MSCI has introduced the MSCI China A High Dividend Yield (HDY) Index. This new index includes stocks with a track record of sustainable and consistent dividend payouts and dividend growth. It can serve as a benchmark for investors targeting the high dividend yielding opportunity set within the flagship MSCI China A Index or as the basis for financial products such as exchange traded funds.
“Furthermore, we have seen close to a 110% increase in the number of dividend-paying companies in the MSCI China A Index since 2009. The MSCI China A High Dividend Yield Index offers a timely new index choice for clients interested in this subset of the China A-Share market.”
The MSCI China A HDY Index includes only securities that offer a higher-than-average dividend yield (i.e., at least 30% higher) relative to that of the parent index, the MSCI China A Index, and that pass dividend sustainability and persistence screens. In addition, MSCI screens out stocks that do not meet certain “quality” characteristics to exclude stocks with potentially deteriorating fundamentals that could force them to cut or reduce dividends. The MSCI China A HDY Index is calculated using free float-adjusted market capitalization weights.
“Dividends produced from the stocks in the MSCI China A Index have grown significantly—from RMB 12.95 billion in 2005 to RMB 94.7 billion in 2012,” said Theodore Niggli, MSCI Managing Director and Head of the Asia Pacific Index business. “Furthermore, we have seen close to a 110 percent increase in the number of dividend-paying companies in the MSCI China A Index since 2009. The MSCI China A High Dividend Yield Index offers a timely new index choice for clients interested in this subset of the China A-Share market.”
By Julioalcaine. TCW Group Establishes a UCITS Platform and Opens Offices in Paris & Hong Kong
TCW Group has announced the expansion of its distribution efforts in Europe and Asia, with the opening of new TCW offices in Paris and Hong Kong staffed by industry veterans familiar with those regions. The announcement follows the Feb. 6 completion of the acquisition of TCW from Société Générale by TCW management and The Carlyle Group.
“Expanding our international distribution platform is a significant priority for TCW, and we have a long-term commitment to serve investors across Asia and Europe,” said David Lippman, TCW President and CEO. “We look forward to working closely with investors across those key regions to build new partnerships and develop new products that meet the needs of international investors.”
The Paris office is overseen by Heinrich Riehl, a TCW Managing Director and Head of TCW Europe. In Hong Kong, the office is overseen by Stacy Hsu, a TCW Managing Director and Head of TCW Asia.
TCW has established a UCITS platform in Luxembourg to build a fund franchise that will replicate the most successful funds in the TCW and MetWest U.S. fund complexes, which have $53.8 billion in assets and have grown very rapidly in recent years. TCW has also forged several key international distribution partnerships, including sub-advisory relationships with Amundi and Pictet in Europe; and a partnership in the Middle East with NCB to offer Shariah-compliant funds.
Founded in 1971, The TCW Group, develops and manages approximately $130.7 billion in assets under management as of March 31, 2013. TCW clients include many of the largest corporate and public pension plans, financial institutions, endowments and foundations in the U.S., as well as a substantial number of foreign investors and high net worth individuals.
Wikimedia Commonsby Colette. "European Markets Have Climbed the Wall of Worry"
Kathleen Dickson, Director in BlackRock in charge of explaining to clients how the team portfolios are positioned talks with Funds Society about her views for the eurozone, claiming that since 2007, European markets have climbed the wall of worry.
During her second visit to Mexico with BlackRock, she mentions that since the bottom in 2009 of European valuations, in euro terms, the eurostoxx 600 has almost risen by 100%, and although current valuations are not as attractive as 12 months ago, the hunt for yield makes them an interesting asset. The Executive mentions that the fact that Draghi put a line under the financial crisis stating that the ECB would do whatever it takes to insure financial security for the eurozone -like buying short duration bonds in the market, an equivalent to Quantitative Easing – as well as the fact that Europe offers 4% yield –the highest yield in developed markets-, and positive earnings growth potential are giving security to investors and have the potential to allow the market to develop positively.
Dickson also commented that when looking at yields as the barometer of risk appetite, the fact that the yields that blew out last summer have gone back to normal is proof that the financial crisis is been dealt with. She mentions that there might be a “turning point in September with the German election but once got through that, with a positive outcome, we could see the market continue to do well”.
Amongst the initiatives she would like to see implemented to further growth are a transmission of lending in order to get money in the real economy, via an increase of lending to small business, and the banking sector repairing their balance sheet, to better solvency.
About her expectations going forward Dickson mentions that she sees positive flows in the future. “Investors are more willing to look at Europe. Europe is cheap, European valuations are trading on a significant discount to the US market”, stating that if investors currently underweight in their European positions come back or move from high yield bonds into euro equity, ownership level will move to a natural balance.
Speaking of their preferences in the market, she highlights consumer discretionary, mentioning their position is neutral on financials and low in utilities and telecom given their low growth and highly regulated environments.
When it comes to choosing a company to acquire positions in, income plays a huge part, and so their portfolios are highly geared toward earnings growth and international earners (50% of MSCI European companies revenues are generated outside Europe). “We are no buying countries, we allocate to companies with earnings elsewhere, like the Industrial sector”. In general looking for opportunities to tap into foreign growth through individual companies.
