Urs Beck. EFG AM Hires Award Winning Swiss Equity Fund Manager Urs Beck
EFG Asset Management, an international provider of actively managed investment products and services, has recruited top Swiss equity fund manager Urs Beck, as part of its on-going development of Swiss investment strategies.
Based in Zurich, Urs will be responsible for Swiss equities and will manage a dedicated Swiss equity fund to complement the firm’s New Capital UCITS IV fund range.
Prior to his move to EFG Asset Management, Urs was Head of Swiss Equities at Zurich Cantonal Bank (ZKB) where he ran both institutional and retail Swiss mandates for seven years. During his tenure at ZKB, Urs received the FERI award for best fund in the Swiss equities category in 2013 and 2014 respectively.
Urs has over 18 years of investment experience and has previously held positions with Julius Baer, Bank Leu and UBS. He is a CFA charter holder and has a Masters in Economics from the University of St. Gallen (HSG).
“We are very pleased to have an experienced portfolio manager of Urs’ calibre and proven track record join EFG Asset Management. The development of Swiss equities as one of our core competencies further underlines our commitment to investment management in Switzerland”, says Patrick Zbinden, CEO, EFG Asset Management Switzerland.
Barry Benjamin, responsible at PwC's Global Asset Management, commenting the report. Global AuM To Exceed $100 Trillion by 2020 with Nearly 50% Residing in North America
According to Asset Management 2020: A brave new world, a new report from PwC released on Monday, global assets under management (AuM) will rise to roughly $102 trillion by 2020 from a 2012 total of $64 trillion, representing a compound annual growth rate (CAGR) of nearly 6 percent. This forecasted expansion aligns with the findings of the firm’s recently released Global CEO Survey where growth projections among asset management CEOs eclipsed CEOs from numerous other sectors.
AuM in North America is predicted to grow at a CAGR of 5.1 percent to reach over $49 trillion by 2020 (from a 2012 total of $33.2 trillion), exceeding expected AuM for Europe, Asia Pacific and Middle East & Africa combined.
The game changers
As the global asset management industry progresses towards a significant moment in its evolution, PwC has identified six dynamics that should be analyzed and addressed to capitalize on emerging opportunities:
Asset management moves center stage:The changing focus of banks and insurance companies and shifting demographics/markets could propel asset management from the shadows to the forefront. However, rising assets and prominence are typically accompanied by rising costs. As the asset management industry expands and becomes more visible, new investments in data, technology and talent may be needed to respond to heightened regulatory and competitive pressures. These expenses could continue to burden profits, which, according to industry analysis, are still 15-20 percent below their pre-crisis levels.
Distribution is redrawn – regional and global platforms dominate: By 2020, four distinct regional fund distribution blocks in North Asia, South Asia, Latin America and Europe are expected to develop regulatory and trade linkages with each other, reshaping the way that asset managers view distribution channels. North American asset managers may need to evaluate their strategy to consider the impact of these linkages.
Fee models are transformed: By 2020, it is likely that major territories with distribution networks may look to introduce regulations to better align interests for the end-customer, which may place more transparency pressure on asset managers and have a substantial impact on the cost structure of the industry. In the US, asset managers are facing the unique confluence of imminent mass retirement and growing healthcare costs which is likely to shift investment strategy towards longer term wealth accumulation with more emphasis on fixed income and income generating assets.
Alternatives become more mainstream, passives are core and ETFs proliferate: Traditional active management should continue to be the core of the industry as the rising tide of assets lifts all strategies and styles of management. However, traditional active management could grow at a less rapid pace than passive and alternative strategies, and the overall proportion of actively managed traditional assets under management is likely to shrink. PwC estimates that alternative assets will grow by some 9.3 percent a year between now and 2020, reaching $13 trillion.
