Pixabay CC0 Public Domain. Lombard Odier y WWF lanzan la Guía del Donante Medioambiental
Lombard Odier and the WWF are publishing a guide to philanthropy for individuals and private foundations wishing to make a meaningful contribution to reverse biodiversity loss and address threats to nature. The Donor’s Guide to the Environment is intended as “a useful resource for any philanthropist wanting to protect the environment and help fight climate change”, said Lombard Odier in a press release.
Written and published in partnership with the WWF, the guide aims to raise awareness and facilitate engagement and funding in this field. “It provides information and analysis to better understand the scope of the nature and climate emergency we are facing and identify different types of solutions”, they stated.
Drawing on the combined experiences of Lombard Odier Group and the WWF, it outlines concrete projects, expected outcomes and donor opportunities for preserving oceans, forests and freshwater habitats across the globe. The guide also highlights case studies in the field of impact investment.
“One million species are threatened with extinction and the way we currently produce and consume is causing irreparable damage to biodiversity, land, forests, oceans and river systems. The science is clear: the loss of nature together with climate change is a global emergency putting our economic prosperity, wellbeing, development and survival at risk”, said Marco Lambertini, Director General of WWF International.
In 2017, only 3% of the US$410 billion donated to charity by US citizens went to environment-related causes, although this represented an increase of 7.2% on the previous year (NP Source). In Europe, a study from the European Foundation Centre looking at 87 of the largest European foundations found that they gave a total of €583 million in environment-related grants in 2016, less than 1% of the estimated €60 billion given in grants by European foundations that year (EFC).
“Despite awareness being higher than ever before and increasing engagement by philanthropists around the globe, faster progress is needed, along with the commensurate financing, to rebalance our relationship with nature. Philanthropy can help today and more than ever before in financing actions that target the root causes of nature loss and climate change and mobilise decision makers in driving the much needed systemic change for a sustainable future for people and planet”, added Lambertini.
Lombard Odier stated that the guide “clearly demonstrates that all donations are important to respond to today’s climate and environmental crisis”. For example, an amount such as US$35’000 can kick-start the development of a local sustainable fishing industry in the Mediterranean, whereas getting a developing country climate change-ready “requires funding in the hundreds of millions or even billions of dollars”.
“The estimated funds needed to protect our climate and halt the loss of biodiversity are enormous. While the majority of the funding will come from governments, there are tremendous opportunities for philanthropic donors to make a difference as well,” said Patrick Odier, Senior Managing Partner of Lombard Odier Group and President of Fondation Lombard Odier.
“Philanthropy has a rare value. It is the catalyst that can ignite significant change in our culture. It can fund and support visions, no matter at what stage, be it the seed of a good idea or a fully-grown initiative. In this respect, the finance sector is also stepping up to the challenge, with innovative and sustainable finance initiatives”, he added.
As well as highlighting grants, the Donor’s Guide showcases some new financing tools, also important in addressing the environmental challenge. One example is the Blue Bond from The Nature Conservancy, which raises money to refinance developing countries’ debts on the condition that they use the money received to protect or preserve their natural environments.
“Such new financing tools are valuable because they mobilise capital that allows countries to address underlying structural factors that often attract less attention from philanthropists,” said Maximilian Martin, Global Head of Philanthropy at Lombard Odier Group.
The Donor’s Guide to the Environment has been edited by Lombard Odier Group and is available in English. It can be downloaded free of charge from the Lombard Odier Group and WWF websites.
Pixabay CC0 Public Domain. Los activos en fondos europeos alcanzaron los 11,8 billones de euros en 2020
There are as many reasons to believe that equities will continue the rally they began in March as there are to expect another downturn. In either case, volatility is likely to remain high. NN Investment Partners believes that in times of such heightened uncertainty, investors would do well to consider including convertible bonds in their portfolios. In their view, market developments since the coronavirus began have confirmed the relevance their convertible bond investment approach.
A convertible bond is a bond plus an embedded stock option, giving features of fixed income and equities in one instrument. These equity/fixed-income hybrids offer the best of both worlds: their conversion option gives exposure to the upside in share prices, and their bond cashflows provide downside protection should the underlying share price fall.
