Mirabaud Asset Management welcomes Patrick Huber, who joins the firm as Senior Portfolio Manager responsible for Swiss large cap companies.
Patrick Huber’s appointment is an additional step towards strengthening the management capabilities of an existing team which, thanks to its expertise and good performances, has been able to win numerous mandates and multiple awards. Among other asset classes, in Swiss equities specifically Mirabaud Asset Management currently manages nearly one billion Swiss francs, distributed among various Swiss equity funds and mandates, both on behalf of professional and institutional investors, said the firm in a press release.
With fifteen years’ experience and an unparalleled level of knowledge of Swiss companies, Patrick Huber joins Mirabaud Asset Management from Lombard Odier Investment Managers where he had been responsible for the Swiss equities team. Patrick Huber has a degree in Banking and Finance from the Zurich Higher School of Economics and Administration (HWV) and a Master of Advanced Studies in Corporate Finance from the University of Lucerne (IFZ).
Within Mirabaud Asset Management, Patrick Huber will be responsible for Swiss large cap companies while Matthias Egger remains responsible for small and mid-cap companies. Nicolas Burki will remain in his current role as analyst manager and, along with Patrick Huber and Matthias Egger, will be involved in analysing Swiss companies monitored by the team and in managing a number of mandates.
Lionel Aeschlimann, CEO of Mirabaud Asset Management, announced: «We are delighted to welcome a talented new manager, Patrick Huber, into our Swiss equities team, which represents one of Mirabaud Asset Management’s key strategic focus areas. We firmly believe we have one of the best teams operating in this asset class. Patrick Huber, who shares our values and our active management approach based on strong convictions, will be a major contributor to the quality, strength and sustainability of our client offering.»
Mario Rivero, director de Flexfunds. Flexfunds ETP lanza FlexETP 3, una plataforma de estrategias personalizadas
Flexfunds ETP has announced the introduction of its FlexETP 3 Product Platform with great success in the ETP market. Asset managers are now able to determine a customized solution for their strategies.
This new FlexETP 3 Product Platform enters the market at a time when investors are progressively more involved in products related to provide issuance and custodial services for the investment vehicles.
FlexETP Funds: The Investors participate in investment strategies of public securities. The underlying securities are held in a custody account and are controlled by the Portfolio Manager or by an assigned third party. Products can include any fee and/or payment characteristic, and can be used as a product for multiple investors or to manage a single account.
FlexETP Wrapper: The FlexETP Wrapper provides access to private securities through a feeder-like Euroclearable security. Existing private funds, entities or securities can be accessed directly from an investor’s account, preventing the need to open and administer new accounts and transfers. Private securities acquire instant global distribution, exposure and track record.
FlexETP Private Placement: The FlexETP Private Placement creates a security tied to a loan agreement or debt contract. Products can be designed according to the characteristics of the underlying contract, including distributions and/or interest accrual. The price / NAV is published in the investor’s statement. Through Euroclear, the FlexETP’s securities and payment distributions are distributed into the investor’s account.
“We frequently hear about the need of issuance and custodial services for the investment vehicles”, said Mario Rivero, Director at Flexfunds ETP. “With this new FlexETP product platform, we created one of the most efficient asset management program, FlexETP has many advantages, and it concentrates on price, speed and flexibility”.
Foto: Garfield Anderssen. BNY Mellon completa la compra de Cutwater Asset Management
BNY Mellon today announced the successful acquisition on January 2, 2015, of Cutwater Asset Management (“Cutwater”), a U.S.-based fixed income and solutions specialist with a 20-year track record and approximately $22 billion in assets under management.
Cutwater will now operate as part of BNY Mellon’s $1.6 trillion in assets multi-boutique investment management business. It will work closely with, and be administered by, Insight Investment, a leading European asset manager and one of BNY Mellon’s premier investment firms.
Cutwater’s investment capabilities encompass a wide range of U.S. fixed income strategies including core, long duration, high yield, loans, absolute return and liability risk management. These capabilities will deepen BNY Mellon’s and Insight’s fixed income research and portfolio management expertise in the world’s biggest and most diverse credit market.
BNY Mellon announced its intention to acquire Cutwater from MBIA Inc. on October 6, 2014. The terms of the transaction were not disclosed.
Photo: Alastair Mundy, Head of Value at Investec. Investec: “Finally Things Are Changing With Large Companies in UK”
Alastair Mundy, Head of Value at Investec Asset Management, discusses in this interview where he sees the best investment potential in 2015.
What has surprised you most in 2014?
What has really surprised me this year was quite how poor the performance of Tesco’s share price was. We knew trading was tough in the food retail sector and we knew their accounting was pretty aggressive, but even we were surprised when the accounting irregularities hit the screens.
