Paris-based DNCA Finance, which has recently become a Natixis’ boutique, rebrands itself as DNCA Investments, celebrating 15 years of existence.
This change aims to improve the visibility of the firm towards international investors as it is now set to speed up its development both on retail and institutional businesses by using Natixis’ global distribution platform. “In order to expand internationally DNCA decided to slightly adapt “its signature” and make it sound more global. The name of the legal entity remains DNCA Finance but the marketing brand becomes DNCA Investments, that way it resonates globally”, the company says to Funds Society.
DNCA Investments intends to enter new markets, including Spain, and to expand its presence in existing markets such as Germany, Switzerland, USA Offshore and Latin America.
DNCA Investments, which has expertise in European equities, manages €16.5bn in assets as at June 2015.
Foto: Nothing is impossible for a willing heart, Flickr, Creative Commons.. Radiografía del sector tecnológico en Asia
China’s stock market crash must act as a wake-up call for investors to urgently reassess their portfolios, warns the chief executive of one of the world’s largest independent financial advisory organizations. Nigel Green, the founder and CEO of deVere Group, is speaking out as the China stock market’s downward spiral enters its third week, with share prices losing 30 per cent of their value since the middle of June.
Mr Green observes: “Much of the world’s attention is on Greece right now. Whilst it is right that investors keep a close eye on the Greek saga, one eye must remain firmly on the burgeoning crisis in China.
“With the Chinese stock market losing a third of its value since mid June, which is about equivalent to the UK’s entire economic output last year, or in other terms the GDP of Greece every two days for the last 10 days, this has all the makings of morphing into a major financial crisis.
“China’s government and regulators appear to be pulling out all the stops to support share prices – including a defacto suspension of new listings and interest rates being cut to new record lows – although investors seem to be unconvinced that this will help.
“Despite few foreign investors having much exposure to the Chinese stock markets, the meltdown matters.
“Indeed, it is hugely significant because it will send shock waves throughout global capital markets, not least because China is the world’s second largest economy and one of the largest consumers of commodities and other goods sold by other countries.
“As such, China, not Greece, is arguably the main cause for concern for investors right now.”
Mr Green continues: “Bearing in mind the potentially enormous fallout of China’s plunging markets, I would urge investors to urgently reassess their portfolios to ensure they are appropriately diversified.
“Investors with the most diversified portfolios stand to lose the least. Geopolitical events like this highlight once again the need for multi asset investing, across regions and asset classes, as a way of reducing the adverse consequences of such events.”
He adds: “Failure to diversify a portfolio is widely regarded as one of the most common investment pitfalls – and history teaches us that diversification in these times of rising market volatility is even more essential as the tides can change quickly. Spreading your money around is a vital tool to manage risk.”
CC-BY-SA-2.0, FlickrFoto: Aedo Pulltrone, Flickr, Creative Commons. Hector Sants sustituye a Gian A. Rossi como presidente de Julius Baer London
Sir Hector Sants has joined Julius Baer International Limited as chairman -effective 1 July 2015-.
Sants succeeds Gian A. Rossi, head Northern, Central and Eastern Europe and member of the Executive Board of Bank Julius Baer & Co. Ltd., who will step down as Chairman after nine years but will remain actively involved with the firm’s business in the UK.
Sants worked at the Financial Services Authority (FSA) as Chief Executive Officer from 2007 to 2012 joining from Credit Suisse First Boston where he had been Chief Executive Officer for Europe, Middle East and Africa. After leaving Barclays Bank in November 2013, Sir Hector has been chairing the Archbishop of Canterbury’s taskforce on promoting responsible savings and credit and advising Abu Dhabi Global Market. From 1 July 2015 Sir Hector also is working as Vice Chairman and Partner at Oliver Wyman.
“It is a great honour to welcome Sir Hector to Julius Baer. With his appointment we continue to demonstrate our ongoing commitment to the UK, and I am sure that we will benefit greatly from his long-standing experience in the financial services industry,” said Gian A. Rossi.
CC-BY-SA-2.0, FlickrBill Gross volverá a trabajar con uno de los fundadores de Kapstream Capital, con el que coincidió en PIMCO durante 10 años.. Janus Capital compra el 51% de la gestora australiana de renta fija flexible Kapstream
Janus Capital Group Inc. has announced and closed the acquisition of a majority interest in Kapstream Capital Pty Limited, a global unconstrained fixed income asset manager with USD$6.6 billion in assets under management as of March 31, 2015. With this transaction, the total Janus Global Macro Fixed Income assets under management would be USD$8.7 billion as of March 31, 2015. The transaction includes an initial upfront cash consideration of approximately USD $85 million. Janus Capital has the option to purchase the remaining 49% interest in the future.
