Foto: mulan
. 7.800 millones de dólares de grandes patrimonios a riesgo
According to Cerulli Associates, high-net-worth (HNW) households control close to 35% of all investable assets in the U.S. marketplace. Advisors surveyed by Cerulli were asked about the depth of their relationships with the potential inheritors of their HNW clients’ assets. While responses about the relationships with spouses were encouraging, advisor relationships with younger generations of the family are a large concern.
“The notion of helping a family define and accomplish their aspirations without involving spouses is irrational,” says Donnie Ethier, associate director at Cerulli. “The thought of referring to spouses as ‘heirs’ is not a welcoming idea, but many practices may have to approach it in this manner due to the generally limited rapport with family members.”
The study U.S. High-Net-Worth and Ultra-High-Net-Worth Markets 2016: Understanding the Long-Term Impact of Wealth Transfer reveals that 67% of HNW households are led by investors age 60 or older. “Overlooking the children of these investors is ill-advised as most are not adolescents, but adults well into their 30s and older, with their own financial habits, philosophies, and possibly established advisor relationships,” explains Ethier. “How and where the younger generations manage assets or inheritances represents a pivotal transformation, as these wealth transfers will likely determine who the future leading firms and channels become.”
As the industry continues to evolve toward a more transparent, goals-based approach to investing, practices will need to adjust to the new expectations of clients by offering a collaborative advisory model with a broader range of products and services. “We believe that wirehouses and private banks will adapt, while registered investment advisors and multi-family offices stand to capitalize,” states Ethier.
CC-BY-SA-2.0, FlickrFoto: Youtube. FINRA incorpora a Stephen M. Cutler a su Consejo
The Financial Industry Regulatory Authority (FINRA) has named a new Large-Firm Governor – Stephen M. Cutler, Vice Chairman of JPMorgan Chase & Co. – to its Board of Governors. Cutler was appointed to complete the term of former Governor Gregory Fleming, who resigned his board seat earlier this year.
Cutler joined JPMorgan asits General Counsel in 2007 from the law firm of WilmerHale in Washington, D.C., where he was a partner and co-chair of the firm’s Securities Department. Prior to that, he was the director of the U.S. Securities and Exchange Commission’s Enforcement Division. Before joining the SEC in 1999, he was a partner at Wilmer, Cutler & Pickering, where he worked for 11 years.
Cutler obtained his bachelor’s degree summa cum laude from Yale and his J.D. from Yale Law School, where he was an editor of the Yale Law Journal.
“Steve brings a valuable perspective and a keen understanding of securities regulation and the industry to FINRA’s Board,” said FINRA Chairman Jack Brennan. “We welcome Steve and look forward to working with him.”
“FINRA will benefit from Steve’s depth of industry and regulatory knowledge in advancing our mission of protecting investors and ensuring the integrity of our markets,” said Robert Cook, FINRA’s President and Chief Executive Officer. “We are very fortunate to have Steve join the FINRA Board.”
FINRA is overseen by a Board of Governors, the majority of whom are public representatives. The 10 industry governors include three from large firms, one from medium-size firms, three from small firms, one floor member, one independent dealer/insurance affiliate and one investment company affiliate. FINRA’s CEO has the remaining seat.
The channels through which financial services are provided in the UK wealth market are undergoing a transformation. With an influx of new entrants offering digital platforms and robo-advice, traditional wealth managers are now responding to the rise in demand for automation, according to financial services research and insight firm Verdict Financial.
The company’s recent report, which analyses the UK wealth management space, indicates that traditional wealth managers are starting to embrace the ability to resonate with audiences on a digital level while still offering professional advice from a wealth manager or private banker.
Nicole Douglas, Analyst for Wealth Management at Verdict Financial, states: “According to our 2016 Global Wealth Managers Survey, 49.5% of wealth managers believe the demand they currently experience for automated investment services will increase in the next two years, indicating a noticeable proportion of the market prefers digital platforms in which to carry out investment decisions or seek advice.”