However, we are keeping faith with Tesco, we still think they can turn the business around, and we think they can compete against discount retailers. There is now new management at Tesco, Dave Lewis has come in from Unilever, and we expect him to shake things up very quickly; perhaps sell the Asian or European divisions and/or some non-corporate businesses, and perhaps be more competitive against the discount retailers.
Where do you see good value in the UK equity market in 2015?
The best value we see in the UK equity market going into 2015 is in the larger stocks in the market. Companies like HSBC, Glaxo, BP and Shell have performed poorly against the mid-cap companies over the last decade and we think finally things are changing with these very large companies. Rather than looking for acquisitions they are making disposals, reducing their non-core assets, cutting costs and we believe focusing on what is right for the shareholder.
Why do you believe there is value in mega caps?
We think if mega-cap companies can shrink back to where they really have the strong competitive advantage, shareholders will be surprised at the amount of earnings growth these companies can deliver. They are on quite low valuations already compared to some other smaller companies in the market, so we think that is what is going to drive performance.
How are you positioning your portfolios in terms of strategy and style?
Our UK Special Situations portfolio is positioned increasingly towards the FTSE 100 companies, where we have a very large weighting. We have been reducing our weighting towards FTSE 250 companies over the last couple of years and this has continued in 2014. We also hold quite a lot of cash; not so that we can spend it if there is a small market fall, but to wait for some really fantastic opportunities or for individual stocks if they have profit warnings or fall significantly out of favour.
How are you positioned in your complementary assets on your Cautious Managed portfolio?
We think it is very important to focus our Cautious Managed portfolio on capital preservation at the moment, as we see a number of concerns around the world. These concerns range from geopolitical worries to fairly disappointing earnings growth for companies worldwide, and, of course, the end of quantitative easing in the US. All of these factors suggest that equity valuations should not be as high as they are. So, what do we need if we think equity valuations are going to fall? We need some complementary assets such as gold, gold equities, Norwegian krone, cash and index-linked bonds, both US and UK. We cannot be absolutely positive that these complementary assets will rise if equity markets fall significantly, but we are hoping that they will dampen volatility if equity markets become more volatile. The strategy of investing in out-of-favour companies and combining this with a focus on complementary assets that work well with equities in different times in the cycle has been a strategy that has been successful for us over the past 21 years on our Cautious Managed portfolio.
ING Investment Management (ING IM), which will soon rebrand as NN Investment Partners, has announced the appointment of Hiroshi Kimura as CEO of ING IM Japan.
Kimura joins ING from Alliance Bernstein, where he was managing director client relations and communications and member of the board. Kimura replaces Douglas Hymas, who recently joined BNY Mellon as country head Japan.
Commenting on this appointment, Management Board member Martin Nijkamp said: “With Kimura-San, we have appointed a CEO that brings highly sought-after experience and a business development track record to take ING IM Japan to the next level. His breadth of expertise fits well with our strategic ambitions, and his leadership skills will contribute greatly to ING IM’s growth plans in Japan.”
Photo: John Bennett, Head of European Equities at Henderson. Henderson: "Europe Remains the Global Whipping Boy"
Europe remains the global whipping boy, says John Bennett, Head of European Equities at Henderson. But among european countries, the Henderson team prefers Germany, “where balance sheets are improving and political headwinds are easing”.
What lessons have you learned from 2014?
I have long believed that we live in a world of momentum investing. Investors fail to anticipate inflection points; they like to chase it once the inflection has already happened. This is reflected in the amount of time that people waste from quarter to quarter, focusing on earnings per share (EPS) guidance as an indicator of a company’s prospects. This is a horrible trend that originated in the US. The way to get a competitive advantage, in my view, is to ignore it and focus on what really matters – cash flow. I always look at the cash flow, because cash will always out, as will value.
2014 also provided a reminder of why (with the exception of some of the Nordics), I prefer to ‘rent’ or trade European banks, holding stocks in the sector on a short-term basis. The industry has been a disappointing investment since the mid-1990s and it remains in a structural bear market, subject to short, sharp rallies.
Where do you see the most attractive opportunities within your asset class in 2015?
I think that large caps offer the best prospects in Europe, with investors willing to pay a higher price for quality businesses where they perceive a greater source of safe income. At a sector level, our established and often contrarian commitment to the pharmaceutical sector remains intact, while “smart cars” has been a consistent investment theme for two years now.
Recent months has seen us call off a major bear in telecommunications and utilities, two areas of potential opportunity in 2015. Merger and acquisition (M&A) speculation has fuelled a rally in the European telecommunications sector and we expect further consolidation going forward. The case for utilities is driven by delta – the rate of change we see in the industry. We are focused primarily on Germany, where balance sheets are improving and political headwinds are easing.
