The high investment threshold of European long-term investment funds (ELTIFs) is being blamed for limiting take-up by investors, according to the latest research of Cerulli Associates.
The global analytics firm headquartered in Boston says this hurdle is hampering take-off, even as European regulators seek to encourage investment from mid-sized pension funds and insurers by easing the Solvency II capital requirements for insurers with ELTIF exposure.
ELTIF regulation was implemented across the European Union in December 2015, introducing a new type of collective investment vehicle allowing retail and professional investors to invest in companies and projects that need long-term capital.
“Given the various tax treatments in different countries across the EU, this may be a harder sell than envisaged,” says Barbara Wall, Europe managing director at Cerulli Associates. “There is greater optimism about the prospects for Luxembourg’s reserved alternative investment fund (RAIF) and Ireland’s collective asset management vehicle (ICAV), particularly if the latter is able to attract funds converting from other Irish investment funds structures.”
Noting that it is still early days for ELTIFs, Wall says there are signs of interest from managers already investing in the infrastructure space and those looking to target the mass affluent market.
“Demand will depend on liquidity, how investments are viewed for capital risk and the treatment of the fund over the long term,” says Wall.
The RAIF is the latest step in Luxembourg’s drive to become a hub for alternative investment funds. It has very similar features to Specialized Investment Funds and SICARs, but does not need to be approved and is not supervised by the Commission de Surveillance du Secteur Financier (CSSF). The ICAV has become the vehicle of choice for both UCITS and AIFs domiciled in Ireland.
Foto: Herman
. Janus Capital Lanza cuatro ETFs temáticos: atención a largo plazo, salud y bienestar, orgánicos y obesidad
Janus Capital Group announced the launch offour thematic ETFs that allow investors to target companies that may benefit from global demographic and consumer shifts.
These themes include long‐term care for the elderly, an increased focus on health and fitness, the treatment and care for obesity and an increased demand for organic products.
“Changes in demographics and lifestyle are altering the investment landscape,” said Nick Cherney, Senior Vice President and Head of Exchange Traded Products for Janus Capital Group. “These thematic Exchange Traded Funds are designed to capitalize on those shifts to give advisors new tools that can help clients achieve better financial outcomes.”
The ETFs are overseen by the Janus Exchange Traded Products Team and are not actively managed products.
The Long‐Term Care ETF seeks exposure to companies globally that are positioned to profit from owning or operating senior living facilities, specialty hospitals, providing nursing services and biotech companies for age‐related illnesses.
The Health and Fitness ETF seeks exposure to companies in nutrition, sports apparel and fitness technology and equipment, and the health club sector, which are poised to take advantage of the growing trend.
The Organics ETF which seeks exposure to companies that service, produce, distribute, market or sell organic food, beverages, cosmetics, supplements or packaging.
The Obesity ETF seeks exposure to companies that provide treatment and care for obesity and obesity‐related disease, including biotechnology and pharmaceutical, healthcare and medical device companies, other health care firms, the weight loss market and supplement companies.
Foto: ipurbeltz, Flickr, Creative Commons. Schroders nombra a Shigesuke Kashiwagi presidente y Country Head de Japón
Schroders announces the appointment of Shigesuke Kashiwagi to President and Country Head of Japan, effective 01 July 2016, bringing some 34 years of industry experience to the role.
Shigesuke Kashiwagi joins Schroders from Nomura Holdings, Inc. where he was Executive Managing Director, Chief Financial Officer since April 2013. During his distinguished career at the firm, he has held a number of senior management roles in Tokyo, New York and London. Prior to being CFO, Mr. Kashiwagi served as Senior Managing Director of Group Strategy and Executive Office with particular focus on regulatory strategy, as President and CEO of Nomura Holdings America, Inc. and as Head of Global Fixed Income.
Shigesuke Kashiwagi will be based in Tokyo and will report to Lieven Debruyne, Chief Executive Officer Asia Pacific. He succeeds Guy Henriques who has been in the President role since 2012 and will be returning to a role in the UK later this year.
Peter Harrison, Group Chief Executive at Schroders, said: “We welcome Shigesuke to Schroders as President of our Japanese business. The appointment of an executive with Shigesuke’s unrivalled experience and financial industry knowledge highlights our continued commitment to growth in Japan, Asia’s largest investment market, and a strategically important part of Schroders.”
