Daniel Gamba, nuevo presidente de Northern Trust Asset Management (NTAM)
Northern Trust announced today that Daniel Gamba will serve as Northern Trust’s new President of Asset Management (NTAM), effective April 3. He will join Northern Trust’s Management Group and report to Chief Executive Officer Michael O’Grady.
Gamba joins Northern Trust from BlackRock, Inc., where he spent 22 years and served as co-head of Fundamental Equities and as a member of BlackRock’s Global Operating, Portfolio Management Group Executive and Human Capital committees. Gamba has broad-based global experiences across fundamental active, systematic and index products. He has led investment, distribution and product teams with a track record of driving businesses through growth and change.
Committed to diversity and inclusion, Gamba is also the Founder and Co-Chair of Somos Latinx & Allies Employee Network at BlackRock.
“Daniel has a unique set of experiences well suited for the continued growth of Northern Trust Asset Management, with a track record of delivering strong results,” O’Grady said. “I am confident that under Daniel’s leadership, working in close collaboration with NTAM’s executive team and his partners on Northern Trust’s Management Group, our business will continue to grow and deliver best-in-class investment solutions and services to our clients.”
Gamba is the past Chair of the Board of Governors for the CFA Institute, the 190,000-global member association that serves investment management professionals.
He served as a Board Director for the Council of Urban Professionals whose mission is to connect, empower and mobilize the next generation of diverse business and civic leaders. He earned a bachelor’s degree in industrial engineering from Universidad Catolica del Peru and an MBA in finance and economics from Northwestern University’s Kellogg School of Management, where he served on the Board of its Alumni Association for four years.
The Financial and International Business Association (FIBA) announces the launch of a new certification program for wealth management professionals. As the wealth management business continues to grow, its professionals must demonstrate high-level skills in a wide variety of disciplines.
This two-level certification is designed to provide professionals from financial institutions with a strong foundation in financial markets and the products and services they offer.
Funds Society readers will be able to include the promotional code FS200 and receive a $200 discount.
The Certified Wealth Management Associate (CWMA) online course provides an introduction and overview of the business of international wealth management, as well as an in-depth review of financial markets and instruments, wealth management products, operational and regulatory requirements and the concepts of wealth planning.
This course is ideal for new entrants to the business, such as junior relationship managers, as well as customer service staff, compliance, operations and audit professionals, and industry regulators.
The Certified Weatlh Management Professional (CWMP) is designed as a hybrid course, with online instruction in portfolio construction, quantitative analysis of risk and return, economics and economic indicators, as well as live seminars providing hands-on learning. As a key component of the course, participants will prepare an investment proposal based on a complex case study and current market conditions. This course is geared toward senior relationship managers and investment advisory or portfolio management staff.
It is also an opportunity for specialized operations, compliance and audit staff to gain a deeper understanding of the investment advisory process.
The CWMA is available for enrollment in January 26, 2023, and the CWMP will launch its first session in March 2023. The course was developed by a multi-disciplinary team of professionals, led by the instructor, Isabelle Wheeler, CFA.
Photo courtesyIsabel Campillo, Carmen Garcia & Cristina Rubio, Capital Strategies team
Matthews Asia announces a new distribution agreement with Capital Strategies Partners, a Madrid, Spain-headquartered global third-party distribution firm. Capital Strategies Partners will be assisting with distribution of Matthews Asia’s UCITS funds in Spain, Portugal and Italy.
Matthews Asia is headquartered in San Francisco and specializes in investing in Asia and the emerging markets. Since it was founded in 1991, the firm has used an active approach that focuses on identifying the most attractive long-term growth opportunities in these regions. With portfolios that look very different from their benchmarks, they seek to provide clients with better exposure to the regions’ diverse and rapidly changing markets.
“Matthews Asia is a specialist boutique with an excellent reputation and performance that naturally complements the other fund managers we represent. With this asset manager, we bring to our investors the possibility of taking exposure to a geographic area that is becoming increasingly important in the global economy,” says Cristina Rubio, partner at Capital Strategies Partners and head of the project.
