Foto cedidaRick Lacaille, Senior Investment Advisor para liderar el programa ESG de State Street.. Rick Lacaille, nombrado nuevo Senior Investment Advisor para liderar el programa ESG de State Street
State Street Corporation announced in a press release that it has appointed Richard F. Lacaille –Rick Lacaille– to the newly-created role of senior investment advisor. He will lead the company’s Environmental, Social and Governance (ESG) solutions, services and thought leadership across all its businesses.
Lacaille will report to Ronald O’Hanley, chairman and chief executive officer of State Street Corporation, and, as a consequence of his appointment, Lori Heinel has been promoted to global chief investment officer for State Street Global Advisors.
The firm pointed out that, for many years, they have been at the forefront of innovation across its businesses, developing best-in class ESG capabilities including reporting and analytics tools, premier academic research, and investment solutions and products. They believe Lacaille will ensure their strategies are well-coordinated and optimized to serve clients’ increasing demand for ESG servicing, guidance and investment solutions.
“With more than two decades of leadership at State Street Global Advisors and his role as chair of State Street’s executive corporate responsibility committee, Lacaille is absolutely the right leader to take our firm’s ESG efforts to the next level. We believe ESG considerations drive long-term value for investors, and will only become increasingly more important as drivers of return and risk”, said O’Hanley.
The company also explained that Heinel, who joined State Street Global Advisors in 2014 as chief portfolio strategist and has served as deputy global chief investment officer since 2016, will assume Lacaille’s role as global chief investment officer. In the press release, they highlighted that she has been “a driving force” for a number of key initiatives across the business including implementing consideration of financially material ESG issues throughout the investment process.
In her role, Heinel will oversee the full spectrum of industry-leading investment capabilities from index funds and ETFs to active, multi-asset class solutions and alternative investments. She will lead an investment team of more than 600 professionals globally and will report to Cyrus Taraporevala, president and chief executive officer of State Street Global Advisors.
Taraporevala commented that Lori taking the reins as global chief investment officer will bring to fruition years of succession planning. “She is a change leader who I believe is strongly positioned to lead State Street Global Advisors’ Investments team, as we continue the investment innovation which has been a hallmark of our strategy for decades.”
The company noted that Lacaille and Heinel will assume their respective new roles by March 31, 2021 after a “careful and deliberate transition”.
Foto cedidaSede de BBVA en Houston.. BBVA vende su filial en Estados Unidos a PNC por 11.600 millones de dólares
There’s still room for new developments in the Spanish banking sector. BBVA has agreed to sell to PNC its subsidiary in the U.S. for 11.6 billion dollars (9.7 billion euros) in cash. The transaction immediately increased the rumors of a potential merger with the smaller entity Sabadell and BBVA confirmed they have started in conversations.
The bank pointed out in a press release that this amount represents almost 50% of its current market capitalization, “creating significant value for shareholders”. The transaction will have a positive impact on BBVA’s fully loaded CET1 ratio of 300 basis points, or 8.5 billion euros of CET1 generation.
“This is a very positive transaction for all sides. PNC has recognized the great value of our unique client franchise and of our great team in the US, who will be part of a leading financial services group in the country. The deal enhances our already strong financial position. We will have ample flexibility to profitably deploy capital in our markets strengthening our long-term growth profile and supporting economies in the recovery phase, and to increase distributions to shareholders”, said BBVA Group executive chairman, Carlos Torres Vila.
In the U.S., BBVA is a Sunbelt-based bank with more than 100 billion dollars in assets and 637 branches, with leading market shares in Texas, Alabama and Arizona. After the closing of the transaction, PNC, based in Pittsburgh (Pennsylvania) will become the country’s fifth-largest bank by assets.
The transaction excludes the broker dealer (BBVA Securities) and the branch in New York, through which BBVA will continue to provide corporate and investment banking services to its large corporate and institutional clients. It also excludes the representative office in San Francisco and the fintech investment fund Propel Venture Partners.
