Riding the S Curve of Creative Disruption

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¿Cómo encontrar empresas al principio de la curva de crecimiento?
Pixabay CC0 Public Domain. Riding the S Curve of Creative Disruption

The S-curve, which shows the growth trajectory of a company creating a new product or even a new industry can be an ally or enemy for investors. Find such a company toward the front end of the S curve and you could potentially own the stock through its explosive growth period. Invest at the top of the S curve, and you’ve missed much of the growth.  It’s at that point – when most of their growth is behind them – that many companies graduate to the larger stock indexes. Skilled active managers try to find these companies much earlier on in the curve, with an eye toward tapping greater growth potential.

Consider the adoption of the personal computer in the 1980s and 1990s, which started slowly when they were cumbersome and expensive. But once PCs became easier to use in the early 1990s and allowed multi-tasking, prices fell sharply and soon they were on virtually every desktop within major corporations. Retail prices fell further, bringing the PC within reach of the home user. The introduction of the web browser in the mid-90s suddenly unleashed a wave of demand for computers, software and related products that culminated in the dotcom bubble which burst so memorably in the spring of 2000. Eventually the market for personal computers matured and became saturated. They became a low-margin, commodity product with little to differentiate one from another.

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Personal computers spawned an industry which has had unprecedented impacts on many aspects of society, including the way we work, learn and consume content. The ripple effects of the PC revolution continue to be felt, even as the devices themselves evolve.

Under such creative disruption scenarios, the investment opportunity for skilled active managers comes from: 1) understanding where a company is in its growth trajectory along with key drivers of growth in a given industry and 2) an ability to reassess as the market matures. Are we in the early adoption or infancy phase, where there is great potential but the need for patience? Are we in the expansion phase where growth accelerates almost vertically? Or the maturity phase, where competitors flood the market, the product becomes commoditized and margins compress? 

As history has shown, these cycles repeat. In recent years the smart phone has displaced the personal computer. Instead of storing data on floppy disks, we now store it in the cloud. Instead of consuming entertainment content at home on a television, increasingly we consume more of it on the go on a mobile device. Creative disruption is a never-ending process, creating opportunity and risk at every turn. Having an integrated research platform helps a skilled manager identify the opportunities and the risks and make decisions accordingly.

The market is a discounting mechanism of all available information. What we do as managers is to try and determine what the market has discounted and whether it’s correct. Our goal is to recognize a trend or an undervalued asset and risk-weight that asset appropriately. Having diverse points of view across the organization — in terms of exploring opportunities from both a fundamental and quantitative perspective, across geographies and from analysts in different sectors—can all play a role in creating better investment decisions, and hopefully better outcomes. 

A collaborative culture and an integrated research platform can help skilled managers understand the ripple-effects created by disruptive new technologies. Teams of talented managers and analysts are better positioned to think-through the ramifications on a global scale than those focused strictly on the technology or product itself.  For instance, would a new technology, such as electronic payment methods be adopted more rapidly in developed markets owing to an infrastructure advantage, creating opportunities for incumbent technologies to gain market share in less developed markets? This is the type of issue where a skilled active manager who cross-pollinates ideas across disciplines and stress-tests assumptions among investment team members would hope to stay ahead of the curve.

Robert M. Almeida, Jr. is MFS Institutional Portfolio Manager.

UBS Wealth Management´s Ideas for 2017: US and Emerging Markets Equity and US Treasuries Hedged Against Inflation

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UBS Wealth Management´s Ideas for 2017: US and Emerging Markets Equity and US Treasuries Hedged Against Inflation
CC-BY-SA-2.0, FlickrPhoto: josip2 . UBS Wealth Management´s Ideas for 2017: US and Emerging Markets Equity and US Treasuries Hedged Against Inflation

UBS Wealth Management’s Chief Investment Office (CIO) predicts a polarized political world in 2017. Global gross domestic product (GDP) growth is likely to rise to 3.5% from 3.1% this year as US growth improves, despite the ongoing slowdown in China. With elections set for the Netherlands, France and Germany, investors will need to be conscious of increased post-Brexit division in Europe.