Neil Steedman, Head of Business Development EMEA and Asia at Matthews Asia, said: “Matthews Asia has been at the forefront of providing investors with a broad range of choices to build exposure to Asia and broader emerging markets. We are thrilled to be partnering with Capital Strategies to offer our distinctive investment approach to investors in Spain, Portugal and Italy who can benefit from our long-term focus on these fast-growing markets.”
About Matthews Asia
Since 1991, we have focused our efforts and expertise within the Asia and the emerging markets, investing through a variety of market environments. As an independent, privately owned firm, Matthews Asia is the largest dedicated Asia investment specialist in the United States. With approximately US$13 billion in assets under management as of 31 December 2022, Matthews Asia employs a bottom-up, fundamental investment philosophy, with a focus on long-term investment performance. For more information, please visit matthewsasia.com.
About Capital Strategies Partners
Capital Strategies Partners AV SA is a regulated private partnership and that specializes in identifying and representing best-in-class and mainly unique asset managers. Founded in 2000 and headquartered in Madrid, the firm is made up a diverse team of 34 professionals with global presence.
Photo courtesyMarty Flanagan, President & CEO at Invesco to retire on June 30, 2023
Invesco announced that Marty Flanagan, under whose strong leadership Invesco has grown to become one of the world’s leading global investment management firms, has decided to retire as President and CEO on June 30, 2023.
“During his time at Invesco, Marty’s relentless focus on understanding and meeting client needs while building a world-class investment organization has helped Invesco strengthen its global leadership position and grow its AUM from $400 billion to $1.4 trillion1,” said G. Richard Wagoner, Jr., Chair of the Invesco Ltd. Board.
Mr. Flanagan will also step down from the Invesco Ltd. Board on June 30, 2023. He will continue as Chairman Emeritus through Dec. 31, 2024, providing advice and guidance to the company.
“Under Marty’s strong leadership, Invesco has built a fully integrated firm with a comprehensive set of capabilities that enables us to meet a wide range of client needs and a well-scaled global platform that allows us to deliver a high level of service and value to clients across the globe. Throughout his time at Invesco, Marty has built an inclusive and forward-looking culture that values employees and stakeholders of the company, and has played a prominent role in business groups nationally and in Atlanta. The Board and I are extremely appreciative of Marty’s many significant achievements during his 18 years at Invesco, which will have an enduring impact on the firm’s long-term success,” added Wagoner
The Invesco Ltd. Board of Directors announces the appointment of Andrew Schlossberg, Senior Managing Director and Head of the Americas, to succeed Mr. Flanagan as President and CEO of Invesco Ltd. Mr. Schlossberg will become President and CEO of Invesco and a member of the Invesco Ltd. Board of Directors on June 30, 2023.
“Andrew has a long and established track record of delivering a superior investment experience to clients, helping employees grow in their careers, and leading innovation and profitable expansion across our global business,” said Mr. Wagoner. “His leadership in the asset management industry and wide-ranging experience at Invesco position him well to bring next-generation leadership to the company and deliver for all our stakeholders.”
“I’ve worked side-by-side with Andrew throughout my career at Invesco and have found him an exceptional leader who is highly focused on delivering the best possible experience for our clients,” said Mr. Flanagan. “I have every confidence that Andrew and the Executive Leadership Team will build on our strong momentum to take the business forward.”
“Invesco has an exceptional foundation to provide investment excellence for our clients, innovate in our delivery and enhance the growth of our business,” added Mr. Schlossberg. “We have a comprehensive range of in-demand investment capabilities, a strong global footprint and outstanding talent throughout the firm. I look forward to working with the Invesco Ltd. Board, our team worldwide and Marty to ensure continued strong outcomes for our clients, employees and shareholders.”
Mr. Schlossberg has been in the asset management industry since 1996 and with Invesco Ltd. since 2001. He has served in multiple leadership roles across the company’s businesses and locations. Prior to his current position, he was based in Invesco’s UK office as Senior Managing Director, Head of EMEA (Europe, the Middle East and Africa) and Chair of the Board of Invesco UK Limited. Before the UK, he served as Head of US Retail Distribution and Global ETFs and, prior to that, was US Chief Marketing Officer and Head of Global Corporate Development. He has also held leadership roles in strategy and product development in the company’s North American Institutional and Retirement divisions.
