Irish Association of Investment Managers Appoints Michael D’Arcy as New CEO

  |   For  |  0 Comentarios

Irlanda
Foto cedidaMichael D'Arcy, new CEO of the Irish Association of Investment Managers (IAIM) . Irish Association of Investment Managers appoints Michael D’Arcy as New CEO

The Irish Association of Investment Managers (IAIM) has announced in a press release the appointment of former Minister of State with Responsibility for Financial Services Michael D’Arcy as its new CEO. He will work closely with IAIM Chairman, John Corrigan, on the development of the IAIM strategic plan in the context of the challenges and opportunities facing the investment management industry.

The IAIM stated that in his role as CEO, D’Arcy will be responsible for re-setting the IAIM agenda and priorities, given the changing landscape post-Brexit. His role will entail growing the presence of IAIM and the voice of investment managers in the context of the broader domestic financial service sector and helping to promote Ireland worldwide as a pre-eminent destination for investment management firms.

He will also be responsible for leading the contribution of the IAIM around key areas, such as sustainable finance and ESG, collaborating with the other key local and international stakeholders.

Corrigan said that they are “delighted” with D’Arcy’s appointment and pointed out that the industry is growing exponentially in Ireland, a trend they expect to continue. “This is our first step in onboarding the necessary expertise and competencies to face the challenge”.

“Ireland is one of the world’s leading centers for investment management, and the industry is uniquely positioned to play an integral role in the economic and social recovery post-COVID-19. However, we need to ensure that the regulation, policies and joined-up industry thinking in Ireland support this growth”, he added.

In his view, we are moving into “unchartered waters” in a post-Brexit environment, both domestically and internationally, and Ireland has “a once in a generation opportunity to make real changes and be at the very heart of new initiatives” such as ESG and sustainable financing.

Meanwhile, D’Arcy believes that crucially now there is a “huge opportunity” for Ireland, as the UK exits the EU, to help shape the future agenda of not just investment managers and firms where these is considerable growth potential, but even more broadly for the funds industry as a whole and become a global center for the industry.

“In that regard Ireland will need to continue to develop its skills base, and the promotion of education and training will be key in equipping students with the required skillsets, as will be the need to create a greater awareness among graduates and school leavers of the industry’s diverse employment opportunities. In my role as CEO, a vital goal will be in helping to make Ireland the premier destination for the advancement of sustainable and Green finance, and to form strong links and grow our relationships abroad”, he said.

Half of the top ten global investment managers have operations in IAIM, with its members and associate companies in Ireland managing over €1 trillion in assets.

Hamish Chamberlayne (Janus Henderson): “The European Recovery Plan is an Excellent Example of Increased Investment in the Green Economy and Renewable Energy”

  |   For  |  0 Comentarios

Hamish Chambelayne Janus Henderson 3
Hamish Chamberlayne, director de renta variable sostenible global en Janus Henderson Investors. Hamish Chamberlayne, director de renta variable sostenible global en Janus Henderson Investors

Focusing on sustainable investment and ESG factors, Janus Henderson Investors held its “Invested in Connecting” virtual forum, a three-day event designed to connect clients with sales teams and investment managers on a single platform, sharing ideas, perspectives and knowledge through live presentations and discussions on market issues and perspectives.

The event began with a welcome speech by Ignacio de la Maza, Head of EMEA Intermediary and Latam, who explained that during the sessions, emphasis would be placed on how managers perceive ESG factors and how they incorporate them into their strategies.

On the first day, the focus was on equities, with Alex Crooke, Co-Head of Equities for the EMEA and Asia Pacific regions, delivering a presentation on the prospects for the asset class and the three issues to be considered in the future. The first is a possible reflationary scenario in which central bank and government intervention to rescue the economy produces inflation. The second topic would be a process of stock issues or “re-equitization”. There is concern among company directors that they have incurred in over-leveraging to overcome the crisis. It is expected that once this debt matures, they will opt to issue more shares, something that could lead to a decrease in the return on equity, but which could also translate into better P/E ratios. Finally, the British equity market is discounting the fact that there will be no Brexit deal at the end of the year and some good companies are trading at attractive valuations.