A new breed of global managers: By 2020, the industry is likely to see the emergence of a new breed of global managers, one with highly streamlined platforms, targeted solutions for the customer, and a stronger and more trusted brand. These managers will not only emerge from the traditional fund complexes, but from among the ranks of large alternative firms as well.
Asset management enters the 21st century: Today, asset management operates within a relatively low-tech infrastructure, but by 2020 technology may become mission critical to customer engagement, data mining for information on clients and potential clients, operational efficiency and regulatory and tax reporting. Moreover, cyber risk will intensify, ranking as a top priority alongside operational, market and performance risk.
“Amid unprecedented economic turmoil and regulatory change, most asset managers have not had time to bring the future into focus,” said Barry Benjamin, global asset management leader, PwC. “However, as the industry stands on the precipice of a number of fundamental shifts and the potential for significant volumes of assets, there is more responsibility on firms than ever to manage these assets to the best of their collective ability. Strong branding and investor trust in 2020 will only be achieved by those firms that place a premium on transparency, a concrete value proposition to customers, and a firm commitment to avoiding practices that could prompt concerns among investors, regulators and policymakers.”
Overarching trends fueling growth
According to the report, the asset management environment is being reshaped by the convergence of several significant global megatrends including demographic changes, accelerating urbanization, technological breakthroughs and shifts in economic power. At the client level, PwC predicts that global growth in assets will be driven by three key factors:
The increasing use of defined contribution (DC) plans partly driven by government-incentivized or government-mandated shift to individual retirement plans.
The increase of mass affluent and high-net-worth-individuals in the SAAAME (South America, Asia, Africa, Middle East) regions where economies are set to grow faster than those in the developed world in the years leading up to 2020.
The expansion and emergence of new sovereign wealth funds (SWFs) with diverse agendas and investment goals.
In 2012, the AM industry managed 36.5 percent of assets held by pension funds, sovereign wealth funds, insurance companies, mass affluent and high-net-worth-individuals. If the AM industry is successful in penetrating these clients assets further, PwC believes that share of managed assets can increase by 10 percent to a level of 46.5 percent, which would represent $130 trillion in Global AuM.
Pension funds assets
Overall, assets held by mass affluent (wealth between $100,000 and $1 million) and HNWI investors (wealth of $1 million or more) are expected to rise to more than $100 trillion and $76 trillion, respectively by 2020, as compared to $59 trillion and $52 trillion, respectively, in 2012.
While emerging wealth economies in the SAAAME regions will likely serve as the dominant catalyst for growth, North America is projected to continue expanding at a solid pace and ahead of expectations for a similarly mature market like Europe. In 2020, North American mass affluent assets are expected to reach $21.7 trillion (from $13.7 trillion in 2012, a CAGR of 4.9 percent) while HNWI assets will likely top $30 trillion relative to $20.1 trillion in 2012 (CAGR of 4.4 percent).
The size of SWFs is rising fast and their presence in international capital markets is becoming more prominent. AuM for SWFs is currently above $5 trillion and PwC predicts this figure will surge to nearly $9 trillion by 2020. SWFs based in the Middle East and Africa will grow the fastest, with Asia Pacific also seeing a rapid rise in SWF assets. This is a significant opportunity for strategic expansion for North American asset management firms that invest in the resources and capabilities required to effectively meet the unique needs of SWFs.
“Responding to the impact of the global megatrends and the game changers we’ve identified will require considerable thought in order to create a great strategy – there is no silver bullet to building the successful asset manager of 2020 and beyond,” said John Siciliano, managing director and strategy lead, asset management advisory, PwC US. “Those that are proactive about developing coherent strategies and act with integrity towards clients are likely to build the brands that are not only successful in 2020, but that are still trusted in 2020.”
To access the whole report, please use the following link.
Piazza Duomo. H.I.G. Capital Opens Milan Office And Names Raffaele Legnani Managing Director
H.I.G. Capital, a global private equity firm with more than $13 billion of equity capital under management, has announced that it has opened a Milan office and appointed Raffaele Legnani as a Managing Director to lead its efforts in Italy.
