Wikimedia CommonsFoto: Marcosleal. Las trabas económicas de Brasil reducen el número de UHNWI del país y su fortuna total
UHNW population growth in has suffered from the steep drop in GDP growth but may stabilize should appropriate policies be adopted. This is one of the conclusions highlighted in the World Ultra Wealth Report 2012-2013 by Wealth-X, which, on the other hand, notes that Brazil’s attraction as an investment destination is supported by its net global creditor status, stable external liquidity position as well as enviable international reserves, which are approaching the US$380 billion mark, approximately half the region’s reserves. “Though the negative impact on an appreciating currency is widely recognized, there is official support for policies that support a strong Brazilian Real”, it adds, noting that the Real is expected to appreciate in view of excess global liquidity and investor thirst for high yield investment options, particularly in terms of global fixed income investments.
The total wealth in Braziliam UHNWI’s hands has fallen 6.7% from a year ago reaching US$865 billion while the number of UHNW individuals falls 1.7% up to 4,640 individuals.
According to the report, further liberalization of state-controlled sectors and companies, such as state-controlled banks and Petrobras, could boost Brazil’s attraction for investors, who have felt locked out of state controlled monopolies. Brazil reportedly received close to US$60 billion FDI flows from June 2011-2012. “The need to invest in energy and transport infrastructure, prerequisites for future growth, is urgent and should be at the forefront of government policy”.
Other hurdles that Brazil potentially faces would include, the inclination towards increased trade protectionism perceived growth in corruption and the need to address challenges face by the manufacturing sector in relation to the tax structure.
Wealth-X analysis shows there are 49 billionaires in the country. This group of billionaires, representing the top 1.1% if the UHNW population, control 34.7% of the total fortune attributable to the ultra wealthy segment. On average, these billionaires are US$6.1 billion each.
The lowest tier of the UHNW group represented by those worth US$30 million to US$49 million is the largest group, making up 40.8% of the total UHNW population in Brazil. They have combined fortune US$75 billion or 8.7% of the total wealth of Brazil’s ultra affluent.The report concludes pointing out that the Brazilian UHNW individuals are mobile and versatile, with at least 10% of UHNWI’s conducting business primarily outside of Brazil and at least 9% owning residences outside of Brazil.
Next month, Latin Markets is bringing over 400 industry leaders to the Private Wealth Brazil Forumon June 11 at the Tivoli Hotel in Sao Paulo. The one day forum focuses on providing updates regarding regulation, investment management, trust issues and strategies to protect and grow wealth. You can register through this link.
. Luis Moreno assumes the direction of Private Banking, Asset Management, and Insurance Division of Santander
Luis Moreno García has been named director of the division in Private Banking, Asset Management, and Insurance Division, assuming a week later that Javier Marín has been named Chief of Executive Officer (CEO) of the bank replacing Alfredo Sáenz, sources have been confirmed by Grupo Santander to Funds Society.
The appointment of Luis Moreno García has been communicated over an internal memo that has been signed by the new CEO of the bank (Javier Marín). Moreno, who started working in Grupo Santander in 1988, used to be the director of Marketing in that same division.
José Salgado Fuertes de Villavicencio has been named global head of Private Banking. The Private Banking Commercial area and the Private Banking Products and Market Intelligence area will report to him. In accordance with the established corporate model, each country’s private banking business units that are integrated within commercial banking will report globally to José Salgado, and locally to the region’s corresponding commercial banking head.
Also,Oscar Villoslada Montpart has been named global head of Insurance. The Insurance Commercial area and the Insurance Products and Market Intelligence area will report to him. The new head of the division’s Marketing area, to replace Luis Moreno, will be Maria Dolores Pescador Castrillo.
The division’s remaining business areas, Asset Management and Business Development, will maintain their current structures and heads. The corporate support areas will not undergo any modifications, maintaining, inaccordance with the model defined by the Group, the process of double reporting to the business division and to the corresponding corporate support division.
Jordi Comas, Managing Director of Andbank. Andbank expects to double its business in Latin America in four years, with a clear bet on Mexico and Brazil
Andbank has been in Latin America for more than ten years. A decade in which has focused all its efforts towards creating a market through acquisitions and new contracts in order to establish its model of private banking. However, its project has reached one of its most ambitious moments due to the bank’s plans of doubling its assets under management for the next four to five years, “taking into consideration the results,” according to Jordi Comas (Managing Director) in an interview with Funds Society.