The debate with the Global Technology team:

Alison Porter, Graeme Clark and Richard Clode, portfolio managers with the Global Technology team, then discussed the fundamentals that have enabled the technology sector to outperform the rest of the market over the past decade. The team argued that the valuations are still explained by the robustness of their balance sheets, after a crisis that has particularly benefited the sector.

“There are fundamental differences between the current situation and the 2001 technology bubble that should give investors some peace of mind. Firstly, in the last five years, the technology sector’s increased performance has not been as extreme as it was then. In the period before the technology bubble burst, we saw compound annual returns of over 43%, while in this period we have seen less than half.

Secondly, in the area of stock market listings, since January 2018, some 36 companies have been listed on the stock exchange, a figure which in the two years prior to the bursting of the technology bubble exceeded 230 companies, indicating that we are in a more rational environment. In addition, the leaders of today’s technology companies are more future-oriented; these companies have become platforms that benefit from the network effect they have created. Now 40% of the technology sector is related to software and obtains recurring profits, a percentage that was only 20% in 2001, this allows these companies to obtain higher margins and structural returns,” commented Alison Porter.

 “Finally, on the subject of valuations, interest rates are currently about 600 basis points higher than they were in the year 2000. We tend to say that technology adoption and inflation are inversely correlated, because the adoption of a new technology generates price transparency and is cheaper, faster and allows for better results. The current environment of low interest rates favors high valuations. In terms of profits, shares used to trade with a 53x premium over the rest of the market, while currently they trade with a 20x premium. In terms of free cash flow, shares used to trade at a premium of 118x and now trade at a premium of 31x. But that does not mean that there are not certain areas of concern in terms of valuation, we know that 30% of the sector is not generating profits and that is similar to what happened in the 2000s,” she added.

The importance of ESG factors in the current global environment:

Hamish Chamberlayne, Head of Global Sustainable Equities team and portfolio manager of the Global Sustainable Equity strategy, Andy Acker, portfolio manager of the Global Life Sciences and Biotechnology strategies, Denny Fish, portfolio manager of the Global Technology and Innovation strategy, and Guy Barnard, portfolio manager of the Global Property Equities strategy, then discussed the changes in their respective funds’ investment universe following the pandemic crisis, the acceleration of existing trends, and the growing role of sustainable investment.

“In recent years, the trend towards the digitalization of the economy has had a strong influence on the global context, both on the consumers as well as on the companies. But, during the pandemic, perhaps the degree of consumer penetration has been accelerated, not only in the younger generations, such as Generation Z, which consumes mainly online, but for all cohorts of generations, including the older ones, who now find in the Internet the way to make their purchases and payments,” explained Denny Fish.

“While, on the corporate side, the pandemic has highlighted the importance of digitizing all processes within an organization. As well as the importance of creating virtual infrastructures for their workers,” he added.

Meanwhile, Andy Acker, argued that the defensive characteristics of the health care sector mitigated the impact of the coronavirus crisis on his portfolio. “Investor demand for the healthcare sector tends to increase in market downturns, in the last downturns over 15%, the sector only experienced half of the drop. We have also seen areas of higher returns, such as in telemedicine and sectors on the frontline of the fight against the pandemic,” he mentioned.

Hamish Chamberlayne also discussed how this year, along with technology and the health sector, investment in ESG factors is also benefiting from strong secular trends. “The goal of the Global Sustainable Equity strategy is to build a highly differentiated portfolio with a multi-thematic focus on sources that contribute to performance. While both the technology sector and the health sector contribute positively to the portfolio, there are also other areas that have contributed to performance. Among them, two areas that I would like to point out are companies that are aligned with sustainable modes of transport and a healthier way of life, and companies related to the green economy, renewable energies and electrical infrastructure,” he said.

“Just to mention a few examples, Tesla has had a good year and there is a high degree of enthusiasm about the pace of innovation it has achieved in the automotive sector. On the other hand, Shimano, a leading supplier of bicycle powertrain technology, has benefited from increased demand for alternatives to public transportation and the increased desire for more exercise among consumers in the wake of the pandemic.

On the green economy side, we expect to see an increase in electricity use from the current 20% to 50% of the energy mix in the next decade. As a result, there has been an increase in investment in this area, an excellent example is the European recovery plan, which places the green economy and renewable energy at the center of its stimulus package,” he completed.