H.I.G., through its H.I.G. Europe affiliate, currently has a team of over 50 investment professionals based in Europe, operating out of offices in London, Hamburg, Madrid and Paris. H.I.G. Europe is one of the most active private equity investors in Europe, having completed 28 investments since it began investing in 2008. In July 2013, H.I.G. Capital successfully closed H.I.G. European Capital Partners II at €825 million ($1.1 billion), significantly above its initial target. The fund will follow the strategy of its predecessor fund, focusing on buyout and growth capital investments in middle-market companies primarily in Western Europe.
Mr. Legnani was previously founding partner of Atlantis Partners in Milan, the leading independent institutional investment firm focused on Italian mid-size companies in Special Situations. Before that, Mr. Legnani has successfully invested in a significant number of buyout transactions, both directly and through specialized private equity funds (the London based Stellican and the US based Wexford Management) serving as operating board member for several portfolio companies. Previously, he worked in investment banking for Goldman Sachs in London.
In commenting on his appointment, Mr. Legnani stated, “I am very excited to join the H.I.G. team. H.I.G. is ideally positioned to successfully invest in Italy, given the significant amount of capital at its disposal and its experience in working with both growth companies and businesses facing operational and/or financial challenges. Focusing on midsize companies with a turnover above €50 million, H.I.G. targets the backbone of the Italian economy.” Mr. Legnani also added that he expects H.I.G. to be flexible in its approach in Italy, providing both debt and equity capital and investing in either majority or minority stakes in promising Italian businesses with a strong and sustainable competitive position. He also expects H.I.G. Capital to assist Italian companies to capitalize on international growth and expansion opportunities, given its global presence and its wide team of international experienced professionals.
Photo: Intel Free Press. Deal Activity Continues in Emerging Markets as Private Equity Investors See Opportunity in Adversity
Private equity investment activity held steady for emerging markets in 2013, and despite a sluggish start to the year, deal volume gained momentum in the last six months, according to the Emerging Markets Private Equity Association (EMPEA). This investment activity led to an overall capital flow of US$24 billion in emerging markets last year, representing 883 deals and a 7% decline in capital year-over-year from 2012. While fundraising was down with only 150 funds raising US$36 billion in 2013, a 19% decline in total capital raised compared to 2012, the relatively constant deal volume indicates that private equity investors continue to find investable companies across a diverse array of markets.
“Fundraising in private equity follows a cyclical pattern and we are still in a downturn phase of the cycle. The investment side is the real story, however, because where others see adversity, private equity investors see opportunity,” commented Robert van Zwieten, President and CEO, EMPEA. “Private equity continues to be the optimum way to tap into emerging market investment opportunities. We expect that these markets will adapt, greatly diverse as they are, to the new economic realities of a moderate Chinese economic slow-down and US interest rates rising gradually over time. For the time being, with asset re-pricing underway and local currencies depreciating in many emerging markets, this is a favorable time for highly discerning fund managers to put capital to work in select sectors.”
According to EMPEA’s data, some of the biggest year-over-year gains from 2013’s deployment of capital went to markets beyond the BRICs– including those in Southeast Asia, East Africa and Latin America (ex. Brazil) – a strong indication of where investors are seeing the most promising prospects for growth. Taking a closer look within each region, the following ten notable emerging markets private equity (EM PE) investment trends stood out from the past year.
There was greater diversity in the types of deals executed across emerging markets, with venture capital (VC) investment accounting for 43% of deal activity in EM PE, following an annual upward trend since 2009, when VC made up only 17% of deals.
While Emerging Asia accounted for 78% of VC deal activity across emerging markets, the largest disclosed VC deal took place in Latin America for Panama-based online language school Open English.
US$2.2 billion was invested through 61 deals in Southeast Asia in 2013, a six-year high in terms of activity and a 39% increase in capital from 2012.
