Wikimedia CommonsFoto: Andos_pics, Flickr, Creative Commons.. Morningstar premia al equipo de Growth de Morgan Stanley IM como gestor del año en bolsa estadounidense
Morningstar has named Dennis Lynch and the Morgan Stanley Investment Management Growth Team as the 2013 U.S. Domestic-Stock Fund Manager of the Year. According to Morningstar, the U.S. Fund Manager of the Year awards “acknowledge managers who not only delivered impressive performance in 2013, but who have also delivered excellent long-term risk-adjusted returns, and have been good stewards of fund shareholders’ capital.”
The Growth Team is led by Dennis Lynch, Head of Growth Investing at Morgan Stanley Investment Management. As part of the award, Morningstar named four of the Growth Team’s funds: Morgan Stanley Focus Growth, Morgan Stanley Growth, Morgan Stanley Mid Cap Growth and Morgan Stanley Small Company Growth. In addition, each of the funds has a Morningstar Analyst Rating™ of Gold, the highest positive qualitative fund rating Morningstar assigns.
“Congratulations to Dennis Lynch and the Growth Team on achieving this significant recognition. In honoring Dennis and his team, Morningstar has selected investment professionals who have been creating an impressive body of work over many years on behalf of our clients,” said Gregory J. Fleming, President, Morgan Stanley Investment Management and Morgan Stanley Wealth Management.
“We are extremely proud of Dennis Lynch and the Growth Team for winning the Morningstar U.S. Domestic-Stock Fund Manager of the Year award. Morningstar has recognized a powerful investment philosophy that emphasizes long-terminvestments in companies with inherent sustainable competitive advantages, as well as a strong team culture that creates an environment where world-class investors can stick to their convictions,” said Arthur Lev, Head of the Long-Only Business for Morgan Stanley Investment Management.
Morgan Stanley Investment Management, together with its investment advisory affiliates, has over 560 investment professionals around the world and $360 billion in assets under management or supervision as of September 30, 2013. As of December 31, 2013, the Growth Team manages over $30 billion in assets on behalf of clients. The Investment Team seeks unique, high quality companies with sustainable competitive advantages, and focuses on long-term growth rather than short-term events. They manage concentrated portfolios that are highly differentiated from their benchmarks.
Wikimedia CommonsFoto: Urimal. Warburg Pincus se hace con una participación mayoritaria de Source
Source, an asset manager and one of the market leading European providers of Exchange Traded Products (ETPs), today announced that an affiliate of Warburg Pincus, a global private equity firm focused on growth investing, has committed to acquire a majority stake in Source. The existing shareholders, including five of the world’s largest investment banks (BofA Merrill Lynch, Goldman Sachs, J.P. Morgan, Morgan Stanley and Nomura), will continue as minority shareholders.
This investment highlights the significant opportunity available to grow Source’s assets and its highly compelling product offering to investors in the European ETP market. It also further reinforces Source’s position as a dynamic and independent asset manager.
Lee Kranefuss, currently an Executive-in-Residence at Warburg Pincus, will join Source as Executive Chairman where he will work closely with the current management team led by CEO Ted Hood in order to develop the business further. Mr. Kranefuss was the architect and Global Chief Executive Officer (CEO) of iShares, formerly part of Barclays Global Investors, which he built into the largest global ETF platform. Mr. Kranefuss oversaw the global expansion of iShares from launch in 2000 to managing over $600bn in assets in 2010. Warburg Pincus is a leading financial services investor and has significant experience in working with companies to support their growth globally.
Source offers market leading equity, fixed income, commodity and alternative market exposure through expertly engineered Exchange Traded Funds (ETFs) and Exchange Traded Commodities (ETCs). As a full service ETP provider, Source offers a number of unique products from select partners, including one from its recent partnership with CSOP Asset Management, a Hong Kong subsidiary of China Southern, one of the largest and oldest asset managers in mainland China. Source’s open architecture approach has enabled it to forge partnerships with global financial leaders such as CSOP, PIMCO, MAN GLG and LGIM. Since its launch in April 2009, Source has successfully collected over US$15 billion in total assets and its products have traded over US$510 billion.