William S. Demchak, PNC’s chairman, president and chief executive officer, commented that the acquisition will accelerate their growth trajectory and drive long-term shareholder value. “This transaction is an opportunity to navigate our future from a position of strength, accelerating PNC’s expansion while drawing on our experience as a disciplined acquirer. We are excited to bring our industry-leading technology and innovative products and services to new markets and clients, leveraging our mutual commitment to building diverse and high performing teams and supporting the communities we serve”, he added.
PNC: the fifth largest retail bank
The purchase makes PNC the fifth largest retail bank in the United States, behind JP Morgan Chase, Bank of America, Wells Fargo and Citigroup. It will give the firm a greater leadership in markets with significant growth potential beyond its current presence in the Midwest and Mid-Atlantic, especially in Texas. In addition, it will strengthen its commercial and consumer banking business.
The transaction takes place six months after PNC left BlackRock’s shareholding selling its 22.4% stake. The two operations would have some relationship to help the bank build a nationwide franchis, as Demchak told the Financial Times: “We’ve managed to effectively trade the BlackRock ownership stake we had for a franchise that takes us coast to coast. BBVA is in the best markets in the country with substantial presence down in Texas, Arizona, California and in Denver, in Alabama, and down through Florida.”
The details
BBVA pointed out that the all-cash deal by PNC values the business sold at 19.7 times its 2019 earnings and 1.34 times its tangible book value as of September, 2020. The deal “unlocks hidden value” as the price is more than 2.5 times the average valuation assigned by analysts to the business (3.8 billion euros), for a business that represented less than 10% of 2019 Group’s net attributable profit. Also, the price represents almost 50% of BBVA’s current market capitalization.
“With the transaction, BBVA will have additional flexibility to invest in its markets and increase distributions to shareholders, with a sizeable buyback as an attractive option at current share prices”, the Spanish bank said. The sale will generate a capital gain net of taxes of approximately 580 million euros and BBVA Group’s tangible book value will increase by 1.4 billion euros. The deal is expected to close in mid 2021 once the required regulatory approvals have been obtained.
A potential merger with Sabadell
The announcement of the transaction immediately sparked the rumors of a potential merger with Banco Sabadell. On Monday, BBVA confirmed to the National Securities Market Commission (CNMV) that both entities had started conversations.
After that, Banco Sabadell also confirmed the negotiations.
Pixabay CC0 Public Domain. AllianceBernstein lanza una plataforma de deuda inmobiliaria europea con Lacarne Capital como socio
AllianceBernstein has launched a European Commercial Real Estate Debt (ECRED) business by partnering with Lacarne Capital, a pan European real estate debt platform led by Clark Coffee, a veteran of the region’s private credit markets.
The asset manager has announced in a press release that ECRED will launch with 1.2 billion dollars of initial capital, making it one of the largest real estate direct lending platform launches in Europe. The business will focus on direct origination and secondary participations in whole loans, subordinate loans, preferred equity and other real estate backed investments across the UK and European markets.
AllianceBernstein believes that this is an opportune time for ECRED’s launch, “as the disruption created by COVID-19 has made traditional sources of capital harder to secure, resulting in an increased opportunity set and relevance for alternative lenders”. The launch follows the “success” of the firm’s US Commercial Real Estate Debt platform (CRED), currently overseeing nearly 6 billion dollars in investor commitments since its launch in 2013. The firm pointed out that this is a natural extension of its broader strategy of continuing to diversify and grow its Private Alternatives franchise.
Coffee will serve as Chief Investment Officer of the ECRED business. He will be joined by Shivam Rastogi, former Head of Deutsche Bank’s Debt Origination and High Yield Lending business in Europe; and Daniel Stengel, previously General Counsel of Tyndaris Real Estate. The team will be based in London and Frankfurt.
“Following the success of our US CRED business, Europe is the logical next step for expanding AB’s growing Private Alternatives franchise. We are delighted to be in business with Clark, who not only brings an impressive investment track record but also benefits from first-hand experience building a successful European private debt business”, said Matthew Bass, Head of Private Alternatives for AllianceBernstein commented.