“The market has certainly responded to the potential merits of convertibles”. NN IP notes a sharp rise in issuance of convertibles over the past quarter: it was USD 16 billion in April, USD 27 billion in May and USD 25 billion in June, amounting to more than USD 67 billion in total. This is about two-thirds of the annual average over the past decade of around USD 100 billion.
The asset manager believes that the reason for the new issuance has to do with the fact that convertibles offer a cost-effective and flexible way for companies to raise capital, either to remain operational or to take advantage of new business opportunities. The current volatility in equity markets means it is also often more attractive than a share issue; the lower coupon rates for convertibles make the running costs much cheaper than those for straight debt.
Martin Haycock, Senior Convertible Bonds Specialist at NN IP, says that around a third of recent issues relate to companies that are in trouble because of the current crisis, such as travel companies, while the majority of issuers are looking for capital to finance growth.
“We are interested in this latter group, which includes companies involved in cybersecurity, cloud computing, batteries/electrification and healthcare, which will see growth in the next three to five years,” says Haycock. “This is why it is crucial to take a thematic approach to navigate economic cycles and invest in the right convertibles.”
Tarek Saber, Head of Convertible Bonds points out that convertible bonds bonanza is underway, as more and more companies see the benefit of issuing convertibles in the post-coronavirus world.
“This is a positive for the asset class and a growing number of investors are embracing the unique historic risk-return characteristics of convertibles and allocating a place for them in their strategic asset allocations,” says Saber. “We would recommend allocations of between 3% and 10%, depending on investors’ appetites. Whatever they choose, they should partner with investment managers who are strict in their investment process and won’t buy new issues just because they might be theoretically cheap at issue, but instead focus on the credit and equity fundamentals of the issuer.”
Taking this into account, the NN (L) Global Convertible Opportunities invests long-only in a portfolio of thoroughly researched convertible bonds. The fund is actively managed and invested in balanced convertibles that provide asymmetrical returns.It aims to outperform the global convertible universe (measured by the Refinitiv Global Focus Index – Hedged) by 200bps per annum.
The Bank of New York Mellon Corporation announced that Mitchell Harris, CEO of BNY Mellon Investment Management, which includes the Wealth and Investment Management businesses, has announced his intention to retire effective on October 1st. Consequently, the company has appointed Hanneke Smits as new CEO of BNY Mellon Investment Management, and Catherine Keating will continue in her role as CEO of BNY Mellon Wealth Management.
The corporation stated in a press release that both Smits and Keating will report to Todd Gibbons, CEO of BNY Mellon. Furthermore, Smits will join BNY Mellon’s Executive Committee.
“Mitchell has been instrumental in driving our Investment Management business over the last four years as CEO and we wish him all the best in retirement. During a period of tremendous change in the investment landscape, he helped reposition our multi-boutique model and launch new investment capabilities, leaving us well positioned to meet the evolving investment needs of our clients,” said Gibbons.
He also claimed that they are “delighted” to elevate Hanneke into the CEO role for Investment Management. “She has spearheaded Newton’s business momentum and client-centric culture, and we look forward to her leadership within Investment Management. Mitchell has cultivated a strong bench of leaders, including Hanneke and Catherine, who will continue to drive the execution of our strategic priorities to deliver leading investment solutions to our clients underpinned by exceptional investment performance.”
Meanwhile Smits stated that she is “deeply honored” to serve as CEO of BNY Mellon Investment Management. “We have made great progress in building a diversified investment portfolio to help our clients achieve their investment goals. We will build on this strong foundation to continue to drive performance and innovation across our investment products, while also serving as a trusted partner for our clients in today’s rapidly changing investment environment”, said Smits.
Smits will continue as CEO of Newton until October 1st and the company revealed a search is currently underway to replace her. Over the next several months, Harris will work closely with her and Keating to ensure a smooth transition of leadership.
