Alcentra Limited, the sub-investment grade specialist for BNY Mellon, announced last month the final closing of the Alcentra European Direct Lending Fund, L.P. with investor commitments totaling €850,000,000. The focus of the Fund is to provide debt financing to middle market companies in Europe. With the closing of the Fund, the firm’s committed capital for the strategy now exceeds €1,500,000,000.
“Direct lending is a large, attractive, long-term opportunity given the balance sheet constraints of European banks and the historical lack of non-bank lenders,” said Graeme Delaney-Smith, managing director and head of European direct lending for Alcentra. “Our size, experience and sourcing capabilities leave us well positioned, and has allowed us to invest a significant amount of the Fund over a relatively short period.”
“As one of the largest managers of sub-investment grade, corporate debt in Europe, direct lending has always been a key part of our business platform,” commented David Forbes-Nixon, chairman and chief executive officer of Alcentra. “This fund is a strong endorsement of Alcentra’s capabilities, with global investor participation by pension funds, insurance companies, endowments, foundations, wealth managers, and asset managers.”
Alcentra has been sourcing and arranging financings to middle market businesses in Europe since its launch in 2003. To date, Alcentra has invested over €2.0 billion in middle market companies across senior debt, unitranche, second-lien, mezzanine and equity investments. In 2012, Alcentra was among the first investment managers selected to participate in HM Treasury’s Business Finance Partnership initiative.
The Principal Financial Group has announced the Board of Directors has elected Daniel J. Houston president and chief operating officer effective immediately. Houston will oversee all global businesses including Principal Global Investors, Principal International, Retirement and Investor Services, and U.S. Insurance Solutions. In addition, Houston was elected to the Board of Directors. Larry D. Zimpleman continues as chairman and chief executive officer. Zimpleman will continue to oversee the company growth strategy, capital management and deployment, and corporate functions.
“The Principal has seen strong growth since the financial crisis due to our global investment management strategy, solid execution and great people. Dan has played an integral role in shaping and executing that strategy,” Zimpleman said. “He brings excellent operational expertise and global awareness along with deep talent leadership skills. In Dan’s 30-year career at The Principal, he has been on the ground in the field, managed numerous businesses, and helped lead the transformation of The Principal to a global investment management leader, all which will give him a clear view of where we’ve been and where this organization will go in the future.”
Houston joined the company in 1984 as a sales representative in the Dallas group and pension office. From there, he held a number of management positions in the company. He was named executive vice president in 2006, president of retirement and investor services in 2008, and president of retirement, insurance and financial services in 2009. A native of Iowa and raised in Houston, Texas, Houston received his bachelor’s degree from Iowa State University in 1984. He is active on a number of boards including the Partnership for a Healthier America, Employee Benefits Research Institute, America’s Health Insurance Plans, United Way of Central Iowa, Mercy Medical Center and the Iowa State University Business School Dean’s Advisory Council.
Zimpleman joined the company in 1971 as an actuarial student and became a full-time actuary in 1973. From there, he rose to a number of management and leadership positions. He was named senior vice president in 1999, executive vice president in 2001, president of Retirement and Investor services in 2003, president and COO in 2006, president and CEO in 2008, and became chairman of the board in 2009.
Fitch Ratings has affirmed the International Scale Asset Manager Rating at ‘Highest Standards’ for J. Safra Asset Management Ltda. The Rating Outlook remains Stable.
The ‘Highest Standards’ rating for J. Safra Asset reflects Fitch’s view that the company’s investment platform and operating framework are superior relative to the standards applied by international institutional investors.
The rating affirmation of J. Safra Asset reflects its well-formalized and consistent practices for investment process, risk controls and compliance, in addition to its robust and segregated structures for fiduciary administration and custody, in line with the best practices in the market. The rating also benefits from the solid franchise of the parent, Banco Safra S.A. (Banco Safra; Issuer Default Rating [IDR] ‘BBB’/Outlook Stable), the fifth largest private financial conglomerate in Brazil, from the company’s continuous investments in technology, satisfactory distribution channels and corporate structure of the group.
J. Safra Asset’s rating applies to its Brazilian domiciled investment activities and does not include offshore, private banking, wealth management, fund of funds, real estate funds, fiduciary administration and custody operations. Those areas have their own processes and policies, which are segregated from the traditional fund management.