In the US, CIO expects the Federal Reserve to hike rates once in December and twice in 2017, but new fiscal stimulus should support growth, and inflation is likely to rise more than rates. In the Eurozone, the European Central Bank will probably start to taper quantitative easing. China will likely continue to manage its slowdown and let the USDCNY exchange rate depreciate to 7.0 in 12 months.

Mark Haefele, Global Chief Investment Officer at UBS Wealth Management, says: “We believe that central banks in the US and Europe will continue to err on the side of loose monetary policy. This means equities can remain supported, most notably in the US and emerging markets, and that investments with a decent yield will remain sought after. Investors will also need to consider means of hedging portfolios against rising inflation.”

The lessons of 2016

  1. Don’t confuse a base case with a done deal. The past year has been ignominious for base case forecasts. Donald Trump won the US election. The UK voted to leave the EU. And central banks were forced to ease policy more than previously thought necessary.
  2. Don’t panic. 2016 rewarded investors who remained calm amid uncertainty. The MSCI All-Country World Index dropped 13% early in the year on concerns over China, but bounced back by the end of March. After the Brexit vote, markets regained prior highs within three weeks.
  3. Don’t underestimate central banks. Central bank policy surprises this year meant that even some negative-yielding assets provided positive returns.

Top 10 ideas for 2017

  1. US equities. US earnings should grow 8% in 2017, supported by stabilizing oil prices, accommodative monetary policy and potential fiscal stimulus from the Trump administration.
  2. Emerging market (EM) equities. A softer US dollar, low developed market (DM) interest rates and stabilizing GDP growth and commodity prices should continue to help EM stocks next year.
  3. EM FX basket. Low DM rates help make high-yielding EM FX – real, rupee, ruble, & rand – attractive versus growth-sensitive DM peers – Australian & Canadian dollars & Swedish krone.
  4. Asia Pacific real estate investment trusts should also benefit from low DM rates. Yields relative to government bonds are attractive compared with global averages.
  5. Dividends and buybacks. With yields ultra-low in the Eurozone, Japan, and Switzerland, companies offering reliable incomes there have become even more appealing.
  6. US senior loans. Senior loan yields offer a 4% pickup over short-maturity investment-grade corporate bonds, which is attractive even if default rates rise to long-term averages.
  7. US Treasury Inflation-Protected Securities (TIPS). CIO expects TIPS to benefit from higher wage growth, stabilizing oil prices, potential fiscal stimulus and a weaker US dollar.
  8. Palladium and platinum. A pickup in industrial activity, political uncertainty and falling real interest rates should support both precious metals in 2017.
  9. Alternatives. Traditional asset class returns are likely to be moderate in 2017. The uncorrelated exposure offered by hedge funds, private markets, and short-term investment opportunities will be more valuable than ever.
  10. Sell high-grade bonds. Yields are negligible and risks are rising. Investors could consider replicating some of the asset class’s insurance features with other approaches, including systematic hedging and allocation strategies.

Recommended long-term investment themes for 2017 and beyond

  1. Emerging market healthcare catch-up.  In developing nations, spending on healthcare is far outpacing GDP growth, creating opportunities for companies and impact investors.
  2. Energy efficiency. Governments are increasing incentives to cut down on carbon emissions and lower energy consumption. Such standards now cover 30% of the fuel used worldwide.
  3. The education gap. Companies are helping to meet demand for higher education and training as governments struggle to keep up.

As investors look forward to 2017, CIO’s End Game offers the opportunity to play policymaker and see how solutions to the world’s economic issues can affect economies, markets, and portfolios. A recent survey of UBS’s Industry Leader Network of entrepreneur clients globally underscored the importance of policy in investment planning: 25% named the political landscape as the biggest potential change for their business in 2017, compared with 19% who cited technology upgrades, 12% who cited a different shift, and 44% who saw no change.

