Foto cedidaMatt Christensen, director global de Inversión sostenible e impacto de Allianz GI.. Allianz GI amplía y reestructura su equipo global de inversión sostenible bajo el liderazgo de Matt Christensen
Allianz Global Investors has announced the expansion and restructuring of its global Sustainable Investment team under the leadership of Matt Christensen, Global Head of Sustainable and Impact Investing, to enhance its commitment to sustainability. In this sense, they are hiring Thomas Roulland and Julien Bertrand.
The asset manager has decided to create three pillars for this new structure which will help ensure they continue “to push the boundaries of sustainability for its clients”, they highlighted in a press release. First, a newly created Sustainability Methodologies & Analytics teamwill innovate with state-of-the-art technology and ESG data, including Artificial Intelligence and Natural Language Processing, in order to support research, develop new methodologies across asset classes and develop client-oriented solutions. The team will also oversee Allianz GI’s ESG integration efforts, ESG scoring method and develop the firm’s data set for the climate strategy.
“We have strong ambitions with regard to carbon reduction, and the new team will be instrumental in transforming the pathway set out by the Net Zero Initiatives into operational targets for investors and comprehensive reporting to our clients”, Christensen commented.
Roulland will head the Sustainability Methodologies & Analytics team and will be joined by Bertrand as an ESG analyst for methodologies and analytics. Both join from Axa IM, where Roulland was Head of Responsible Investment Solutions, Models & Tools, and Bertrand worked as an ESG analyst recently.
The asset manager has revealed that the second area is a new Sustainability Research & Stewardship team. It will manage the thematic research and engagement strategy under the leadership of Mark Wade, who was previously Co-Director of Research Credit.
Isabel Reusswill continue to head the Sustainability Research team, which will also develop a thematic approach along the topics of Climate, Planetary Boundaries and Inclusive Capitalism. Antje Stobbe, member of the Sustainability Research team since 2019, has been promoted Head of Stewardship and will lead Allianz GI’s engagement and proxy voting activities globally. They will both co-lead the “Climate Engagement with Outcome”. This approach aims to engage with companies on the climate transition pathway towards a low carbon economy.
Finally, a newly created Sustainable Investment Office will be responsible for shaping AllianzGI’s overall sustainable investment strategy and policies, sustainable product strategy and the coordination of cross-functional sustainability topics across the firm. The team will play a critical role in providing improved knowledge to clients and other stakeholders on AllianzGI’s sustainable investment capabilities. It will be headed by Nina Hodzic, who was Director ESG Integration and Solutions since 2019 and has been promoted to the new role.
Christensen believes that this structure brings a new focus on ESG data and technology, a refreshed research setup and a dedicated sustainable investment office that will help accelerate their drive to embed sustainability across the firm. “The team set-up will provide us with the platform we need to ensure that we are in a position to shape -not follow- the market in the years ahead on critical issues like climate change and social inequalities”, he added.
Pixabay CC0 Public Domain. NN IP amplía su gama de estrategias de bonos verdes con un nuevo fondo de deuda soberana
NN Investment Partners has announced in a press release the launch of the NN (L) Sovereign Green Bond, a new fund adding to its green bond offering.
The asset manager said that this is the first sovereign bond fund aiming to have a positive environmental impact through the projects it finances. It complements its existing range of green bond funds, applying the same investment approach as the NN (L) Green Bond fund, but with a specific focus on treasury and government-related bonds.
The new vehicle comes just five years after NN IP launched its first dedicated green bond fund and only one year after launching a corporate green bond fund. Currently, they offer a full range of green bond funds: aggregate, corporate, sovereign, and an option for a fund with a shorter duration.
In their view, by having access to separate sovereign and corporate green bond funds, investors enjoy “maximum flexibility” to select the building blocks they need to make their fixed income allocation more sustainable with a measurable and positive impact.
“I am proud to be part of the development of an asset class that will play a key role in financing climate change mitigation and supporting the environment. Whilst in the past, investor demand for green bonds mainly came from impact investors, we now see more typical fixed income investors allocating to green bonds as well”, commented Bram Bos, Lead Portfolio Manager Green Bonds at NN IP.
In his opinion, these investors are looking to make their portfolio more sustainable without sacrificing financial performance. “Offering a broad range of green bond strategies makes this even easier, as it allows them maximum flexibility to allocate to green bonds that replicate the characteristics of traditional bonds in their portfolio”, he added.