Fitch believes that J. Safra Asset’s main challenges are: to increase its participation in higher value added funds, in the face of stronger competition; to keep a competitive edge using a lean investment personnel structure and to sustain a consistent performance mainly in the multimarket funds class.
The ‘Highest Standards’ rating is based on the following assessments:
. Santander Invests £33 Million in Monitise’s Platform to Drive Growth in Mobile Money Ecosystem
Banco Santander will invest £33 million to acquire ca. 5% in Monitise — a world-leading mobile money business — to accelerate the development of the company’s new technology platform. Through this partnership, Santander also expects to develop its own capabilities with one of the most innovative digital technology companies, as it seeks to become the bank of choice for its customers who chose to interact with the bank on digital platforms. This is a major step in the development of the fintech strategy of Santander, and will be managed in the context of the Santander Innoventures fund initiative, announced in July this year.
The collaboration currently being discussed includes an accelerated pipeline of opportunities, leveraging Santander’s expertise and scale and Monitise’s technology to build new Mobile Money capabilities for Santander’s global customer base. Santander, the largest bank in the Eurozone by market capitalization has over 107 million customers across ten main markets in Europe and the Americas.
Monitise also announced a deepening collaboration with IBM that will include the deployment of Watson, IBM’s cognitive computing engine, to support Monitise’s new technology platform. In addition, Telefónica will become an investor and strategic partner and MasterCard has reconfirmed its strategic partnership relationship through a follow-on investment.
Ana Botín, Santander Group Executive Chairman, said: “With this investment, Santander will become part of a network of trusted partners who will work together to address our customers’ needs whenever, however and wherever they chose to bank with us. Our aspiration is to be the best global retail and commercial bank; and we are working to give simple, personal and fair service to all of our clients. Clearly a digital offer is key to this strategic vision of our bank, and this investment, coupled with the exciting opportunities we see through the Santander Innoventures Fund to enhance further what we can offer our customers, provides an excellent base from which to build a global digital offering.”
As strategic partners, Santander and Telefónica will have the right, acting jointly, to nominate a single Non-Executive Director to be appointed to the Monitise Board.
Monitise co-CEO Alastair Lukies said: “The Mobile Money industry is now a global phenomenon. In developed markets it is fundamentally changing the way we bank, pay and buy. In emerging markets it is the foundation of new economic systems. There are two clearand distinct approaches appearing in this industry: disruptors looking for control and collaborators working together to share in a very big and sustainable opportunity. With our partners, we are delighted to be playing our role as an enabler to the Mobile Money collaborators. Via deepening partnerships, our increasingly connected mobile commerce services can become even smarter and more engaging for the businesses we work with.”
Hermes Investment Management has announced that Oliver Leyland, CFA, is joining its London-based emerging markets investment team as Head of Latin America and Senior Analyst.
Oliver joins from Mirae Asset Global Investments, where he was a Senior Equity Analyst based in New York covering Latin America and CEEMEA, as well as a member of the fund management team for GEM and global long-only equity products. Prior to this, Oliver had spent five years living in São Paulo, Brazil, where he was an Equity Analyst covering Latin America for Mirae. Further to this, Oliver previously worked at Citi in London as an Equity Analyst on its Pan-European Building and Construction team.
Reporting into Gary Greenberg, Head of Hermes Emerging Markets and Lead Portfolio Manager, the addition of Oliver brings the emerging markets team to nine and reinforces Hermes’ commitment to a responsible, disciplined and long-term approach to investing.
Gary Greenberg, Head of Hermes Emerging Markets and Lead Portfolio Manager, said: “Oliver joins our growing team with a wealth of Latin American experience at an interesting and critical time in the region’s development. His seven-plus years of experience covering Latin America, including his time in Brazil, will be invaluable as we continue to seek opportunities for investors in the region.”
The Hermes Emerging Markets portfolio was launched in 1993, giving it a respected track-record of over 20 years. The team’s approach combines top-down and bottom-up analysis to find quality companies trading at attractive valuations, in countries with conditions that are supportive to growth.