Today, Andback manages US$15 billion under management, which means they are suppose to reach US$30 billion in five years, with a clear bet towards he Brazilian and Mexican markets. Fifty percent of the company’s assets come from foreign countries, and if goals are achieved, eighty percent of its business would come from the international division mainly from Latin America. “We want to be a Latin American private bank,” emphasized Comas.
“In 2012 we grew 20% and the idea is to keep growing until the international area takes up 80% of the business.”
In Andbank’s last 12 years, the result of the merger between two family banks from Andorra (Banc Angricol y Banca Reig) focused on private banking for more than 80 years and has experienced an important transformation that assisted important moments such as in 2008 when they decided to establish the markets that they considered vital for their strategy, and where they entered “with conviction and determination,” which was a crucial change in strategy that coincided with the arrival of the group led by Jordi Comas and Ricard Tubau, who is today’s Chief Executive Officer of the bank.
Restructuring the Business
Comas and Tubau, who came from the consulting business, specifically from the Boston Consulting Group (BCG), prepared a project that has put the bank in a very privileged position. After the merger in 2001, the international expansion began in 2003 and in 2008 a new period started, which Comas defined it as a period of economic success, a period that has opened the bank to the world. The whole bank was restructured in 2008 while maintaining the same direction, but still focusing on changing their profile.
“Comas believes that the banks that understand Latin America ‘are very few.’ We understand the idiosyncras, we have no rush and we invest for the long run.”
Since his arrival, the bank has grown in the volume of assets at annual rates close to fifteen percent, as well as maintaining one of the highest solvency rates in the sector (above twenty percent). Also, the payroll has doubled and the bank has upgraded from being in five countries, to now 12.
Based on this topic, Comas remembered that in 2008, only 5% of the business came from Latin America; a percentage that has reached 40% today. While in short-term markets, more than 50% will come from the international businesses. Andbank has offices with banking authorization in Spain, Luxemburg, Monaco, Bahamas, Panama, and Mexico. Therefore, adding up to seven banking authorizations, including Andorra. The bank also has offices in Switzerland and Miami where they have a broker dealer.
“Fifty percent of the business will come from other countries in the short run and expect it to continue growing. We have grown twenty percent in 2012 and the plan is to continue growing up to the point where the international area will generate 80% of the business,” according to his interview.
“The banks that understand Latin America are very few.”
The advisor thinks that the Banks that understand Latin America “are very few”. From Andbank, he said, “we understand the way of thinking, we are not in a hurry and we invest for the long run”. In his opinion, the bank has a competitive dynamic which is going to continue positioning the bank in the sector. At this point, he mentioned that, through the Columbus Asset management company, located in Mexico, where the bank used to acquire fifty percent of the ownership in 2008, that the business does not grow less than twenty-five percent each year.
“From an organic point of view, there has to be a 20% growth rate and buy things that are not too big.”
“In this market, the banks that are moving slowly leave us an excellent space in the private banking area, which is our core business. We compete in terms of speed and talent,” he emphasized.
In terms of the bankers’ profile, Comas said they have, “the best of the best in profitability. There are people older than 45 years old with experience of 15 or 20 years in the sector that participate in an exciting and ambitious project.”
“The crisis is going to hit the Banks that are not going to be able to adapt”
The executive recognized that according to today’s environment in this sector, “the crisis is going to hit the banks that are not going to be able to adapt,” as well as Andback having the opportunity to change and become a reference bank. “The transition had to be done, it is going to bring an expansion which will change the buesiness.”
If they want to buy other banks in order to grow, the executive recognized that therewill be more acquisitions in private banking, but he emphasized that it will be done in a planned way. “If you are not skilled, you will end up losing. From an organic point of view, we have to grow 20% per year and buy things that are not too big.”
Comas explained that every office that they open complicates the business because the bank is multi custody and multijurisdictional, which allows custody for third parties. Today the Bank has more than 650 in its payroll, from which half of this number is from employees located outside Andorra.