In China, deal activity rebounded in the fourth quarter, with 89 investments executed—the most in a single quarter for the country since Q3 2011.
PE investment in India proved resilient, increasing 11% in volume and holding flat in total capital, year-over-year. Investment in the country was robust in part due to a 33% increase in the number of VC deals.
CEE and CIS showed healthy exit activity with six liquidity events valued at an estimated total of US$3.5 billion, according to third-party data. Three of the six exits were in Russia-based companies.
Russia and Turkey accounted for 48% of deal flow in CEE and CIS.
Seven PE deals closed in Tunisia and ten in United Arab Emirates, comprising 45% of MENA investment activit.
Mexico witnessed a five-year high in capital invested and also saw one of the year’s top ten largest deals for emerging markets: Axis Capital’s US$200 million buyout of Oro Negro.
For Sub-Saharan Africa, capital invested reached a five-year high of US$1.6 billion, a 43% increase since last year, and East African deals increased by 29%.
Fred Thompson, David and Julia Koch. Top 10 Wealthiest Individuals in America’s Oil and Gas Sector
Charles y David Koch of Kansas are the wealthiest individuals in America’s oil and gas sector, with a combined net worth of US$83 billion, according to a Wealth-X Top 10 list that includes billionaires from Texas, New York and Oklahoma.
Charles, Koch Industries’ chairman and CEO, and David, executive vice president, are the principal owners of the Wichita-based company founded by their father Fred in 1940. Charles and David Koch each own 42% of Koch Industries, which is involved in the manufacturing, refining and distribution of petroleum, chemicals, polymer and other materials.
Four billionaires from Texas appear on the list: Milane Frantz (one of two females on the list), Ray Hunt, Jeffrey Hildebrand and William Hunt. Kansas is home to three oil and gas billionaires, the two Koch brothers as well as Elaine Tettemer Marshall, who inherited her fortune from her late husband, Everett Pierce Marshall, (who had holdings in Koch Industries).
Photo: Daniel Christensen. Mauricio Sanchez Mendez Named Complex Manager At Wells Fargo Advisors, Miami
The International Private Clients Services Group of Wells Fargo Advisors has announced that Mauricio Sanchez has joined the Miami International Office as Complex Manager. Mauricio will be responsable for day-to-day operations of the Miami International Complex and its 71 Financial Advisors.
“We are delighted to have Mauricio Sanchez joininig the International Private Clients Service team. He is a seasoned executive who knows and understands the needs of our internatinal clientes; his experience is also fundamental to continue supporting our Financial Advisors covering the Latin American region”, said Alberto Gonzalez Saint Geours, Managing Director of the International Private Client Services Group.
Prior to joinin Wells Fargo Advisors, Mauricio served as a Private Wealth Management Sales Manager, Domestic and International at Morgan Stanley, New York Branch. He has over 25 years experience in the financial services industry. Mauricio held different management positions at Merrill Lynch Wealth Management in Geneva, Montevideo, Buenos Aires and Santiago de Chile.
Mauricio Sanchez holds a bachelor Degree in Accounting from Universidad de la República de Uruguay. Mauricio is relocating from New York to Miami.
Wells Fargo & Company is a financial services company with $1,4 trillion in assets.
París. Foto: zoetnet, Flickr, Creative Commons.. La Française y Forum Partners dan paso a la plataforma LFF Real Estate Partners
Following their recently established strategic partnership and formation of a European direct real estate investment joint-venture, La Française and Forum Partners have announced their acquisition of Cushman & Wakefield Investors (CWI), the investment management business of Cushman & Wakefield (C&W). This acquisition, subject to regulatory approval, will be jointly owned by La Française and Forum, 66.6% and 33.3% respectively, and will operate under the brand La Française Forum Real Estate Partners (“LFF Real Estate Partners”).