Photo: Mardetanha. Mexico Confirms its Incorporation into MILA, which Will Be Implemented in January 2015
The Mexican Stock Exchange reported last Monday that in reference to the relevant event released on June 19th this year in relation to the incorporation of the Mexican stock market into the Integrated Latin American Market (MILA), bilateral integration agreements have been signed between the BMV and the Colombia Stock Exchange, the Lima Stock Exchange, and the Santiago Commodities Exchange. Additionally, “Indeval Institución para el Depósito de Valores” (Indeval Institution for the Deposit of Securities) a subsidiary of the BMV, S.D., has signed account opening agreements and servicing deposits with Colombia, Peru and Chile.
The start of trading in securities as part of MILA will be carried out once the conditions laid down in the Internal Regulations and Operating Manual of the BMV and SD Indeval are met.
The first operation of the Mexican Stock Exchange (BMV) in the Integrated Latin American Market (MILA) will begin as from January 2015.
After confirming that operational exchanges can be made “in each and every way” between the four stock exchanges, and their functionality is confirmed, the Lima Stock Exchange, the Colombia Stock Exchange, the Santiago Commodities Exchange and the BMV shall agree on the “starting signal”.
“The market capitalization of the three MILA plazas is 602 billion dollars and that of Mexico is 527 billion dollars. The combined value of the four exceeds 1.1 trillion dollars, which is very close to that of Bovespa “.
Some brokerage firms in Mexico have attended the integration of the BMV into MILA, in order to approach the stock exchanges and intermediaries in these countries.
The meeting which was called “Brokers’ Meeting” in the stock markets of each nation, was held in order to consolidate alliances for routing orders through correspondent agreements and training by the stock exchanges.
The brokerage firms who participated in Mexico were GBM, Interactions, Credit Suisse, Deutsche, and Valmex.
During these various sessions, representatives of BMV Group presented the Mexican market structure, statistics, pattern and settlement systems and custodians.
BNP Paribas has announced a new governance for its Corporate and Institutional Banking division, previously called Corporate and Investment Banking. This new CIB is centred on two client franchises, corporates and institutionals.
To best serve institutional clients with a comprehensive range of solutions, BNP Paribas Securities Services comes under the governance of the new CIB, while remaining a separate legal entity. This new CIB also aims to promote dialogue between institutional and corporate clients, thanks to a more collaborative and efficient structure, which will facilitate the implementation of the Group’s business development plan.
In addition, to simplify the regional approach, the North and Latin America regions, and the Europe and MEA regions, will be combined to create two larger regions: Americas and EMEA. The APAC region remains unchanged.
In EMEA a simpler organisation for seamless service for corporate clients will be structured around: Corporate Clients Financing and Advisory EMEA on one side, and Country Management and Corporate Trade and Treasury Solutions EMEA, on the other side.
BNP Paribas CIB is a provider of financial solutions to corporate and institutional clients worldwide and this new governance will strengthen its existing strong franchises in Transaction Banking, Specialised Financing, Derivatives, Advisory and Capital Markets where it is a top European house in ECM and a global leader in DCM.
Institutional clients globally: a collaborative approach to increase depth of service
In order to provide to our institutional clients a wider access to the best of BNP Paribas CIB’s products and services, and to position the Bank as their strategic partner, the solutions provided by BNP Paribas CIB will now be structured around:
A newly created Global Markets which will provide an offer across all asset classes, building on global business lines, financing and prime services capabilities, and regional franchises. A solid presence in the regions will be key to support BNP Paribas CIB’s regional development plans.
BNP Paribas Securities Services will continue offering its current spectrum of solutions and will remain a separate legal entity, with its own commercial and operational autonomy.
Financial Institutions Coverage will offer global coverage for all CIB and other Group businesses across all institutional client segments.
Corporate clients in EMEA: a simpler governance for seamless service
For its corporate clients, BNP Paribas CIB offers facilitated relations and the benefit of its entire range of solutions: a well-established geographic presence and local expertise; the know-how of its coverage bankers and product experts; a robust, industrialised flow banking platform.
In line with the creation of the EMEA region, the activities dedicated to the corporate clientele are grouped into two business lines:
Corporate Clients Financing and Advisory EMEA will bring all of BNP Paribas CIB’s expertise to address the investment and financing needs of CIB’s corporate clients. This business line will group all types of Coverage, the Financing businesses and Corporate Finance.