According to Douglas, automated services are becoming more prevalent in the UK market but do not pose an immediate threat for traditional wealth managers. She explains: “Advisors are not likely to be replaced by robots in the near future. Our data shows 87% of wealth managers disagree with the statement that traditional wealth managers will lose market share to automated investment services – or ‘robo-advisors’ – in the next 12 months.”
In short, there is still demand for having investments managed professionally. Verdict Financial’s data shows that lack of expertise and time are the two most common reasons wealth managers believe high net worth clients opt to have wealth professionally managed.
As such, wealth managers will do well to continue providing personalized advice and embrace digital capabilities as a supporting role. Douglas adds: “Our data shows that 67% of wealth managers agree with the statement that investing in automated investment services can complement their existing offering.”
Verdict Financial believes that investing in automated services will prove successful for competitors in the UK market, and wealth managers will come to experience that an offering with both human and automated components resonates with a range of investors.
Fundinfo, a leading international provider of fund information, now publishes documents and data for funds available to investors in Ireland and Portugal. With this expansion, fundinfo serves 13 European countries plus Hong Kong and Singapore. The service connects fund houses, fund distributors and investors via an online, on-demand information platform.
Jan Giller, Head of Marketing and Sales at fundinfo said, “Since the founding of our fund platform in 2006, we have steadily expanded our coverage from serving just the Swiss market to covering all the main fund markets in Europe, plus Hong Kong and Singapore. We welcome fund distributors and investors in Ireland and Portugal and invite them to take advantage of the most comprehensive, accurate and up-to- date source of fund information available.”
The platform provides complete information about funds and ETFs from over 800 fund houses comprising over 25,000 funds and 180,000 share classes. Participating fund houses include most of the world’s largest asset management companies.
For investors, the service is free of charge, and does not even require a log-in. It provides the latest fund documents such as monthly and semi-annual reports, KIIDs, prospectus, legal announcements, plus the latest information about the fund, fees, NAV price, and analyst ratings. The service as well as fund documents are provided in multiple languages. Documents in local language are provided where available.
In addition to the platform, fundinfo also offers associated services such as automated document and data dissemination, direct document and data feeds for banks, fund distributors and financial publications, as well as web-based fund popularity analysis and fund selection tools.
Standard Life Investments believes that it is time for a reset of fiscal policy to address both short and long-term challenges in the UK economy. A well-targeted stimulus would help cushion an expected slowdown in growth following the UK’s vote to leave the European Union. It would also provide ammunition to address the deterioration in growth rates seen over recent years, through targeted investment and structural reform. With markets concerned over the long-term effects of leaving the European Union, these priorities have become even more pertinent.
‘Time to rewrite the UK’s fiscal rulebook’ is the first in a series of Public Policy Perspectives, a new research publication which aims to broaden the debate on policy issues across a range of economies and make neutral, evidence-based recommendations. The paper argues that a coordinated fiscal and monetary stimulus would represent a much more effective policy mix than monetary easing alongside further fiscal austerity. The upcoming Autumn Statement provides an ideal opportunity for a step change. We would advocate:
A new fiscal framework which provides scope for a sustained loosening in policy and increased public investment through the business cycle. Under this new framework, the government should announce an immediate stimulus of 1.25% of GDP, with policy in subsequent years conditioned on the performance of the economy.
Action should be weighted towards an increase in infrastructure investment (0.75% of GDP) to be sustained over a number of years. This should be tilted towards smaller scale local transport projects, which provide the largest return.
Increased public investment should be complemented by progressive welfare spending to support consumption. Funding should also be earmarked for the ‘Sure Start’ and ‘Post 16 Skills’ programmes to help address the UK’s skills shortfall.
The Government should actively address inefficiencies in the tax system. In the short-term it should address capital allowances and establish a consistent tax system for the financial sector.
Longer-term priorities should include a shift in taxation away from property values/transactions towards land, and a tax allowance for corporate equity that reduces the bias towards debt financing.
A redoubling of efforts to increase housing supply through further planning reform and increased incentives for building.
