Foto: Alvesgaspar. La volatilidad no es motivo de pánico, sino una oportunidad para entrar en el mercado
The steep correction in the Japanese stock market since last week and the recent rise in bond yields (JGBs and USTs), coupled to lower inflation readings in the developed world and some allegedly disappointing economic data (HSBC PMI for China) have raised questions about the possibility of a directional change in the markets.
Axa IM believes that these concerns are exaggerated. The global economy is progressively healing, beginning with the US consumer sector and fears of a hard landing in China are unjustified. The asset manager also believes that deflation is unlikely to take root and, therefore, that global fundamentals remain positive for equities and negative for government bonds.
Yet, as the world comes closer to a fundamental shift in the stance of US monetary policy, as well as to the implementation of a monetary experiment in Japan of a scale never seen before, Axa thinks it should be no surprise to witness higher volatility in financial markets, adding that as long as global fundamentals remain well oriented, they would rather see downside corrections in risk assets as buying opportunities.
Axa IM’s two main investment conclusions are:
Japanese Equities: buy on dips but mind the beta factor
Stay away from US Treasuries and do not fear a JGB market crash
You may access the complete report through this link
The Park Hill Group, a division of Blackstone, today announced that Pablo Calo has joined its secondary advisory business as a Managing Principal, based in London. This business delivers liquidity and capital solutions to private equity investors and managers.
Calo has spent the last sixteen years dedicated to private equity, most recently as the Head of European Private Equity Secondaries at PineBridge Investments (formerly AIG Investments). Prior to this, Calo spent nine years at AIG Capital Partners, in both New York and Buenos Aires. At Park Hill, Mr. Calo will focus on providing secondary advisory services to clients across Europe.
Larry Thuet, a Senior Managing Director at Park Hill, said, “We are delighted that Pablo has joined us. He brings a strong tenure as a secondary investor, insight as limited partner and extensive experience in direct and mezzanine investments globally. Pablo will complement our team, which collectively has almost 80 years of experience and completed $11.5 billion in volume of secondary transactions.”
Wikimedia CommonsFoto: poison orange. Edgar, Dunn & Company abre una nueva oficina en Ciudad de México
Edgar, Dunn & Company (EDC) is proud to announce the official opening of its new office in Mexico City. The inauguration is part of EDC’s expanding footprint in Latin America and reinforces its presence in the region.
“Payments services are increasing in sophistication and we believe that our presence in Latin America will go a long way towards supporting our clients with the new challenges these developments represent for the industry.”
“EDC is committed to our payments and financial services clients by providing consulting services in Latin America. Our new office ensures that we have people on the ground to support and grow our relationships and provide the required level of service that we are known for,” says Bob White, Managing Director.
Jan Smith, a Director at EDC and a payments expert with twenty years of consulting experience within Latin America, will head the new office. Jan will promote EDC’s services among Latin American and foreign-based clients in the payments and financial services arena.
“In recent years, Latin America has increased in importance to our existing clients, and we also appreciate the growing need among regional players for our services,” said Smith. “Payments services are increasing in sophistication and we believe that our presence in Latin America will go a long way towards supporting our clients with the new challenges these developments represent for the industry.”
The recent gold price falls followed by record physical gold buying, concentrated in China and India, have shone a light on the paper and physical gold markets. A range of opinions exist on the workings of these markets, but where is the gold price really set?
Gold futures markets are worth $75 billion, with the Chicago Mercantile Exchange accounting for 85% of this
Only 5% of COMEX open interest is backed by bullion in depositories
The four most popular gold-backed ETFs are worth over $59 billion
The gold ETF, GLD, accounts for nearly 60% of the ETF market
The ten 10 largest gold refineries have annual capacity of 5,000 tonnes
Valcambi, the largest refinery, has capacity of 1,400 tonnes worth a potential $63bn
Head of Research, Jan Skoyles , comments: “With recent tremors in the gold market, the increasingly obvious disparity between physical and paper gold, and recent rapid draining of COMEX inventories, where gold price discovery really happens is increasingly in the spotlight.”
Foto: Chenisyuan . Julius Baer empieza a transferir el negocio de Merrill Lynch IWM en Hong Kong y Singapur
Julius Baer announces that, in line with its original integration plans, the transfer of the Hong Kong and Singapore businesses of Merrill Lynch’s International Wealth Management (IWM) started this monday. This step represents another major milestone in the two-year integration process and will elevate Julius Baer into the leading group of international private banks in its second home market Asia.
The transfer of the businesses in Hong Kong and Singapore to Julius Baer’s existing entities is expected to double the Bank’s assets under management in Asia, thereby significantly strengthening Julius Baer’s already strong position in this important growth region.