Country Management and Corporate Trade and Treasury Solutions EMEA will deliver a transversal and industrialised platform for our corporate clients’ flow banking needs. This group will include Energy and Commodities Finance Europe, Trade and Banking Flow, Cash Management, Corporate Deposit Line, Trade and Deposit Product Development.
Yann Gérardin, head of BNP Paribas CIB, stated: “The banking industry has changed dramatically, and not only in terms of regulations. Business models are being industrialised, rationalised, digitalised. Clients are expecting us to serve them holistically with added-value and industrialised solutions. Our new CIB focusing on our two client franchises of corporates and institutionals will allow us to meet their expectations more simply and more efficiently. And it will also reinforce our capacity to achieve our development plans as announced earlier this year.”
To support this strategic initiative, BNP Paribas announces the following appointments (effective 5 January 2015):
In addition to his current responsibilities, Jean-Yves Fillion is appointed head of the Americas for CIB.
Thomas Mennicken is appointed Head of Corporate Clients Financing and Advisory EMEA, under the supervision of Thierry Varène, appointed Chairman of Corporate Clients Financing and Advisory EMEA. Thierry Varène will maintain the steering responsibility of the commercial activities for the largest clients. Thomas Mennicken will maintain his current responsibilities at BNP Paribas Fortis CIB. Reporting to Thomas Mennicken are: Yannick Jung who is appointed Head of Corporate Coverage EMEA Bruno Tassart who is appointed Head of Financing Solutions EMEA Sophie Javary who is appointed Head of Corporate Finance EMEA
Marc Carlos is appointed Head of Country Management and Corporate Trade and Treasury Solutions EMEA. Marc Carlos will maintain his responsibility, at Group level, as head of the global USD clearing and payment business line. Thierry Varène and Marc Carlos in his EMEA role will report to Yann Gérardin while Thomas Mennicken will report to Thierry Varène.
Henri Foch is appointed Head of Financial Institutions Coverage globally and will report to Yann Gérardin.
Patrick Colle continues as Chief Executive Officer of BNP Paribas Securities Services and will report to Yann Gérardin. Jacques d’Estais remains Chairman of the supervisory board of BNP Paribas Securities Services.
Yann Gérardin, in addition to his role as Head of BNP Paribas CIB, will manage directly Global Markets. Reporting to him are: Olivier Osty appointed Head of Sales, Structuring and Trading; Capital Markets business line heads will report to Olivier Osty.
In the regions, Pascal Fischer is appointed Head of EMEA Capital Markets; he will coordinate the Global Markets geographies and manage key transversal projects; he reports to Yann Gérardin. Also, Pierre Rousseau is appointed Head of APAC Capital Markets and reports to Yann Gérardin and Eric Raynaud. Bob Hawley is appointed Head of Americas Capital Markets and reports to Yann Gérardin and Jean-Yves Fillion.
In the context of BNP Paribas setting up Global Markets, headed directly by Yann Gérardin, new Head of CIB, it was agreed with Frédéric Janbon that he would be appointed Special Advisor to the Group General Management. Jean-Laurent Bonnafé, Chief Executive Officer of BNP Paribas, commented: “I would like to express my utmost gratitude to Frédéric for his contribution to the development of our global Fixed Income platform over the past nine years.”
Sophie del Campo, CEO at Natixis Global AM for Iberia, Latin America, and US Offshore. Natixis Global AM Strengthens its Ambitious Project in LatAm with Offices in Mexico and Future Presence in Uruguay and Colombia
When Natixis Global Asset Management decided in 2011 to open an office in Madrid, with Sophie del Campo at the helm, it wasn’t only seeking to expand its business in Iberia, but also thought of Spain as leverage to gain momentum toward Latin America. Del Campo, CEO at Natixis Global AM for Iberia, Latin America, and US Offshore, assumed the task and then began to explore the opportunities for, when the time was right, take the leap across the Atlantic. And that time has come: she has just opened an office in Mexico with Mauricio Giordano at the helm, the first part of an ambitious strategic project that within the next few months will have a physical presence in Uruguay, and Colombia, as points from which to cover the Spanish speaking region, and with which it aims to become one of the top management companies in the region.