Kathleen Dickson, with over 22 years of experience in the markets, is in charge of managing the business side of a variety of alpha generating portfolios with over 26 billion usd in assets from a variety of institutional clients like pension funds or insurance companies. Amongst her team’s most popular funds are the BGF European Fund, BGF Euromarkets and the Absolute Return Long Short.
Wikimedia CommonsYves Bonzon, Pictet CIO. "El dólar americano está listo para un aumento constante"
Three different regimes rule the US dollar: depreciation, crisis and secular uptrend. Few investors realise that we have shifted into a secular uptrend regime and this will have consequences on asset clases one should hold in a portfolio of investments. In this video, Yves Bonzon, Pictet CIO, describes the regimes and asset classes to favour at the moment.
Wikimedia CommonsPhoto: William Cho. Henderson awarded Real Estate Fund Manager of the Year
Henderson Global Investors is pleased to announce that Tim Gibson, who manages the Henderson Horizon Asia Pacific Property Equities Fund (“Fund”),has picked up the“Real Estate Fund Manager Award of the Year” from The Asset Triple Investor and Fund Management Awards 2013 this week. The Fund has a top quartile1ranking since inception and over a 3-year period as well asa “3 star” Morningstar rating2.
Speaking about the recent award, Tim Gibson, Head of Property Equities, Asia, says, “This award is a testament to the strong performance delivered by the team to investors. Henderson has built a strong track record of managing Asian property equities since 2001.The Fund offers investors an excellent opportunity to gain exposure to thelong-term prospects of investing in Asian real estate equities.”
The Henderson Asian Pacific property equities team has over 15 years’ investment experience and currently manages US$1.4 billion of assets in Asia-Pacific property equities. The Henderson Horizon Asia Pacific Property Equities Fund that the team manages has a fund size of approximately US$520 million and has received several accolades over the years including:
Winner of Real-estate investment trusts, Asia-Pacific category in Asian Investor Investment Performance Awards 2011
Best over 3 years for Equity Real Estate Asia Pacific Sector in The Edge-Lipper Singapore Fund Awards 2011.
Foto cedidaFoto: Marc Faber. Get ready! According to Dr. Doom another crisis is inevitable
Marc Faber, Swiss contrarian investor, argues that another crisis is inevitable. How should investors position themselves? And how can you spot when the asset-price bubble will burst? Robeco has the answers.
OpenGate Capital, LLC, a global private buyout firm, announced today it has sold its remaining investment interest in Models 1, one of Europe’s leading supermodel agencies, to its management team led by Mr. John Horner, Karen Diamond, and Kathy Pryer. OpenGate Capital acquired Models 1 in 2008 and is divesting the business after creating significant new value and increased earnings. No financial terms were disclosed.
Andrew Nikou, OpenGate Capital’s founder, Managing Partner and CEO stated, “The acquisition of Models 1 has been an incredible opportunity to learn about an exciting industry, and to apply investment skills into a business perfectly positioned for growth. Over four and a half years I have been able to guide the management team at Models 1 in the development of new and improved business principles. The combination of the management team’s in-depth knowledge of the fashion industry, and OpenGate’s strategic oversight, yielded growth and increased value including improved profitability and double EBITDA growth.”
OpenGate Capital acquired Models 1 in November of 2008 from Nova Capital Management and the Models 1 management team, and in 2011 the firm sold a majority portion of the business to Mr. Oleg Tscheltzoff. As a result of the investment, OpenGate Capital and Mr. Tscheltzoff yielded two times their invested capital. Going forward, the Models 1 management team will continue to oversee the business and will drive the next phase of the agency’s growth.
Models 1 is an English modeling agency that was founded in 1968 in London, England and has grown to become one of the largest agencies in Europe. Models 1 is at the forefront of discovering, developing and sustaining the careers of many famous models including Yasmin Le Bon, Twiggy, and Rosie Huntington-Whitely. The portfolio of talent includes supermodels Bar Refaeli, Alessandra Ambrosio, Linda Evangelista, Nadja Auermann, Amber Valetta and Agyness Deyn, and male stars Brad Koenig, Noah Mills, Adrian Bosch and Lars. Models 1 gained greater awareness through its partnership with Britain’s Next Top Model, with winners receiving a one year contract for representation with the agency
By Erick Morales. “It is the right time for Mexican investment managers to implement GIPS”
Erick Morales, the Senior Financial Risk Manager at KPMG Mexico, talked to Funds Society about the benefits of the Global Investment Performance Standards (GIPS), as well as his vision for the Latin American market and why now is the right time to adopt the standards in Mexico.
Morales will be giving a seminar on GIPS, organized by Riskmathics, at the Sheraton Maria Isabel de la Ciudad de Mexico Hotel on June 13. He stated that the benefits of the implementation would include “continued transparency of client information regarding yields, and maintaining a uniform structure of strategy presentation amongst investment managers”.