An exponential growth
Lastly, NN IP highlighted that the launch of the sovereign green bond fund occurs at a time when the sovereign green bond market has seen significant growth in issuance, representing a diverse issuer base that they believe will continue to grow exponentially. Italy recently issued its inaugural green bond in March whilst Spain and the UK have also announced plans to issue their first green bonds in 2021, which will give the sovereign green bond market a further boost.
“These developments are creating a market that is well-diversified in terms of issuers and countries, which allows for a well-diversified portfolio with comparable characteristics to a regular allocation to treasuries”, they pointed out.
The asset manager estimates that green bond issuance could increase this year by 50%from 2020 to 400 billion euros, putting the total market above the 1 trillion mark, and expects the global green bond market to grow to 2 trillion euros by the end of 2023. The announcement from the EU that 30% of the NextGenerationEU bonds (in total 800 billion euros) will be green supports NN IP’s forecast for market growth.
Pixabay CC0 Public Domain. XP incorpora a su plataforma el fondo Jupiter European Growth centrado en compañías large cap europeas
XP Inc. is bringing to its platform the first international fund of Jupiter, an asset manager based in London with 35 years of experience and US$ 80 billion in Assets Under Management (AUM).
The new offered fund is the Jupiter European Growth, focused on leading European-based companies that have Global operations, like Adidas, Dassault, Novo Nordisk, Pernod-Ricard and Deutsche Boerse. The fund consists of a concentrated portfolio of 35-45 holdings, focusing on large cap companies operating in sectors with attractive industry economics, high barriers to entry and sustainable competitive advantages.
The benchmark is the FTSE World Europe, that covers companies with these profiles. The fund has been overcoming the index systematically for periods like three and five years.
Launched 19 years ago, the product is co-managed by Mark Nichols e Mark Heslop since October 2019. Together, they have more than 30 years of experience with European companies. The strategy is based on the stock picking view, seeking consistent returns in the long term and considering ESG principles.
The fund will have a minimum investment of R$ 500, with a management fee of 1%.
With this launching, XP takes another step towards democratizing the offer of global products to its clients, a process that has already brought to the platform funds from globally recognized managers, such as JP Morgan, Fidelity, AXA and Wellington. With values starting at BRL 100, the investor can have access to products linked to different types of companies, from the most traditional to the most innovative, in markets such as Europe, China and the United States.
William Lopez, Head of Latin America & US Offshore at Jupiter commented:
“We are delighted to have signed this strategic partnership with XP and to play our part in expanding the range of international funds available in the Brazilian market. Jupiter European Growth offers Brazilian investors exposure to European equities via a strong investment team and a proven active strategy. We look forward to working closely with XP in the future to provide greater access to Jupiter’s investment expertise in Brazil.”
“Jupiter Asset Management have a huge expertise in European markets, so, for us bringing their funds to our platform is a real milestone. The Brazilian investors will have the opportunity to diversify their portfolio in a fund with world-class companies”, says Fabiano Cintra, funds specialist at XP.
Foto cedidaDe izquierda a derecha: Marc van Heems, estor de fondos para la estrategia de bonos corpo. Vontobel refuerza su equipo de renta fija global en Zúrich y Nueva York
Vontobel has expanded its fixed income team with four seasoned new hires in Zurich and New York. The asset manager pointed out in a press release that the appointments -which follow four new hires in January across its Zurich and Hong Kong offices- reinforce its commitment to attracting the best investment talent to drive value for investors.
Pamela Gelleshas been named Senior Credit Analyst on the Developed Market Corporate Bonds team in New York. She joins Vontobel after eight years at BNP Paribas Asset Management, where she was a credit analyst following both investment grade and high yield companies within the consumer products, retail, hospitality and transportation sectors. She also co-created and implemented an ESG methodology for the company’s credit analysis.
Prior to that, Gelles covered various industry sectors, including healthcare and utilities, at BNY Mellon Asset Management, Foresters Financial, NLI International and The Carlyle Group. She also spent 12 years as a ratings analyst at Standard & Poor’s.
Another outstanding designation is that of Marc van Heemsas Portfolio Manager for the Global Corporate Bond strategy in Zurich. He joins Vontobel from Lombard Odier Investment Management, where he was a portfolio manager for European and Emerging Markets Credit, responsible for active implementation of trades in investment grade and BB-rated bonds, including senior and subordinated cash bonds and credit default swaps. As a credit analyst, he covered non-financial sectors in developed markets and Asia, including Autos/Parts Suppliers, Defense/Aerospace, Capital Goods, China Real Estate, Indian Renewables and Energy.