“This transaction underscores three key commitments at Janus,” said Dick Weil, Chief Executive Officer of Janus Capital. “First, we want to be the place where great investors come to invest. Kapstream’s Kumar Palghat, Steve Goldman and Nick Maroutsos are simply great people and great investors. Second, we passionately believe that given volatility in global rates, investors need excellent fixed income choices that offer less exposure to interest rate risk. Third, the acquisition of Kapstream furthers our commitment to expand our fixed income capabilities as part of the firm’s intelligent diversification strategy. Kapstream has a rapidly growing business in one of the world’s best asset management markets. In addition, this transaction will reinforce our efforts to build a global macro fixed income team offering best-in-class global unconstrained bond strategies.”
Fixed income veterans Kumar Palghat and Nick Maroutsos founded Kapstream in 2006. Kapstream is one of the pioneers in managing global unconstrained fixed income. Gross, Weil and Palghat worked together at Pacific Investment Management Company for 10 years. The Global Macro Fixed Income team will remain a separate, autonomous and distinct capability from the Fundamental Fixed Income team. Janus is firmly committed to supporting and investing in both its Global Macro and Fundamental Fixed Income platforms, which offer highly complementary strategies.
Bill Gross, who joined Janus in September 2014, will remain the primary portfolio manager of the Janus Global Unconstrained Bond strategy, with Palghat supporting him as co-portfolio manager. Palghat will remain portfolio manager of the Kapstream Absolute Return Income Fund, and Goldman will assume a greater leadership role in managing Kapstream’s strategies. The strategies for both will not change. The combined Janus Global Macro Fixed Income team (comprised of 15 professionals following the completion of the transaction) will operate jointly from Kapstream’s existing base in Sydney, Australia, and Janus’ Newport Beach, California, office.
“We are delighted to offer our clients the highest level of macro fixed income investment expertise with Bill Gross, Kumar Palghat and the highly sophisticated professionals that make up the Kapstream team,” Weil said. “Combining the success and experience of Kapstream’s unconstrained fixed income business with Bill’s reputation as one of the world’s most successful fixed income investors creates a powerful opportunity for our clients and for Janus Capital.”
Kapstream’s unconstrained bond business in Australia will continue in essentially its current form. The flagship Kapstream Absolute Return Income Fund has delivered consistent, positive returns over the one-, three- and five-year periods ending March 31, 2015 (net of fees).
“I look forward to working with my old colleague, Kumar Palghat and the rest of the Kapstream team as we deliver value for our clients,” said Bill Gross, Portfolio Manager of the Janus Global Unconstrained Bond strategy.
“While our U.S. expansion plans began in 2013 with Kapstream’s Newport Beach, California, office opening, the opportunity to work with Bill again and create a truly global team, was not one we could pass up. Our combination brings a number of advantages, primarily giving our existing clients the benefit of additional input from Bill, one of the most highly regarded fixed income portfolio managers in the world, enabling us to deliver more value to our client portfolios,” Palghat said.
CC-BY-SA-2.0, FlickrIleana Salas será la responsable de mantener las relaciones en mercados clave de Europa y LatAm y del desarrollo de nuevos mercados. Foto cedida. Ileana Salas: nueva responsable global de Ventas Institucionales de Santander AM
Santander Asset Management (SAM) has appointed Ileana Salas as Global Head of Institutional Sales, as the business looks to further develop its institutional capabilities globally.
Based in London, Ileana will be responsible for building and leading SAM’s global institutional sales capability, and introducing SAM to new markets, whilst leveraging its large and long standing presence in key countries in Europe and Latin America, including the UK, Spain, Portugal, Germany, Mexico, Brazil and Chile. Ileana will also lead the development of SAM’s key relationships with Sovereign Wealth Funds, Pension Plans, Investment Consultants, Corporates, Insurers, Wholesale clients and Family Offices.
Ileana joins SAM from Bradesco Asset Management where she served as Head of Business Development and Sales for Europe and the Middle East for over four years. Prior to this, Ileana held senior business development roles at ABN Amro, Gartmore Investment Management, and Schroders. Ileana holds an MBA from Babson College.