Meanwhile, Coffee commented that they have secured a “great partner” in AllianceBernstein:“Their ability to raise significant capital in the midst of a global pandemic speaks for itself. The breadth of their operational expertise and investor relationships provides a strong foundation upon which we intend to build a leading European real estate debt business”.
For the second consecutive month, U.S. equities slipped in October as the economic recovery slowed and a lack of additional fiscal stimulus deal dented investor sentiment. A resurgence in coronavirus cases in Europe and America weighs heavily on an economic recovery, as investors fear another shutdown. Tech stocks trailed the broader market with underwhelming guidance and missed revenue expectations.
The end of the month saw a record high in COVID-19 cases for a week, which led to increasing restrictions in Europe. Despite the surge domestically in the US, resilient optimism around treatments and vaccine progress helped avoid another large market selloff.
October had plenty of political headlines including the nomination and confirmation of Justice Amy Coney Barrett, President Trump’s recovery from COVID-19 and the highly anticipated Presidential debates. As the election has been so close, it may lead to weeks of confusion, unrest, and litigation that could likely drag electoral uncertainty into next year.
Regardless of the final outcome of the US Presidential election, with Joe Biden’s victory, we are confident that our investment portfolio can benefit under the new administration. We will continue to use the upcoming market volatility as an opportunity to buy attractive companies, which have positive free cash flows, healthy balance sheets and are trading at discounted prices.
M&A activity remained robust in October as worldwide dealmaking totaled $420 billion, an increase of 68% from October 2019. Technology and energy were particularly active sectors for consolidation.
Column by Gabelli Funds, written by Michael Gabelli
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
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GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
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Disclaimer: The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
Foto cedidaNicolas Namias, CEO of Natixis.. Natixis Ends Its Partnership with H20 AM
Natixis Investment Managers has started negotiations with H20 AM to end their partnership. During the presentation of its quarterly results, the company revealed that the firm of Bruno Crastes is no longer a strategic asset for them.
In a joint communication, both asset managers explained they have entered into discussions to initiate “a progressive and orderly” unwind of their partnership. The process has to be considered by relevant regulatory authorities and will require regulatory approvals.
These discussions relate to a potential gradual sale of Natixis IM’s stake in its subsidiary and include plans for H2O AM to take over the distribution of its products over a transition period due to last until the end of 2021. The management company intends on giving a new direction to its development as the 10-year lock-up period provided for in its shareholder covenant with Natixis IM has come to an end, said the firms.
“In due course and in line with the regulatory process, H2O AM will make a further announcement regarding the impact of these proposals on its business, including its shareholding structure and changes to its governance approach”, they added in the press release.
This process will put an end to a situation that Natixis IM drags since 2019. In fact, last September, the French financial markets authority (AMF) asked H2O AM to suspend all subscriptions and redemptions in three of its funds: H2O Allegro, H2O MultiBonds and H2O MultiStrategies. The asset manager solved its liquidity problems with certain assets through a side pocket mechanism.
A new “European asset management leader”
Last week, Natixis also announced that it has completed with La Banque Postale the combination of their fixed-income and insurance-related asset management activities within Ostrum Asset Management. Both firms are reorganizing those businesses to give them a new dimension in an environment of persistent low interest rates.
“The closing of this combination on October 31 creates a European asset management leader with more than 430 billion euros in assets under management and over 590 billion euros under administration through its services platform as at end-September 2020”, they revealed in a press release.
The combined activities will be housed within Ostrum AM, owned 55% by Natixis through Natixis Investment Managers, and 45% by La Banque Postale as part of its asset management division. Ostrum AM will provide two distinct and independent offerings: asset management and investment services. In line with its client-centric organization, it is setting up two sales teams to manage all aspects of client relationships, one team for asset management and the other focused on its services platform.
