because “growth is coming”. In his opinion, most of the market is focused on what the Fed does, but “we must also look to the European Central Bank.”
In equities, Justin Wells, Investment Director at Old Mutual Global Investors, explained their different investment style, which is focused on exploiting market inefficiencies: “We use the stocks as commodities to extract alpha over a period of time,” he explained, “in order to achieve uncorrelated returns.” Because, in his opinion, diversification and decorrelation are no longer achieved by investing in global stock markets or in a portfolio of stocks and bonds … at least in the short term, or at certain times. Their investment process is committed to a diversified portfolio in which stock selection is based on five criteria, or sources of alpha: valuation, sustainable growth, management of the company, as well as on sentiment analysis and market dynamics (momentum): “The trend is your friend, we are not a private equity, we want to extract alpha from the market”. According to these five criteria, they allocate scores to each stock, on the basis of which they construct the portfolio. They are currently more positive with the US stock market than with the European or Japanese, where the general feeling is more positive.
Meanwhile, Robeco focused on its factors investment strategy applied to its emerging market fund, Robeco Emerging Conservative Equities. “Factor investing is here to stay; assigning depending on factors rather than assets is generating increasing interest,” said Michael McCune, Client Portfolio Manager at Robeco. The expert stressed value, momentum, and low volatility, especially the latter, as key factors. “Factor investment works very well in emerging markets.” Nevertheless, the company uses the same strategy in global US, and European stock funds. The management company has launched the European stock market version (Robeco European Conservative Equities) with hedged currency.
Nick Sheridan, Manager of Henderson Euroland Fund, stressed that the Euro zone is currently one of two developed markets with greater discount, and it is clear that “if you buy in cheaper markets, your chances of obtaining returns will be greater”. Remaining true to their investment style, Sheridan explained that the European stock market without financials “is still extremely cheap.” Among the reasons is the poor appetite for assets: “Everyone is disappointed with Europe and does not believe in growth because the continent has disappointed in the past. In addition, investors have favored growth stocks rather than value,” he says; something which favors current market valuations. But he believes there will be more growth in Europe than that which has been anticipated. “Europe is very cheap and the reasons why the market has been cheap will change,” he added. The greatest risk: Greece’s default.
Muhammed Yesilhark, Head of European Equities at Carmignac, explained their investment philosophy which sets them apart from the competition and with which they manage products of either large caps (Carmignac Portfolio Grande Europe), medium and small caps (Carmignac Euro-Entrepreneurs), or diversified strategy (Carmignac Euro-Patrimoine). “We are pure stock pickers, which is somewhat different from the management company’s top-down strategy.” Their strategy is based on bottom-up analysis, fundamental, value-based, and focused on turning points. They also believe in discipline and simplicity and all their investments are made from an absolute rather than from a relative point. Finally, it has limited downside risks.
To build the portfolio, with 40 to 60 securities, and a minimum 30% upside potential, they follows three steps: generate ideas; build portfolio (which is based on four sections based on their belief in the securities: core longs, trading longs, relative value and special situations, and alpha shorts), and risk management. “The portfolio tells me that we are in a late phase of the expansion cycle, even though the press talks of recovery. I do not have enough core longs in the portfolio” he said.
Schroders provided the vision of alternative management, with its liquid hedge fund platform, GAIA, a segment in which they see increasing potential. Andrew Dreaneen, Head of Schroder GAIA Product & Business Development, pointed out three liquid alternative strategies for this year which may offer protection and which are within the platform: “Investors are concerned about the situation in equities and fixed income, they seek diversification and want downside protection,” he said. So he highlighted three funds that even in the market’s worst moments are able to offer protection, including positive net exposure.
The products are Schroder GAIA Sirios US Equity (a long short US equity fund which provides protection against falls); Schroder GAIA Paulson Merger Arbitrage (offering adjusted returns at higher risk, decorrelated with the markets and in 50 of the 51 S&P bear months they have managed to beat the index) and Schroder GAIA KKR Credit (a fund of absolute return focused on credit and long short perspective which invests primarily in Europe and in the high yield market. Normally with very little net exposure, neutral market). In total, Schroders GAIA has 6 strategies (4 external, adding Egerton to the three aforementioned), and two of the management company.
CC-BY-SA-2.0, FlickrFoto: Simon Cunningham
. Los activos en ETFs ligados a índices MSCI alcanzan la cifra record de 418.000 millones
MSCI, a provider of research-based indexes and analytics, reports that assets in ETFs linked to MSCI indexes grew more than 12 percent in the first quarter of 2015, reaching an all-time high of $418 billion. ETF providers launched 56 products based on MSCI indexes during the period, three times more than the next index provider.
