Foto: Scott Rettberg
. Conferencia inaugural de Arthena sobre Activos de Arte e Inversión
Arthena, the first equity crowdfunding platform to give individuals access to invest with leaders in the art world, will hold an inaugural conference on Art Assets & Investment on April 2, 2015, at 54 W 40th St, New York. The conference will feature insights from leaders in the fields of art, finance, and technology, including the latest international art market trends, how to value art, and the importance of art as a both a financial investment and an investment of passion.
The panel on Art Assets & Investment will be moderated by Enrique Liberman, President of the Art Fund Association; opened by Louis F. Trevino, Senior Managing Director of Beamonte Investments; and will include the insights of Adrien Meyer, Christie’s, International Director of Impressionist & Modern Art; Alan Fausel, VP and Director of Fine Arts at Bonhams New York; James Martin, Founder of Orion Analytical; Javier Lumbreras, CEO of Artemundi Global Fund; Joseph Jacobs, Founder of Jacobs & Morawska; and Madelaine D’Angelo, Founder of Arthena, will be in charge of the concluding remarks.
CC-BY-SA-2.0, FlickrFoto: Camelia at Wu, Flickr, Creative Commons. La UE y Suiza cierran un acuerdo de transparencia fiscal a partir de 2018
The European Commission has concluded negotiations on an ambitious new tax transparency agreement with Switzerland, marking a major step forward in the fight against tax evasion. Under this new agreement, Member States and Switzerland will automatically exchange information on the full range of financial account information from 2018.
This means that EU residents will no longer be able to hide undeclared income in Swiss accounts to evade paying tax.
Pierre Moscovici, Commissioner for Economic and Financial Affairs, Taxation and Customs, said: “We are taking a decisive step towards total tax transparency between Switzerland and the EU. I am confident that our other neighbours will soon follow suit. This transparency is vital to ensure that each country can collect the tax revenues it is due.”
Member States will receive, on an annual basis, the names, addresses, tax identification numbers and dates of birth of their residents with accounts in Switzerland, as well as a broad set of other financial and account balance information. This is fully in line with the new OECD/G20 global standard for the automatic exchange of information.
The new EU-Swiss agreement was initialled by Commission and Swiss negotiators. It will be signed following authorisation by the Council on one side and the Swiss Government on the other, both of which are expected to be before the summer.
Foto: Maus. La generación del milenio quiere conservar a los asesores familiares, según FOX
New research from Family Office Exchange (FOX), a global membership organization of private family enterprises and their key advisors, shows that Millennial wealth owners value and aim to retain their family’s advisors—if the advisors can adapt to meet Millennials’ expectations.
The FOX Family Client of the Future research, highlighted in new white paper “Engaging the Client of the Future,” finds that Millennial family clients are eager to work with experienced advisors who already know their family, and who can help them address their needs—just so long as the advisors are ready, willing and able to adjust to their Millennial clients’ expectations on engagement and value delivery.
“While Millennials’ needs are similar to those of their parents and grandparents, their expectations for how wealth advisors should meet those needs are notably different than those of earlier generations,” says Amy Hart Clyne, executive director of the knowledge center at FOX.
Foto: Simon MacKinnon, asesor de estrategia para Asia en Old Mutual Global Investors. Old Mutual Global Investors contrata a Simon MacKinnon como consultor estratégico para Asia
Old Mutual Global Investors has announced that Simon MacKinnon has been appointed to the newly created consultancy role of Asia Strategy Adviser, with effect from February 2015.
Reporting to Julian Ide, CEO at Old Mutual Global Investors, MacKinnon will provide strategic advice and support to Old Mutual Global Investors and Old Mutual International, part of Old Mutual Wealth, in respect of their ambitious Asia Pacific expansion plans.
This role will include working closely with Ide and Carol Wong, managing director, head of Distribution Asia, on the operating model needed in the region as well as identifying and supporting the recruitment of future key appointments. He will also assist Old Mutual International in the development of their footprint in the Asia Pacific region.
Old Mutual Global Investors is actively expanding into selected key international markets in order to support its global client base. Over the last two years, the business has significantly enhanced its capabilities in the Asia Pacific region. The appointment of Simon follows the creation of a new Asian Equities Team in October 2014 which will be based in Hong Kong during Q2 2015.
This team is headed by Josh Crabb, and also includes specialist China Equities portfolio manager Diamond Lee, who joined the business in November 2014. In addition, Old Mutual Global Investors recently completed the build-out of the Hong Kong based Asian Distribution Team, under the leadership of Carol, and has a strong relationship with Capital Gateway, a Master Agent in Taiwan.