Lieven Debruyne, Chief Executive Officer Asia Pacific at Schroders, said: “Shigesuke’s distinguished and varied career at Nomura reflects his global leadership skills and deep understanding of the country’s client needs. His unparalleled experience will help drive the next stage of growth of our successful Japanese business, not just in delivering investment solutions for major clients but also in the vital areas of governance and stewardship. His extensive industry knowledge means he is well-placed to strengthen our position as a leading asset manager in the region and we look forward to working with him.”
Shigesuke Kashiwagi, newly appointed President and Country Head of Japan at Schroders, said: “Schroders is an industry leader with a long history, a first class reputation and outstanding business performance. I am delighted to be joining the firm as the new Country Head of Japan.”
Foto: jlmaral
. La SEC premia con 17 millones a un informador
The Securities and Exchange Commission announced on June 9th a whistleblower award of more than $17 million to a former company employee whose detailed tip substantially advanced the agency’s investigation and ultimate enforcement action.
The award is the second-largest issued by the SEC since its whistleblower program began nearly five years ago. The SEC issued a $30 million award in September 2014 and a $14 million award in October 2013.
“Company insiders are uniquely positioned to protect investors and blow the whistle on a company’s wrongdoing by providing key information to the SEC so we can investigate the full extent of the violations,” said Andrew Ceresney, Director of the SEC’s Division of Enforcement. “The information and assistance provided by this whistleblower enabled our enforcement staff to conserve time and resources and gather strong evidence supporting our case.”
Sean X. McKessy,Chief of the SEC’s Office of the Whistleblower, added, “In the past month, five whistleblowers have received a total of more than $26 million, and we hope these substantial awards encourage other individuals with knowledge of potential federal securities law violations to make the right choice to come forward and report the wrongdoing to the SEC.”
By law, the SEC protects the confidentiality of whistleblowers and does not disclose information that might directly or indirectly reveal a whistleblower’s identity.
The SEC’s whistleblower program has now awarded more than $85 million to 32 whistleblowers since the program’s inception in 2011. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with unique and useful information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million. All payments are made out of an investor protection fund established by Congress that is financed through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards.
FINRA designa a Robert Cook como presidente y CEO - foto cedida. FINRA designa a Robert Cook como presidente y CEO
The Financial Industry Regulatory Authority (FINRA) announced on Monday that its Board of Governors has appointed Robert W. Cook as President and Chief Executive Officer, effective the second half of 2016. Mr. Cook will succeed Richard G. Ketchum, who has served as Chairman and CEO since 2009. The Board intends to name a new Chairman in the coming months.
Mr. Cook will join FINRA from Cleary Gottlieb Steen & Hamilton LLP, where he has served as a partner in the firm’s Washington, DC, office since June 2013. Prior to joining Cleary Gottlieb, Mr. Cook served as the Director of the Division of Trading and Markets (Division) of the U.S. Securities and Exchange Commission (SEC) from 2010 to 2013. Under his direction, the Division’s 250 professionals were responsible for regulatory policy and oversight with respect to broker-dealers, securities exchanges and markets, clearing agencies and FINRA. He also directed the staff’s review of equity market structure and its analysis of the Flash Crash of May 6, 2010. Prior to joining the SEC, Mr. Cook served as a partner at Cleary Gottlieb since 2001, and joined the firm in 1992.
“Robert has a deep understanding of the securities markets, and investors will greatly benefit from his broad regulatory expertise developed as Director of the SEC’s Division of Trading and Markets, where he led the organization in establishing and maintaining standards for fair, orderly and efficient markets,” said FINRA Lead Governor Jack Brennan, former CEO of Vanguard Group. “We thank Rick for his terrific leadership as FINRA’s Chairman and CEO, and express our gratitude on behalf of all investors for his decades of service.”
“Having known and worked alongside Robert for several years, I know that he brings extensive expertise as one of the leading practitioners on broker-dealer and market regulation, as well as proven regulatory and leadership experience,” said Mr. Ketchum. “Robert’s appointment is the result of the Board’s careful and thorough search process to identify the right leader to carry on FINRA’s important role of educating and protecting investors in the years ahead. It has been my honor and privilege to lead this extraordinary organization.”