Amundi and AIIB Launch Investment Framework to Drive Asia’s Green Transition 

  |   For  |  0 Comentarios

agriculture-1807581_1920
Pixabay CC0 Public Domain. Amundi lanza un nuevo ETF de renta variable libre de combustibles fósiles con exposición a los mercados emergentes asiáticos

Amundi and the Asian Infrastructure Investment Bank (AIIB) have launched a new Climate Change Investment Framework. As announced by both firms in a press release, this benchmark investor tool will for the first time holistically assess climate change risks and opportunities in line with the three objectives of the Paris Agreement at the issuer-level.

Endorsed by Climate Bonds Initiative, a major international certifier and industry thought leader in the green and climate bond market, the framework translates the three key objectives of the Paris Agreement into fundamental metrics, equipping investors with a new tool to assess an issuer’s level of alignment with climate change mitigation, adaptation and low-carbon transition objectives.

While groups of leading institutional investors have responded to the climate challenge by integrating climate change into investment processes, AIIB and Amundi highlighted that this tool takes a holistic approach that current private capital mobilization efforts lack. 

“Equity capital markets currently focus on thematic funds and commonly face strong sector bias, while low-carbon indexes have a pronounced focus on mitigation efforts. In fixed income, green bonds have been the main climate finance solution for debt capital markets, but they do not consider exposure to climate investment risks and opportunities from the viewpoint of an issuer’s entire balance sheet”, they stated in the press release. 

Extra financial impact

Investors can expect portfolios aligned with this framework to deliver a potential financial impact by benefiting from any future repricing of climate change risks and opportunities in the capital market. It also enables them to measure issuer performance against the three objectives of the Paris Agreement, which allows investors to systematically include in their investment portfolio A list issuers (those that are already performing well on all three objectives) and B list issuers (those that are moving in the right direction but are not in the A list yet). An investment strategy targeting both A and B List issuers should be more resilient to climate change risk and more exposed to opportunities not yet priced in by the market.

In addition, they pointed out that the framework also delivers extra financial impact as it is designed to encourage the integration of climate change risks and opportunities into business practices by targeting the engagement of so-called “B-List” issuers to help them transition to “A-List” credentials.

Yves Perrier, CEO of Amundi, said they are proud to launch this tool with AIIB as they continue to make strides in the field of climate finance. “Mobilizing key stakeholders in supporting the Paris Agreement in Asia is in line with Amundi’s commitment to ESG investing and reflects our extensive commitment to the region. This new Framework will further help the investment community address climate change through the mobilization of capital to emerging markets where it is much needed”.

Jin Liqun, AIIB President and Chair of the Board of Directors, commented at the Climate Bonds Initiative international conference that in launching this framework they show their “commitment to playing an important role in the battle against climate change, by contributing to strengthening market capacity and driving the green agenda in Asia”.

Credit Suisse AM and Qatar Investment Authority Partner to Create a Private Credit Platform

  |   For  |  0 Comentarios

Credit suisse
Foto cedidaEric Varvel, Global Head of Asset Management and Chairman of the Investment Bank at Credit Suisse. Credit Suisse AM and Qatar Investment Authority Partner to Create a Private Credit Platform

Credit Suisse Asset Management and the Qatar Investment Authority (QIA) announced a strategic partnership to form a multibillion dollar direct private credit platform. As they stated in a press release, it will provide financing primarily in the form of secured first and second lien loans to upper middle-market and larger companies in the US and Europe.

The platform is part of Credit Suisse Asset Management’s Credit Investments Group (CIG), which is led by Global Head and Chief Investment Officer, John Popp. The CIG team is one of the largest providers of leveraged finance solutions in the industry, with approximately USD 60 billion in non-investment grade credit positions. For more than 20 years through various market cycles, CIG has maintained a disciplined approach and demonstrated leading experience in sourcing and servicing credit relationships, highlights the press release.

Eric Varvel, Global Head of Asset Management and Chairman of the Investment Bank at Credit Suisse, believes this strategic partnership with QIA presents “unique opportunities” for borrowers seeking credit solutions to partner with their Asset Management and Investment Bank franchises. “The Credit Investments Group, within Credit Suisse Asset Management, has extensive industry and lending relationships that, when combined with Credit Suisse’s unmatched leveraged finance and financial sponsors franchises, uniquely positions us to provide capital and liquidity to the private credit market”, he added.