Juan Alcaraz, Santander Asset Management Global CEO, said: “Developing our institutional business globally is a core part of our strategic growth plans, and reflects our overall ambitions to be a global leading provider of investment solutions to clients”.
“With over 20 years experience in institutional sales, Ileana has a long and strong track record of success in developing and building institutional businesses and leading global distribution teams. She is a strong addition to our senior leadership team and Executive Committee. We look forward to working with her to drive our institutional business forward, and supporting our overall growth ambitions”.
Foto: OTA Photos. Beamonte Investments México invertirá en Master Kiwi
Beamonte Investments, along with its affiliate, Beamonte Mexico Holdings SAPI de CV (“Beamonte”), has announced their investment inOrigin Bit SAPI de CV (“Master Kiwi”), an innovative platform that simplifies video game creation for designers and helps with marketing campaigns. The transaction is scheduled to close during the summer and the value was not disclosed.
Master Kiwi is the winner of the first Venture Academy in Mexico. Venture Academy in an intensive boot camp divided in six modules, including Management 101, Valuations, Term sheets, and Financing. The first Boot Camp was held in Mexico City May 27, 2015 to May 29, 2015. More than 45 entrepreneurs participated.
Claudia Yan of Venture Academy said “We are exited to be creating a platform where we can teach entrepreneurs like Alejandro and Master Kiwi and help them to develop the skills needed to raise institutional money. The first Boot camp was a tremendous success thanks to partners like Cinepolis, Posible, and Coopel.” The next Venture Academy boot camp will be held in late August in Monterrey, Mexico and will accommodate up to 50 entrepreneurs.
Master Kiwii was founded in February of this year by CEO Alejandro Hernandez, and has been incubated in class of 2014 by Wayra Mexico the accelerator of Telefonica, the company offers a platform with a wide catalog of pre-designed games where, through a visual, simple, and intuitive interface, it is possible to generate games in minutes aligned to the branding and image of a company potentiating the marketing campaigns.
Luis F. Trevino, Senior Managing Director at Beamonte Investments commented, “We are exited to invest in Master Kiwi and help them to grow the company to the next level. We see a huge potential in a platform like Master Kiwi that can create a video game in seconds
The Board of Directors of Santander Consumer USA Holdings Inc. announced the appointment of Jason A. Kulas as Chief Executive Officer. Mr. Kulas succeeds Thomas G. Dundon, the company’s former Chairman and Chief Executive Officer, in line with SCUSA’s Board-approved succession plan. Mr. Dundon will continue to serve as a member of the SCUSA Board of Directors and as a senior adviser to the company.
After successfully growing the SCUSA business over the last 20 years, including nine years as CEO, Mr. Dundon has decided to pursue new opportunities.
The Board of SCUSA has appointed Lead Outside Director Stephen Ferriss as interim Chairman, effective until the July 15 SCUSA annual meeting.
Mr. Dundon said: “I am proud to have been part of the company’s success and fortunate to have worked with so many outstanding, driven colleagues over the years. This is a great company and with Jason Kulas at the helm, supported by our talented management team, I am confident SCUSA will become an even stronger player in the consumer finance industry.”
Scott Powell, Chief Executive Officer of Santander Holdings USA and head of Santander’s operations in the United States, said: “We thank Tom for his vision and leadership as a founder of SCUSA, and a driver of its growth and success. Jason Kulas has the experience and strategic vision to lead SCUSA. Jason has been with SCUSA for eight years and has a deep understanding of its business, operations and people. I am confident in his ability to lead this business into the future.”
Mr. Kulas joined the company in 2007 as Chief Financial Officer, after covering SCUSA, since its founding, as an investment banker at JPMorgan. As CFO, he oversaw the company’s treasury, accounting, financial planning, capital markets and corporate strategy divisions. Mr. Kulas became President in 2013 and, since SCUSA’s IPO in 2014, has overseen the company’s corporate development, asset management, investor relations and various regulatory functions including the Comprehensive Capital Analysis and Review. Mr. Kulas will join the Board of Directors of SCUSA and, subject to regulatory approvals, Santander Holdings USA.