In terms of the type of client that the bank has in Latin America, it has a portfolio between US$7/10 million, a client with more than the average that the bank has in Europe.
Comas has a Bachelor’s degree in Economics and Business from the Autonomous University of Barcelona and an MBA from the Wharton School of the University of Pennsylvania. He started his professional career as co-founder and Chief Executive Officer of the publishing house Tibidabo Editions in 1984. Before starting to work in Boston Consulting Group in 1991, he worked for two years in the Research Area of La Caixa.
. Merrill Lynch Wealth Management nombra a Ashvin Chhabra nuevo CIO
Merrill Lynch Wealth Management today announced that Ashvin Chhabra is joining the firm as chief investment officer, head of Investment Management and Guidance (IMG). In his role, Chhabra will oversee the delivery of investment advice and strategy to Financial Advisors and their clients. He will also lead the IMG manager due diligence, investment analytics, and investment guidance teams, as well as the Ultra High Net Worth (UHNW) Investment Office.
Chhabra served as Merrill Lynch’s head of Wealth Strategies and Analytics between 2001 and 2007. During his time at Merrill Lynch, Chhabra delivered pioneering work to link behavioral finance to portfolio construction, the foundation of Merrill Lynch’s ability to deliver goals-based wealth management solutions to its clients.
Chhabra most recently served as the chief investment officer at the Institute for Advanced Study in Princeton, N.J. During his six years at the Institute, he worked closely with the Institute’s Board of Trustees’ Investment Committee, which is chaired by James H. Simons, founder of Renaissance Technologies.
Prior to joining Merrill Lynch in 2001, Chhabra was head of Quantitative Research at J.P. Morgan Private Bank. He holds a Ph.D. in applied physics from Yale University and is recognized as a leader in the fields of investment management, risk and asset allocation, and risk management. Chhabra is a frequent lecturer at leading universities and a board member of numerous academic and industry groups.
By MJaundoo1 . Sabadell United Bank appoints two new employers for their local network
Sabadell United Bank today announced that Louis-Albert H. Jolivert has been named a senior vice president at the bank’s headquarters at 1111 Brickell Ave. In this position, he will be responsible for working with professionals and entrepreneurs in order to help them meet their financial goals. Prior to joining Sabadell United Bank, Jolivert served as senior director of BNY Mellon Wealth Managementat BNY Mellon Financial Corporation and was also a vice president at JPMorgan Private Bank in Miami.
Jolivert holds a number of volunteer leadership positions throughout the Greater Miami community. He currently serves as the treasurer of the Miami Finance Forum and is the immediate past chairman of the board of trustees at The Miami Foundation. He is also a member of the Miami-Dade Cultural Affairs Council and the Knight Foundation’s Community Advisory Committee.
Sabadell United Bank also announced that Patrick Morris has been appointed vice president, professional banker. He will work out of the bank’s Dadeland Banking Center and is responsible for serving business professionals in meeting their financial goals. Prior to joining Sabadell United Bank, Morris served as the vice president and chief development officer at the YMCA of Greater Miami. Before this, he was the co-founder, president and CEO of Hands on Miami, a broad-based community outreach program.
Sabadell United Bank, headquartered in Miami, Florida, is a locally-managed, nationally-chartered banking institution. The bank has 23 locations throughout the state, serving more than 40,000 clients, and is the fifth largest bank in Florida by deposits. Bauer Financial Reports recognized the financial strength of the bank by awarding it a five-star rating, the highest available. Sabadell United Bank is recognized as the trusted financial advisor for professionals and businesses as well as domestic and international high-net-worth individuals.
One Thousand & One Voices (1K1V), a movement of influential families investing relational, intellectual and patient financial capital to profitably accelerate prosperity in developing markets, today announced its formation. The announcement is being made in Cape Town in conjunction with the World Economic Forum on Africa.
Influential families conceived of 1K1V to help increase economic opportunity for families in developing markets. Each family’s capital is three-dimensional: relational capital leverages member family connections and reputation, intellectual capital leverages their business and industry knowledge, and patient financial capital provides the funding that developing-market businesses need to grow.
“One Thousand & One Voices was established with the belief that the pathway to economic freedom — real prosperity for millions living in poverty — is through values-based private investment grounded in the time-tested principles of free enterprise,” said Dr. John Coors, chief executive officer of technical ceramics company CoorsTek and one of the movement’s initial family members.