What are the biggest risks?
Europe remains the global whipping boy: the economy is in a mess, politicians are dysfunctional (a global problem) and there are fault lines in financial markets. I prefer to focus on the micro, identifying attractive sector and stock-specific opportunities, rather than geopolitical events we cannot influence and which may, or may not, be a factor.
Are you more positive or negative now than you were 12 months ago on the economic and investment outlook, and why?
The bull market is starting to look stretched in Europe and without a step-up in revenue growth leading to earnings growth any rise in equity markets can only come from an expansion of price/earnings (P/E) multiples. M&A activity is likely to remain in focus and may well accelerate. In the near term, investor uncertainty has risen and the market remains schizophrenic, while deflation remains a real and present danger. The European Central Bank is clearly seeking to underpin the eurozone and we saw in 2012 that this can be very supportive. But equities were cheaper back then and the cycle younger.
I think 2015 could see a significant pick-up in volatility, so investors should brace themselves for difficult markets. That is why I think stock picking is so important. By understanding a company’s strengths and weaknesses we can seek to be better positioned than the general market both in good times and bad.
Foto: Americasroof . Morgan Stanley alerta del robo de información de casi un millar de sus clientes de wealth management
Morgan Stanley began advising certain Wealth Management clients that an employee had stolen partial client data. The Wealth Management employee has been terminated, and law enforcement and regulatory authorities have been advised of the incident, said the firm in a statement.
While there is no evidence of any economic loss to any client, it has been determined that certain account information of approximately 900 clients, including account names and numbers, was briefly posted on the Internet. Morgan Stanley detected this exposure and the information was promptly removed.
Overall, partial account information of up to 10 percent of all Wealth Management clients was stolen -350,000 clients were affected, according to Bloomberg. The data stolen does not include account passwords or social security numbers. The Firm is taking the precaution of notifying all potentially affected clients and instituting enhanced security procedures including fraud monitoring on these accounts.
All impacted clients are in the process of being contacted by the Firm and their Financial Advisors. A dedicated information line also has been established at 855-398-6437 (U.S. and Canada) or 512-201-2186 (outside the U.S. and Canada).
“Morgan Stanley takes extremely seriously its responsibility to safeguard client data, and is working with the appropriate authorities to conduct and conclude a thorough investigation of this incident”.
Foto: ChrisCruises. Los fondos de pensiones: elevando la apuesta por los activos alternativos
Pension funds are restructuring for a new investment climate. They are becoming more hands-on in the way they manage their investment portfolios. This proactive approach extends to all aspects of their operations and governance. New research from State Street reveals key trends that are radically reshaping almost every aspect of how pension funds manage their investments and deliver long-term value to their members. One of these trends is a “Big Bet on Alternatives”.
For pension funds, alternative investments have typically constituted a small part of the portfolio. This is changing. Pension funds are finding that a small allocation to alternatives is not sufficient to generate the required growth. This is forcing many of them to place bigger bets on alternatives.
Private equity emerges as a hot area for investment, with 60 percent of respondents anticipating increased allocations into this asset class. A significant proportion of pension funds also say they will invest more in direct loans (54 percent), real estate (46 percent) and infrastructure (39 percent).
Pension funds are also showing a greater appetite for hedge funds. Globally, 29 percent of pension funds that already invest in hedge funds will increase their allocation, while 25 percent will invest in this asset class for the first time. There have been some high-profile withdrawals from hedge funds in recent times. But our research reveals that many pensions will continue to seek out hedge fund strategies with the potential to deliver upside returns.
More than half of pension funds (53 percent) plan to make greater use of low-cost investment strategies. Many are adopting a “barbell strategy,” to blend the cost efficiencies of passive strategies with higher-growth/ higher-risk asset classes such as alternatives. The shift into alternatives may represent a real test of capabilities, as pension funds seek to manage risk and performance across complex portfolios.
To learn more, you may request the report: “Pension Funds DIY: A Hands-on Future for Asset Owners”, through this link www.statestreet.com/vision/assetowners
BlackRock has announced that its iShares business led the global industry by capturing $102.8bn in new flows in 2014, 31% of the record-breaking $330.7bn global exchange traded fund (ETF) market flows.
Growth was driven by the iShares U.S. and European product lines, which continue to be adopted by investors across the globe. The iShares U.S. product line led the way with a record $82.8bn of new assets in 2014, surpassing the previous record for U.S. iShares ETFs of $62.0bn in 2012. In Europe, the business captured $20.3bn in net new flows.
Mark Wiedman, Global Head of iShares at BlackRock commented: “iShares growth this year was driven by two global product lines. Clients from Asia and Latin America continue to use both our U.S. and European ETF suite in record numbers, contributing $19.8bn in net new assets through November 30th.”