Mr. Schlossberg is active within the financial services industry, serving on the Investment Company Institute (ICI) Board of Governors and Executive Committee. Previously, he served on the board and advisory boards of the UK Investment Association, ICI Global, TheCityUK and the Diversity Project.
Doug Sharp, Senior Managing Director and Head of EMEA, will assume an expanded leadership role as Head of the Americas and EMEA, and global responsibility for ETFs, SMAs and digital capabilities.
“Doug will work with Andrew Lo, Senior Managing Director and Head of Asia Pacific, to oversee a more globalized client-facing organization with a focus on better understanding and meeting client needs, employing both a regional and cross-regional approach,” Mr. Flanagan said.
Mr. Sharp has served as Senior Managing Director and Head of EMEA since 2019. He joined Invesco in 2008 from McKinsey & Co. and has served in multiple leadership roles across the firm, including his previous role as Head of EMEA Retail. Prior to that, he ran Invesco’s cross-border retail business and served as Head of Strategy and Business Planning and as Chief Administrative Officer for Invesco’s US institutional business.
The firm also announced that Stephanie Butcher, Chief Investment Officer, EMEA, and Tony Wong, Global Head of Fixed Income Investments, have been named Senior Managing Directors and Co-Heads of Investments. Together, Ms. Butcher and Mr. Wong will oversee the firm’s distinctive investment capabilities, building on the strength of our investment culture, processes and enterprise support model.
Ms. Butcher has served as Chief Investment Officer of Invesco’s EMEA business since January 2020, overseeing the highly regarded Henley Investment Center, encompassing equities, fixed income and multi-asset capabilities. She joined Invesco in 2003 from Aberdeen Asset Management as a fund manager on the company’s European equities team.
Mr. Wong has served as Global Head of Fixed Income Investments since March 2019, responsible for the investment process and performance, strategic direction and enterprise oversight of Invesco Fixed Income’s global organization. Mr. Wong joined Invesco in 1996 and has served in various investment roles within the fixed income organization.
Funds Society announces the third edition of the Funds Society Houston Investment Summit to be held on March 2nd, 2023 at the Intercontinental Houston Medical Center.
After listening to the investments ideas and the outlook of our sponsors, AXA Investment Managers, Janus Henderson Investors, MFS Investment Management, Manulife Investment Management and Voya Investment Management we will head to the Houston’s Livestock Show and Rodeo, where we will enjoy a rodeo show followed by Lauren Daigle’s concert from the Funds Society private suite.
Join us for a great investments retreat with a perfect mix of academics and one of the most traditional events in Texas.
If you are a professional investor and want to participate in the event, you can register through the following link.
MCR, the hotel owner-operator, has acquired the Hilton Miami Airport Blue Lagoon, a 14-story hotel with 508 rooms in Miami, Florida. With a prime waterfront setting within the Blue Lagoon business park, the hotel is located just south of Miami International Airport (MIA).
This is the company’s second hotel in the Miami airport submarket following the acquisition of the Hyatt Place Miami Airport East in December of 2022 and its tenth hotel in Florida.
MIA is the busiest airport for international passengers and international freight in the U.S. and provides a hub for over 90 air carriers. International traffic continues to ramp back up following the pandemic and overall passenger volume through MIA was up over 10% in 2022 compared to 2019 based on the latest data available. And with a $5 billion capital improvement and expansion plan underway, it’s only going to get busier.
Tourism remains the top industry in “the 305,” but it is also home to the largest concentration of international banks in the U.S., as well as many major Fortune 500 companies. With its prime location near the airport, the Blue Lagoon business park has over four million square feet of office space and serves as the headquarters for nationally recognized names including Burger King and Lennar, as well serving as the Latin American headquarters for Sony, Airbus, Novartis, Hasbro, Estée Lauder and Olympus.