This transaction will provide Source with substantial additional resources enabling it to further develop and launch new products, enhance existing products, expand client relationships and deliver investor solutions. Source and Warburg Pincus share the view that the ETP industry represents a substantial opportunity for growth and consolidation coming both from organic expansion and strategic combinations. This transaction will put Source in a strong position to pursue both of these avenues.
Ted Hood, CEO of Source, commented: “I am delighted to welcome Warburg Pincus as a shareholder and Lee Kranefuss as our new Executive Chairman. I am proud of everything that Source has achieved since it was founded only a few years ago and look forward to building on our success with the support of Lee and Warburg Pincus. This investment will provide us with additional capital to further enhance the value that we offer investors.”
Lee Kranefuss, incoming Executive Chairman of Source, commented: “I am excited to become part of the Source team and to work with the experienced management group in order to further accelerate the expansion and development of the business. The ETF industry is at an inflection point”. And continues: “I think that there is a tremendous opportunity for explosive growth over the next couple of years and believe that Source is well placed to become a top tier ETF provider, not only in Europe but also globally.”
Cary Davis, Managing Director at Warburg Pincus, commented: “Source has quickly established itself as a leading European provider of Exchange Traded Products and we are impressed with its track record and performance. We look forward to partnering with the current shareholders, Lee, Ted and the rest of the management team with a view to significantly accelerating the company’s growth plans.”
The transaction is subject to regulatory approval.
Wikimedia CommonsNew Henderson's logo . Henderson Rolls Out Global Rebrand
As Henderson Global Investors approaches its 80th anniversary, the group has launched new branding to better capture its renowned investment heritage and expanding global footprint. Henderson has significantly enhanced its global footprint and distribution reach in recent years, through organic growth and selective specialist acquisitions in the UK and across the globe.
In a bid to capitalise on the group’s evolution, and to widen the brand’s appeal to sophisticated investors across the globe, Henderson has today unveiled new visual branding.
While Henderson has embarked on an international growth strategy, the asset manager has remained true to the strong foundations formed in the UK many years ago – to provide investors with sustainable investment outperformance, alongside market-leading client service.
Alongside robust growth in the UK, continental Europe and the US, Henderson has continued to gain traction in a number of new markets – most recently in Latin America and Israel. The group is also building up its Australian asset management business and continuing its expansion in Asia.
In 2013 the group also streamlined its investment capabilities – bringing into focus its core competencies in European and global equities, global fixed income, alternatives and multi-asset solutions.
Andrew Formica, Henderson Group chief executive says: “We have laid the foundation for global growth over the past few years by streamlining and simplifying the business. This has resulted in us increasing our presence in international markets, both in terms of distribution and investment capability. “We now have a clear strategy to grow our global distribution capabilities and position the firm as a high-quality asset manager, offering first-rate products and services to a global audience. Our brand must reflect the trust, quality and delivery we promise.”
Rob Page, Henderson global head of marketing, adds: “Our business strategy remains dedicated to our valued clients, serving both retail investors and institutions across global markets. The changes to our visual identity are the first phase of the development of our brand to appeal to this increasingly sophisticated, global client base.
“The second phase of the rebrand will see the evolution of our core positioning: Knowledge. Shared. We are developing an industry-leading communications proposition, in conjunction with a number of major clients, which we believe will really deliver on our philosophy of putting our customers first.”
Photo: Richard Croft. Brooks Macdonald Launches UCITS Core Property Fund
Brooks Macdonald Funds has announced the planned launch of the IFSL North Row Liquid Property Fund, believed to be the UK’s first actively-managed UCITS core property fund. The fund is expected to launch in February and will be managed by Steven Grahame, who developed the original concept for the fund, supported by Dr Niall O’Connor as Deputy Fund Manager.
The IFSL North Row Liquid Property Fund will offer investors liquid exposure to the global real estate markets by investing mainly in property derivatives, as well as property equity and debt, to gain exposure to direct property markets. The open-ended fund will aim to deliver a high correlation to direct property markets, targeting a high income yield of 4.5%-5.5% with low volatility.