Cosimo Marasciulo and Declan Murray Take Over New Roles at Pioneer after Le Saout and Chabaane Resign

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Cosimo Marasciulo y Declan Murray sustituyen a Tanguy Le Saout y Ali Chabaane tras su salida de Pioneer
Courtesy photos. Cosimo Marasciulo and Declan Murray Take Over New Roles at Pioneer after Le Saout and Chabaane Resign

Pioneer Investments announces that Tanguy Le Saout and Ali Chabaane have resigned from Pioneer with immediate effect, and on the 13th of December, 2016, they will consent to the orders of the Dublin High Court that effectively redress any advantage they might have obtained due to their conduct in seeking to launch a competing asset management business.

Le Saout and Chabaane were recently suspended following an internal investigation that showed they had acted against the commercial best interests of Pioneer. There has been no negative impact on client assets or accounts; no other investment professionals were involved; and no regulatory breaches occurred. Two other human resources employees, associated with the actions of Le Saout and Chabaane, will also consent to the orders of the Dublin High Court and have also resigned with immediate effect.

Giordano Lombardo, CEO and Group CIO of Pioneer Investments, commented “Any actions that violate our corporate values of trust, loyalty and teamwork must be responded to, irrespective of the circumstances. We have taken decisive action in this instance in order to protect our commercial best interests and have ensured that no client assets were adversely affected and no compliance breaches took place.”

Following the resignations, 15-year Pioneer veteran Cosimo Marasciulo currently Head of European Government Bonds, has been appointed as Head of European Fixed Income and Declan Murray, currently Global Chief of Staff for Investments at Pioneer, to provide guidance and leadership to the Portfolio Construction team. Pioneer expects a seamless transition under Marasciulo and Murray given the capability and experience of both individuals, as well as the strength and depth of the broader Pioneer European fixed-income team that encompasses a matrix structure of over 15 portfolio managers and 24 research analysts.

Amundi announced on Monday that it has signed a binding agreement with UniCredit in order to acquire Pioneer Investments for an all-cash consideration of €3,545 million.
 

Ezentis Renews a 120 Million Euro Contract in Chile

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Ezentis gana un contrato por importe de 120 millones de euros en Chile
Pixabay CC0 Public DomainPhoto: Freejpg. Ezentis Renews a 120 Million Euro Contract in Chile

Network services provider Ezentis announced the renewal of its contract to provide fixed network maintenance, operation and construction services for Telefonica Chile for 120 million euros (127 million dollars).

The contract is valid for three years, renewable for a further year said Ezentis in a statement filed with Spanish market regulator CNMV.

Ezentis Chile will provide services in the Eastern Metropolitan Regios as well as the cities of Puerto Montt, Rancagua, Talca, Linares, San Fernando, Temuco, Osorno, Valdivia and Curico, as well as in the Santiago Metropolitan region.

In 2016 the company acquired the 100% of its Chilean subsidiaries and energy company, Tecnet.

PIMCO Announces Joint Venture with Solar Capital Partners

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PIMCO anuncia un acuerdo con Solar Capital Partners para continuar expandiendo su plataforma de crédito privado
Pixabay CC0 Public Domain. PIMCO Announces Joint Venture with Solar Capital Partners

PIMCO has entered into a joint venture with Solar Capital Partners as the firm continues to develop and expand its private credit platform. Solar Capital Partners is an experienced and highly respected investor in private corporate credit with a successful 10-year track record of making private loans to corporate borrowers.  The firm also has an extensive network of relationships with middle market borrowers and private equity sponsors.

This joint venture is the result of collaboration between PIMCO and Solar Capital Partners that began in 2014. Emmanuel Roman, PIMCO’s Chief Executive Officer said: “This joint venture is a continuation of the disciplined expansion of PIMCO’s alternatives’ strategies since 2004, where we have sought to capitalize on targeted market opportunities by leveraging PIMCO’s broad investment expertise and long-term performance focus.” Dan Ivascyn, Group Chief Investment Officer of PIMCO added:  “We believe the combination of Solar Capital Partners’ proven credit underwriting and relationships matched with PIMCO’s global credit investment experience creates a superior ability in sourcing, evaluating, and underwriting private investments. We believe that private credit is an attractive super-secular opportunity.”