Pixabay CC0 Public Domain. Union Bancaire Privée anuncia la adquisición de Millennium Banque Privée - BCP
Loomis, Sayles & Company, an affiliate of Natixis Investment Managers, announced in a press release the addition of an eight-person European credit team. They are launching three euro credit investment strategies, which are now available for institutional separate account management: Loomis Sayles Euro Investment Grade Credit, Loomis Sayles Euro Sustainable Investment Grade Credit and Loomis Sayles Euro High Yield.
The team is based in Loomis Sayles’ new European office, Loomis Sayles & Company, L.P. – Dutch Branch, located in Utrecht, Netherlands. It will be co-led by portfolio managers Rik den Hartog and Pim van Mourik Broekman, who join from Kempen Capital Management.
The other members of the team are portfolio managers Luuk Cummins, Sipke Moes, Quirijn Landman, Marco Zanotto, Ronald Schep; and the product manager Jeroen Potma.
“We believe the Euro Credit team has the potential to add something unique and exceptional to our organization. We are excited to welcome them to Loomis Sayles and establish our presence in the Netherlands. “Similar to all Loomis Sayles investment teams, their investment process is rooted in a differentiated investment philosophy, which has a strong track record of alpha generation”, said Kevin Charleston, chairman and CEO.
Top-down and bottom-up
Loomis Sayles pointed out that the foundational belief that underlies all of the team’s strategies is that credit markets are inefficient and rigorous research can access opportunities. The team seeks to generate alpha by combining a top-down view with bottom-up investment analysis when constructing portfolios. They feature a strong risk orientation and focus on quality, and ESG analysis is incorporated into the fundamental research. Additionally, the team takes an active engagement approach with issuers and uses their investor influence to shape corporate behaviors.
Chris Yiannakou, head of EMEA institutional services, believes that the three strategies they are launching play an important role in their investment lineup, particularly for their “large and growing” book of clients in Europe and the Middle East, for whom European credit and ESG are critical components of their portfolios. “These investors have a stellar reputation and we’re pleased to offer them a competitive and truly differentiated investment capability that complements our diverse product suite and reinforces our global reputation for investment excellence”, he added.
Pim van Mourik Broekman, co-head of the team, said that Loomis Sayles is a “well-respected” active asset management firm with a powerful global distribution platform. “We are very enthusiastic about joining the organization”, he commented.
Meanwhile, Rik den Hartog, declared to be “impressed” with the professionalism, infrastructure and international character of Loomis Sayles. “We look forward to playing an integral role in building out a broader European presence for the firm”, he concluded.
Pixabay CC0 Public Domain. Una década pérdida para el value, pero no para sus gestores si saben adaptarse
The value style of equity investing has faced severe structural headwinds over the past decade. NN Investment Partners thinks that this secular underperformance is due to several factors: the unconventional tools used by central banks across the world, the technological disruption that traditional value sectors face, and the low level of interest rates and absence of inflationary pressures. “Even in the face of these headwinds, value-based portfolios can still beat the market by adapting to the changing world around us”, said the asset manager in a recent publication.
In their view, equity managers with a value style have been left with few tools with which to navigate the turbulence of the past decade. Some have opted to stick with the traditional approach that succeeded prior to 2007 based on a buy-and-hold philosophy. “More often than not this implied waiting for mean-reversion, while facing the risk of holding so-called value traps; that is, companies that are cheap for good reason and that will continue to underperform the market, owing to either a broken business model or poor management”.
Others have integrated new tools in the investment process that reduce drawdowns, while maintaining “true to style” portfolios with key value characteristics. This is the option chosen by NN IP for managing the Euro High Dividend and European High Dividend strategies, and “the results speak for themselves”. Over time, these funds have outperformed on a relative basis, even with the significant headwinds facing the value investing style.
The asset manager points out that this “demonstrates that by taking an adaptable approach, value strategy investors can still beat the market”. To achieve this outperformance against peers and the broader market, they have integrated three key pillars of adaptability into their process.