The hotel is located near several major sports venues, including the Hard Rock Stadium, making it easy to splash down for a Miami Dolphins game. Explore pristine beaches along Florida’s Gold Coast, take in the largest collection of Art Deco architecture in the U.S., or head deeper into the city to check out Miami’s world-renowned shopping and dining scenes.
There’s plenty to enjoy on-property too! The hotel offers a large outdoor pool surrounded by comfy loungers, umbrellas and towering palms, plus outdoor tennis and basketball courts, bike and car rentals, a fitness center, and a hot tub, the new owner said.
Join your breakfast in the Coral Café Restaurant or for a casual poolside lunch and drinks at the Blue Lagoon Saloon. The Cove Bar serves light bites, dinner, and drinks nightly. All-day grab-and-go options are also available in our convenient shop, Herb N’ Kitchen.
Business travelers will appreciate the hotel’s convenient central location and 32,000 square feet of on-site meeting space, which includes a large, 9,600 square-foot ballroom, 16 breakout rooms and indoor and outdoor social event-focused space with views of Blue Lagoon. Each meeting space offers the latest technology and is managed by a professional team dedicated to making your event a success.
Santander Corporate & Investment Banking ended 2022 as the global leader in export finance, with transactions amounting to $8.081 billion, and a market share of 12.1%. Over the last financial year, Santander participated in 40 international transactions offering financing, through Export Credit Agencies (ECA) to support the international activity of medium-sized businesses and large multinationals.
Santander CIB has a strong relationship with all ECAs worldwide, which, as well as its in-depth knowledge of the markets and industries where its clients operate, has enabled the bank to top the list published by Dealogic, one of the most widely used tools for analysing the performance, trends, activity and market share of financial institutions in this market.
The macroeconomic and geopolitical context last year favoured greater market dynamism in regions such as the Middle East, Africa and Asia where Santander, together with its global customer base, was able to lead the market at regional level, in addition to its global leadership position.
José Luis Calderón,global head of Global Transaction Banking (GTB) at Santander CIB, said:‘We are extremely happy to see Santander playing such a key role in this industry. We have been relentlessly investing in the business for the last two decades, getting closer to our clients, connecting sponsors, exporters, importers, ECAs and investors worldwide and innovating with the development of new products and structures with the main ECAs. We have been able to connect EMEA, the Americas and APAC to maximize our capacity to deliver the financial solutions our clients expect, not only for the big multinational companies but for mid-size enterprises as well.”
Credit insurance from ECAs and other multilateral institutions is one of the main public financial support instruments for company internationalisation, helping companies to obtain financing on competitive terms with specialised products tailored to their needs and mitigating the risks associated with cross-border activity.
Last year saw strong activity from European agencies such as Euler Hermes (Germany) and UKEF (UK), as well as Asian agencies with Kexim (South Korea) playing a prominent role.
In recent years, Santander CIB has been developing its Export & Agency Finance (EAF) business focusing on import and export customers. As such, it has designed innovative products hand in hand with ECAs, with a combination of global and local origin and structuring capabilities which are the basis of the franchise’s success.
Guillermo Hombravella, global head of Export & Agency Finance, said:”Obtaining results like this and leading global rankings in the export finance business is made possible thanks to our relationship with our customers, our ability to understand their needs and the profound knowledge of ECAs and their products that the team has on a global level.”
Pixabay CC0 Public DomainAuthor: Tumisu from Pixabay
The past two years of navigating fixed income markets have come down to what we call the end of low-interest rate alchemy, during which previously low rates and cheap cost of capital helped pull demand forward and prop up asset markets. The Fed’s zero interest rate policy encouraged many consumers, companies and the federal government to borrow and, in the case of the latter two, notably increase their debt loads as a percentage of GDP.
But 2022 and most of 2023 saw a sharp reset, with the Fed focusing squarely on taming inflation and sharply raising the cost of capital. This hawkish Fed policy led to the painful fixed income returns of 2022 but set the stage for a rebound in late 2023 that gave investors optimism about the kind of returns the fixed income asset class can deliver going forward.