‘Time to rewrite the UK’s fiscal rulebook’ is co-authored by James McCann, UK & European Economist, and Stephanie Kelly, Political Economist, Standard Life Investments.
James commented “Monetary policy has been overburdened since the financial crisis, with fiscal policy actually working against the recovery. A large fiscal push in the Autumn Statement would complement the easing measures implemented by the Bank of England over the summer. It would also help lift long-term growth rates, primarily through targeted infrastructure spending and structural reforms.”
CC-BY-SA-2.0, FlickrFoto cedida - LA Auto Show 2015. Más de 50 novedades confirmadas para el salón del automóvil de Los Ángeles
The LA Auto Show, now open, expects more than 50 vehicles to be unveiled in front of media, analysts and industry executives during its trade show, AutoMobility LA, taking place November 14-17, 2016, at the Los Angeles Convention Center.
Among the more than 20 world debuts will be introductions by Alfa Romeo, Mazda, MINI, Subaru, Volkswagen and a compact SUV from Jeep. Other reveals confirmed are those from Infiniti, Jaguar Land Rover and smart. Audi, Mercedes-Benz and Nissan will have multiple reveals, while Porsche has confirmed five debuts.
General Motors (GM) will have multiple global and North American debuts, including two reveals from Chevrolet. Cadillac’s debut lineup will include the Escala concept car, which has only been seen on the Concept Lawn at the 2016 Pebble Beach Concours d’Elegance.
In addition to production and concept vehicles in the luxury and performance segments, this year’s unveilings will include a significant showing of SUVs and electric/hybrid options across several makes and models.
As the automotive industry continues to transform, AutoMobility LA will also serve as a platform for product unveilings and significant announcements focused on technology, including the global premier of Divergent’s Blade production vehicle. Built using Divergent 3D’s proprietary platform, the Blade supercar represents the future of automobile manufacturing and will be available to customers in 2017.
Elio Motors,the start-up vehicle company bringing a low-cost, highly fuel efficient commuter vehicle to market, is planning on revealing the E1C (its latest E-Series vehicle), its P5 prototype vehicle and its interactive ePlus display at AutoMobility LA. With fuel efficiency of up to 84 mpg, the aerodynamic, 2-seater (tandem) has a set base price of $7,300 for non-refundable reservations (up to 65,000 total reservations).
Olli, the world’s first self-driving cognitive vehicle designed by Local Motors will also be present at this year’s AutoMobility LA. Olli, an on-demand shuttle with capacity for 12, is currently being used on private roads in the Washington, D.C. area and is the first vehicle to utilize the cloud-based cognitive computing capability of IBM Watson Internet of Things to analyze and learn from high volumes of transportation data.
Following AutoMobility LA, all of this year’s debuts will be on display at the 2016 LA Auto Show (open to the public November 18-27).
CC-BY-SA-2.0, FlickrFoto: courtesy photo. Dos estrategas de BNY Mellon Wealth Management han sido reconocidos por The American College of Trust and Estate Counsel
Wealth Strategists Pamela Lucina and Justin Miller of BNY Mellon Wealth Management have been elected as Fellows of The American College of Trust and Estate Counsel (ACTEC) in recognition of their professional accomplishments. ACTEC is a nonprofit association of lawyers and law professors skilled and experienced in the preparation of wills and trusts, estate planning, probate procedure, and administration of trusts and estates. Lawyers and law professors are elected to be ACTEC Fellows based on their outstanding reputation, exceptional skill, and substantial contributions to the field by lecturing, writing, teaching and participating in bar activities.
Chicago-based Lucina is Managing Director, Head of Global Family Wealth Strategy. Miller, a National Wealth Strategist, is based in San Francisco where he also is an adjunct professor at Golden Gate University School of Law.