1. Adapting to their own biases
Every portfolio manager has behavioral biases, which is not an issue as long as they are aware of them and compensate accordingly. By analyzing more than 10 years of portfolio trading history, the firm identified the behavioral biases that negatively affected performance as well as those areas where they work in their favor. “For example, the process of rebalancing our allocations back to target weights has been a substantial source of positive alpha over time. On the other hand, sticking with underperformers and being overly loss-averse was a source of negative alpha”.
Having become aware of these biases, they systematically reviewed the list of potential value traps in their holdings, then acted to cut them. This created significant positive alpha during the period of market volatility caused by the COVID-19 crisis.
2. Managing unintended macro risk
“All portfolio managers know the absolute level of risk in their portfolio. Some, however, aren’t aware of how underlying elements contribute to this risk and thus fail to actively manage it”. By analyzing the sources of risk, avoiding potentially unintended macroeconomic risks and allocating the majority of their risk budget to the idiosyncratic (stock-specific) component, the asset manager significantly reduced their portfolios’ sensitivity to unexpected external shocks.
As they pointed out, this approach did not prevent the strategies from remaining “true to style” as they retained their positive exposures to the value and dividend factors, but in a way that controlled macro risk.
3. Using ESG factors to enhance risk-return ratios
Value portfolio managers can screen their investable universe to seek out the most attractively valued names. However, simply conducting basic valuation screens heightens the risk of owning value traps. NN IP thinks that, as well as screening on valuation, portfolio managers must conduct an in-depth qualitative assessment of each company. “We have found that by consistently integrating ESG factors into our investment process and actively reducing exposure to companies with high levels of ESG risk, we can offer a better risk/return ratio than most of our value/dividend peers”.
Their norms-based approach for exclusion, engagement and voting, combined with the qualitative assessment of a company’s relevant ESG risks and their potential financial impact, reduces drawdown risk for their European and Eurozone dividend strategies. Monitoring ESG risks at portfolio level (using a proprietary Corporate ESG Indicator) provides another layer of risk management that limits unintended ESG risks.
“These three pillars have a common thread: by embracing the changes offered by the investment environment, value portfolio managers can strengthen their risk-adjusted returns while staying true to style”, stated the firm. Instead of sticking with the Value 1.0 approach that worked very well prior to the Great Financial Crisis, but has exhibited very poor risk-adjusted returns since then, NN IP has adapted their processes to this new reality. In doing so, they have delivered significantly better risk-adjusted returns than most of our value/dividend peers. “Value 1.0 is dead; long live Value 2.0”, they concluded.
Pixabay CC0 Public Domain. Azimut adquiere el 55% Sanctuary Wealth, una firma independiente de weath management en Estados Unidos
Azimut Group, one of Europe’s largest independent asset managers, via its U.S. subsidiary AZ US Holdings Inc., signed an agreement to acquire a 55% stake in Sanctuary Wealth Group, a leading US independent wealth management firm for financial advisors who seek to build and manage their own practices but want the all-encompassing support of an advanced platform to achieve their full potential.
Azimut, established in 1989 and headquartered in Milan, Italy, operates in 17 countries managing in excess of 57 billion euros (equivalent to almost 67 billion dollars) in total AUM. Azimut first entered the United States in 2015 with a greenfield initiative in Miami focused on the Latam-RIA space called AZ Apice, subsequently reinforced by another partnership with Genesis Investment Advisors. The U.S. has strategic importance for Azimut in the private markets segment as well where, through Azimut Alternative Capital Partners, it seeks to acquire minority stakes in mostly U.S.-based alternative asset managers providing permanent capital to grow and achieve their greatest business potential.
The deal with Sanctuary represents a significant milestone and a further demonstration of Azimut’s commitment to pursue its plan to expand into the broader U.S. financial industry. Sanctuary Wealth, founded in 2018 by Jim Dickson, currently has 7 billion dollars (equivalent to 6 billion euros) of billable AUM and further assets under advisement from institutional clients bringing the total to close to 12 billion dollars. Dickson is the visionary who led the development and launch of the innovative, hybrid RIA model and partnered independence network. Prior to Sanctuary, he spent 20+ years in senior leadership roles at Merrill Lynch.