Smits has been CEO of Newton Investment Management, a subsidiary of The Bank of New York Mellon Corporation, since August 2016. Her career spans close to three decades in financial services, including serving as a member of the Executive Committee at private equity firm Adams Street Partners from 2001 to 2014, and Chief Investment Officer from 2008 to 2014. Hanneke is a non-Executive Director to the Court of the Bank of England and serves on the board of the Investment Association.
In addition, she is Chair of Impetus, a venture philanthropy organization that supports charities that aim to transform the lives of disadvantaged young people, and as part of this appointment, she is Trustee of the Education Endowment Foundation, founded in 2011 by The Sutton Trust in partnership with Impetus. She is co-founder and former Chair of Level 20, a not-for-profit organization set up in 2015 to inspire women to join and succeed in the private equity industry. Originally from the Netherlands, Hanneke has a BBA from Nijenrode University and a MBA from the London Business School.
Foto cedidaJeremy Roberts, nuevo responsable global de distribución de GAM.. GAM ficha a Jeremy Roberts y le nombra responsable global de distribución
GAM Investments announced the appointment of Jeremy Roberts as Global Head of Distribution. Roberts will join the asset manager in September from BlackRock, where he was Co-Head of EMEA Retail Sales and Head of the UK Retail Business. He will report directly to Peter Sanderson, Group Chief Executive Officer, and will be a member of the Senior Leadership Team.
GAM has announced in a statement that this is a role recently created as Tim Rainsford, current Head of Sales and Distribution, is leaving the company “to take up a new opportunity”. That’s why a new role of Global Head of Institutional Solutions will also be appointed to assume the responsibilities of Rainsford together with Roberts.
“I’m thrilled to be joining GAM as Global Head of Distribution in September. GAM has an extremely strong management team, a great suite of active products and an innovative, client-centric culture and therefore I’m really looking forward to joining such a talented group of people”, said Roberts, who has 20 years of experience in the industry.
Meanwhile, Sanderson claimed to be delighted with Roberts joining the company. “His leadership experience, enthusiasm and his passion to deliver outcomes for clients make him a great fit for GAM. I am excited to welcome Jeremy to the firm to help us further build on our strong distribution capabilities. I would also like to thank Tim for his contribution to the firm and to wish him all the best for the future”.
Foto cedidaBertie Thomson and Mick Dillon, portfolio managers of the Global Leader fund of Brown Advisory. Brown Advisory: "We Have Recalibrated the Models to Include a Global Pandemic Within Our Core Portfolios"
According to Mick Dillon and Bertie Thomson, portfolio managers of the Global Leader fund of Brown Advisory -the asset manager that MCH Investment Strategies represents in Spain, Italy and Portugal-, this is a unique market event. As long-term investors with a bottom-up style, they argue that the crisis generated by the coronavirus will have a huge impact on economies worldwide. In this interview with Funds Society, both managers explain their view on the equity market.
Q. What conditions need to be in place for us to start seeing a recovery in the global stock markets?
A. As I write this in mid-June 2020, the NASDAQ and the MSCI All World index are close to pre-COVID levels so it seems that stock markets have recovered already. However, there have been delays in when companies might get cashflow, so shortcut valuation multiples have actually gone up.
Q. After the records that the US stock market registered over the last year, was this adjustment in valuations necessary?
A. The shock to demand means cashflows have been delayed and this recalibration of the IRRs means valuations needed to adjust. Whilst we recognize the cost of capital for the companies we invest in may have come down as interest rates have fallen, our investors still need a good return above long-term market averages. We use a 10% WACC for all investments in developed markets as we believe this is the return which our investors need per annum.
Q. What kind of stocks are best resisting this shock?
A. We believe some businesses with non-deferrable demand might be better positioned to weather this shock, or you need straight out pricing power. We have certainly seen some of our companies adapt and rise to the challenges that the pandemic has created, for example our biggest investment, Microsoft, has seen its cloud and office apps benefit from enormous take-up due to work from home sanctions as has Google’s cloud business. Roche, one of our top 10 investments, is seeing a benefit from COVID-19 testing within its diagnostics business. In financials, we have seen Deutsche Boerse benefit from a large uptick in trading volumes and volatility spiking across asset classes where it provides the leading trading, centralised clearing and settlement platforms in Europe.