Michael Gross, Co-Founder of Solar Capital Partners, said: “We are excited about expanding our partnership with PIMCO and the depth of resources they can bring to our investment process.  We believe that a well-managed, private direct corporate lending strategy has the potential to provide an attractive risk-adjusted yield premium relative to public credit investments.”  “Together with the two publicly-traded Business Development Companies that we manage, Solar Capital Ltd. and Solar Senior Capital Ltd., our joint venture with PIMCO can provide us with significant scale to deliver full solutions to our clients,” said Bruce Spohler, Co-Founder of Solar Capital Partners.

 

Amundi Acquires Pioneer Paying €3,545 Million to Unicredit

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Amundi cierra la compra de Pioneer por 3.545 millones de euros
Pixabay CC0 Public Domain. Amundi Acquires Pioneer Paying €3,545 Million to Unicredit

Amundi announces that it has signed a binding agreement with UniCredit in order to acquire Pioneer Investments for an all-cash consideration of €3,545 million. As part of the transaction, Amundi will form a long term strategic partnership with UniCredit for the distribution of asset management products.

With €222 billion of assets under management, a majority being retail assets, Pioneer Investments has a highly complementary business and geographic profile with Amundi, the firms declare in the press release.

Eighth Largest Asset Manager Globally

This acquisition will strengthen significantly Amundi’s industrial project and reinforce its position as the European leader in asset management. It will create the 8th largest asset manager globally with €1,276 billion of assets under management, and will allow Amundi to reinforce its leadership in key European markets. “The combined entity will be number 1 in France, in a top 3 position in Italy and in Austria, and in a strong position in Germany.”

Italy will become Amundi’s second domestic market with €160bn under management, and Milan will become one of the Group’s investment “hubs”. The number of staff in Milan will therefore significantly increase.

The price of the acquisition is €3,545 million. The transaction will be financed by c.€1.5 billion of excess capital, a c.€1.4bn capital increase (rights issue), and c.€0.6bn of senior and subordinated debt. The rights issue will be launched in H1 2017 and will be underwritten by Crédit Agricole Group.

The transaction is expected to close in the first half of 2017. 


Commenting on the acquisition, Xavier Musca, Chairman of the Board of Directors of Amundi, said 
“This acquisition is fully in line with the selective acquisition strategy announced at the time of the IPO: Pioneer Investments will reinforce Amundi’s product expertise, broaden its distribution channels and networks, and generate significant synergies. It confirms Amundi’s position as a clear European leader in asset management, in terms of size and profitability.” 


Yves Perrier, Chief Executive Officer of Amundi, added “The acquisition of Pioneer Investments is a major step to anchor Amundi as the European leader in asset management. This acquisition will reinforce Amundi’s industrial model and will benefit our clients whilst creating significant value for our shareholders. Pioneer Investments is a world class asset manager that has a highly complementary business and geographic profile. At Amundi we are all excited to welcome soon our new colleagues who will join us in a leading asset management group fully dedicated to serve its retail and institutional clients.”

Time Is a Terrible Thing to Waste

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Lo peor que puede hacer es malgastar su tiempo
Pixabay CC0 Public Domain. Time Is a Terrible Thing to Waste

Investors’ misperceptions about what impacts their outcomes often make them spend too much time measuring what doesn’t matter and not enough time on what does. It’s time to start looking at what really counts when choosing an investment manager.

Investors have a tougher job today than ever before. They’re taking more risk than in decades past in order to achieve similar returns. And they’re doing so against a backdrop of geopolitical and market uncertainty — things they cannot control, but still must take into consideration. Understandably, that sense of uncertainty, coupled with the need to take more risk, is driving investors to focus on what is tangible and easy to measure — in an effort to gain some sense of control.

We see investors spending a lot of time anchored to short-term past performance — three year returns dominate decision-making for example — as well as tracking traditional, price-momentum benchmarks that point more to changes in prices than true, long-term value. But these metrics don’t matter as much to investment outcomes.