Mr. Kulas said: “I am honored by the Board’s decision to name me as Tom’s successor. Tom was pivotal in growing the Company from a local start-up to a leading, national technology-driven consumer finance business. The changes in Tom’s role at SCUSA have been amicably agreed and are unrelated to the company’s performance or regulatory standing. On behalf of the company’s management team, I thank him for his valuable contributions and wish him well in his future endeavors. This is an exciting time for the business and I look forward to working with my colleagues as we seek to grow the business in the months and years ahead.”
Jason Grubb, Chief Operating Officer, Originations of SCUSA, will succeed Mr. Kulas as President. Mr. Grubb joined SCUSA in 2004 as Senior Vice President of Servicing. He was Chief Operating Officer from January 2007to October 2014 and became Chief Operating Officer, Originations in October 2014. Prior to joining SCUSA, Mr. Grubb held positions at WFS Financial, Nissan Motor Acceptance Corp, and Commercial Financial Services.
Jennifer Popp has been appointed interim Chief Financial Officer of SCUSA while a search is underway for a permanent replacement. Ms. Popp has served in the finance industry since 2001, and joined SCUSA in July 2012. She most recently served as Chief Accounting Officer and Deputy Chief Financial Officer.
In connection with Mr. Dundon’s departure as SCUSA’s Chief Executive Officer, Santander Holdings USA will, subject to the applicable regulatory approvals, exercise a call option to acquire all of the approximately 9.68% of SCUSA common stock held by DDFS LLC, an entity solely owned by Mr. Dundon.
Additional details regarding Mr. Dundon’s separation will be filed by SCUSA with the Securities and Exchange Commission.
Foto: LenDog64. John Hancock Investments entra en el negocio de los UCITS
John Hancock recently announced the launch of John Hancock Worldwide Investors, PLC, a Dublin-domiciled UCITS platform designed to extend the reach of firm’s signature manager-of-managers approach. Effective this week, the firm will make available four of its highly rated investment strategies targeted at non-US residents and UCITS model programs of our U.S. distribution partners.
As part of its commitment to this strategic market, John Hancock Investments has hired industry veteran Angela Billick to lead the UCITS product platform. Mrs. Billick will leverage her nearly 20 years of international business development experience in UCITS to serve the needs of investors.
“We are pleased to be able to provide our industry-leading manager selection and oversight capabilities to a new market,” said Andrew G. Arnott, President and CEO. “Our new UCITS platform is a natural continuation of the rapid growth we have experienced in the United States and a reflection of the strong demand we have received from our US broker/dealer partner firms for offshore funds that mirror some of our most popular US mutual funds.”
John Hancock Worldwide Investors, PLC is making available four of the firm’s most sought-after strategies in a choice of five UCITS share classes. These initial strategies are managed by portfolio teams at Manulife Asset Management and GMO Europe LLC:
John Hancock Strategic Income Opportunities Fund
John Hancock High Yield Fund
John Hancock U.S. Large Cap Equity Fund
John Hancock Global Equity (Ex.-U.S.) Fund
“We believe these four strategies help address today’s investor need for new sources of income, along with proven equity strategies with a measure of downside protection,” said Leo M. Zerilli, CIMA, head of investments at John Hancock Investments. “These are not simply challenges for U.S. investors; these are global challenges.”
John Hancock Investments is a premier asset manager with a unique manager-of-managers approach, whereby the firm builds funds based on investor needs, then searches the globe for the best managers with proven track records to lead those funds. John Hancock Investments has more than 165 professionals specializing in manager research and oversight, vetting over 250 investment strategies annually and overseeing relationships with 72 portfolio teams at 27 elite firms worldwide.
More than half of the world’s mutual fund assets reside outside the United States. The UCITS market is estimated to consist of more than $8 trillion in assets, according to the European Fund and Asset Management Association.
As the crackdown on “closet trackers” gathers pace in Europe, concerns are growing that the metric used to identify those funds that charge active management fees while merely hugging the index could undermine performance, according to the latest issue of The Cerulli Edge – Global Edition.
The regulatory spotlight has fallen on closet trackers recently. In May the Swedish government launched an investigation in the wake of the Swedish Shareholders’ Association filing a lawsuit against a leading fund house, alleging that it had mis-sold closet trackers to retail investors. Regulators in Denmark and Norway have also been proactive.
Cerulli Associates, a global analytics firm, notes that in response to heightening regulatory scrutiny more managers are voluntarily disclosing data showing the extent to which a fund’s portfolio diverges from its benchmark. “Active share” is the most commonly used measure, with a score less than 60% deemed to be index hugging.