Though trending down, inflation continues to be the Fed’s primary challenge, and the main question for 2024 is how much the Fed will turn its attention again to growth risks, and to what extent they deliver cuts to promote maximum employment. Those of us who predicted a recession in 2023 have been eating a bit of humble pie as the U.S. and developed economies in the European Union and Japan have so far defied expectations and continued to expand at a reasonably healthy pace.
That said, we believe the current yield levels and the rally we experienced late in the year signal that painful fixed income returns are behind us. The Fed hiking cycle is essentially over, and the question is how many cuts the Fed will deliver in 2024. While the economy is likely to continue to slow, and inflation returns closer to ‘target,’ we believe the Fed will deliver cuts but will not be overly aggressive without a significant pullback in economic activity, causing rates to stay higher than the market currently expects. Given this backdrop, in 2024, we expect fixed income to return to its more familiar past playbook: find ways of generating high income levels, all while protecting from the recession tail. If we experience a recession, fixed income can and should act as a ballast and provide negative or low correlations with risk assets. And that is the basis for our 2024 global fixed income outlook.
We believe a recession, albeit a modest one, will likely become the adverse macro event that restores normalcy to the fixed income markets this year. We made this same forecast a year ago, but the Fed’s aggressive tightening since March 2022 should eventually tip the economy into at least a mild contraction. The aggressive rate hiking of the past two years takes time to work through macroeconomic multiplier effects. Still, we are finally seeing that happen in an increasingly alarming fashion across balance sheets.
We typically see delinquencies and defaults on credit cards and auto loans in a recessionary environment. That’s happening. Home sales would slow dramatically and decline to multi-year lows. That’s happening. Consumer confidence would weaken. That’s happening. Interest coverage ratios would decline. That’s happening. Companies would require increased returns on investment for capital spending projects to cover the additional borrowing costs. That is also happening. Within government, we see sharp increases in the price of servicing debt. At the state and local government levels, we are beginning to see shortfalls in expected revenue growth that, in some cases, are leading to emerging budget shortfalls in current and future fiscal years.
All these things are finally happening as we expected a year or more ago. But the impact, regardless of the timing, is the same: the increased likelihood of a recession. The delayed timing aspect is primarily due to the strength of the consumer and labor market. But those strengths are fraying, and as that is likely to continue, a recession in 2024 is quite likely. We expect it will force the Fed to cut interest rates and launch a new easing cycle.
After December’s Fed meeting, markets priced in a series of rate cuts in anticipation of a dovish Fed next year. However, the Fed believes cuts they may deliver in 2024 do not serve as accommodative policy per se but rather to relieve the economy of rate levels it deems in restrictive territory.
Inflation was the driver behind the Fed’s massive tightening cycle of 2022-2023, and inflation will put the brakes on any aggressive easing cycle in 2024 and into 2025. The Fed has made it clear that its 2% inflation target has not changed, and with core inflation currently running at about twice that level, the central bank has to worry about how long inflation will remain above its target. Unless the expected recession is a genuine shock, we cannot expect the Fed to respond aggressively.
What keeps inflation from slowing to 2% given that it has slowed appreciably from its recent multi-generational peak? It all comes back to the stubbornly strong labor market, wage growth, and the wage pressures already built within the system.
The Fed’s approach to monetary policy suggests it will be comfortable waiting for inflation to slow to target and, to address growth risks, cutting rates to lower levels but still in somewhat restrictive territory. Since we don’t anticipate an actual shock-to-the-system type of recession in 2024, the Fed’s actions should signal to investors that ‘this is the business cycle, not an emergency, and this is what we’ve been trying to accomplish through the normalization of interest rates.’
Given this macro backdrop, we expect negative or low correlations with risk assets to reemerge. In other words, with the normalization of interest rates, it’s reasonable to expect the recent sharp reversion to negative correlations between fixed income and equity performance to continue even as the economy slips into recession. During the 30 years from 1971 through 2000, the correlation between stocks and bonds was -0.31. That correlation flipped to +0.30 from 2000 through today, even considering that correlations normalized back to about -0.25 in recent months.