Meanwhile, Mansoor Al Mahmoud, CEO of QIA said they see “significant potential” in the growing private credit market and they are “excited” to work again with Credit Suisse. “This strategic partnership, with one of the foremost leaders in asset management, is aligned with QIA’s objectives as a long-term diversified investor across asset classes both in the US and globally”, he stated.

He believes this private credit platform is a natural extension of their business as a leading provider of capital solutions to non-investment grade companies in the US and Western Europe. “The current market environment presents an ideal entry point into the private credit space, with capital and liquidity now at a premium”.

Economist and Former Central Banker Mark Carney Joins PIMCO’s Global Advisory Board

  |   For  |  0 Comentarios

PIMCO nombramiento
Foto cedidaPIMCO, miembro del Consejo Asesor Global de PIMCO.. PIMCO incorpora a Michèle Flournoy a su Consejo Asesor Global

PIMCO announced in a press release that Mark Carney, economist and former Governor of both the Bank of England and the Bank of Canada, will join its Global Advisory Board. The Board provides PIMCO investment professionals with insights on global economic, political, and strategic developments and their relevance for financial markets.

Established over four years ago, it is “an important part of the firm’s investment process and is designed to provide a deeper understanding of the policies and institutions that influence financial markets”, says the document. Former Federal Reserve Chairman Ben Bernanke is the Chair of the Board, which is comprised of seven members including Carney.

“Mark’s extensive experience as an economist and central banker, combined with his focus on transforming climate finance, makes him an invaluable addition to this renowned group of thinkers,” said Emmanuel Roman, PIMCO’s Chief Executive Officer.

Meanwhile, Dan Ivascyn, Group Chief Investment Officer, pointed out that the Board “continues to be an important part of our investment process, providing unique global insight, and challenging our bias and assumptions, as we pursue the best investment outcomes for our clients around the world”.

Carney is currently UN Special Envoy on Climate Action and Finance. From 2013 to March 2020, he served as the Governor of the Bank of England and Chair of the Monetary Policy Committee, Financial Policy Committee and the Board of the Prudential Regulation Committee. In addition, he served as Chair of the Financial Stability Board (FSB) from 2011 to 2018, and First Vice-Chair of the European Systemic Risk Board. He was Governor of the Bank of Canada from 2008 to 2013.

Other members of the PIMCO Global Advisory Board are Gordon Brown, former U.K. Prime Minister and former Chancellor of the Exchequer; Ng Kok Song, former CIO of the Government of Singapore Investment Corporation (GIC); Anne-Marie Slaughter, former Director of Policy Planning for the U.S. State Department; Joshua Bolten, former White House Chief of Staff; and Jean-Claude Trichet, former President of the European Central Bank.

UBS WM Appoints Anja Heuby-Egli to Lead a New Sustainable Investment Solutions Unit

  |   For  |  0 Comentarios

UBS web
Foto cedida. UBS WM nombra a Anja Heuby-Egli responsable del área de soluciones de inversión sostenible

UBS Wealth Management has appointed Anja Heuby-Egli to lead a newly-created sustainable investment solutions function, reported Citywire Selector. She will be responsible for sustainable investing solutions at global wealth management, including general advisory, discretionary and advisory mandates, funds and alternatives.

According to an internal memo referred to by the publication, Heuby-Egli will join UBS chief investment office’s global mandates and investment content team (CIO GMIC) and will report directly to its head, Bruno Marxer. She will also become a member of the unit’s management committee.

Within global wealth management, her role only covers the CIO’s global mandates and investment content function. Andrew Lee will remain head of sustainable and impact investing for its other investment functions, which are known internally as the CIO investment office (IO), informed Citywire Selector. That unit is responsible for investment frameworks, for example asset allocation, methodologies and associated research and thought leadership.

Meanwhile, global mandates and investment content team is in charge of investment products, including those implementing investment views of the IO. When it comes to the 100% sustainable portfolios, Lee will continue to oversee the portfolio framework and methodology and any thought leadership associated with that.

Heuby-Egli’s team will work on the implementation of that framework in products, in collaboration with other content teams. Her primary focus will be EMEA, APAC, and Switzerland, and she will also collaborate with the Americas sustainable investing solutions team.