Q. Is this a good time to buy?
A. It is incredibly difficult to time the market, and that is not our aim. If you have a portfolio of companies with a 25% RoIC that you own for 4 years you will get 100% return on capital. So long as the supply-side isn’t disrupted by competition and your customer keeps coming back, then over time that should deliver. We believe that long-term outperformance is possible with a concentrated portfolio of good quality companies allowing them to compound their excess economic return over a full market cycle.
Q. What is your approach in that sense? Have you made any changes in your portfolios?
A. We maintain a rigorous focus on valuation so that if you buy them cheaply enough, this should deliver attractive long-term (5 years) returns. We also view ESG research as an essential part of our investment strategy and we are now witnessing the increasing focus on these considerations by investors around the world. Recently, we have significantly added to our exposure to emerging market financials, such as Bank Rakyat and HDFC Bank, as their share price valuations started implying enormous value. As an example, Indonesia’s Bank Rakyat has played a critical role in promoting the government’s social agenda by advancing subsidized credit for rural enterprises.
Q. When taking advantage of these opportunities, special attention will have to be paid to risk management. How are you managing portfolios in this coronavirus crisis?
A. We have recalibrated all our models to include a global pandemic within our base case for all our holdings. For some companies, this can even be a benefit, for others it is a terrible disruption to their business. Using a probability weighting system helps to calibrate our IRRs to a better expected return with both base and bear cases. Nonetheless, we see a number of our investments with double digit IRRs over 5 years.
Q. We have also seen an oil crisis in the first quarter of the year. In your opinion, are there more risks on the horizon?
A. There are always more risks on the horizon, but the magnitude varies significantly. We have held no investments categorised in the energy sector since the launch of this Fund. However, we have recently added Aspen Technology to the portfolio, which gives us some exposure to the energy sector. We do believe volatility can create opportunities for long-term investors and we have found in the middle of the crisis the chance to invest in a couple of new companies –like Autodesk and Intuit– that had been on our ‘ready-to-buy list’ for years but we really didn’t think we would get the right price. Suddenly in the midst of the crisis they reached prices giving us tremendous protection and we are now the proud part-owners of two terrific businesses.
Q. What is your outlook for global equities this year?
A. We are absolutely long-term investors and for us that means 5 years. We consider multi-year IRRs and have a 10 year DCF to take us away from short-term swings and to a more steady state environment. Whilst we don’t know about the rest of this year, we have tremendous confidence in our portfolio of high RoIC companies over a 5-year horizon.
Foto cedidaBruno Piffeteau, nuevo responsable de Allfunds en Francia.. Allfunds nombra a Bruno Piffeteau nuevo responsable de Francia y abre oficina en París
Allfunds has reinforced its Paris team by appointing Bruno Piffeteau as Country Head of France. In a press release, the company has stated that the arrival of Piffeteau, former Global Head of Client Service for BNP Paribas Asset Management, is another step in Allfund’s commitment to the French market.
Piffeteau will be responsible for developing Allfunds’ local business and will lead a team of experts. In this new role, he will directly manage the relationship with BNP Paribas Group and will report directly to Luca Renzini, Chief Commercial Officer at Allfunds. Furthermore, in line with its commitment to the French market, the company will open a branch in Paris.
After the announcement, Juan Alcaraz, CEO of Allfunds, commented that they are “delighted” to welcome Piffeteau. “The opening of our Paris branch is a huge milestone for our business, and I am confident that under Bruno´s leadership we will see great results. He brings with him an incredible background and extremely strong knowledge of the French market. I am certain Bruno will be a valuable addition in driving forward our ambitious plans in France”, he said.
Meanwhile, Gian Luca Renzini, CCO of Allfunds, highlighted that he brings over 20 years of experience in the financial and asset management industry and is an expert on the French market: “His appointment is a great addition to our international team. Without doubt, Bruno will contribute to expanding and reinforcing our business in France as we strive to further develop service offering in this extremely important market”.