The Zurich offices will also welcome as Head of Fixed Income Trading Jean-Michel Manry, a seasoned Operations and Trading Manager with expertise in derivatives, fixed income and forex. He joins from Rama Capital, a Geneva-based family office where he was an Operational and Trading Advisor. Prior to that, Manry spent 18 years at Pictet Asset Management, where he was Head of Fixed Income Trading and later became Head of Buy-side Trading for Multi-Asset strategies.
Lastly, Nicolas Hauser has been appointed Fixed Income Trader in Zurich. He joins from Fisch Asset Management, where he was responsible for trading and execution of corporate bonds and convertible bonds, as well as FX and futures. His expertise also includes futures trading for CTA managed futures accounts and interest rate risk hedging.
Simon Lue-Fong, Head of Fixed Income at Vontobel, highlighted that these hires reflect “the continued growth of, and investment into,” their global fixed income offering. “The volatility in markets over the last few months has demonstrated the importance of a truly active approach and the value of our high conviction active management style. Marc and Pamela will play key roles in helping to deliver value for our clients, and the knowledge and insight they provide will be instrumental in supporting the rest of the team”, he added.
Currently, the Fixed Income team consists of 41 investment professionals located in Zurich, New York and Hong Kong.
Pixabay CC0 Public Domain. Capital Group lanza un fondo de renta variable con enfoque de alta convicción que invierte en compañías asiáticas
Capital Group has announced the launch of its Capital Group Asian Horizon Fund (LUX), which seeks to capture Asia’s secular growth opportunities with a global perspective.
In a press release, the asset manager highlighted that Asia is fast becoming “a global economic powerhouse” and its rapidly growing middle class have brought about “a huge rise in the demand” of every kind of products and services, from healthcare and financial services to luxury goods and online entertainment. That’s why Capital Group Asian Horizon Fund (LUX) is designed to meet “growing investor appetite” for Asia-related stocks as global investors become increasingly aware of opportunities that arise from secular growth trends in the region.
The strategy is a high conviction portfolio, investing across the market cap and valuation spectrum to achieve long-term capital growth. The fund invests in companies with at least two-thirds of net assets based in Asia ex-Japan, including onshore China A-shares, but it also has the flexibility to invest in companies domiciled outside of the region, where Capital Group’s analysts believe that exposure to Asia will be a key driver of their future growth prospects.
By combining local and global investments, the asset manager created the fund to fully unlock access to “the most exciting growth opportunities” in Asia ex-Japan.
“Asia is becoming a global economic powerhouse and is home to some of the world’s most innovative and fastest-growing companies. Its multi-dimensional growth story is unique, and we are well placed to ensure that investors can tap into domiciled opportunities just as well as those outside the region that are plugged into the growth drivers within the Asian market. With our proven track record of being early investors in Asia’s emerging leaders, we believe that Capital Group Asian Horizon Fund (LUX) is a great example of helping investors to identify champions.”
It is necessary to clarify the perception that metals are a hedge against inflation. Are they really? The history of the last 20 years shows that gold (and silver), regardless of production, demand, and other elements, perform better with moderate inflation and declining rates.
What to expect for metals if inflation and yields rise?
“Gold’s ability to hedge against inflation has been… exaggerated…” an analyst at Blackrock recently argued. That of silver too, could I add. Investors channel their inflation concerns by trading the Treasury Note (10-YT). Let us compare for this article the linear behavior of gold (golden line) with that of the Note price. Do not confuse with the percentage performance.
(10-YT) generated value from 2001 to 2011, as benchmark yield fell from 5.50% to 1.80%. Gold rose in mountain shape from $260 to $1,800; Silver (not shown here) climbed to its all-time high of $ 48 from $4.
Between mid-2012 and the end of 2018, 10-YT accumulated losses due to the rate hike to 3.14%from 1.46%. Gold fell to $1,060 in that period, although it recovered to $1,200. Silver dropped to less than $14 with inconsistent ups and downs.
The big picture projects both prices followed the same direction. Certainly, there were periods when 10-YT tended lower while gold climbed, such as between 2015 and 2009, when the US economy grew, yields rose, and financial markets were exuberant.