Experience in sustainable investment

Heuby-Egli started at UBS in 2005 and has worked in the investment bank, group functions, and global wealth management, primarily in the area of risk and investment process methodology. She was in charge of CIO’s data innovation and also worked with the CIO sustainable investment team, where she and her team developed the proprietary ESG scoring platform at the core of the firm’s personalised sustainable investment advice offering. Her new role will be covering wealth management activities, opposite to those of the whole UBS group.

Santander CIB Launches ESG Solutions Global Team Headed by Steffen Kram

  |   For  |  0 Comentarios

naturalezadePixabay
Pixabay CC0 Public Domain. Santander CIB launches ESG Solutions global team headed by Steffen Kram

Santander Corporate & Investment Banking (Santander CIB) announced in a press release the creation of a dedicated team to boost its offering in the area of Environmental, Social and Governance (ESG) solutions. This new global team will be headed by Steffen Kram. It will partner with product teams across its platform to support clients in their transition towards a more sustainable business model by providing strategic solutions as well as product and financing structures tailored to specific industries, geographies and market sectors.

Santander’s goal is to build a more responsible bank and has made a number of commitments to support this objective including raising over 120 billion euros in green finance between 2019 and 2025. This figure will increase to 220 billion euros in 2030 and includes the Group´s overall contribution to green finance: project finance, syndicated loans, green bonds, capital and export finance, advisory and other products.

In the most recent Dow Jones Sustainability Index Santander achieved the highest ranking among all banks.

José M. Linares, SEVP and Global Head of Santander CIB, said that the creation of this team further reinforces their contribution to the group’s responsible banking commitments to support inclusive and sustainable growth. “We want to back our clients in their ESG transformation journey, helping them define and achieve their global sustainability objectives”, he added.

Kram, new Global Head of ESG Solutions, commented this new team will build on Santander’s global footprint and its commitment to climate and environmental sustainability. “We are a global leader in renewable energy financing and advisory. Our aim is to expand and transfer this expertise into other sectors and technologies crucial in the context of the energy transition”, he pointed out.

Leveraging on a solid track record in renewables and strong product capabilities across its platform, Santander CIB is now evolving towards fully integrated ESG solutions, serving an increasing appetite and demand from corporate and institutional clients. Being a leader in the area of sustainability has been a long-standing ambition for Santander CIB.

Goodbye Shortest Bear Market on the Record, Hello New Bull Market

  |   For  |  0 Comentarios

Wall Street
Pixabay CC0 Public Domain. Wall Street

U.S. equities scored the best August since 1986 while setting a record high on Tuesday the 18th that made the thirty-three day coronavirus bear market of 2020, a 34% decline from February 19 – March 23, the shortest in market history.  The new bull market is being fuelled by record fiscal and monetary stimulus, economic recovery and vaccine hopes and has rallied over 50% from the March low. What remains to be seen is if continued U.S. growth will suffice to end the current recession as one the sharpest and shortest on record as well.

In the fiscal cliff political arena, stimulus negotiations remain deadlocked with the Democrats recent rejection of the current $1.3 trillion Republican proposal.  At month end, Evercore ISI’s economist Ed Hyman wrote in ‘Global V-Shaped Recovery’: Looking ahead, there are a number of factors that will lift US growth, eg, the surge in Consumer Net Worth, inventory rebuilding, the surge in vehicle production, the housing boom, reopening’s, and unprecedented global stimulus. A vaccine is likely…The US economy is starting a new expansion…The safest bet now is for a 5-year expansion with a 100% rally in the S&P. He may be right and we hope he is, but there will be some speed bumps along the way.

Following a major two-year review, Fed Chair Powell spoke at Jackson Hole on August 27th detailing the Fed’s conclusions for updating its monetary policy framework by moving to a flexible average inflation targeting (FAIT) approach. Bottom line: keep interest rates low to support a sustainable economic recovery.  On August 19th, Barron’s financial writer Andrew Bary highlighted a G.research report on ViacomCBS (VIAC) by analyst John Tinker saying: ViacomCBS looks significantly undervalued based on the success of its streaming strategy and a potential sale of the company…Tinker’s view is that ViacomCBS is valued cheaply at just 6.5 times estimated 2020 earnings before interest, taxes, depreciation, and amortization (EBITDA). That compares with a price of 15 times Ebitda that Walt Disney (DIS) paid for Fox’s (FOXA) content assets in 2019 and a price of 13 times that AT&T (T) paid for Time Warner in 2018. Tinker’s ViacomCBS target equates to about eight times estimated 2021 EBITDA.