When we look at valuations heading into 2024, we ask ourselves whether or not we are compensated for risk and an unexpected, perhaps tail, event. As the new year gets underway, we are not. But income generation is the best it’s been in 15 years, and focusing on removing potential volatility from portfolios will be the name of the game. These are interesting returns at current yields, even in an unchanged world. In fact, in the case of high yield corporates, they are equity-like returns, which is remarkable, especially since yields in that space were roughly 4% not so long ago.
Generally, we like less cyclical credits and, therefore, underexposed to a likely recession. Such acyclically oriented sectors include insurance, healthcare and utilities. As mentioned, although overall yields are attractive in the investment-grade and high yield corporate space, valuations in both sectors give us pause to add further exposure.
We continue to monitor weaker consumer trends. Excess savings have come down, and consumption is beginning to soften. In response, our positioning within securitized credit is in higher-rated senior bonds, which tend to behave with less volatility versus more credit-sensitive securities in the mortgage and asset-backed space. Consistent with this view, we find Agency mortgage-backed securities (MBS) attractive, with the potential to outperform should rates fall and mortgage refinancings pick up.
Opinion article by Jeff Klingelhofer, CFA, Co-Head of Investments and Managing Director at Thornburg Investment Management.
VIZIBILITY announced a cooperation with Intercontinental Wealth Advisors. As part of this cooperation, Intercontinental Wealth Advisors will utilize Vizibilitytechnology platform to price, trade, and manage the portfolio of their clients.
“We’re excited to bring our SP solutions to so many organizations and advisors who share our vision, such as Intercontinental Wealth Advisors. This cooperation will provide clients unique exposure to structured investment products, and we look forward to providing our new partner with our solutions and expertise,” said Aurelien Vicart, CEO of Vizibility.
Alfredo La Rosa, CIO of Intercontinental Wealth Advisors, added: “Thanks to the cooperation with Vizibility we have the possibility to offer our clients a comprehensive and attractive range of structured products in the future. Vizibility is the ideal service and technology partner for this, as the competencies of both companies complement each other perfectly.”
On the other hand, Jerry Orosco, Vice President and Portfolio Manager at Intercontinental Wealth Advisors, said: “Vizibility advanced technology features provide us comparison functionality, streamlined processes, top-quality insights, compliance systems, and a wide range of functions, all in one place. It’s the perfect tool to elevate our structured product business”.
VIZIBILITY is committed to transform the digital experience, enabling them to better serve their clients.
Insigneo announced that Maria Solanet has joined the firm as Senior Vice President and will be based in the firm’s Miami headquarters.
Prior to joining the firm, Solanet worked as an International Wealth Management Advisor at Morgan Stanley, where she provided customized advice and investment solutions to clients residing abroad and in the US.
“Maria’s proven track record of over twenty years and passion for working with international clients will bring significant value to Insigneo,” said Jose Salazar, Insigneo’s US Market Head. “We are excited to continue to attract the industry’s best and brightest talent.”
On the other hand, Solanet added, “I am thrilled to join Insigneo’s team of independent financial advisors, it’s an incredible next step in my career. I look forward to leveraging Insigneo’s platform and its resources, while taking advantage of the collaborative environment the firm provides.”
Throughout her career, Solanet has focused on helping international clients understand the challenges and opportunities of investing in the U.S.
One of 10 children, Solanet grew up in Argentina in a home focused on finance. Her family owned a bank there, exposing her from an early age to the varied aspects of the financial markets. After earning the equivalent of an Associate Degree at the University of Buenos Aires, Solanet went to Cambridge, England, where she continued her education and began her financial career.
During the past 23 years, she has built a reputation for guiding her clients in making sound investment decisions, working at such firms as Lloyds Bank in England, HSBC Bank, and Merrill Lynch Bank of America until she joined Morgan Stanley in 2015.
“It is such an exciting time at Insigneo as we continue to add outstanding financial professionals like Maria, and we continue to invest in the necessary technology and resources to enable them to deliver the superior service for which Insigneo is know,” added Rodolfo Castilla, Head of Sales for Insigneo.