From all-time highs to actual weakness
Look to this other chart from August 2020 to date.
The slope of the 10-YT price started when gold peaked last year. Benchmark yield was then 0.52% and four months later almost doubled to 0.96%. Therefore, gold and silver prices weakened. Gold regained its luster in December but darkened in January when the price of 10-YT sharpened its bearish process. From there both lines dropped precipitously doing almost the same formation.
So far in 2021, yields continued to rise reaching 1.60%. Gold accelerated losses linked to the falling prices of the Note. Silver was approaching the zone of highs,with ups and downs, but it lost steam by the pressure of gold. During the time span of this second graph, the yield went up more than triple, to 1.64%, leading to losses while gold left more than 18% on the way. It is illustrative that on March 9, 10, 11, the price of the Note rebounded, as did the metals.
Two opposing forces by 2021
Under this reality it is questionable to say that precious metals can be useful as hedge against the inflation the benchmark yield is anticipating. The lower the price of Note (rates up), the lower the price of gold. With different proportions and occasional distortions, of course.Good precious metal cycles occur in times of falling rates. Periods of low inflation and economic dynamism.
The macro situation presents two forces for 2021: inflationary potential and economic recovery. Metals can go down or stay horizontal with the first or gain value with the second. This may be what happens if the yield cap is not far from current levels.
RIA Americana Partners has announced in a press release that Ronald E. Thacker, a veteran wealth management executive, is joining the firm as President. He will be based in Austin, Texas, and will report to Jason Fertitta, Chief Executive Officer.
“I am delighted to be joining Jason and his impressive team at Americana Partners. I see great opportunity for any advisors who want to be entrepreneurs more than employees. I am looking forward to working in the fast-growing independent space and see significant opportunities for Americana to build out its business”, Thacker said.
With 35 years of experience in the financial services industry, he is a former Managing Director and Regional Director for Morgan Stanley Wealth Management, where he worked 30 years before leaving in January 2020. Thacker led Morgan Stanley’s Central Region management team, among other numerous leadership roles.
Meanwhile, Fertitta pointed out that he has worked with Thacker for over a decade and claimed to be “delighted” to have him join Americana Partners as President. “He has considerable stature in the industry, and we are looking forward to having him work on expanding Americana Partners in Texas and beyond. Ron possesses a high level of industry expertise, respect within the advisory community, and in-depth knowledge of the needs and objectives of advisors”, he added.
Launched on April 29, 2019, Americana Partners is one of the industry’s largest breakaways and the largest single team to join the Dynasty Network. The firm has 3.5 billion dollars in client assets as February 2021, and offices in Houston, Austin, and Dallas, with longstanding ties to Texas
In Mexico, Harbourvest Partners, Spruceview México and Lock Capital are the three alternative investment issuers that have called the most capital in amount. On the other hand, Harbourvest Partners, Lock Capital and Capital Global are the three issuers with more than $1 billion USD in committed capital out of the 17 GPs that have issued CERPIs as can be seen in the following table:
CERPIs are the vehicles that allow AFOREs to invest in Private Equity globally. So far (March 2021) there are 49 CERPIs in place totaling $9.714 million USD in committed capital, of which 25% have been called.
MIRA Manager was the first in 2016 before CERPIs were allowed in 2018 to invest 90% of its resources globally and 10% in Mexico. The opportunity to invest globally promoted that, in 2018, 12 issuers issued a CERPI for the first time, standing out in committed capital: Capital Global, Lock Capital (who replaced Lexington as manager, who issued in said year) and KKR. In 2019 three new GPs were incorporated (Harbourvest Partners, Spruceview and Actis Gestor) and four GPs continued to grow their offer of CERPIs. For 2020 only Arago Capital was the new GP that was incorporated as an issuer and three reissued.
For the potential market that global Private Equity investments have, the fact that there are only 17 issuers seems to us to represent a small number and that they are only taking a breather. In Chile, the AFPs make similar investments through 45 GPs (2.6 times more than Mexico) of which five of them have issued a CERPI in Mexico.
For the AFOREs with $230.110 million USD in assets under management (as of February 28, 2021), investments in local Private Equity represent 5% and 1% in global Private Equity, which shows their growth potential.
As there are 49 emissions and 17 GPs, the average per GP is close to 3 CERPIs for each one, however 9 have more than one CERPI and 8 GPs only have one CERPI. The number of issuances has grown due to the specialization in the age of the affiliated worker and due to its orientation towards private banking clients. It should be remembered that today SIEFOREs are based on the worker’s age (Target Date Funds). Spruceview and BlackRock for example have 9 CERPIs each, while Lock Capital has 8.