1K1V’s model was designed to provide financial capital that is sufficiently patient to accelerate prosperity in developing markets, addressing a major shortcoming of traditional private equity and many impact investment funds operating today. 1K1V does not impose arbitrary limits on the duration of its investments, making it possible to provide capital that is as patient as may be required, which reduces the risk of impaired returns due to forced exits.
1K1V intends to deploy $300 million in sub-Saharan Africa and similar or larger amounts in other geographies. Although 1KIV’s initial focus is sub-Saharan Africa – a region now experiencing robust economic growth but one that carries a substantial legacy of poverty, inefficiency, and undercapitalization – the movement is expected thereafter to focus on Latin America, Southeast Asia and Eastern Europe. 1K1V expects to use leading edge, proprietary tools to predict, measure and report impact.
“This movement emphasizes that a larger private-sector role in developing markets will profitably accelerate prosperity, and I strongly believe that One Thousand & One Voices’ three-dimensional capital model positions it for long-term success where other initiatives have fallen short,” said Hendrik Jordaan, president and chief executive officer of 1K1V. “I believe that One Thousand & One Voices fundamentally re-defines how private equity and leading families can drive prosperity in developing markets.”
“Capitalism and business done well – not socialism or philanthropy – is the only proven path for economic development to lift multitudes from poverty,” said Dr. Coors. “People in Africa are yearning for jobs. Only business can create an expanding jobs base, but business can only succeed if it has investment, and investment will come only if the returns warrant the risk. I believe today they do, and that is why my family has become involved in the One Thousand & One Voices movement.”
1K1V is comprised entirely of influential families with experience and potential influence in sectors that will be accretive to 1K1V’s investment objectives, and in part to represent a diversity of strategic regions around the globe. The movement employs a unique membership program to facilitate collaboration among families, particularly next generation family members.
“I became involved with One Thousand & One Voices with the recognition that private equity serves a very valuable purpose in developing markets, and also that this is a wonderful way to introduce my family to private equity investing,” said Charles Widger, founder and executive chairman of Brinker Capital, a Berwyn, Pennsylvania-based investment management firm, and a 1K1V founding family member. “A significant challenge for many families is educating the next generation on investing their money, and One Thousand & One Voices provides a strong framework for meeting this challenge.
“Many developing markets are now progressing economically and socially at rates never before seen in their histories, providing a good foundation for private sector investment to build upon,” said Don Gips, former US Ambassador to South Africa. “As these economies are still developing, building sound, successful, job-creating businesses that will capture the full market potential requires a long horizon, creating a critical need for highly patient capital.”
Wikimedia CommonsBy Earth Sciences and Image Analysis Laboratory, NASA. Itaú, interested in buying Citi´s Retail Banking business in Uruguay
The Brazilian Bank Itaú is almost ready to present a binding bid in order to buy the Citibank’s retail banking operations in Uruguay, which will later turn into a private financial institution in the country according to newspaper, El Observador, citing closed sources associated with the operation.
It seems that the terms of the agreement were closed last week in Uruguay and the only move they are waiting for is ratification from the main offices of both banks as well as further approval in order to make it a formal offer and adjust certain details, cited the same sources. The transaction would imply the transfer of two subsidiaries and 62 employees.
Citi would be mainly interested on closing the operation “as soon as possible,” an operation where the economic details have not been expressed to the media. The American bank is doing a global restructuring plan in order to reduce costs by $1.1 billion per year and a staff reduction of 11,000 jobs, according to what was explained by the bank at the end of 2012.
“Deadlines are not being established. These are complex operations that are going to neglect important details, and not because they have not been done before,” according to the bank’s spokesman who also mentioned that the Central Bank should give its approval taking into consideration that this operation is more than just a simple sale of assets.
If the operation is complete, Itaú would take the lead in front of BBVA placed in second place and behind, to another Spanish bank, Banco Santander in terms of business volume among the private banking institutions. Santander was the leader of the private banking segment with 29.2% of the market, considering business volume, and later followed by BBVA with 17.7% according to the data from the Central Bank. Itaú was placed in third with 17.5%.