To enhance total returns, the fund will be actively managed using a fundamental and quantitative research process to identify mis-valued markets, identifying mis-valuations between property debt, equity and direct markets, while measuring and controlling risk via BMF’s own risk management process.
The fund has daily dealing, no performance fee, no entry/exit fee and has a significantly lower total expense ratio than directly invested funds available on the market. The minimum initial investment will be £10,000.
“The IFSL North Row Liquid Property Fund is a unique and innovative concept which we are excited to be bringing to investors. It is the first UCITS property fund of its kind, and offers an opportunity to invest in property through assets with daily liquidity, rather than slower-moving bricks and mortar”, says Simon Wombwell, CEO of Brooks Macdonald Funds.
Steven Grahame, Fund Manager, says:“Today’s improving economy provides a positive outlook for property, which we believe should be at the top of investors’ wish lists for 2014 – given its ability to provide income and compelling relative value.
Its approach in identifying relative value across property asset classes allows the company to actively manage whilst avoiding the costs and delays in transacting physical property. “We believe professional investors have long wanted an efficient way of managing their exposure to property. As the first UCITS core property fund our launch couldn’t be better timed.”
Photo: JLPC. Banco Santander Chile Issues Debt for 300 Millions Swiss Francs
After a two-day roadshow in different cities of Switzerland, Banco Santander Chile has issued a new bond in that country. The operation is for a total amount of 300 millions Swiss francs (about US$ 330 million) at a price of CHF Mid swap +68 bps for a 3.5 years term. This translates into a cost of UF +2.87% (equivalent to BCU +93 bps, lowering than the cost of local funding for that term) under Swiss Law.
The transaction was announced in Zurich, with a minimum amount of CHF 200 millions. The order book was oversubscribed, with demand anchored by several Swiss banks, investment funds, private banks and other investment managers, which endorsed the increase in the amount placed. This time, the underwriters were UBS and BNP Paribas banks.
“The very favorable reception of this bond in the Swiss market reflects the good perception that foreign investors have of Chilean risk, the local banks and in particular of Banco Santander Chile”, said Pedro Murua, Structured Finance Manager of Banco Santander Chile. The operation would be the largest bond in the history of the Swiss market from a Latin American bank issuer.
Santander Brasil has issued as well bonds for USD$2,5 billion in the past days.
Foto: Nicolo Caranti, Flickr, Creative Commons.. Efama y la Comisión alaban el acuerdo que dará forma a MiFID II pero piden que la normativa vaya más allá
The European Fund and Asset Management Association (Efama) has welcomed the European Parliament, Council and European Commission informal agreement on the review of the Markets in Financial Instruments Directive (MiFID). The development means negotiations on the future of the European Financial Markets have finally been concluded after more than two years of intensive deliberations.
However, EFAMA is disappointed that insurance products have been omitted from the final agreement. And EFAMA believes that the failure to treat as equal all financial investment products means there will now be an absence of a level playing field.
EFAMA now urges the European Parliament and Council to immediately restart the stalled negotiations on the review of the Insurance Mediation Directive (IMD II) to ensure that end investors are ultimately afforded the same level of protection and transparency across the whole range of financial products.
“While we applaud the EU for having concluded its widest reform of the European financial markets since 2007, we are disappointed that not all financial products have been treated equally. We believe that it is the best interests of the investor that the same rules apply across the board. We therefore call on European co-legislators to use IMD II to rectify this and ensure that moving forward there is a level playing field for all”, comments Peter de Proft, Director General of Efama.
Foto: AnirudhKoul. PREI nombra a Ezequiel Rodriguez director general de la firma en México
Prudential Real Estate Investors has named Ezequiel Rodriguez, managing director and head of Mexico, the company announced. PREI, among the world’s largest real estate investment management and advisory businesses, is a business of Prudential Financial, Inc.
Rodriguez, whose appointment is effective immediately, is based in Mexico City, reports to Alfonso Munk, managing director and head of Latin America.
