By NASA. David Buenfil, New CEO for Old Mutual in Latin America and Asia
David Buenfil, until now the CEO of the Skandia Group in Colombia, has been appointed as the CEO of the Old Mutual Group for Latin America and Asia, as revealed in an internal memo the Funds Society has been privy to.
Buenfil is substituted in his role by Daniel Cortés-McCallister, a professional with an impressive career trajectory in the financial sector, in the segments where Skandia has participation: pensions, trusts, stockbroker companies and insurance.
Buenfil, after four years at the frontlines of Skandia in Colombia, now moves on to take care of Latin American and Asian business for Old Mutual Group, Skandia’s parent company. During his time at Skandia he has had the opportunity to drive the company into a strengthened market position. Cortés-McCallister will report directly to Buenfil and the latter will stay connected to Columbia from his new post, as well as remaining on the Board of Directors.
Daniel Cortés McCallisteris a business administrator and accountant who graduated from Wharton School of Finance at the University of Pennsylvania. During his career Cortés has been linked to important companies in the financial sector, both inside Colombia and outside it; like Citibank, Bank of America, Banco Santander, BBVA, Porvenir and Davivienda, in which he fulfilled the role of Executive Vice-president of Capital and Investment Markets, until joining the Old Mutual company in Colombia.
Foto: Scalleja. Dos inversores BRIC marcan un nuevo record en el mercado de oficinas de Nueva York
Brazil’s Safra banking group and the families of Chinese real estate developer Zhang bought a 40% stake in New York’s General Motors Building for about $1.4 billion, as reported by the Wall Street Journal.
The stake was bought through an entity called Sungate Trust, owned by the Zhang family, who is the billionaire founder and chief executive officer of Soho China Ltd. (410), the biggest developer in Beijing’s central business district and M. Safra & Co., the New York-based investment firm of the Safra family.
The price paid implies that the 2 million-square-foot tower is valued at about $3.4 billion, the highest total value for a U.S. property since the GM Building sold in 2008.
The sellers were Goldman Sachs Group Inc.’s U.S. Real Estate Opportunities Fund, which invests on behalf of the sovereign wealth funds of Kuwait and Qatar; and Meraas Capital LLC, a Dubai-based private-equity firm, the person said. The sale was completed on May 31.
Boston Properties Inc. (BXP) retains a 60% stake in the building and manages it.
. Merk Investments Calls for Currency Diversification, Away from Safe Havens
Axel Merk, president and CIO of Merk Investments talks with Funds Society about the benefits of investing in currencies and his preferences in the market.
With a low rate environment and increasing prices in equities fueled by the extra liquidity in the market, the search for performance is increasingly more complex, reason why Merk recommends investors capable of living “in a world with no safe havens” to diversify on the currency side. In the expert’s opinion, currency diversification offers opportunities to create diversified portfolios with low correlations which are relatively less complicated to operate than the equity market.
Speaking about specific currencies, Merk- who recently participated in the 66th annual CFA conference-, mentions that when looking to diversify, although many investors are too optimist on peso, they believe –because of its high correlation with the SP500- that there are better opportunities with other currencies such as the Swedish Krone, Canadian dollar, Sterling and surprisingly, the Euro, mentioning that even though “the entire world loves México and hates the Eurozone, we tend to buy euro”.
Amongst the reasons why they are bullish on the euro he mentions that there is a misconception that ties economic growth to a strong currency, and that having the European Central Bank returning many of the loans they had, could boost the euro. Merk also mentioned that there are many yield-hungry investors happy to acquire yields offered by peripheral European securities, which valuations have been damaged by the less than optimal macro environment some euro countries are currently experiencing.
Axel Merk, author of the book “Sustainable Wealth”, is an expert on macro trends, and international investing focused on currencies. He holds a B.A. in Economics (magna cum laude) and a M.Sc. in Computer Science from Brown University.
Photo: Yatkin S Krishnappa . Hiring of Financial Executives Rose in Chile During the First Quarter
During the first quarter of the current year, there was a slight increase in the hiring of local financial executives in Chile, as compared with the last quarter of last year. According to a study by Seminarium Penrhyn, reported in this Tuesday’s Diario Financiero, the increase was of 3.5%, while the last quarter in 2012 showed an increase of 2.7%.
During the first part of the year, there were 44 hires of first line executives, as opposed to the 34 recorded for the last part of 2012. AFPs -pension funds- was the sector showing greater executive mobility, increasing from 6.5% recorded for last year´s October-December quarter, to 8.7% during the January-March period of the current year. Mutual fund asset managers (AGFs) were in second place with an increase of 5.2%, although this sector slowed down as compared to the 6.8% they recorded last quarter, as explained by Rafael Rodriguez, President of Seminarium Penrhyn.
The report indicates that the general insurance sector only hired at a rate of 1.5%, while multi-family offices showed no movement at all.