The surge in demand from ETF providers for MSCI Factor Indexes continued, with 11 new ETFs launched in the first quarter, two times higher than the next index provider. These new ETFs attracted $4.4 billion in assets, or 31 percent of the total asset flows into that category.
“Following strong growth in the number of ETFs tracking our indexes in 2014, this year is off to a record-setting start,” said Baer Pettit, Managing Director and Global Head of Products. “As the industry grows in size and complexity, we intend to maintain our position as the first choice of ETF providers who are looking for both leading-edge innovation and exceptional quality.”
In first quarter of 2015, ETFs linked to MSCI Minimum Volatility Indexes, the industry’s first low volatility benchmarks, reached a record $13 billion in assets under management; Assets in ETFs tracking the MSCI USA Quality Index surpassed the $1 billion mark; And Global currency hedged ETF assets attracted $28 billion in new assets,with half of those fund flows going to ETFs linked to MSCI Currency Hedged Indexes. There are now 68 currency-hedged ETFs globally linked to MSCI indexes, more than all other index providers combined.
With over 730 ETFs tracking MSCI indexes globally, more ETFs track MSCI’s indexes than those of any other index provider.
When Paris headquartered La Française, a 48€ billion multi-class asset manager, and London-based Inflection Point Capital Management (IPCM), a specialist firm focused on Strategically Aware Investing (SAI) joined forces in early 2014, their objective was twofold:
to create La Française Inflection Point (LFIP), an asset manager specialized in SAI equity funds and
to integrate the SAI philosophy into the investment process applied by LFIP.
Today, they have reached a significant milestone.
Just one year after the signature of their strategic partnership and the creation of La Française Inflection Point, La Française has launched its first line of SAI equity funds, an extensive line covering four geographic regions: Euro, Europe, Emerging Markets and Global, representing close to 1€ billion in assets under management and offering various investment themes (a low carbon theme is work in progress). LFIP and its eight-person international investment team, headed by Laurent Jacquier Laforge (CIO), have successfully transformed the SAI concept into a hands-on and operational investment process. IPCM supplies extra-financial data on over 900 global companies that together with LFIP, they interpret and integrate with traditional financial criteria. LFIP then selects the best in class candidates for each of its funds.
Strategically Aware Investing goes beyond the analysis of traditional Environmental, Social and Governance criteria to include three additional factors that truly reflect a company’s long- term perspectives: innovation capacity, the ability to anticipate and adapt to changing trends, and a company’s positioning relative to existing global trends. With this more comprehensive analysis and the global coverage afforded by both the IPCM and LFIP teams, La Française offers truly sustainable investment solutions to strategically aware investors.
The SAI methodology, developed by IPCM, whose team includes three of the most influential environmental investors, can be applied across all asset classes. La Française and IPCM continue to collaborate on alternative SAI investment solutions and are in the process of fine-tuning an SAI methodology which will soon be applied to fixed income investment funds.
Almost two-thirds of managers polled by Cerulli said they intend to increase their sales efforts in Italy – compared with 37% of last year’s respondents. And 43.2% of managers we surveyed plan to target France – compared with just more than one-fifth of managers polled for last year’s report. More managers than last year also plan to increase sales efforts in Spain and Germany.
Competition in Europe is stiff and managers must be more strategic to sell outside their home market. So asset managers are establishing roots in selected countries.
Franklin Templeton reaped the rewards of setting up branches in Rome, Florence, Milan, and Padua. Net inflows every quarter since have been between €800 million (US$972 million) and €1.5 billion, according to Assogestioni.
“This was a shrewd strategy that paid off,” said Barbara Wall, Cerulli’s Europe research director. “Many foreign managers launched funds in Italy, trying to sell them, either from a distance or by opening a branch in Milan. But sales is a local game and success is more likely if a firm has people on the ground-and not just in Milan,” she added.
By opening branches on target territory managers can develop closer ties and enhance understanding with distributors. This is more effective than making regular presentations as part of a road trip.
Angelos Gousios, associate director with Cerulli in London, and one of the main authors of European Distribution Dynamics 2015: Preparing for a New Era, said: “In our talks with Italian wealth managers they frequently say lack of time hinders theirwork. They do not have time to go to events. Having a branch down the road where they can pop in informally and discussmarket developments over coffee is more attractive.”