“Latin America has all the components needed to build a lasting business: a growing market with great potential, very different customers with an appetite for diversification outside its borders, and financial needs for retirement,” says Del Campo during the first interview with the media for the advance of their plans in LatAm. The management company, which is increasingly aware of the need for international expansion, enters into the only greater geographic region, outside Africa, in which it did not have a presence, because their business is growing as much in the US as it is in Asia and Europe.
After studying the market for over two years, they finalized their plans late last year and are now already being implemented, with three key slogans: A long-term strategy, based on offering services for building lasting portfolios and target both institutional clients and distribution in the offshore world.
“Natixis Global AM’s philosophy of growth of is based on creating long term relationships, growing with the clients, and adding value, becoming their partners. We have no quantitative objectives in terms of volume but we intend to grow gradually to become one of the leading suppliers of these markets in line with the group’s philosophy”, he explains. Unlike Spain, the Latino market is not as saturated in terms of supply, and although there are challenges cropping up, such as competing with large, US management companies which are very popular in the region, Del Campo is optimistic, since she believes in the institution’s capacity to provide that added value and complementary and differentiated services based on a “multi-manager” business model, with a diverse and global supply and, rather than selling products, it aims to provide investment solutions through its portfolio construction services. “Simply selling funds would limit the value of the group. We are not only a seller of funds, we go much further”, she says.
In fact, this is the second key point of their proposal: “The motto is to help customers build lasting portfolios. The crisis has taught us the dangers of volatility and high correlations of assets and clients need to manage risks”, she explains. The management company has a center, Portfolio Research & Consulting Group, which offers research of portfolios in which they analyze, free of charge, and totally independently, the best combination of products for every client, whether funded by the Management Company or third parties. In LatAm, where each market has its own peculiarities, they will provide personalized service, “and not a ready-made fund package.”
Ambition in Hispanic Latin America
The aim is to reach Spanish-speaking Latin America, and all types of investors, both institutional and private banking distribution, during the first phase, leaving Brazil for a second time. In Mexico, the business will focus on institutions, since the Afores provide the opportunity, for which they are already designing portfolios. “The first focus is on pension funds but, according to the regulation, we will reach more market segments gradually”. Giordano, head of business and previously from Schroders, has extensive experience in institutional business.
In Colombia’s case, an office which could be opening sometime next year, and a market from which they will also cover Peru and Panama, there is a greater mix of clients, as in Peru, while in Uruguay (an office which they plan will be ready for opening anytime from the end of the year to early 2015) the focus is on large private banks and third party funds. Even in Chile, where more than just accessing often opportunistic pension funds, the core of their strategy is also based on growing with the fund managers and private bankers, facing their commitment to building a sustainable and lasting business. From here the expansion could reach more countries in the future, says Del Campo.
A Local and Global Team
To reach this market, Del Campo shall coordinate from Madrid all local commercial teams from Latin America (Mexico’s, and the future ones of Colombia and Uruguay) and US Offshore, where Ed Farrington is co-head for the Offshore market, also counting on marketing support, compliance and operations with the overall infrastructure of the group. Rodrigo Nunez Aguilar, director of Global Key Accounts for Latin America and the US offshore, will provide support from New York, as will the teams in Miami and Boston. All of it, in order to serve the region in a coordinated manner, and very important, for example, to plan the steps to be taken according to the regulatory characteristics of the various markets.
As for their Luxembourg funds, they are operating in international platforms and currently there are no local records, but that’s a topic that depends on each market. Nevertheless, Del Campo assures that investors feel very comfortable with the UCITS brand because they seek the security offered by regulated products. Among her market preferences, and considering a tendency to a more risky character regarding local assets, she highlights both US and European equities and emerging fixed income. In these assets she highlights the offer which can be provided by management companies within the group, such as Loomis Sayles (expert in fixed and emerging market debt) or Harris Associates (US Equities).
Growth in their DNA
Natixis Global AM’s Latin expansion arrives at a time in which their assets globally are close to a trillion dollars, as currently it has 960 billion, and when it has already secured a place amongst the top 15 management groups worldwide, according to the Cerulli ranking. In recent years, while its competitors closed down offices, the company invested heavily, opening in markets like Spain and, since the year 2000, has hired 13 new sales managers. This strategy has allowed it to double its business during the past three years. Also, instead of investing in marketing in recent years, the Management Company has invested to enhance the group’s capabilities of analysis and research for building lasting portfolios.