“We’re seeing ETFs truly come of age, as more investors around the world recognize and embrace the versatility of these vehicles – whether it’s for their strategic buy-and-hold investments or precision exposures to express a view on virtually any market.
“ETFs have also been discovered by capital market participants, who are using them as efficient substitutes for futures and swaps.”
“Fixed income was a key driver of flows globally, as investors of all kinds increasingly adopt ETFs as an essential instrument for accessing the bond markets. iShares captured $40.3bn globally or 48% of all new flows into fixed income ETFs.”
iShares global AUM exceeded $1 trillion as of December 31, 2014.
Bob Doll desvela sus tradicionales 10 predicciones para el año. 2015 según Bob Doll: Del escepticismo al optimismo
Robert C. Doll, Senior Portfolio Manager, Chief Equity Strategist at Nuveen Asset Management, has released his popular Ten Predictions for the year ahead.
2014 was a year of transition and (mostly) positive surprises: U.S. equities and bonds performed better than most predicted in 2014. The job market surged, consumer and business confidence improved and corporations aggressively put cash to work. Equities experienced double-digit returns, but also endured periods of setbacks, including the first 10% decline in three years. The biggest surprises for 2014 included a further drop in interest rates, a sharp decline in the price of oil and a significantly stronger U.S. dollar. Global economic growth experienced a notable divergence. Europe’s struggles could be tied to still-tentative central bank actions and the impact of Russian sanctions, while emerging economies were hit by falling commodity prices, slow global trade, and selective inflation, credit and liquidity pressures.
“We also believe last year saw several important transitions emerge: U.S. GDP growth from around 2% to the 3% range, core inflation from approximately 1% to 2%, the Federal Reserve becoming slightly less market-friendly and wage gains moving from flat to moderately positive. It also appears to us that we’re moving from an environment where equities and bonds did well to a period in which stocks are likely to advance while areas of the bond market struggle, and from a period of very low to more normal volatility. The phase of the rising tide lifting all boats appears to be ending and investing is becoming more challenging. As such, the importance of security selection will likely increase”, says Doll.
10 Predictions for 2015
1. U.S. GDP grows 3% for the first time since 2005.
2. Core inflation remains contained, but wage growth begins to increase.
3. The Federal Reserve raises interest rates, as short-term rates rise more than long-term rates.
4. The European Central Bank institutes a large-scale quantitative easing program.
5. The U.S. contributes more to global GDP growth than China for the first time since 2006.
6. U.S. equities enjoy another good yet volatile year, as corporate earnings and the U.S. dollar rise.
7. The technology, health care and telecom sectors outperform utilities, energy and materials.
8. Oil prices fall further before ending the year higher than where they began.
9. U.S. equity mutual funds show their first significant inflows since 2004
10. The Republican and Democratic presidential nominations remain wide open.
2015 Outlook
In his view, 2015 is likely to be the year investors transition from disbelief to belief, or from skepticism to optimism.“Sir John Templeton coined the phrase, “Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria,” and we believe we are entering the “optimism” phase. This means 2015 should result in another decent year for U.S. equities as we experience (1) solid momentum in U.S. economic growth with low inflation, (2) a pickup in consumer spending, (3) solid earnings growth, (4) a boost from low commodity prices and financing costs and (5) a relatively solid liquidity environment aided by stimulus from non-U.S. central Banks”.
The United States is likely to experience a surprisingly resilient economy in the coming year, Doll says. The consumer sector should strengthen due to better jobs growth, some improvement in real wage gains and a noticeable pickup in confidence. Investment spending is likely to rise, while the government sector should move from a modest economic drag to a net contributor to growth. Halting recoveries in much of the rest of the world will dampen U.S. export growth but keep commodity and interest costs low. Deflation threats in Europe and Japan should start to ease, while China’s economic growth is likely to slow.
Although equities are no longer a bargain, they offer better value than other financial assets and should outperform cash, bonds, inflation and commodities, says Doll.“Core inflation should remain contained, but wage gains will likely increase. The benefits from the decline in oil prices should outweigh the negatives, although the swiftness of the price decline could cause dislocations and credit issues. Other risks include occasional deflation threats, unease associated with monetary tightening and unknown consequences of the significant decoupling in growth between the U.S. and the rest of the world. Even though equities are likely to advance further, the pace of gains that occurred during the massive run-up since the 2009 market low is likely to falter. We are expecting to see average annual returns somewhere in the mid-to-high single digit range. Within the equity market, we prefer mid-cycle cyclicals, companies that can generate positive free cash flow and those with higher levels of domestic earnings”.