Another significant advantage to having a local presence is that a manager can tailor its message according to regional variations in disposable wealth, attitude to risk, and product choices, for example.
This and several other new findings make up the fifth iteration of Cerulli’s European Distribution Dynamics 2015 report.
European Distribution Dynamics 2015: Preparing for a New Era also:
Examines the impact of low rates of return in the French market: Low returns for money market funds and euro-contract investments are gradually pushing French investors out of their liquid positions toward long-term active products.
Assesses the prospects for distribution in Germany: Fund selection centers on risk minimization and potential newcomers must adjust their message to make headway. Striking a deal with key allies in Germany is the best insurance for a newcomer to the market.
In a new white paper, BNY Mellon explores what might happen if four of the world’s largest economies all stopped floundering and started flourishing at the same time. Although the world seems resigned to an era of subdued growth, four giant economies – Japan, America, China and India – are in the midst of recovery, reform, or both.
Under Shinzo Abe, Japan now has its most stable government in almost a decade and a central bank that has twice surprised the markets with its determination to defeat deflation. In Americaunemployment has dropped surprisingly quickly as firms have added jobs at the fastest pace since the dot-com boom. China’sPresident, Xi Jinping, has consolidated power faster than his predecessor with his anti-corruption campaign and staked his personal authority on economic reform. And in India’s 2014 election, Narendra Modi won the first single-party majority in thirty years, promising to restore the country’s economic momentum.
“This is an unusual confluence of events,” says BNY Mellon investment strategist Simon Cox. “The United States is enjoying a durable recovery just as all three of Asia’s big powers boast secure, confident governments committed, at least in word, to economic reform. The region’s stars rarely fall into alignment in this way.”
This combination raises the tantalizing possibility that all four of these giant economies might fulfill their economic potential at roughly the same time. The scenario assumes that Japan’s growth revives to 2 percent a year on average for the remainder of this decade, America’s averages about 3 percent, China’s 7 percent and India’s 8 percent. “This scenario is optimistic, without being utopian,” Cox says. “It’s contrarian, without being crazy.”
If this scenario were to materialize, the consequences would be profound. China, America, India and Japan account for almost 45 percent of global GDP. They consume a similar proportion of global energy and contributed well over half of last year’s global economic growth. BNY Mellon calls them the G4.
The optimistic G4 scenario would add over $10 trillion to the four economies’ combined GDP by 2020. According to an independent modelling exercise by the Economist Intelligence Unit, it would help add $8 trillion to the rest of the world’s GDP outside these four. This would be enough to restore a $100 oil price within three years and lift global food prices by over 40 percent from their level in March 2015. It would help the Nikkei 225 surpass 24,400, the Sensex exceed 45,000 and the S&P 500 reach 3,000 by the end of the decade.
According to Cox, recent economic weakness has left the G4 economies with substantial “slack”. Their GDP has fallen short of their potential, leaving them substantial room to grow without generating unwelcome inflationary pressure. The gap between America’s actual GDP and its potential GDP adds up to a cumulative $5.3 trillion over the past seven years, a waste of resources that is equivalent to shutting down the entire economy for three-and-a-half months.
For BNY Mellon’s G4 scenario to come true, the four economies would all have to perform better than the IMF and many other forecasters now expect. But in most cases, the G4 scenario is in keeping with what the IMF and others foresaw a few years ago. Forecasters have lowered their sights in the past few years in the belief that recent economic setbacks reflect a new trend. Cox believes this is “a little defeatist”. He prefers to view these four economies with undiminished expectations.
“Before the financial crisis, many people thought the rosy status quo would persist indefinitely. Now they’re assuming that the future must be as grey as the present. By taking on the glum consensus and exploring what could happen if the G4 all do well, we want to create a robust discussion that helps investors think through all of the potential scenarios for future growth,” says BNY Mellon Investment Management APAC CEO Alan Harden.
Steve Lackey, BNY Mellon APAC Chairman, notes, “The white papers are intended to be living documents that will reflect the ideas exchanged over the course of the year as we discuss the current challenges and future outlook for the four leading economies in the world.”
. El mayor estímulo del BoJ y el mandato del Fondo de Pensiones gubernamental respaldarán la renta variable japonesa
“Further stimulus from Bank of Japan and Government Pension Investment Fund (GPIF) supportive of stock prices in the near term”, points out Kwok Chern Yeh, Head of Investment Management, Japan at Aberdeen Investment Management K.K. (an affiliate of Aberdeen Asset Management Asia Limited) in this interview.