Before joining Allfunds, Bruno Piffeteau spent the last 20 years at BNP Paribas Asset Management where he held various positions including Head of Marketing and Product Development, COO of Fundquest, Head of Global Fund Solution and lastly Global Head of Client Service. Prior to joining BNPP AM, Bruno also held a number of senior positions within BNP Paribas Group, which he had joined in 1989. Bruno Piffeteau holds a degree in finance from Northeastern University, Boston.
Marc Pinto, courtesy photo. Janus Henderson Investors prepara la salida de Marc Pinto de cara a su jubilación en abril de 2021
After more than 26 years at Janus Henderson and 34 years in the industry, Marc Pinto is retiring from Janus Henderson Investors and the mutual fund industry, effective April 2, 2021.
As part of a robust succession planning effort for all their investment teams, the company is pleased to announce Jeremiah Buckley will assume primary portfolio management responsibilities for the Growth & Income strategy and the equity portion of the Balanced strategy, effective April 2, 2021.
“Both Marc and Jeremiah were instrumental in building the foundation of the successful effort that generated compelling risk-adjusted returns for our clients over many years. Given the lengthy transition period, Jeremiah’s 22 years of experience and their many years of partnership, we expect this to be a seamless evolution”. Ignacio de la Maza said in an emailed statement.
In connection with this transition, David Chung, Industrials Sector Lead and Research Analyst of the Centralized Research team, has been appointed Assistant Portfolio Manager on the Janus Henderson Balanced strategy and Janus Henderson Growth & Income strategy, effective June 30, 2020. The company stated that there are no changes to either the Fixed Income sleeve of the Balanced strategy or the Growth & Income strategy, nor to either strategy’s investment process or philosophy.
“I want to thank Marc for his many contributions to Janus Henderson and our clients over the past 26 years. He is an excellent investor and an exceptional leader. He and his team demonstrated their skill by delivering strong results for clients across several of our strategies over many years. Marc will continue working with the team through his retirement on April 2, 2021, which is a reflection of his professionalism and commitment to our clients.” Wrote de la Maza.
“I have the utmost confidence in the continuing investment team, whose investment process, philosophy and team approach remain unchanged. We are fortunate to possess significant professional depth and robust transition plans which are designed to respond to naturally occurring personnel changes without significant disruption to our clients or our business. This should result in an orderly transition for clients.” De la Maza concluded.
Foto cedidaKeith Skeoch, former CEO Standard Life Aberdeen.. Stephen Bird sustituirá a Keith Skeoch como CEO de Standard Life Aberdeen
Stephen Bird joins Standard Life Aberdeen as chief executive-designate, effective July 1, replacing Keith Skeoch later in the year.
Following a handover period, and subject to regulatory approvals, Bird, who was most recently CEO of global consumer banking at Citigroup, is expected to replace Skeoch as Group CEO by Sept 30.
Skeoch will retire from the board of directors of the firm in September, after five years as group CEO and 14 years as a director. He will spend the remainder of his contract — until June 2021 — as non-executive chairman of the Aberdeen Standard Investments Research Institute. The ASIRI is the firm’s macro research unit.
Bird “is an inspiring leader with a great track record and experience in leading businesses to harness digital technology to improve both productivity and the client and consumer experience,” Sir Douglas Flint, chairman, said in the release. “This, coupled with his ability to create valuable partnerships and guide businesses through periods of major change, means that he is well placed to build on the strong foundations we have at SLA.”
Stephen Bird said: “I am delighted to be joining Standard Life Aberdeen as its next Chief Executive. This is a company with a great history, a strong brandand an exciting future. The current crisis has highlighted the importance of active asset managementas well as building greater resilience into personal financial planning. SLA’sleading asset management, platforms and wealth capabilities give great scopeto help clients and customers navigate these challenges; thisis what attracted me to the company. I am looking forward to working with my new colleagues tocreate a better future for all our stakeholders.”
Standard Life Aberdeen, which has £544.6 billion ($671.6 billion) in assets under management and administration, was formed in 2017 following a merger between Standard Life and Aberdeeen Asset Management. The group is made up of two businesses: The £486.5 billion money manager Aberdeen Standard Investments and Standard Life. Mr. Skeoch was CEO of insurer Standard Life prior to the merger. The group has a strategic partnership with insurance firm Phoenix Group, which acquired Standard Life Assurance in 2018.