CWI executives David Rendall (CEO) and Jens Göttler (Managing Director), together with their current team, will continue to manage the business and investments. All existing service arrangements between Cushman & Wakefield and CWI will be transferred to LFF Real Estate.
CWI provides a complete investment management service in both direct and indirect commercial property investments for a wide range of international clients across the UK, continental Europe and in Korea. CWI is a recognized specialist in core and core plus real estate investment strategies throughout Europe, most notably the French, German, UK and Swedish markets. Building on over 30 years of investment management experience, CWI has over $1.2 billion of assets under management from separate accounts and the PURetail Fund, in a joint-venture with Scottish Widows Investment Partnership (SWIP). PURetail is a closed-ended pan-European (France, Germany and Sweden) real estate fund focused on urban retail assets. Existing local teams will remain in place and will continue to operate out of Paris, London and Frankfurt.
Just four months ago, La Française and Forum Partners announced their partnership and aspiration to become a leading European real estate investment manager and advisor. The acquisition of CWI enables La Française and Forum Partners to provide a variety of solutions for investors seeking European core real estate exposure.
Patrick Rivière, Managing Director of La Française, commented: “When screening partners, we are extremely sensitive to their corporate culture. La Française is what it is today because employees and directors have a vested interest in customer satisfaction, which in the end determines our success. That same dedication to service and quality emanated from CWI and its people. It was a natural fit. As a real estate investment manager focused predominantly on France, we now possess a demonstrated and recognized pan European direct real estate expertise.”
Russell Platt, CEO of Forum Partners, commented: “We are thrilled to welcome David Rendall, Jens Göttler and their team as senior management of our new direct real estate venture with La Française. Their impeccable credentials, market knowledge and pan-European resources will bring immediate benefits to both firms and accelerate the development of our collaborative efforts.”
Commenting on the sale of CWI, Carlo Sant’Albano, CEO Cushman & Wakefield, EMEA said: “At Cushman & Wakefield we remain focused on executing our plan which is critical to growing our business and for delivering high quality, value-added services to our clients. With a number of high priority strategic growth initiatives underway at present it is not the right time to invest substantially in building out the CWI platform. In the best interests of the existing CWI client base, we are pleased to have reached an agreement to sell the business to LFF Real Estate Partners which is looking to increase its European exposure and can provide CWI’s clients with access to a larger investment management entity and importantly, continuity of service.”
As a result of this acquisition, La Française and Forum Partners can now offer a complete range of bespoke Pan European real estate investment solutions (direct real estate, listed and unlisted real estate investment funds, private and public equity and debt) to retail and institutional investors worldwide. The new combined platform will have total assets under management amounting to close to $20 billion, of which $14 billion are direct core European real estate investments.
Chile. Foto: @Doug88888, Flickr, Creative Commons.. Las clases medias en América Latina suman dos décadas de crecimiento, pero los retos continúan
The Credit Suisse Research Institute this week released a report entitled Latin America: The long road. The report looks at the growth trajectory of Latin American economies, explores their challenges and strengths on the road ahead, and outlines investment opportunities in the region.
The report highlights that over the last two decades, Latin American economies have significantly narrowed the economic and social gap with more advanced economies. The region has come a long way from the recurrent financial crisis, rampant inflation, stagnation and persistent impoverishment that in the past characterized many Latin American countries.
Along with the strengthening of the manufacturing and services sectors, which are creating domestic opportunities, a primary driver of the region’s economic growth has been the rise of the middle-income class. The middle class in Latin America grew by 50% between 2003 and 2009, from 103 million to 152 million people, or 30% of the population. This has profound implications for the economy as well as the investment environment.
The report provides context for the current macroeconomic situation in the region and outlines investment opportunities across sectors, including e-commerce, retailers, financial services, and energy. By evaluating the structural changes in Latin America and how each country stands relative to the developed world, the countries’ potential for growth is revealed – allowing for the identification of sectors that are likely to offer the greatest opportunities.