Is Abenomic working?
So far, the benefits of ‘Abenomics’ have largely been confined to impressive gains in asset prices. This wealth effect has not trickled down to the average Japanese – prices have outpaced wage gains, while job creation has been limited to part-time employment with minimal benefits. Companies remain unconvinced of the need to raise basic wages and capital spending. Nonetheless, an ever tighter labor market means that salaries could go up at a modest pace. Meanwhile, the weakening of the yen via monetary easing from the Bank of Japan has not boosted exports as hoped for. Prime minister Shinzo Abe has a fresh mandate after a victory in last December’s snap elections. However, the jury is out on his ability to deliver on tough reforms in the face of entrenched interests. He has made little progress in overhauling the rigid labor market or in opening up Japan’s uncompetitive industries.
Will Japan, Inc. invest more at home now because of the weaker yen?
While a cheaper currency makes it more cost-effective for companies with overseas revenues to invest domestically, we believe many are unlikely to do so. Firstly, many large corporations – and their suppliers – have moved production offshore to take advantage of cheaper labor costs and to be closer to growth markets. A weaker yen would not justify shifting production back home, especially when demographic trends have not improved.
Secondly, Japan has yet to solve the problem of its long-term energy needs. Its nuclear plants remain shuttered after the Fukushima disaster. While falling global oil prices offer a welcome respite, cheap energy is the exception rather than the rule.
Will a corporate tax cut make a difference?
The Abe administration has proposed a 2.5 percentage point cut to the corporate tax rate, which is expected to take effect in April this year. While that could encourage private investment, the plain fact is that very few companies pay the top rate of tax and 70% of them pay no tax at all!
What’s the outlook for Japan equities?
The Topix index rose 8.1% in local currency terms in 2014, although returns were negative in U.S. dollar terms. Further stimulus from the Bank of Japan and the decision by the country’s pension fund Government Pension Investment Fund (GPIF) to buy more stocks should be good for share prices, at least in the short term. Stocks are fairly valued, trading at forward multiples of around 15 times for Financial Year 2015.
Meanwhile, corporate earnings are expected to grow at a healthy pace, aided partly by the weaker yen – which raises the value of repatriated earnings for companies with overseas revenues – and a one-off boost from falling oil prices. The better use of company cash, in the form of share buybacks and dividends is also supportive of stock prices.
Are you encouraged by recent initiatives to improve corporate governance?
Yes. Corporate governance is improving, albeit slowly and from a low base. Japan has adopted the Stewardship Code, which urges investors to engage management more effectively. Aberdeen was one of the signatories of the code.
Tell us about the portfolio’s exposure to the automation sector.
In light of rising costs in manufacturing hubs such as China demand for factory automation is increasing. Japan is home to some excellent companies, including Fanuc, the world’s largest robot-maker and a leading producer of computer numerical controls.
Keyence, a leading provider of sensing and measuring solutions in factory automation is another name we hold. Another example would be Nabtesco, a producer of precision reduction gears, a key component used in robots.
You seem to favor the consumer goods sector too. Why?
This sector offers a broad range of companies including global automakers Toyota and Honda, Japan Tobacco, a company with a strong track record not only in Japan but
also in Eastern Europe, the Middle East and Africa and baby product-makers Unicharm (nappies) and Pigeon (baby bottles) which are benefiting from growing affluence across Asia.
Name the standout performers in your model portfolio.
Stocks that have done well include medical equipment manufacturer Sysmex and Unicharm, a leading maker of feminine care products and disposable baby diapers. Sysmex’s share price was supported by the strength in its hematology business. The launch of a cell- analysis product in the U.S. fuelled expectations of further gains in its market share. Unicharm’s share price rose 55% in local currency terms in the year to end December on signs of a recovery in its China business. At the other end, the share prices of Japan Tobacco and power- tools maker Makita Corp came under pressure on the back of concerns over their exposure to the Russian market.
What about the small cap portfolio?
Nippon Paint and sports gear maker Asics delivered robust gains in our view. Nippon Paint’s stock price rose following a move to consolidate its joint-ventures across Asia. The paint maker is also expected to benefit from a dip in crude oil prices, a key ingredient for solvent and resin paints.
The share price of Asics went up after it posted solid sales growth and upgraded its full-year earnings guidance. At the other end, property leasor Daibiru’s share price came under pressure after a strong run. Concerns over a tepid recovery in the Osaka market also weighed on sentiment.