By Adavyd. Mexican Government resumes conversations with the Opposition Leaders to continue the path towards reforms
After a series of accusations from the political leaders of PAN, PRI, and PRD over the alleged electoral use of the social programs of various entities in the country; as well as the result of the decision made by the President of Mexico, Enrique Peña Nieto, of postponing the presentation of the financial reform, the leaders of PAN, PRI, and PRD met this Wednesday in a meeting proposed by Los Pinos. Whereas they agreed to start the discussion again in order to give hope to the Agreement for Mexico and to continue moving forward in the agenda for reforms.
Peña Nieto suspended the presentation of the proposal, this last Tuesday, for the financial reform as a result of the accusations of both sides. However, this same Wednesday, he emphasized that he will not tolerate the political use of the social programs and called a meeting with the leaders of the main political parties through his secretary, Miguel Ángel Osorio Chong
In this meeting, which was performed behind closed doors, PAN’s leader (Gustavo Madero), PRD’s president (Jesus Zambrano), PRI’s president (Cesar Camacho), the Government’s Secretary (Miguel Ángel Osorio Chong), and the Head of the President’s Office (Aurelio Nuño) were all present.
According to the Secretary of Treasury, the initiatives for the financial reform “want to transform the development banking sector into an authentic motor for an inclusive economic development, and change the legal framework in order for the commercial banking sector to lend more money at lower rates.” It is expected that the proposal will be presented by Peña Nieto and later sent to the Congress before Tuesday.
Wikimedia CommonsBy Alistair Rickman . El equipo de Tecnología Global de Henderson incorpora a su equipo al veterano Graeme Clark
Henderson Global Investors has strengthened its technology team with the hire of Graeme Clark as senior investment analyst. Graeme has over 13 years’ experience in technology equities, gained predominantly on the sell-side. Most recently he was at Jefferies International as senior analyst covering European software and IT Services. Prior to this he spent five years at Piper Jaffray, where he founded the software and IT services team which ultimately grew to a team of three analysts, the company said in a statement.
In addition, Niall Holleran, who joined Henderson in August 2012 as a trainee on the technology team has been promoted to research assistant. He will work alongside Graeme, investment analyst Ronan Kelleher and the funds’ managers Stuart O’Gorman and Ian Warmerdam. As part of this change, analysts Gordon Happell and Giles Tulloch have decided to leave Henderson.
Commenting on Graeme’s appointment and the team changes Ian Warmerdam says, “It is testament to the regard in which the Henderson technology team is held that we have been able to bring Graeme on board. His experience in the technology sector, garnered pre and post the fabled dot com boom and bust era, together with his broader financial markets and analytical experience, will stand our clients in good stead.
The five strong Henderson Technology team manages £2.57 billion (As at 31st March 2013 ) across a range of international clients.
Wikimedia CommonsFoto: Khalidshou . CICC IM y PineBridge lanzan el primer fondo mundial de hedge funds dirigido a inversores chinos
CICC Investment Management (USA) and PineBridge Investments announced the launch of the first global fund of hedge funds (“Fund”) on April 1 targeting qualified Chinese investors. The launch of the global fund of hedge funds demonstrates the strategic decision of CICC Investment Management (USA)’s parent company, China International Capital Corporation Limited (“CICC”), to expand its investment management business globally.
PineBridge and CICC Investment Management (USA) have both invested proprietary capital to seed the Fund and ensure alignment of interests with investors. CICC Investment Management (USA) serves as the Fund’s investment manager and PineBridge as its sub-advisor. CICC Investment Management (USA) will leverage its resources in Beijing and New York. The PineBridge Hedge Fund Solutions team is primarily based in New York, London and Hong Kong.
The Fund intends to invest in a diverse range of hedge funds globally across equity long/short, event driven, global macro/CTA, and relative value strategies. Potential managers of these hedge funds are expected to have outperformed HFRX, with proven track records and assets under management ranging from the hundreds of millions to billions of dollars. The Fund aims to generate attractive risk adjusted returns with low volatility and low correlations with the broad markets. Investors in the Fund will benefit from exposure to successful hedge funds globally through a diversified portfolio supported by CICC’s direct market investment experience and PineBridge’s 30-year history in hedge fund investing.