Regarding the origin of new hires, internal movements accounted for 73% of all cases, as compared to the 59% for the last quarter. In this respect, two hires stand out: Ignacio and Diego Yarur, sons of the president of BCI Bank, as managing directors for Banco Retail and Banco Comercial, respectively. Both of them had been executives at their respective banks for several years filling key executive positions.
Despite the increase, which shows a higher performance as compared to the three last months of 2012, Rodriguez notes that the 3.5% increase recorded during January to March period of the current year is lower than the 5.8% increase recorded for the same period last year. “There is a consistent decrease, with some sectors showing little or no movement at all, and this points to a trend of less hires of top executives in the current year, as compared to 2012”.
The report indicates that the most hired professionals in the financial sector are those with university degrees, mainly specialized commercial and civil engineers, representing 34% and 32% of all hires respectively. On the other hand, hiring of accountant/auditors increased during the first quarter from 3% to 11%; while hiring of lawyers increased from 3% to 5%.
Finally, it should be noted that hiring of foreign professionals decreased by almost 50%, going from 15% to 7% in the period being reported.
. WE hires Joseph Kellogg as Head of Wealth Planning in Miami
Joseph C. Kellogg has joined WE Family Offices in Miami as head of Wealth Planning, a position from which he will work hand in hand with the clients’ lawyers, the clients, and the company’s management, as he explained to Funds Society.
Kellogg’s work will always be closely connected with that of the lawyers representing WE clients, he will also work closely with the company’s managers and clients as legal advice expert for wealth planning and management.
Kellogg, who comes from HSBC in Miami, sees this new phase as “an excellent opportunity to work with a group of highly experienced and reputed professionals.” He added that in his new job as an advisor he can perform in a more flexible manner and without the conflict of interests he had experienced previously.
Kellogg, J. D., LL.M. (Tax), CFP, is an attorney licensed in New York and Florida. He previously provided wealth planning services to private banking clients of HSBC and of UBS AG in Miami. In 2002, Kellogg opened and managed the Miami representative office for the Amicorp Group, where he provided corporate and fiduciary structures both for businesses and individuals.
From 1997 to 2002, Kellogg worked for Citco Group from Curacao, Netherlands Antilles, and later in the British Virgin Islands. He is currently the president of the Miami Society of Trust and Estate Practitioners (STEP).
The new WE executive received his JD from the American University in Washington, his DC and his LL.M. (Tax) at the University of Miami and studied a Master’s degree of one year’s duration in the program of Legal Studies at the “Escuela Libre de Derecho” (Free School of Law) in Mexico City.
WE is a family office, with offices in Miami and New York, which serves clients Ultra High Net Worth clients (UHNW). The firm offers comprehensive management on fiscal and legal matters, family business governance and protocol, amongst others, as well as non-discretionary management.
Northern Trust has selected David C. Albright to lead sales and marketing for its Global Family & Private Investment Offices group, effective immediately.
Albright most recently led new business development for the group across the Northeast, introducing prospective clients to Northern Trust’s customized financial solutions through a broad offering of both private client and institutional services including investment advisory, global asset management, trade execution, asset servicing, performance measurement and risk analytics, fund administration, domestic and off-shore trust and commercial and private banking capabilities.
“David’s years of experience creating innovative solutions to meet the financial needs of our wealthiest clients make him a perfect fit for this role,” Jeff Kauffman, Head of the Global Family & Private Investment Offices group at Northern Trust, said. “David has devoted his entire career at Northern Trust to serving our clients and their advisors. As a result, he has developed a deep understanding of the needs of our dynamic client base, which includes exceptionally wealthy families, global family offices, private trust companies, private investment companies and private foundations.”
Prior to joining Northern Trust 15 years ago, Albright was a client administrator in the Corporate Trust department of American National Bank of Chicago. He is a graduate of Miami University.
Northern Trust’s approach to serving clients in the Global Family & Private Investment Offices group combines technology and institutional capabilities with a tradition of personalized service to meet clients’ complex financial needs, which include worldwide financial interests, investment partnerships, operating businesses, trust assets, multiple residences and charitable foundations.
Photo: PRNewswire . Brian Porter Takes on Role of President and CEO of Scotiabank
Scotiabank Chief Executive Officer Rick Waugh today announced his intention to retire as CEO effective November 1, 2013 after 10 years in the role and 43 years with the Bank. He will remain a Director of the Board and assume the role of Deputy Chairman of the Bank until January 31, 2014.
The Board of Directors has appointed Brian Porter to the role of President and Chief Executive Officer effective November 1, 2013. Brian was appointed to the role of President on November 1, 2012, and just prior to that was Group Head, International Banking, overseeing all of the Bank’s personal, small business and commercial banking operations in more than 55 countries outside of Canada. Brian was also Scotiabank’s Group Head of Global Risk Management and Treasury. He joined Scotiabank in 1981, and has held a variety of other management positions, including Deputy Chairman of Global Banking and Markets.