Lucina joined BNY Mellon Wealth Management in 2014 and has nearly 20 years of financial services and wealth planning experience. Over her career she has held several leadership roles providing wealth and estate planning to high net worth clients and is recognized for her expertise in serving those with highly complex needs. She earned a Juris Doctor degree from DePaul University College of Law, where she was a member of the Business Law Journal, and she received her bachelor’s degree from Marquette University. Lucina is a frequent speaker at national professional associations and conferences on myriad estate and tax planning topics, and has published in Trusts & Estates as well as other leading professional journals. Among the many professional and community groups she is involved with, Lucina is a board member of the Chicago Estate Planning Council, and sits on the short course planning committee for the IICLE.
Miller joined BNY Mellon Wealth Management in 2011 and works collaboratively with other advisors to provide comprehensive wealth planning advice to clients and their families. Prior to that he was an attorney at a major law firm, where he advised high net worth clients regarding tax-efficient estate and business succession planning, trust law and management, and asset preservation. He earned a Master of Laws in taxation and a Juris Doctor from New York University School of Law and a bachelor’s degree from the University of California at Berkeley. Miller is a frequent speaker on tax, estate planning and family governance topics at leading conferences throughout the country. He has published numerous articles, and is frequently quoted in the media. Miller has served as an executive committee member of the State Bar of California Taxation Section, and is the former editor-in-chief of the California Tax Lawyer.
Foto: Doug Kerr
. Fieldpoint Private refuerza su negocio latinoamericano con la incorporación de Juan Castañeda
Fieldpoint Private, the wealth advisory and private banking firm serving ultra-high-net-worth families and institutions, has announced that Juan Castañeda has joined the firm as Managing Director and Senior Advisor. His practice is based in Fieldpoint Private’s New York City office.
Mr. Castañeda joins Fieldpoint following a decade with UBS, where he served in a series of positions on behalf of Latin American families and institutions. Most recently, he was Executive Director of Emerging Market Credit Sales and Head of Latin America. In that role he worked with family offices, banks and pension funds across a range of capital markets and structured lending services. Prior to that, Mr. Castañeda was Executive Director and Head of Latin America for UBS’s Global Relationship Banking unit, based in Sao Paolo, Brazil, and a director in that business unit’s New York office, developing institutional relationships across Mexico, Central America and the Caribbean.
Mr. Castañeda said he came to Fieldpoint because he was looking for a firm in which putting the client first is a matter of practice, rather than simply rhetoric. “I had grown concerned about conflicts of interest and perverse incentives in large, traditional firms,” said Mr. Castañeda, noting that Fieldpoint Private is unusual in that it is fully unconflicted, with no in-house investment products and a strict philosophy against revenue-sharing arrangements with money managers.
“My clients have always had to accept the reality that having investment assets with big banks means tolerating conflicts of interest, whether with in-house products or so-called ‘open architecture’ platforms that collect fees from money managers,” he added. “They have become so accustomed to this, frankly, that it takes them a little while to fully realize that it doesn’t have to be this way.”
Fieldpoint Private President and CEO Robert Matthews said that Mr. Castañeda’s Latin American clientele is feeling increasingly unwelcome at larger global banks. “Conflicts of interest are only part of this picture. More and more, the major global banks are creating hurdles for international clients who wish to do business with them, from shutting down advisor teams to asking clients directly to take their business elsewhere,” he said. “We welcome this business, and we’re so pleased that Juan has decided that Fieldpoint is the right home.”
The people saw the economy in a malaise. Is a Trump the remedy?
Much of the world woke up Wednesday morning of last week and was shocked. But should it have been? Markets do not like surprises, so it was understandable that the overnight reaction as Tuesday’s election results came in was negative. However, the markets seemed to discount the surprise quickly, cutting through the noise and seeing some cause for optimism.
What caused the remarkable turnaround in sentiment? President-Elect Donald Trump’s measured acceptance speech helped. But perhaps the markets finally saw some of what Trump’s supporters had been seeing all along.
The Malaise Our Economy Is In
A lot of mainstream commentary describes Trump voters, as well as others such as “Brexiteers”, as unschooled at best, xenophobic at worst, or simply unaware of where their interests truly lie. But maybe last week’s result showed that these voters have a deeper understanding of the malaise that the world’s economies are in than the global “elites”.