Boris F.J. Collardi, Chief Executive Officer of Julius Baer Group, said: “Representing more than a third of IWM’s entire business in scope, the integration of the Hong Kong and Singapore businesses is a crucial part of the transaction. After the integration about a quarter of our total assets will be managed in Asia and it will make us one of the largest international wealth management players in our second home market. The transfer will double the number of our local employees. With this considerable reinforcement we have created excellent preconditions for further dynamic growth in this very important market in the years to come.”
Dr. Thomas R. Meier, Head Asia of Bank Julius Baer, added: “I very much look forward to welcoming the new colleagues and clients. The teams on both sides have already worked together very closely over the last few months to ensure that the transition will continue to proceed as planned. By combining the unique strengths and histories of both banks we will be able to provide an even better and more comprehensive service to clients in this region.”
IWM’s financial advisers, their client relationships and related assets under management of the respective businesses will be transferred to the Julius Baer platforms in stages and in line with applicable regulations in the two jurisdictions. The process in Asia is expected to be completed in the first quarter of 2014.
In Hong Kong, Bank Julius Baer will eventually move its newly combined business into One International Finance Centre, 1 Harbour View Street as its new prime location. In Singapore, Bank Julius Baer will continue to operate out of its existing premises at Asia Square and add an office at Mapletree Business City. Singapore will remain Julius Baer’s IT and operations hub for Asia.
Other major businesses adding further scale to follow shortly
As previously communicated, since the Principal Closing of the transaction last February already CHF 24 billion of IWM’s assets under management have been reported by the end of April 2013. The next businesses to transfer, expected to occur during the coming summer months, are in the UK, Spain and Israel, which will add substantial scale to Julius Baer’s global network, especially in the UK. The preparations for these transfers are well under way.
IWM is an excellent strategic fit for Julius Baer, strengthening the Group’s presence in key growth markets around the globe and significantly enlarging its asset base. The integration phase which was launched in February 2013 is expected to be completed in the first quarter of 2015, with the large majority of the assets under management targeted to be transferred in 2013.
Foto: Holiday Inn Express. Fibra Inn anuncia la adquisición de hoteles en Guadalajara y Playa del Carmen
Deutsche Bank Mexico, S.A., Banking institution, Trust Division F/1616 or Fibra Inn, a Mexican real estate investment trust specializing in the hotel industry serving the business traveler, announced that it has completed the acquisition of the Holiday Inn Express Guadalajara UAG hotel.
Fibra Inn paid Ps. 186.9 million for this hotel, excluding taxes and acquisition expenses, and the adjoining land where the Company is planning a room expansion. The property was paid in cash and it is the first hotel acquisition purchased with the proceeds from the initial public offering that took place on March 13, 2013. Furthermore, this hotel is part of the Acquisition Portfolio, which will include the purchase of five additional properties as part of the Initial Portfolio.
“This first acquisition represents a high-quality investment for the Company and one that will generate value for shareholders. As we mentioned during the IPO process, the Company is committed to disciplined growth for the Fibra, employing a long-term vision.”
The Holiday Inn Express Guadalajara UAG Hotel is a high potential property with 100 rooms; Fibra Inn expects to add 99 rooms, which will be operating by the first quarter of 2014. This property is located at close proximity to Plaza Andares, the Universityof Guadalajara, the Belenes Industrial Park, and is located a few Kilometers from Pemex’s offices.
Operadora de Comercios de Vallarta, S.A de C.V. will be the hotel operator of this hotel. During 2012, the occupancy rate was 65%, the average room rate was Ps. 1,142 and the RevPar was Ps.737.
Mr. Victor Zorrilla, President and Chief Executive Officer stated: “This first acquisition represents a high-quality investment for the Company and one that will generate value for shareholders. As we mentioned during the IPO process, the Company is committed to disciplined growth for the Fibra, employing a long-term vision.”
Wikimedia CommonsFoto: Elekhh . Investec Asset Management registra récord en activos bajo gestión
Investec Asset Management’s earnings increased by five per cent to a record GBP140m (USD221.5m) according to the firm’s results for the financial year to 31 March 2013.
Revenues exceeded GBP400m for the first time having grown by eight per cent on the prior year to GBP407m.
Assets under management rose to a record GBP69.8bn (USD106bn) supported by net inflows of GBP4.1bn (USD6.5bn). These flows were generated from a globally diversified client base with the Americas, Africa and Europe client groups contributing significantly to the growth of the past year. The three months to 31 March 2013 was the 18th consecutive quarter of positive net inflows.
“As in the past, we have continued to invest in our investment, client service and operational capabilities. Our long-term objective remains the same: to manage clients’ investments to the highest standard possible by exceeding their investment and client service expectations.”
Chief executive officer Hendrik du Toit says: “Along with my many colleagues who have experienced the development of the business since the inception years, I am delighted to report that our 22nd year ended with positive business momentum, giving us confidence for the future. Our culture is well established, our staff complement is stable and experienced and our investment performance competitive. To support the ongoing sustainability of our firm, we have announced that a management consortium agreed terms to purchase 15 per cent of the business from Investec Plc and Investec Ltd. This will encourage long-term thinking and improve the alignment of stakeholder interests.