Since the March stock market low, value stocks, typically defined as cyclical or economically sensitive companies, have lagged growth stocks. We expect this to change as the economic recovery broadens and the value P/E discount narrows

Looking at the merger arb space, announced deals in July totaled $305 billion, a 60% increase from $189 billion in June, and essentially the same level of activity as July 2019. Sizeable M&A in July included Maxim Integrated’s acquisition by Analog Devices for $20 billion, Noble Energy’s acquisition by Chevron for $13 billion, and National General’s acquisition by Allstate Corp. for $4 billion.

 

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.

Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476

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.

Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155

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.

Jean Hynes to Succeed Brendan Swords as CEO of Wellington Management

  |   For  |  0 Comentarios

hynes
Foto cedida. Jean Hynes sucederá a Brendan Swords como consejero delegado de Wellington Management

Wellington Management has announced in a press release that Brendan Swords, Chief Executive Officer, will retire from Wellington on 30 June 2021. At that time, Jean Hynes, Managing Partner, will succeed him as CEO.

“One of the most enduring lessons of the Wellington partnership is the notion of stewardship, bringing along the next generation of leaders to allow us to better serve clients,” said Swords.

“I’m excited that Jean Hynes will be my successor. Over the course of her nearly 30 years at the firm, she has demonstrated the vision, optimism, and fortitude to lead Wellington in the years ahead. Her extensive investment and leadership experience align with our mission of delivering investment excellence to our clients”, he added.

Meanwhile, Hynes claimed to be “humbled and honored” to be the next CEO of Wellington Management. “I have had the privilege of learning alongside Brendan for many years, and I am looking forward to building on our long heritage of helping our clients and their beneficiaries around the world achieve their investment goals”, she said.

Hynes joined the firm in 1991 after graduating from Wellesley College with a BA in economics. Throughout her nearly 30 years at the firm, she has researched the pharmaceutical and biotechnology industries, as well as served as a healthcare portfolio manager and leader of this sector’s research team. Since 2014, she has served as one the firm’s three Managing Partners alongside Swords. Hynes is a member of the Investment Committees at Wellesley College and the Winsor School.

Get ready for an M&A wave on the second half of 2020

  |   For  |  0 Comentarios

Acuerdo
Pixabay CC0 Public Domain. Trato

U.S. equities moved higher in July against the daunting backdrop of renewed Coronavirus surges that are raising risks for the nascent U.S. economic recovery.  During the J.P. Morgan second quarter conference call, CEO Jamie Dimon said, “You’re going to have a much murkier economic environment going forward than you had in May and June, and you have to be prepared for that.”  Investor confidence that monetary policy and another fiscal stimulus package will continue to backstop the U.S. economy and markets provides major support for stock prices.

GAMCO expects to see more mergers, some facilitated by SPACs (special-purpose acquisition companies), private equity, or corporations looking to grow. Amazon may decide buy a filmed-entertainment company to gain new content.  The outlook for deals and financial engineering brightened during the Honeywell International earnings call when CEO Darius Adamczyk said, “the balance sheet is very strong and well-protected, well-funded. So in short, we’re very much open for business, both from an M&A perspective, as well as potential buyback perspective… the M&A environment is just a little bit slower just because everybody is focused on battling the crisis. But we think that that may open up a little bit more here in the second half, and we hope to be active.”  

Among GAMCO’s Private Market Value (PMV) with a Catalyst™ stock research ideas highlighted as ‘stock picks’ during BARRON’S 2020 Midyear Roundtable, published in the July 13 issue, were: NextEra Energy Partners (NEP), which manages renewable-energy projects, Maple Leaf Foods (MFI), equipment rental supplier Herc Holdings (HRI), Vivendi (VIV), Sony (SNE)  and GCP Applied Technologies (GCP), a specialty construction chemicals, building materials, and packaging sealants producer. Catalyst Starboard Value, an activist investor, recently won eight board seats.

The recent Coronavirus spike slowed the rally in value, small cap stocks, and the U.S. dollar as economic slowdown fears resurfaced. A weaker dollar will make the U.S more competitive in global trade.

 

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.

Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476

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.

Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155

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.