“I am excited to have a leader and proven manager like Ezequiel in place,” Munk said. “He not only brings a depth of real estate knowledge about Mexico and Latin America, but his extensive experience gives him a keen understanding of transactions and investments in the sector. His background will be particularly helpful as we seek additional opportunities in Mexico and continue to grow the business in the country.”
Before joining Prudential, Rodriguez was a managing director with GIV Partners AG and with UBS AG, where he held various roles in Europe and Latin America, including as regional head of Europe for UBS’ Real Estate Investment Management group, and member of its Global Management and Investment committees.
Prior to joining UBS, he was a principal at the Peabody and Argo Funds of JP Morgan and O’Connor Capital Partners, where he was responsible for sourcing, negotiating, structuring, and managing opportunistic transactions in Southern Europe, and for establishing and managing the Funds’ business in South America. Before entering the private equity real estate industry in 1998, Rodriguez worked for the Latin American mergers & acquisitions division of JP Morgan.
Rodriguez earned a degree in business administration at the University of Buenos Aires.
Chris Bullock of the Euro Corporate Bond Fund and Euro High Yield Bond Funds at Henderson. 2014 Can Prove to Be Another Solid Year for Credit Markets
2013 proved a better year for credit markets than expected by many. The coming year has the potential to surprise too, although the gains are unlikely to match those of the previous year.
2014 will be an interesting year given the rising pressures on interest rates, particularly in the US, while in Europe inflation stays low and growth also remains, stubbornly, low. The good news is that the current environment is quite favourable for the credit markets.
According to Chris Bullock, co-manager of the Euro Corporate Bond Fund and Euro High Yield Bond Funds, given the expectations of low default rates, improving corporate confidence, but some risk to interest rates, the high yield sector has the potential to outperform investment grade bonds. Overall 2014 could be another fairly solid year for the credit markets, although there may be a few bumps along the way.
Photo: Mattbuck. The Family Office Dynamic: Pathway to Successful Family and Wealth Management
A report from Credit Suisse, EY, and University of St.Gallen, entitled, “The Family Office Dynamic: Pathway to Successful Family and Wealth Management,” provides a comprehensive guide to setting up a family office and best practices within the sector. The paper also provides an analysis of important topics and issues to consider when deciding whether to establish, or restructure, a family office.
“Credit Suisse has had the privilege of serving the world’s wealthiest families since 1865,” said Rich Jaffe, Head of Credit Suisse Private Banking North America. “This publication illustrates our experience in advising and supporting our clients in all phases of the family office process, from inception to maturity. As family offices continue to gain in popularity, this paper is an invaluable guide for families considering setting up a family office. “
“The EY Global Family Business Center of Excellence has experience working with a large number of entrepreneurial families and has observed firsthand the complexity of their private wealth needs,” said Peter Englisch, Global Family Business Leader at EY. “This guide is an essential tool to help families fulfill their goal of securing wealth for future generations.”
Increasing numbers of family offices have been set up during the last decade, and this trend shows no sign of declining. There is every reason to expect more family offices to be established in light of continuing wealth concentration, the desire of families to pass on assets to the next generations and rising globalization. This paper explores what a family office does and the most effective structures and processes.
This white paper provides answers to the following key questions:
Why should a family set up a family office, and what are the different types of family offices?
What services are generally best performed in-house, and which outsourced?
How are family office professionals most effectively recruited and managed?
What needs to be included in a family office business plan – and what are the different stages involved in setting up a family office?
Which are the most important considerations when selecting a jurisdiction for the family office?
What are the major risk areas and how can these be managed?
For a copy of “The Family Office Dynamic: Pathway to Successful Family and Wealth Management,” please click on the following link.
Wikimedia CommonsWilliam Finnegan, Senior Managing Director of Global Retail Marketing at MFS. Overcoming Investor Reluctance
William Finnegan, Senior Managing Director of Global Retail Marketing at MFS highlights the findings from the MFS Investing Sentiment survey. This survey captures how investors are feeling about the current market environment.