So it’s time to have a disruptive conversation. We want to help investors get back to spending time on what they know has always counted more — people, process and philosophy, but also a healthy dose of honesty around time horizons.

However, in a world that has become so short-term focused, that is a significant hurdle. Lack of clarity around time horizons appears to be a growing convention, and it’s tough to break with popular sentiment, especially at a time of greater angst. Markets are more complex and finding returns is more challenging. But here is an important truth. Looking at what is easy to measure (e.g., endless data comparisons) only creates the illusion of control, and feeds into ambiguity aversion — a known behavioral bias that kicks in because we don’t like uncertainty.

Also, short-term micro-measurement doesn’t help forecast the future, generate returns or meet investors’ long-term goals. Rather, it causes pro-cyclical (herding) behavior among investors, which, as noted by the International Monetary Fund in a paper on countercyclical investing, takes them away from their inherent “edge as long-horizon investors.“

While investors do spend considerable time evaluating the harder to measure key attributes of investment managers during their search process, they tend to brush those metrics aside in post-hiring evaluations, especially in times of short-term underperformance. It may be common practice to revert back to performance measurement, but there is a danger in relying too heavily on what doesn’t persist.

As you can see in the exhibits below, even the top-performing managers don’t stay on that pedestal from period to period. For example, of the managers who performed in the top quartile from October 1990 to September 1995, only 25% remained in the top quartile in the subsequent period from October 1995 to September 2000, while the rest dropped down to lower quartiles. On the other hand, looking at the second exhibit, which shows what happened to bottom quartile managers over the same time periods, 27% of these managers went from the lowest performance ranking to the top performance ranking in the subsequent period.

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An investment manager’s people, process and philosophy — which reflect the strength of its collective intelligence, culture and the management of its talent and business, tend to be far more persistent. Why does that matter so much to investors? Because these qualities may reflect a manager’s ability to go against the grain when necessary, applying its insight toward finding opportunities other managers may be missing and potentially recognizing risks that others may not. In short, investors want to see signs of a manager’s power to be countercyclical.

The harder-to-measure manager attributes are also highly relevant to the environmental, social and governance (ESG) conversation. We believe ESG is often misconstrued as more of a social/responsible investment decision. That has driven some investment managers to respond with a relevant product set. In reality, ESG is much more about trying to invest in good businesses rather than bad — finding those with true long-term value by understanding what factors (e.g., good management, effective capital allocation and superior products and services) are material to a company’s sustainability and competitive advantage. Integrating those considerations into the investment process — whether you’re an investment manager selecting securities or an asset owner selecting an investment manager — could reduce risk and potentially improve returns over time. But it takes patience and robust research to understand what is material over the long term.

Passive management typically does not integrate ESG factors, and yet we believe these considerations are more important than ever to “getting it right” for the investors we serve. But getting it right depends as much on the investor as it does on the investment manager. Investors’ time tolerance has to align with how their investment managers make decisions within their portfolios, or the resulting misalignment could damage both expectations and outcomes. For example, portfolio turnover is an important consideration in aligning investor horizons and manager decision making. When investors see an active manager with low portfolio turnover (i.e., a longer-term focus), they can better understand why that manager would need a full market cycle to generate alpha. 

The work we do as an industry to improve the misalignment between investor time horizons and investment manager decision making is really about improving trust. Because ultimately investors need to trust a manager’s skill long enough to allow it to work.  

Carol W. Geremia is President of MFS Institutional Advisors, Inc. Co-Head of Global Distribution.

 

Michelle Scrimgeour, New CEO EMEA at Columbia Threadneedle Investments

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Columbia Threadneedle Investments nombra a Michelle Scrimgeour CEO para la región de EMEA
. Michelle Scrimgeour, New CEO EMEA at Columbia Threadneedle Investments

Columbia Threadneedle has appointed Michelle Scrimgeour as chief executive officer, Europe, Middle East & Africa (EMEA) and CEO of Threadneedle Asset Management Limited.

She will also join the executive leadership team of Ameriprise Financial, Columbia Threadneedle being the global asset management group of Ameriprise Financial.