The director mentioned that in the more mature countries, after more than 15 years of global implementation of GIPS, “investors themselves avoid entrusting managers without the standard”. Furthermore, he said that he hoped the Latin American region would follow the same line, because reliance on the CFA Institute endorsed standards can give investment managers a competitive edge.
As for the Mexican repercussions of the FATCA initiative of the United States IRS, Morales said that it would not affect the majority of investment managers complying with the national regulations and seeking to adopt GIPS, “because the Mexican entities’ efforts to comply with the regulations have been good.” He further stated, “The GIPS standards even allow foreign investors to seek alternative options in the region and to become more transparent with regard to other regulations”.
Morales believes this is the right time to adhere to the standards, taking advantage of the fact that the adjustments required – to comply with new regulations like the ones concerning sales practices or investment services – are oriented towards the same goal.
Finally, Morales emphasized that the GIPS seminar organized by Riskmathics will help institutions seeking to apply the standards to understand their foundations, to create portfolios and compliance presentations, including the methods required for yield calculation.
For more information or to register for the seminar, click here.
Pershing LLC, a BNY Mellon company, today unveiled its new Practice Management Center, a comprehensive resource that offers Pershing’s clients practice management-related content in one user-friendly, central location. In response to client demand, advisors will now have quick access to all of Pershing’s family of practice management materials, including more than 100 pieces of thought leadership, whitepapers, guidebooks and interactive tools on-demand.
“The goal of the Practice Management Center is to give advisors a resource that answers their most pressing practice management questions,” said Maureen Duff, head of global marketing at Pershing. “Through the Practice Management Center, Pershing’s clients can access a broad spectrum of information, tools and research that will help them evaluate all aspects of business development, better understand regulatory mandates and grow their business.”
With the development of the Practice Management Center, advisors will now be able to efficiently research content specifically relevant to their business. All related information will be grouped within each of Pershing’s practice management pillars: growth, human capital, operational efficiency and managing risk. Each will also be assigned to a topic, helping advisors zero in on the resources that are most relevant to their situation. A sampling of content available on the site includes:
Business Development and Planning – Becoming a Stronger Wealth Manager
Recruitment and Retention – The 30% Solution: Growing Your Business by Winning and Keeping Women Advisors
Platform and Workflow – Mission Possible III: Strategies to Sustain Growth in Challenging Times
Compliance and Supervisory Guidelines – Effective Sales Supervision and Compliance
Pershing and its affiliates provide global financial business solutions to over 1,600 financial organizations, broker-dealers, registered investment advisory firms, advisors, fund managers and asset managers who represent over 5.6 million active accounts. Located in 23 offices worldwide.
Wikimedia Commons. Investment Firm Infund Sues Grupo Mexico CEO Germán Larrea
Infund LLP has filed a civil lawsuit in Mexico against Germán UK investment firm Infund LLP has filed a civil lawsuit in Mexico against Germán Larrea Mota Velasco ,CEO and controlling shareholder of Grupo Mexico, SAB de CV claiming breach of Infund’s 2003 subscription for approximately 65 million shares of GMexico equity. The action, filed in Mexico City, alleges breach of contract.
“Without Infund’s subscription and payment through its commission agent Larrea, Grupo Mexico’s capital raise would have failed”
Upon filing the suit in Mexico City, a district court ruled to freeze the disputed securities, restricting, among other things, transfer and voting of the shares while the claims are litigated. The disputed shares which have been the subject of numerous stock splits and dividends, have ballooned in value to in excess of US $2 billion and now account for approximately seven percent of GMexico’s outstanding equity. Larrea and his family have a 51 percent controlling stake in GMexico, the giant Mexican mining and railroad conglomerate that operates railroads and mines throughout Mexico as well as Texas and Arizona through its subsidiaries ASARCO and Texas Pacifico Transportation, among others.
At issue in the suit is Infund’s approximately US $75 million subscription for GMexico shares, which Infund alleges Larrea failed to deliver. The cornerstone of a crucial US $230 million capital raise that sought to alleviate GMexico’s 2003 liquidity crunch, Infund’s “commission agreement” mandated a US $75 million advance by Infund to Larrea and a simultaneous underwriting by Larrea to Infund of approximately 65 million GMexico Series B Coupon 5 shares. Infund, managed at the time by Hector Garcia Quevedo Topete, long-time confidant to Larrea family patriarch Jorge Larrea, funded the US $75 million as required. However, the younger Larrea is alleged to have misappropriated the shares to his accounts, where they are believed to remain despite Infund’s repeated attempts to settle the trade.
“Without Infund’s subscription and payment through its commission agent Larrea, Grupo Mexico’s capital raise would have failed,” said José Antonio Marván Lizardi, Infund’s Mexico City spokesman. “The facts are straightforward here: Infund timely fulfilled its US $75 million funding obligation as part of Grupo Mexico’s vital capital raise, but never received the shares that were paid for – it’s time for this trade to be settled,” explained Marván. Counsel in the Mexican action is Rios-Ferrer, Guillén-Llarena, Treviño y Rivera, S.C., a Mexico City law firm.