“I am honored to join FINRA as CEO, and to have the opportunity to work alongside FINRA’s talented and dedicated staff in the critical role of protecting investors, as well as ensuring fair and orderly financial markets,” said Mr. Cook. “I look forward to building on Rick’s many years of excellent work and collaborating with FINRA’s Board, members and other stakeholders to strengthen investor protections, promote market integrity and enhance FINRA’s core competencies of examinations, enforcement, rulemaking, market transparency and market surveillance.”
Foto: gags9999
. UBS Wealth Management Americas reduce la contratación de advisors en un 40%
UBS Wealth Management Americas (WMA) has announced it is introducing a new operating model designed to move decision-making and resources closer to clients and drive organic growth through an increased focus on advisor retention. Specifically, WMA is changing its field structure and its compensation plans for financial advisors and field management, as well as reducing advisor recruiting by 40 percent.
WMA initiated several changes as part of the new operating model, including:
Delayering the field structure:WMA will now be organized into four divisions, 43 markets and 208 branches. Previously, its structure included two divisions, eight regions, 63 complexes and 189 branches. By eliminating the regional layer and realigning into larger markets, WMA is giving field leaders broader spans of control and moving decision-making authority closer to clients.
Enhancing and simplifying FA compensation: As part of a shift in focus from recruiting to retaining and rewarding its best advisors, WMA has launched a simpler advisor compensation plan that is easier to understand and rewards productivity, growth and loyalty. The plan includes increased payouts for advisors with the largest books of business, incentives for advisors to form teams, which has been shown to benefit clients, and an enhanced program for advisors seeking to transition out of the business and transfer their practice to another UBS advisor.
Aligning Field Manager compensation: WMA is modifying its compensation plans for field leaders so that they are both rewarded and held accountable for the decisions they make.
Shifting home office resources to the field: WMA is streamlining management in its home office in order to reinvest in staff and resources that make a tangible difference for clients and advisors.
As part of the new field structure, Brian Hull will continue as Head of the Client Advisory Group, overseeing four divisions, led by: Jason Chandler (Northeast), Bill Carroll (Central), Brad Smithy (Southeast), and Lane Strumlauf (West). John Mathews will continue as Head of Private Wealth Management.
Generali Investments Deutschland Kapitalanlagegesellschaft mbH (GID) has been merged into Generali Investments Europe S.p.A. Società di gestione del risparmio (Generali Investments) effective from the beginning of June 2016. The transaction is part of the Generali Group’s strategic decision to streamline its global asset management operations and has been enabled by recent regulatory changes facilitating the passporting of funds across Europe.
Santo Borsellino, CEO of Generali Investments, has commented: “The merger of GID into Generali Investments is another step forward in the process aimed at creating the pan- European and borderless asset management hub of the Generali Group. We have now simplified our structures in Germany, aiming at achieving better coordination across the company and serving our internal and external German clients more efficiently.”
GID was an asset management company belonging to the Generali Group, operating in Germany and acting as the management company for third-party and Generali Group insurance portfolios. As of year-end 2015, GID counted on 47 professionals and approximately €33 bn of total AuM. For most of GID’s AuM Generali Investments acted as the delegated investment manager. Furthermore, most of GID’s AuM consisted of German Spezialfonds (AIF) and mandates set up for the benefit of the Generali Group insurance companies.
Generali Investments is one of the first players in the European asset management industry to apply, at the same time, the passporting procedures as per the recently introduced UCITS and AIFMD EU directives. As a result, Generali Investments will offer its German clients, and manage, a comprehensive range of investment solutions including UCITS and AIFMD- compliant Germany-domiciled investment funds, such as the Spezialfonds, previously administered by GID as a Germany-based asset management company.
Peru’s president-elect, Pedro Pablo Kuczynski, faces the delicate task of balancing fiscal stimulus with prudent maintenance of public finances, Fitch Ratings says. Moreover, he will be tasked with ensuring that infrastructure investments and proposed tax-regime changes yield sustainable growth beyond their short-term impact. In the medium term, the sovereign rating will depend in part on the government’s ability to adjust public finances to lower copper mining revenues.
Peru’s creditworthiness is based on its track record of macroeconomic policy credibility, consistency and flexibility, as well as strong fiscal and external balance sheets. These factors have enabled the country to navigate risks such as its high commodity dependence, low government revenue base and financial dollarization.