“Active share, however, is no panacea and used in isolation is more likely to be misleading. It should be used alongside other relevant metrics, such as information ratio data showing the portfolio returns above the benchmark in relation to the volatility of those returns,” says Barbara Wall, Europe research director at Cerulli Associates.
Noting that there are times in an investment cycle when it might be prudent to stay close to the benchmark, Cerulli warns that a manager who feels obliged to maintain a certain active share is at risk of picking the wrong stocks simply to increase the deviation from the benchmark. Strict adherence to the tool may also prevent a manager from buying stocks that have a large weight in the index, even if they are expected to outperform.
Another limitation concerns the definition of being “active”, which typically refers to the actual shares that are owned. But “active” can also apply to a portfolio that largely adheres to the index, provided the manager has not simply taken a buy-and-hold approach and that performance is influenced by the timing of trades in those constituents.
Firms that are already disclosing the active share figure tend to have house management styles that are unconstrained in relation to benchmarks. Firms where the emphasis is on delivering outperformance with a relatively low-risk, low-active share element would be understandably anxious, says Cerulli, about publishing their active share figure. “They would also point out–with some justification–that a low active share doesn’t mean they are a closet tracker and that they should be judged on performance alone,” says Wall.
Cerulli believes that, used in conjunction with other metrics, active share can be a useful tool in promoting accountability and transparency. Laura D’Ippolito, a senior analyst at Cerulli, says: “Views within the European fund industry on the value of the active share figure differ widely, but what is clear is that the debate–which also takes in the active/passive issue–is only going to intensify.”
Other Findings:
With active exchange-traded funds (ETFs) at long last gaining traction in the United States, active mutual fund managers should seriously consider offering their strategies in these securities, advises Cerulli. It notes, however, that the path to success remains difficult. Another structure the firm recommends is the new exchange-traded managed fund.
The penetration rate of mutual funds in Asia ex-Japan has dropped to about 6.5% of household financial assets (HHFA) in 2013 from 9% in 2009, despite HHFAs expanding at, or close to, double-digit rates annually. Cerulli believes that the decline can in part be attributed to the short-termism that drives investment–in Taiwan, for instance, Cerulli has found that fund retention ranges from about six to nine months for the average investor, while in China it can be as short as a month. The firm says that analysis of the decision-making provides useful insights for determining product selection.
In the United Kingdom, active management is no longer the be-all and end-all for discretionary investment managers, says Cerulli, noting that a combination of regulatory change and the low-growth environment is forcing firms to review costs and portfolios. Not only are passive funds now more common in discretionary portfolios, but their role–and that of active funds–is changing. The analytics firm says that active managers face a challenge in staying relevant in a world in which cost is king, passives are core, and sustainable alpha is key.
New research from Standard Life Investments suggests that improvements in corporate governance at Japanese companies have the potential to raise the value of the Japanese stock market by 15% to 30%.
Prime Minister Abe’s administration has announced a range of policies designed to embolden corporate risk-taking – one area with high prominence in this growth strategy is boardroom reform. In the latest edition of Global Perspective, Govinda Finn, Senior Japan Analyst and Chris Faulkner-MacDonagh, Markets Strategist, Standard Life Investments, examine whether this governance reform will be the catalyst for a wider revitalization of the Japanese economy.
Govinda Finn, Senior Japan Analyst, Standard Life Investments, said:
“Many global investors have moved heavy or overweight in Japanese equity markets since the Abe government gained power. Yet Japan faces a growth conundrum. With a declining population and high levels of economic development, the prospect of future growth led by capital accumulation is low.
“To ensure that global investment in Japan becomes a longer term phenomenon, rather than a short term tactical trade, efforts to improve the capital efficiency of Japanese companies, and raise the return on equity for shareholders, become ever more important.
“Key engagement and governance policies for shareholders and institutional investors to monitor for progress over the coming months are: increasing board independence; expanding investor relations efforts; M&A activity; return on equity strategies; shareholder voting practices; restructuring of business operations; plus environmental and social policies.
“There is hope that a transition to a more market based engagement approach will encourage businesses in Japan to make better investment decisions and boost shareholder value. This approach, when combined with other initiatives in the nation’s revitalization plan such as trade liberalization and labor market reform, may unlock further productivity growth.”