Sanctuary has established itself as the leading platform for the next generation of wealth managers in the U.S., who are breaking away from traditional wirehouses and brokerage firms to own, operate and grow their own businesses. Through an ecosystem of partnered independence, advisors have the resources and services they need while enjoying the economies of scale afforded by larger traditional platforms. The Sanctuary team includes employees dedicated to transitions as well as ongoing operations support to ensure an optimal experience for the advisor, their clients and employees. Sanctuary also provides its partner firms the means to grow through strategic opportunities where they can acquire and roll up existing practices in partnership with Sanctuary.
The Azimut and Sanctuary partnership will focus on the development of a best in class network of breakaway advisory teams. Sanctuary will also continue to invest in the growth of its partner firms, and in strategic acquisitions of other RIAs and wirehouse practices across the U.S. The strategy and success of Sanctuary since inception has been exceptional. Their national community includes 41 partner firms, spans 17 states and employs more than 100 advisors serving over 7,000 households.
The wealth management industry in the US is in the midst of major change with as much as 2,4 trillion dollars of assets “on the move”. The initial target for SWG is the wirehouse breakaway advisors going independent, with an estimated 469 billion dollars of AUM. Secondly, Sanctuary will focus on retiring advisors with another1.6 trillion dollars of AUM. The last segment is the smaller (growth-challenged) independent RIAs who are looking for operational support and / or a transition plan, with another pool of 348 billion dollars of AUM. Custodians are also fostering the independence movement as it helps build their market share against traditional wirehouses. Custodians’ preferred growth partners are consolidators and aggregators versus individual RIAs.
Subject to the regulatory approval by the appropriate authorities, AZUS will acquire a 55% stake in Sanctuary through a reserved capital increase in order to finance a mutually agreed business plan. The remaining stake will continue to be in the hands of senior management as well as financial advisors. The agreement contemplates that Azimut and Sanctuary’s current management team will cooperate and grow the business in the US over the medium-long term, and provides for call/put option rights as well as a further investment in the business linked to certain achievements.
Jim Dickson, CEO of Sanctuary, comments “The changes currently underway in the wealth management industry due to a surge of retiring advisors and a massive intergenerational transfer of assets presents our firm with unprecedented opportunity. By partnering with Azimut, Sanctuary Wealth is well-positioned to capitalize on this once in a lifetime opportunity to grow and invest alongside our partner firms. We are most fortunate to have a strategic partner offering significant patient capital, whose independent and entrepreneurial culture aligns with our own to provide the right resources to accelerate the growth of our advanced platform in both size and scale.”
Pietro Giuliani, Chairman of Azimut Group, comments “Azimut’s DNA is made up of independence, entrepreneurship and value creation for both clients and shareholders. We found all these same values in Sanctuary and are thrilled to be partnering with such like-minded professionals. Not only is Sanctuary an extremely admired firm, but it is made of some of the best senior leaders, talents and financial advisors in the United States. We are committed to helping Jim and his team achieve their greatest business potential, leveraging our long-standing expertise in asset management, private markets and a global presence in more than 17 countries around the world. Thanks to this milestone transaction, Azimut is on the right path to create an integrated and successful business in the United States made up of a leading wealth management firm like Sanctuary, a unique and best in class private markets business like Azimut Alternative Capital Partners, and in the near future a top performing traditional asset management platform.”
Foto cedidaSaúl Santamaría, Senior Business Development Manager del equipo de distribución de US Offshore de NN IP. . NN IP ficha a Saúl Santamaría para el cargo de Senior Business Development Manager
NN Investment Partners (NN IP) has appointed Saúl Santamaría to the role of Senior Business Development Manager as part of the US Offshore Distribution Team, effective as of 12 October 2020. He will report to Iván Mascaró Guzmán, Director Business Development for Latin America and US Offshore, and will be based in The Hague, explained the asset manager in a press release.