Kuczynski’s party indicated it will rely on fiscal stimulus to offset the negative impact of decreased copper prices through a ramp-up of public investment and adjustments to the tax regime to favor small-business formalization and private investment. Rising copper production and increased public investment aim to achieve growth of 3.5% in 2016 and 4.0% in 2017. While Peru’s growth averaged 5.8% from 2011 to 2015, Fitch Ratings expects the economy will continue to outperform the ‘BBB’ median, with 2.4% and 2.9% growth in 2016 and 2017, respectively.
Peru maintains low general government debt of 22.8% of GDP in 2015. Savings, including a 4%-of-GDP stabilization fund and a large cushion of local and regional government deposits, would allow Peru to implement a moderate, short-term, counter-cyclical fiscal policy. However, the interim pace of fiscal deterioration and the medium-term consolidation strategy of maintaining fiscal credibility and policy consistency should be key in assessing Peru’s credit profile.
The president-elect and new Congress will be inaugurated on July 28, and the executive must publish a five-year policy agenda within 90 days of that date.
Sustaining Peru’s growth trajectory will depend upon the success of initiatives that include improving the country’s transit, energy and logistics infrastructure while raising the productivity of alternative sectors such as tourism and agriculture. It will also depend on creating conditions that will move labor formalization forward and broaden the tax base. Moreover, an improvement in credibly managing and resolving social conflicts in mining investments would be critical to the recovery of the country’s competitive mining sector.
The Congress will play an important role in these major reforms. On April 10, Kuczynski’s party, Peruanos por el Kambio, received a 15% minority share of deputies in Peru’s unicameral Congress, while the center-right party, Fuerza Popular, led by Keiko Fujimori, won a simple majority. However, the left-leaning Frente Amplio, with strong support in the southern mining provinces obtained similar representation as Kuczynski’s party. Therefore, the passage of the president-elect’s agenda will depend on how well Kuczynski’s administration builds consensus on key legislative reforms.
Foto: Clarissa Blackburn
. Lazard Asset Management lanza un nuevo fondo global multiactivo
Lazard Asset Management (LAM) has announced the expansion of its multi asset offerings with the launch of the Lazard Global Dynamic Multi Asset Portfolio.
The Lazard Global Dynamic Multi Asset Portfolio (the “Fund”) is an addition to the Lazard Multi Asset platform of strategies that deploy capital based on the team’s forecast of expected global market risks, returns and opportunities. The firm’s multi asset team manages it.
“We are focused on constructing a portfolio with the objective of delivering a consistent level of volatility regardless of market environment,” said Jai Jacob, Managing Director and Portfolio Manager/Analyst. “We put risk management at the center of our approach by targeting volatility to an 8-12% band. We feel that this approach helps alleviate drawdown risk, which is one of the major concerns for global investors.”
“The Fund marries our macroeconomic insight to our bottom-upsecurity selection across the global capital markets opportunity set to seek strong risk-adjusted returns for our investors,” said Ronald Temple, Managing Director and Co-Head of Multi Asset Investing. “We achieve this by allocating capital across asset classes and securities based on our market forecast,” he added.
As of March 31, 2016, LAM and affiliated asset management companies in the Lazard Group managed $191 billion worth of client assets.
The secondary debt market Debitos is to cooperate with the DDC Financial Group from Prague, which focuses on markets in the CEE region. Among other activities, the service company organises Forums across Europe & USA on the subject of buying and selling distressed investments.
By working with this new strategic partner the Frankfurt-based fintech company intends to focus more closely on other European countries. “We are looking forward to doing business with the DDC Financial Group. This partnership helps us to bridge the gap between the capital needed in the CEE region and specialised investors from US/UK markets. We were particularly impressed by DDC’s innovative online and multimedia offering and its Forum format. This is an important step for us to establish our business model in other countries”, said Timur Peters, managing director of Debitos GmbH. Already around one in ten of the 390 investors registered on the online portal come from outside Germany – mostly of them from English-speaking countries.
In the USA there is already an established market for distressed investments and this alternative asset class now plays an important role there in corporate turnarounds. Distressed investments are also gaining traction in Europe: DDC Financial Group helps its customers to open up new markets in this area and also supports them with market research.