“The report outlines the long-term outlook for the region by taking an in-depth look at demographics, infrastructure, intangible infrastructure, employment, and macro conditions,” says Stefano Natella, Co-Head of Securities Research & Analytics. “While the region as a whole is in a much better position to absorb a serious shock, Latin American governments and societies still face considerable challenges.”
The report concludes that underinvestment in infrastructure, low savings ratios, a growing income distribution gap and education are some of the key challenges affecting the growth outlook for the region. The next ten years will be crucial to consolidate the gains that have been made over the past two decades.
Foto: Tommy.chang, Flickr, Creative Commons. Los fondos estadounidenses crecieron un 20% en 2013, la mayor cifra en cuatro años
In 2013, total US mutual fund assets grew by nearly 20%, largely due to substantial asset growth in passively managed products. Across the board, equity products dominated the mutual fund landscape in 2013, capturing flows of greater than $232 billion year-to-date.
Total ETF assets expanded by 1.9% in December, ending the year with nearly $1.7 billion. ETF equity strategies also grew substantially in 2013, averaging net flows of $17.9 billion per month.
In the January 2014 issue of The Cerulli Edge – U.S. Monthly Product Trends, Cerulli explores vehicle use, including advisor adoption of exchange-traded funds (ETFs). January’s Monthly Spotlight reviews the best-selling mutual funds, ETFs, and Morningstar categories of 2013.
Managers wrestle with meaningful advantages and disadvantages tied to different MLP fund structures more than other investment strategies. Assets in excess of $8 billion are spread across different vehicles, including CEFs (37%), mutual funds (27%), ETFs (19%), and ETNs (17%), with some structured as C corporations and others as registered investment companies (RICs).
Trends in fees
According to the report, a barbell trend emerged in 2013. On one hand, hands-off passive management among indexed products fueled a fee race to the bottom. On the other, investors paid a premium to glean more specialized exposures, including short-duration and unconstrained fixed income.
Wikimedia CommonsLoretta H. Cockrum, fundadora, presidenta y CEO de Foram Group . Loretta Cockrum se suma al Consejo Asesor de Miami Finance Forum
The Miami Finance Forum (MFF), South Florida’s leading financial services networking organization, has announced that Loretta H. Cockrum, Founder, Chairman and CEO of Foram Group, has been elected to join the Advisory Board effective immediately.
An accomplished businesswoman and native Miamian, Loretta Cockrum has over 30 years of experience in the Real Estate industry. Ms. Cockrum transitioned from her duties as a broker to a trustee through her constant commitment to maintain and enhance the affluence of her clients and their future generations. She founded the Foram Group in 1978 to manage and develop Real Estate investment portfolios for families who have a multi-generational wealth preservation strategy.
“The Miami Finance Forum is honored to have Loretta join our advisory board,” said MFF Board Chairman Carlos Deupi. “She is a true visionary whose experience in the real estate industry and her commitment to our mission will be an incredible asset to our efforts of establishing South Florida as a focal point of global finance.”
“The Miami Finance Forum provides tremendous benefits to banking, finance and investment professionals seeking to do business in South Florida,” said Loretta Cockrum. Ms. Cockrum and her team developed 600 Brickell, a visionary office project, as it is the only high-rise building in the state that was awarded the first Platinum LEED ratings by the U.S. Green Building Council. Located in the heart of Miami’s financial district, it aims to revolutionize communication access and green development, as well as to serve as a model to exceed all expectations in technological and sustainable design.
Cockrum founded Foram Group in Atlanta in 1978 as one of the few woman-owned agricultural real estate companies in the U.S. She also founded the Foram Group Charitable Foundation to research sustainable methods of food production and nutrition education. Ms. Cockrum was also President of the Brickell Area Association and World Trade Center Miami, as well as a trustee member of the Greater Miami Chamber of Commerce.