There are forces, such as globalization and technology, that are changing our economy and there is very little politicians can do about that. However, the lack of any meaningful fiscal policies to help enhance global growth has been a frustration to many. In previous CIO Weekly Perspectives we have discussed why monetary policy alone cannot get us out of this slow-growth environment. Our current 1-2% growth rate is not going to drive stronger income growth and the increased economic mobility that people want and need.
The electorate seems to have figured this out and was willing to overlook the personal flaws of Donald Trump to support a different game plan. They seem to have concluded that the game plan Secretary Clinton was proposing was more of the same. We shall see—but so far the markets seem to support the voters’ instincts.
What’s Next?
My colleagues and I held a webinar early on Wednesday to discuss the election’s outcome. Most of our points are summarized here, but our simple message was that we believe the result should be good for equities and bad for bonds. The market’s reaction, at least so far, is consistent with that view.
Why? We think that an increase in fiscal spending, particularly related to infrastructure and corporate tax reform, is achievable, and could have support from both sides of the U.S. Congress. In addition, significant regulatory reform should help spur business to invest more and unleash the proverbial “animal instincts”. It’s worth noting that we are leaving behind an administration that had fewer staff with private-sector experience than any other in recent history. Medium-sized companies in the energy, utilities, healthcare and financial sectors could benefit a lot from being unshackled from some of the well-intentioned, but ultimately obstructive, regulation that has come their way over the past 10 years.
Keep An Eye on Anti-Trade Sentiment
One area to watch closely is trade. In our view much of Trump’s platform is pro-growth, with the exception of trade. Anti-trade sentiment, in the U.S. and other developed market economies, could have a very negative effect on global growth. Policies such as renegotiating NAFTA, fighting TPP or increasing auto tariffs could set off a domino effect across the globe. How these policies and agreements get worked out will be telling. An early indication will be who Trump appoints as the new U.S. Trade Representative.
But we would reiterate that, while Trump’s “Contract with the American People” certainly contains anti-trade policies, it is otherwise a recognizably Republican program for shrinking government, lowering corporate taxes, reducing regulation and limiting the lobbying power of big business, combined with a fiscal stimulus targeting infrastructure.
Sentiment shouldn’t swing from despair to euphoria too quickly, of course. Trump doesn’t have a magic wand to wave on January 20th. Even if it were clear what the President needed to do, infrastructure takes time to build, reform takes time to agree on, and, keep in mind, more than half of the people who voted last week did not support this administration. But at least now there is no doubt that the people see that our economy is in a malaise—and that is the first step towards providing a remedy.
Paris-based Tikehau Capital has agreed with Lyxor to manage Lyxor’s European senior debt funds.
Through the transaction, subject to regulatory approval, Tikehau will expand its leveraged loans & CLO business from €1.9bn in assets under management to €2.6bn, hence raising its total AUM to €9.8bn.
Tikehau Investment Management, the asset management branch of Tikehau Capital, will replace Lyxor UK, as investment manager of Lyxor’s four European senior debt funds, with a total of €700m in AUM.
It is understood Lyxor UK’s European senior debt operational team will join Tikehau IM in London and that Lyxor will remain the management company of these funds, providing second-level supervision of risks and valuation.
Mathieu Chabran, co-founder of Tikehau Capital and managing director of Tikehau IM commented: “We are delighted to have signed this agreement with Lyxor, which allows us to expand in the United Kingdom and to continue developing our expertise in leveraged loans and European credit markets.”
Lionel Paquin, CEO of Lyxor, said: “This agreement plays to Lyxor’s well-recognized strengths for working in partnership with external asset managers, a field in which we have a nearly 20-year track-record. By remaining the management company of the funds, Lyxor continues to accompany its clients. We are confident that Tikehau Capital, thanks to its well-regarded expertise in European debt markets, will greatly contribute to the quality and future development of this activity. Furthermore, fixed income investments, which benefit from our deeply-rooted innovation and risk management culture, remain an important focus for Lyxor.”
As of 30 September 2016, Tikehau Capital managed €8.7bn in assets.