Valerio Schmitz-Esser, courtesy photo. Credit Suisse AM amplía su gama de ETFs con dos nuevos fondos de renta variable que invierten en small cap y en el sector inmobiliario
Credit Suisse Asset Management has launched two additional ETFs. The CSIF (IE) MSCI USA Small Cap ESG Leaders Blue UCITS ETF and CSIF (IE) FTSE EPRA Nareit Developed Green Blue UCITS ETF. The two funds are trading on SIX Swiss Exchange, Deutsche Börse, and Borsa Italiana.
Like the existing Credit Suisse Asset Management ETFs, the new products are being launched under the Credit Suisse Index Fund (IE) ETF ICAV umbrella. With US small caps and global real estate, the funds offer exposure to two interesting and promising segments. Both new ETFs bear the label “Blue”, which stands for Credit Suisse Index Funds without securities lending, and both fit into the strict Credit Suisse ESG framework.
The CSIF (IE) MSCI USA Small Cap ESG Leaders Blue UCITS ETF gives access to a broadly diversified portfolio of US small-cap stocks with market capitalizations below USD 10 bn. The eponymous benchmark index screens the investment universe for environmental, social, and corporate governance performance and thereby represents approximately 50% of the US small-cap opportunity set.
The CSIF (IE) FTSE EPRA Nareit Developed Green Blue UCITS ETF invests in a global portfolio of environmentally friendly real estate stocks and real estate investment trusts (REITS). In a low-yield environment, listed real estate combines stable rental income with long-term protection against inflation.
Since Credit Suisse Asset Management launched a new range of exchange-traded funds (ETFs) in March 2020, these products have already surpassed USD 2 bn in assets under management.
Credit Suisse Asset Management made its return to the ETF market on March 16, 2020. Since then, their ETFs have raised more than USD 2 bn and are fast becoming an integral part of a broader range of 98 index funds with USD 104 bn (as at May 31, 2020) in combined assets.
“Our long-standing experience in index funds has given us the requisite know-how to succeed in ETFs,” said Valerio Schmitz-Esser, Head of Credit Suisse Asset Management Index Solutions. “The efficiency of our processes and the precision of our techniques make our ETFs ideally positioned to take full advantage of the potential in this segment.”
The stock market rebound from the March lows continued in May, as investors focused on the beginning of the end to COVID-19 induced lockdowns as well as advances in potential treatments or vaccines for the virus. Mega cap technology companies continue to lead the charge as society has relied on the emphasis of digital technology, from the comfort of their own homes.
The impacts of the virus have created unprecedented levels of disruption throughout the world. The current confrontational dynamics between the U.S. and China, election year uncertainties, and worries over a virus “second wave” will likely prevail through year-end. For now, the Phase One US-China trade deal remains intact despite social unrest in Hong Kong and President Trump’s accusations over the World Health Organization’s relationship with China. Time will tell if that stands.
Monetary and fiscal policy dynamics are in place to encourage more consumer spending and assist parts of the economy affecting the “BOTL” (banks, oil, travel, & leisure) stocks. U.S. political discussions continue on the topic of more coronavirus relief, as U.S. jobless claims exceeds 40 million.
Merger Arb returns in May were bolstered by deals that closed, progress on deals in the pipeline, and the continued normalization of merger spreads. Regulators and advisers around the world have successfully transitioned to working remotely and continue to advance and approve transactions, evidenced by approvals granted in May. Economies have begun the process of reopening and consumers are adapting to a “new normal.” While our focus remains on selecting current deals with the highest likelihood of success, we are seeing green shoots of future M&A activity, with numerous reports of companies evaluating acquisitions. Deals that closed in May totaled about 15% of the fund’s assets, and we were busy deploying the cash received in outstanding deals.
As economies begin to open, the uncertainties associated with the impacts of the virus will slowly surface. Ultimately, we believe that investors will reward strong companies with healthy balance sheets and positive free cash flows in order to lead the economic recovery.
Column by Gabelli Funds, written by Michael Gabelli
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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.