The 17 issuers can be classified as:
Global GPs,
Local GPs,
GPs who are advisers and
Those that are a combination of the above.
As CERPI issuance dominates in the Fund of Funds sector it is highly likely that there are more global GPs than we currently see. However, that information is not public.
Global investments in Private Equity by AFOREs should continue to grow in both resources and managers.
Pixabay CC0 Public Domain. XP y M&G firman un acuerdo para ofrecer su estrategia insignia de bonos flexibles a clientes brasileños
XP Inc., a leading, technology-driven financial services platform, announced its partnership with M&G plc., a leading international savings and investment company headquartered in London, to offer Brazilian-based investors access to a flagship flexible bond strategy via a new XP local fund.
XP has launched the M&G Optimal Income Advisory FIC FIM IE CP, a Brazilian domiciled fund dedicated to investing into a globally diversified fixed income strategy offered by M&G Investments, which combines top-down macroeconomic approach with a rigorous bottom-up credit analysis. Brazilian investors will have access to the BRL-hedged fund.
This partnership comes in an ideal moment as the all-time-low interest rate in Brazil (2% as of September 2020) has made global funds potentially attractive as an investment option for investors seeking to improve the risk/return ratio in their portfolios.
“We are excited to bring this flagship strategy from M&G on board. Focused on identifying the combination of assets that provide the most attractive income stream within the bond universe, the strategy not only presents new sources of potential returns, but is also meant to offer downside protection through the economic cycle”, says Fabiano Cintra, funds specialist at XP. “XP continues in its plan to connect Brazilians with the best investment opportunities in the world and M&G certainly stands out as a very well-known and well-recognized manager”, adds Cintra.
Pixabay CC0 Public Domain. Azimut continúa reforzando su presencia en la región con la adquisición de MZK Investimentos en Brasil
The Azimut Group, one of the largest independent asset managers in Europe, through its subsidiary AZ Brasile Holding, signed an agreement to acquire 100% of the capital of MKZ Investimentos, an independent Brazilian asset manager specialized in Macro Strategies with more than 125 million dollars under management.
This transaction will add to the existing AZ Quest asset management proposition thus reinforcing the Group’s strong expertise across Brazilian equity and fixed income capital markets. AZ Quest and MZK Investimentos will operate as separate legal entities until all regulatory approvals are completed.
MZK, founded in 2017, has a senior and integrated management team, deriving from a joint activity developed over the last 15 years, which includes experiences in treasuries of major local and international banks, such as HSBC, Bradesco and BNP Paribas. This entire team, composed of qualified professionals and complementary profiles, will be integrated in the AZ Quest’s macro team and will be led by MZK CEO, Marco Antonio Mecchi.
This operation adds value also to MZK’s clients through the exchange of expertise from the current team with the other AZ Quest areas, such as equity, private credit and arbitrage. Moreover, MZK current team will access the competencies of over 150 portfolio managers in 18 investment hubs that make up the Azimut Global Asset Management Team. Professionals will benefit from this tremendous synergy without any changes in the current products structure.
The mutual fund industry in Brazil totals more than 1 trillion dollars with an excess of 70% of assets under management being concentrated on low-risk fixed income strategies. Local interest rates still significantly below the historical norm are conducive for a continuation in the rotation from low to medium-high risk investment strategies such those managed by MZK. In this context, the transaction strengthens the Group’s macro product proposition to local clients and underpin the potential for further organic growth capitalizing on the underlying industry trends.
Giorgio Medda, CEO and Global Head of Asset Management of Azimut Group, comments: “The investment in MZK fits well with our plans of adding breadth to our Global Asset Management Team local capabilities, particularly in a key market for global investment portfolios like Brazil. Our overall strategy to expand the Group’s integrated asset management platform in Brazil will benefit from new product development, which has been instrumental in our organic growth locally since 2015.”
Marco Antonio Mecchi, one of the MZK founder, comments: “The synergy and complementarity created by the merger of MZK and Azimut adds value and local expertise to its clients and also adds strength to the franchise. The new company will manage funds effectively using the leverage of the global structure Azimut provides and the local knowledge and experience MZK provides. We are very excited to be part of this Group and lookforward to the development of new businesses”.