“Rick Waugh has guided Scotiabank through a period of tremendous growth, generating exceptional returns for shareholders and employees during some very turbulent times. His focus on customers, diversification, emerging markets and risk management along with his strong values, has shaped the growth and direction of the Bank over the last ten years,” said John Mayberry, Chairman of the Board.
Wikimedia CommonsPhoto: Ernesto. Planigrupo Management Buys 9 New Shopping Malls in Mexico for $253 Million
Planigrupo Management, through its CKD PLANICK, has made an investment of US$253 million in nine shopping malls in Mexico. The investment was made in capital and debt, and was duly approved by the Holders’ Assembly on January 16, March 19 and May 15 of 2013 respectively.
The investment represents the total purchase of eight shopping malls and a partial purchase of a ninth, all located in the Mexican Republic where the middle classes are experiencing a continued resurgence.
At the close of April, Planigrupo Management had 2.5 billion pesos (197 million US dollars) invested by Mexican pension fund managers, or AFORES. This stands as the thirteenth largest investment on structured instruments according to data from Consar, Mexico’s National Commission for Retirement Savings.
The trust’s principal goal is to invest in the development, acquisition, design, construction, maintenance, leasing, management, administration, renovation, expansion and financing of real estate in Mexico, as well as making investments to acquire the rights to collect income from the lease of Mexican shopping malls. It announced the transaction, completed on May 17, via a communication sent to the Mexican Stock Exchange.
Photo: Freefr . CaixaBank Considers Selling 10% Share of Grupo Financiero Inbursa
In a statement issued las week, CaixaBank said it was studying the possibility of placing approximately half of its participation in Grupo Financiero Inbursa (GFI), equivalent to about 10% of GFI’s common stock, in the Mexican and international markets. “A final decision has not yet been made,” was communicated by the Spanish entity to the CNMV, the Spanish Stock Market Commission.
The entity emphasized that the final decision regarding the placement will ultimately depend on the market conditions and will be communicated accordingly by CaixaBank through the appropriate channels.
In any case, the financial institution stated that CaixaBank’s intention regarding a potential and partial divestiture of its participation in the financial group controlled by the millionaire Carlos Slim, “was not to change its commitment to the GFI project or its principle shareholders”.
Grupo Financiero Inbursa’s 10% stake is currently valued close to US$1.6 billion on the stock exchange, well below the investment that was made by the Spanish bank. In May 2008, CaixaBank bought the share at 38,5 pesos per share, contrasted with the current price of 29,4 pesos per share. This announcement comes at a time when the Spanish banking sector is once again under scrutiny, due to a possible and necessary injection of capital
Photo: Averette. Miami, destino principal del medio billón de dólares offshore que generará América Latina
According to the Boston Consulting Group 2013 Global Wealth Report offshore wealth, defined as assets booked in a country where the investor has no legal residence or tax domicile, rose by 6.1% in 2012 to $8.5 trillion. Despite this increase, stronger growth in onshore wealth led to a slight decline—to 6.3% from 6.4%, compared with 2011—in offshore wealth’s share of global private wealth. While offshore wealth is projected to rise modestly over the next five years, reaching $11.2 trillion by the end of 2017, BCG concludes that wealth is increasingly moving onshore due to the intense pressure that tax authorities are exerting on offshore centers.
Sources and Destinations of New Offshore Wealth Since existing wealth in offshore centers will likely remain fairly static in the coming years, the battle for leadership in offshore centers will largely be determined by the ability to attract new offshore wealth. Over the next five years, BCG projects that offshore wealth created globally will come largely from investors in Asia-Pacific ($1.4 trillion), Latin America ($0.5 trillion), the Middle East and Africa (MEA, $0.5 trillion), and Eastern Europe ($0.2 trillion).
Asia-Pacific offshore centers such as Singapore and Hong Kong are expected to receive most of the newly created wealth in the region that finds its way offshore. Similarly, offshore centers in the Caribbean region will benefit most from new offshore wealth created in Latin America, as will Miami-based U.S. and Latin American banks. European offshore centers are expected to profit most from offshore wealth created in Eastern Europe and MEA.
Overall, Asia-Pacific offshore centers will become more prominent. They are projected to hold roughly 18% of global offshore wealth by the end of 2017, compared with 15% in 2012, with European offshore centers dropping slightly from 58% to about 55%. The share of offshore centers in the U.S. and the Caribbean region will remain steady at around 20%, since they are expected to attract a fair share of new offshore wealth as well.
Switzerland is expected to remain the largest single offshore center globally, with about 25% of total offshore wealth by the end of 2017, compared with 26% in 2012. Singapore, in second place, is expected to increase its share from 10% to around 12%.
In order to become or remain leading offshore players, BCG highlights that private banks will have to adjust to the current trends by building local presences, developing more sophisticated offerings, and adapting to regulatory requirements. They must also focus on the regions where the most new offshore wealth will be created—and they must be ultratransparent. Last but not least, according to the report, they must focus on the UHNW and HNW segments, which will be the primary sources of new offshore wealth.