Scrimgeour joins from M&G Investments, where she holds currently the roles of chief risk officer and director of M&G Group Limited.

Prior to joining M&G, she worked at BlackRock where she was a member of the European executive committee which led the firm’s $1trn EMEA business and oversaw the integration of BlackRock and BGI in London.

Formerly, she has also been chief operating officer for international fixed income; global head of Fixed Income Product; head of Alternative Investments and held senior roles in the quantitative equity and transition management businesses of Merrill Lynch Investment Managers and Mercury Asset Management (now known as BlackRock).

Commenting the appointment, Ted Truscott, global CEO of Columbia Threadneedle, said: “Michelle joins Columbia Threadneedle at an exciting time as we further build our global business and continue to focus on delivering successful investment outcomes and solutions for our clients.”

As of 30 September 2016, Columbia Threadneedle managed €416bn in assets.

2017 Outlook: Optimistic, but Not Euphoric

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Perspectivas de Deutsche AM para 2017: optimistas, pero no eufóricos
CC-BY-SA-2.0, FlickrPhoto: Mark Morgan . 2017 Outlook: Optimistic, but Not Euphoric

Optimistic, but not euphoric, is how Stefan Kreuzkamp describes his outlook for the international financial markets over the coming year. Yields only in the mid single figures is the best that can be expected right across all asset classes, according to the Chief Investment Officer at Deutsche Asset Management. Correct selection and diversification of investments will be even more important than last year. In principle, Deutsche AM favours investments with strong income components – such as good payers of dividends, selected higher-yield bonds as well as alternative infrastructure and real estate investments. “We are not pinning our hopes for economic growth and capital market returns very high for 2017. Having said that, we have no concerns that we will see recession in the major economic regions. However, political and central bank actions may continue to prompt short-term dips in the market,” said Kreuzkamp.

The political scene remains the biggest unknown in Kreuzkamp’s view: the unresolved Brexit issue and elections in some key European countries mean that the spotlight is firmly back on the future of the European Union (EU) as well as nationalism and protectionism. In recent times, EU opponents have gained some ground. Regional conflicts, such as Syria and Eastern Ukraine, continue to inflate and to rage. This is topped by Russian and Chinese foreign policy ambitions.

Politics shapes markets

Kreuzkamp believes that developments in the US are extremely important. In his view, President-elect Donald Trump is entirely capable of shaping the markets in a sustained way. This is especially true as a Republican-dominated congress could grant him considerable room for maneuver. “A combination of tax cuts, deregulation and infrastructure projects could stimulate the US economy to the extent that this boost could continue for eight or even nine years. But this will bring inflation,” said Kreuzkamp.

The financial markets have already given their initial reactions. But it is also conceivable that investor enthusiasm could soon fade somewhat. On the one hand, this could be the result of plans will not be executed as quickly as many in the markets would hope, and on the other hand, the flip side of Trump’s policies could rear its head again – for example restrictions on free global trade. But it is a matter of pure speculation if Trump really will, or will be able to, pursue protectionism – isolation would squeeze the competitiveness of American companies if costs were to increase. In this respect, Deutsche AM expects to see the pace of growth and inflation pick up only slightly during 2017. “We will be reviewing all our positions regularly in line with US political developments. We are fully aware of the President-elect’s potential to surprise – in both directions. Politics shapes markets”, explained Kreuzkamp.

 

In global terms, he expects to see growth of 3.5 per cent, which would make 2017 the eighth consecutive year with growth above 3 per cent – something last seen in the 1960s. An economic upturn is also expected in the Eurozone. For 2017, Deutsche AM expects to see growth of 1.3 per cent – mainly driven by consumption.  

 

Strong dollar

 

In the bond and currency arena, this coming year will initially be marked by even more divergence in central bank policies with a knock-on impact for the US dollar. Two further interest rate hikes are anticipated in the US – following the move in December 2016 – yet the EU is expected to remain at its low levels and continue to actively pursue its bond buy-back program well into next year. Nevertheless the so-called tapering phase may then begin.