In this new role, Santamaría will be responsible for building and maintaining strategic relationships with key wirehouses, independent broker dealers, registered investment advisors and regional private banks to support growing demand for core capabilities like sustainable investments. He will also help NN IP to promote new investment ideas of strong structural conviction for the long term. NN IP highlighted that his appointment emphasizes its commitment to expanding Americas Offshore business.
“I am thrilled to have Saúl working at NN IP as part of our US Offshore distribution team. Not only does he have ample experience in the US Offshore and Latam markets, but I identify a strong alignment with our commercial philosophy -promoting high conviction investment theses in the context of a transparent approach- and our drive to promote fresh and challenging ideas to the market”, said Mascaró. In his view, Santamaria’s “in-depth experience” in working with world-class asset managers will help in successfully expanding NN IP’s offering in the growing offshore market.
Meanwhile, Santamaría stated that he is “happy to join NN IP” and looks forward to contributing to the company’s development in the US Offshore market through active management and sustainable solutions. “I strongly believe NN IP’s investment philosophy offers a breath of fresh air that entices investors to think differently about how they can sustainably build their portfolios. I am proud to be part of that discussion”, he added.
Santamaría has 14 years of experience in the global asset management industry. He joins NN IP from Compass Group, where he was Head of US Intermediaries and responsible for leading the distribution efforts of Wellington Management funds for the US Offshore market.
He started his career in 2006 at Société Générale’s Risk Management department in Paris. In 2010 he joined Amundi as a sales manager and two years later he was appointed as Head of Distribution for Latin America, based in Santiago de Chile. In September 2014, Amundi opened its first office in Mexico City and appointed him as its Managing Director. In 2017, he moved to Miami with the Carmignac as a Business Development Manager, where he remained until 2019 when he joined Compass Group.
Foto cedidaAna Botín, presidenta de Banco Santander.. El Santander fusiona Openbank y Santander Consumer Finance para crear un banco digital global
Banco Santander’s group executive chairman, Ana Botín, announced plans to create a global native digital consumer bank with the combination of Openbank and Santander Consumer Finance. The entity stated in a press release that this is one of its three initiatives to become “the best open financial services platform”, and it was revealed by Botín last week in at the annual general meeting with shareholders.
This global native digital consumer lending business builds on Santander Consumer Finance’s scale and presence in Europe as well as the Openbank digital platform. “SCF and Openbank are two businesses with excellent potential for growth. SCF, Europe’s consumer finance leader, serves over 20 million customers in 15 markets. Openbank is outperforming -and outgrowing- European digital banks in deposits, with a full-fledged retail product suite marketed on an innovative, scalable and efficient banking platform, a software built by us”, Santander’s chairman said.
Another initiative aims to implement a common operating and business model across all markets under the name of “One Santander”, a process which is already under way at its four banks in Europe. Botín pointed out that, with this new model, they will “simplify products and services to improve the customer experience; and also boost innovation”, taking advantage of their four digital capabilities to redesign distribution and automate their processes on a common platform.
Lastly, the third initiative seeks to create payment solutions to compete with large platforms. In that sense, Santander will combine its payments businesses into a single, autonomous and wholly-owned company, which “with the scale, the right talent, processes and governance, will form a powerful ecosystem of payment solutions”.
Banks have a “critical” role
Botín outlined these plans in her speech during the Group’s annual general meeting celebrated last week, where shareholders approved the capital increase to distribute new shares equivalent to 0.10 euros per share as additional compensation for 2019, to be paid this year. This would bring total shareholder compensation for the year to 0.20 euros per share.
In the meeting, Santander’s chairman also pointed out that banks have “a critical role” to play in the COVID-19 crisis. “We are part of the solution”, she added, going on to underline how banks can contribute to “mobilizing the resources needed to get the country up and running as soon as possible, channeling liquidity to projects which create jobs, and helping shape the digital, sustainable economy”.
Botín expressed conviction that the company will come away from this crisis stronger: “We are determined to help businesses and communities across the world, to build back better, and use this as an opportunity to address global challenges such as inequality and climate change. This is the right thing to do and the path to generate value for our shareholders”, she concluded.