What are the advantages of investing in small cap stocks in Japan?
We believe smaller companies tend to be under-researched, and because of their size, have more potential for growth than larger companies. In Japan these differences are magnified: research coverage is often thin – benefiting active managers like us who do our own due diligence – while headline growth rates are often stronger. To us, they’re just as well run as the larger companies, boast robust balance sheets, and many of them are global leaders in their particular fields. We invest in just under 40 companies in our smaller companies portfolio, ranging from consumer names that are domestic and global, to industrial companies that are part of the global supply chain. In our view, smaller companies in Japan have actually outperformed their large cap counterparts in the longer term, although periods of mispricing and illiquidity mean investors must be patient.
Photo: Davide D´Amico. EFGAM Adds to its Growth-Oriented Equity Strategies with the Launch of the New Capital Global Equity Conviction Fund
EFG Asset Management (EFGAM), an international provider of actively managed investment products and services, has launched the New Capital Global Equity Conviction Fund, an open-ended equity fund that will typically invest in 40 to 60 global stocks across all market capitalisations.
The Fund will be managed by Robin Milway, a highly experienced London-based equity fund manager who joined EFGAM in 2012. Robin will combine his expertise in bottom-up stock selection with EFGAM’s top-down geographic and sector analysis, without the constraints of a benchmark or specific investment style. Prior to joining EFGAM, Robin spent nine years at Cooper Investors in Melbourne Australia where he managed the CI Global Equities Fund. During his tenure at the firm, the fund returned 8.5% annualised over seven years, outperforming the MSCI by 5.6% annualised. (Source: CI).
The New Capital Global Equity Conviction Fund is based on EFGAM’s Global Equity Conviction Strategy which Robin has been running as part of discretionary mandates since joining the firm. The Fund will mirror the investment approach of its top-performing European counterpart, the New Capital Dynamic European Equity Fund, which is also co-managed by Robin Milway and Bibiana Carretero. The new Fund will be available to retail investors pending local registration and is the tenth sub-fund in the New Capital UCITS family – a range of high-conviction funds designed to produce long-term outperformance for clients.
Moz Afzal, Chief Investment Officer, EFGAM: “We are very excited to launch this long-awaited product for our clients. Many investors are increasingly looking for exposure to global investment opportunities and the launch of the New Capital Global Equity Conviction Fund caters for this demand. Robin has an outstanding proven track record of managing global equities and we are pleased to add to our specialist equity offering.”
Robin Milway, Portfolio Manager, New Capital Global Equity Conviction Fund, EFGAM: “The name of the fund underlines the philosophy of this fund – only stocks we have the highest conviction in make the cut. Our proprietary analytic framework allows us to identify companies that can sustainably grow their cash flows over time and importantly know what to do with the profits. This tried and tested investment methodology, which we’ve developed over the last decade, has resulted in long-term, sustainable outperformance for clients.”
Photo: Scott S
. David Grim Named as Director of the Division of Investment Management at SEC
The Securities and Exchange Commission has announced that David Grim has been named as Director of the Division of Investment Management. Mr. Grim has been the division’s acting director since February, following the departure of former director Norm Champ.
“David is a committed public servant with a nearly 20-year tenure in the Division of Investment Management,” said SEC Chair Mary Jo White. “I am confident that the Commission and the public will continue to benefit from his leadership and deep knowledge of the work of the division on behalf of investors.”
Mr. Grim joined the SEC in September 1995 as a Staff Attorney in the division’s Office of Investment Company Regulation. In January 1998, he moved to the division’s Office of Chief Counsel and was named Assistant Chief Counsel in September 2007. Mr. Grim was appointed as Deputy Director of the division in January 2013, with responsibility for overseeing all aspects of its disclosure review, rulemaking, guidance, and risk monitoring functions.
“It is an honor to serve America’s investors as the Director of the Division of Investment Management,” said Mr. Grim. “I look forward to working with Chair White, the Commissioners, and the staff in my new role as we carry out the Commission’s remarkable mission.”
Mr. Grim graduated cum laude with a degree in political science from Duke University and received his law degree from George Washington University, where he was Managing Editor of the George Washington Journal of International Law and Economics.
The SEC’s Division of Investment Management works to protect investors, promote informed investment decisions, and facilitate innovation in investment products and services through oversight and regulation of the nation’s multi-trillion dollar asset management industry.