 

Next year the expectation is that the US dollar will remain strong. “We are assuming that the lowest interest rate is now behind us, but we are not counting on sustained increases. In 2017, key European countries and the US are likely to see negative overall yields from sovereign bonds. Interest rate divergence between the Eurozone and the US is likely to increase. In the medium term, we are not convinced that this era of very low interest rates is at an end, although 2016 may well have marked the lowest point for interest rates,” said Bill Chepolis, Head of Fixed Income EMEA at Deutsche AM. From an investment point of view, Deutsche AM continues to pursue its preference for corporate bonds in Europe and the US, as well as sovereign bonds from peripheral European countries. Within the emerging markets grouping, there are attractive hard currency sovereign bonds, even if these are subject to a higher level of price volatility.

 

Manage risk actively

 

Deutsche AM estimates the international equity markets will achieve single digit growth, but the situation differs widely across the important markets with US indices recently setting new records. Unfortunately any prognosis remains very difficult because of the uncertainty surrounding Trump policy. US equities could indeed benefit from deregulation and a new fiscal program, but this could be subdued by a strong dollar and wage pressures. Rising interest rates would tend to preclude increasing equity prices. In emerging markets, a higher US interest rate is just one issue that could fuel uncertainty. Having said that, emerging markets are witnessing an economic recovery which could benefit European equities, most especially in Germany, emphasised Thomas Schüssler, designated Co-Head of Equities at Deutsche AM. He points out that recent corporate figures out of Europe have started to look promising again. At the moment, stock exchanges have priced in a degree of political risk which explains the gap in valuations with the US. However, Schüssler believes it is precisely this that offers potential for a positive surprise.

 

Overall, volatile and sideways-moving markets tend to be a rich source of opportunities if investors are active, selective and tactical. In particular multi-asset investments should prompt considerable demand from investors: “With prospects of returns so poor, investors have to be prepared to actively manage risk – in the year to come this will be the key to successful investment. The challenge lies in optimising the risk versus a stated return objective”, said Christian Hille, Head of Multi Asset at Deutsche AM.

 

Carlos Albiñana Joins Jones Day in Madrid

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Jones Day incorpora a Carlos Albiñana como socio en la oficina de Madrid
Foto cedidaCarlos Albiñana, socio de Jones Day. Carlos Albiñana Joins Jones Day in Madrid

Jones Day has hired Carlos Albiñana to the Firm’s Tax Practice in its Madrid Office.

Albiñana provides clients tax advice on capital markets, M&A and restructuring, banking and securitization, real estate, derivatives, project finance, and asset-finance transactions. He also has substantial experience in tax litigation and incentive schemes.

“Carlos is an excellent addition to our Tax Practice,” said Joseph A. Goldman, Co-Leader of Jones Day’s Tax Practice. “With more than 25 years of experience providing local and cross-border tax advice for global clients, Carlos has a well-deserved reputation as a leading tax lawyer in Spain. His arrival further expands our capabilities to offer clients a full range of tax-related transactional services in Spain.”

Albiñana has represented numerous clients in their tax structuring in Spain, advising leading companies in the financial, industrial, energy, telecommunications, and construction sectors. He has extensive experience in cross-border transactions working with clients to structure their investments in the most tax-efficient manner.

“The addition of Carlos to our office in Madrid will strengthen our Tax Practice, as he joins our senior tax counsel with years of experience advising our clients. He will be of great help to our M&A, Banking & Finance, and Real Estate teams” said Mercedes Fernandez, Partner-in-Charge of Jones Day’s Madrid Office. “We are delighted that Carlos joins us as we continue to focus on providing exemplary client service.”

Albiñana is a recognized leading lawyer by Chambers Europe and Best Lawyers in Spain. He is also a professor at the IE Law School where he regularly lectures and leads a number of executive tax programs.

Jones Day is a global law firm with 44 offices in major centers of business and finance throughout the world. Opened in 2000, Jones Day Madrid is a full-service office with more than 40 locally-qualified Spanish lawyers and significant experience handling a wide variety of national and cross-border transactions and disputes.