In the US, it accumulates ten and a half consecutive years of positive inflows in its affiliated management companies in the country, whose assets have grown from 131 billion to 453 billion in 14 years.
The Financial Industry Regulatory Authority (FINRA) has named two new Public Governors—Joshua S. Levine and Robert W. Scully—to its Board of Governors.
Mr. Levine is a recognized leader in financial services technology. Earlier in his career, Mr. Levine served as Chief Technology and Operations Officer at E*TRADE, where he led an effort to re-architect their technologies by moving to open source. He also serves on the board of a number of non-profits, including DonorsChoose.org, which connects philanthropy and public education through technology, and NPower, which helps non-profits with affordable IT services. Mr. Levine is currently a Managing Director of Kita Capital Management.
Mr. Scully serves as an Independent Director on several boards, including Kohlberg Kravis Roberts & Co. L.P. and Zoetis Inc. Mr. Scully also serves as a Director of Ally Credit Canada Limited and New York City Teach for America, Inc. Mr. Scully served in several senior positions at Morgan Stanley from 1996 through 2007. Mr. Scully received an M.B.A. from Harvard Business School and a bachelor’s degree from Princeton University.
In August, FINRA announced that Elisse B. Walter, former Chairman of the Securities and Exchange Commission (SEC) and Susan Wolburgh Jenah, former President and Chief Executive Officer of the Investment Industry Regulatory Organization of Canada (IIROC) had been named to FINRA’s Board as Public Governors. Ms. Walter was sworn in as a Commissioner of the SEC in July 2008. She was later designated the 30th Chairman of the SEC, and she served as the SEC’s leader from December 2012 to April 2013. Ms. Wolburg Jenah recently retired as President and CEO of IIROC, a position she had held since the regulator was established in June of 2008.
“On behalf of the Board, I would like to extend a warm welcome to Josh and Bob. Their valuable expertise and depth of experience will help FINRA move forward in its mission to ensure the integrity of our markets and protect the investing public. With today’s announcement, as well as the recent appointment of Elisse Walter and Susan Wolburgh Jenah, FINRA’s Board has an outstanding new group of Public Governors dedicated to advancing FINRA’s mission,” said Richard Ketchum, FINRA’s Chairman and Chief Executive Officer.
FINRA is overseen by a 24-person Board of Governors, with 13 seats held by public Governors and 10 by industry Governors. FINRA’s CEO has the remaining seat. FINRA Governors are appointed or elected to three-year terms and may not serve more than two consecutive terms.
FINRA, the Financial Industry Regulatory Authority, is the largest independent regulator for all securities firms doing business in the United States. FINRA is dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. FINRA touches virtually every aspect of the securities business – from registering and educating all industry participants to examining securities firms, writing rules, enforcing those rules and the federal securities laws, informing and educating the investing public, providing trade reporting and other industry utilities, and administering the largest dispute resolution forum for investors and firms.
Deutsche Asset & Wealth Management has announced he launch of the Deutsche European Equity Fund in the U.S. The Fund is an open-end mutual fund that seeks long-term capital appreciation by investing in companies headquartered in Europe across a range of countries, sectors and capitalizations.
“Deutsche Asset & Wealth Management is uniquely positioned to help investors capitalize on opportunities stemming from ongoing structural adjustments in the Eurozone,” said Jerry Miller, Head of Deutsche Asset & Wealth Management in the Americas. “With the launch of the Deutsche European Equity Fund, we are offering our global perspective and expansive regional expertise to US investors seeking European equity exposure.”
The Fund utilizes an active bottom-up investment approach which focuses on European companies with above-average earnings potential. The Fund management team is well resourced, comprised of over 30 dedicated portfolio managers with an average of 13 years of investment experience in all major European market segments. The portfolio management team is led by Britta Weidenbach, Gerd Kirsten, Mark Schumann and Christian Reuter.
“We are excited to bring to the US market a unique product that leverages our fundamental research and unparalleled investment experience in the European equity space,” said Britta Weidenbach, Head of Large Cap Equities for Deutsche Asset & Wealth Management.
“This addition to our mutual fund suite is yet another way Deutsche AWM is providing investors with significant investment opportunities in companies with strong balance sheets, durable business models and prudent management.”