“As in the past, we have continued to invest in our investment, client service and operational capabilities. Our long-term objective remains the same: to manage clients’ investments to the highest standard possible by exceeding their investment and client service expectations.”
Easing financing terms and the increasing number of corporate debt issues to fund special dividends and share buybacks are two developing trends that could negatively affect bond markets, according to the May Bond Market Observations from Standish, the Boston-based fixed income specialist for BNY Mellon.
“Both trends are detrimental to bond holders,” said Thomas D. Higgins, chief economist for Standish. “We are avoiding areas of the bond markets where we believe we are not being compensated for the associated risks.”
Despite these trends, Standish notes in the May report that it does not see evidence of imminent overheating in U.S. fixed income markets, except for Treasuries. The report also notes the benefits of liquidity created by central banks, including the lowered systemic risk and the rallies in global capital markets.
However, the report points to the diminishing effectiveness in generating real economic activity from successive rounds of quantitative easing. “Such policies may have long-term consequences, which could increase financial instability in the future,” Higgins said.
Increased liquidity may raise credit risks by compromising bank underwriting standards or discouraging necessary balance sheet repair and deleveraging as has occurred in Europe, according to the report. It also could lead to a yield-seeking behavior by investors that can push asset prices beyond their fundamental values and create bubbles in the financial markets, the report said.
Regarding Treasuries, the Standish report notes that they are probably the most overvalued of all fixed income assets due to the quantitative easing policies of the Federal Reserve. However, this is viewed as a byproduct of the easing policies to support economic activity, according to the report.
Wikimedia CommonsFoto: Che. El fondo de vino BAF adquiere la colección de Biondi-Santi
The Bottled Asset Fund (BAF), the wine investment fund launched in 2010 and directed by Sergio Esposito, a leading authority on Italian wine, today announced the acquisition of a historic collection of vintages of Biondi-Santi Brunello di Montalcino valued at $5 million (€4 million). This 7,000-bottle acquisition spans 1945-1975 and includes hundreds of bottles of the cult 1955 and 1964 vintages, representing a unique addition to the BAF portfolio. It is the largest vertical collection sale in history of “blue chip” Italian wines from a single source and with perfect provenance, as well as the largest single purchase in the history of Italian wine.
The deal was struck on March 19, 2013, only a few weeks before the sad passing of Franco Biondi-Santi on April 7th, 2013. Mr. Biondi-Santi was the fourth generation patriarch of one of the world’s most important winemaking families. The Biondi-Santi estate is widely recognized as the creator of Italy’s most important wine, Brunello di Montalcino, and, more importantly, it almost single-handedly introduced wines for long-term ageing to Italian wine culture. The family was the first to adopt the “Bordeaux model,” whereby wines are re-tasted and re-corked every few years, often with media present to extend their brand exposure. This model fosters a much higher quality that leads to greater market exposure and price appreciation over the long-term. At the time of Biondi-Santi’s adoption of the model, the protocol was unique for Italian wines.
“Biondi-Santi’s collection is legendary,” said Mr. Esposito, Director of the BAF’s investment board and Founder and CEO of Italian Wine Merchants, the premier Italian wine consultant in the US. “I’m highly confident that we reached a fantastic deal for our investors and for Italy itself. The quality of these bottles directly from cellar is incredible and their value will undoubtedly increase throughout the years as they are an Italian natural treasure.” Mr. Esposito’s long-term goal is to elevate the status of Italian wine as an investment asset, creating consistency, transparency and objective value in the Italian wine market.
The market for Italian wine is growing globally, with export markets, especially Asia, driving up value. The BAF value is currently seeing stunning profits, upwards of 30% and is projected to return profits to its investors, net of fees, of over 30%. By the end of 2013, Vino Management Corporation, the administrative body behind BAF, plans to launch another fund with the goal to commit $25 million.
Wikimedia CommonsPhoto: Hans Stieglitz. Mexican Company InverCap Closes Investment Funds to Focus on Pensions
The fund InverCap Fondos de Inversión has officially closed, and prior to this, it returned all of the managed resources to its clients. This is due to the funds manager now turning exclusively to focus on the Afore and pensions sectors, according to a statement made by the company.
The closing process began last March. Arturo Hanono, the Chief Financial Officer at InverCap, confirmed to El Economista newspaper that all resources had been returned to clients.
Afore Invercap, which has just celebrated its 8th anniversary in the market, manages more than a million clients’ funds. It offers the best yields in each of the SIEFOREs, according to data from the Consar, the commission that oversees Mexican retirement fund administrators.
April this year, Afore Invercap managed 116.4 billion pesos (about $9.4 billion), while according to data from AMIB, the Mexican Securities Industry Association, the investment fund operator Invercap administered only 546.9 million pesos (about $44 million) at the close of March.