MacKinnon has experience across a variety of businesses in Asia and the UK including leadership and investor roles today in financial services, healthcare, clean-tech and education. Among other roles, he is currently Chairman of Sinophi Healthcare, Non-Executive Director of London Bridge Capital and Non-Executive Chairman China of Modern Water PLC and Xeros PLC.
Deutsche Bank’s Global Social Finance Group announced the closing of the Essential Capital Consortium (ECC), a five-year USD 50 million social enterprise fund, which is part of its family of social impact funds first launched in 2005.
With a list of investors including Church Pension Fund, MetLife, Agence Française de Développement, Deutsche Bank, Calvert Foundation, Prudential Financial, the Multilateral Investment Fund, member of the Inter-American Development Bank Group, Left Hand Foundation, IBM International Foundation, Tikehau Capital, Salvepar, Cisco Foundation and the Posner-Wallace Foundation, the ECC will provide debt financing to social enterprises in the energy, health and Base of the Pyramid financial services sectors. The Swedish International Development Cooperation Agency is also providing ECC with crucial credit enhancement support.
The ECC, which will finance 25 social enterprises including microfinance institutions expanding their offerings of financial products, has made its first round of loans to three organizations: Sproxil, a developer of a patented text message-based drug authentication system; Tiaxa, a provider of “nanocredits” to poor consumers in developing countries via mobile phones using big data analytics; and Arvand, a Tajikistan-based MFI providing innovative “green loans” to finance solar panels, clean cookstoves and other energy efficient products.
“The Essential Capital Consortium is a pioneering fund that aims to finance the growth of social enterprises as vehicles to achieve measureable benefits in improving the lives of the poor, bringing together well-respected and similarly motivated investors to fill an existing capital gap,” said Gary Hattem, Head of the Global Social Finance Group at Deutsche Bank. “As part of Deutsche Bank’s ongoing commitment to microfinance and the impact industry, the ECC provides responsive debt capital to support the next generation of social entrepreneurs globally who are redefining a market approach to addressing fundamental humanitarian challenges.”
Deutsche Bank was the first global bank to establish a socially motivated microfinance fund in 1997, managed by its Global Social Finance Group. Since then, the Bank has partnered with more than 130 MFIs in more than 50 countries, benefiting as many as 3.8 million low-income entrepreneurs through USD 1.67 billion in financing.
Foto: Ines Hegedus-Garcia. V Foro Estratégico Mundial: cómo diseñar una economía resistente
An initiative of the International Economic Forum of the Americas, the World Strategic Forum, will convene over 200 global leaders to discuss how to Engineer a Resilient Economy in the face of the myriad of political, economic and environmental opportunities and challenges confronting countries and businesses around the world. The event will take place April 13 and 14, 2015, at the Biltmore Hotel in Miami.
The two-day conference seeks to foster a better understanding of the issues and trends driving the global economy in the areas of finance, innovation, energy and trade. Included among the topics to be discussed: What are the foundations for a resilient economy? What strategies are Central Banks implementing to boost inclusive economic growth and combat poverty and inequality? How can infrastructure investment best be financed at a time of tighter fiscal constraints? Will the price of oil stabilize or is volatility the new normal? How can the agri-food sector continue drive economic growth and employment in a sustainable manner? How will the rise of emerging economies change the global trade landscape?
“As the Great Recession recedes into history, the global economic recovery remains an uneven work in progress that will require bold economic strategies and vision,” said Nicholas Rémillard, president and CEO of the International Economic Forum of the Americas and the World Strategic Forum. “This year’s Forum brings together an impressive array of political and economic leaders to help chart a path towards a more resilient global economy.”
Some of confirmed speakers for the event include: Fred P. Hochberg, Chairman and President, Export-Import Bank of the United States; Strobe Talbott, President, The Brookings Institution; Shaukat Aziz, former prime minister of Pakistan (2004-2007) and former executive vice president, Citibank; John D. Negroponte, Chairman of Council of the Americas and Vice Chairman of McLarty Associates; Rafael Moreno Valle, Governor, State of Puebla; José Miguel Insulza, Secretary General, Organization of American States (OAS); Wilfredo R. Cerrato, Minister of Finance, Republic of Honduras; Herman Daems, Chairman, BNP Paribas Fortis; Ernesto Torres Cantú, Chief Executive Officer, Grupo Financiero Banamex; Amadou Diallo, Chief Executive Officer, DHL Freight; Luis Robles Miaja, Chairman of Grupo Financiero BBVA Bancomer and President of Asociación de Bancos de México; Justin Chinyanta, Chairman and Chief Executive Officer of The Loita Group and Executive Vice-President, Africa Business Roundtable; Julio Velarde, Governor, Central Bank of Peru; Carlos G. Fernández Valdovinos, Governor, Central Bank of Paraguay; Mario Bergara, Governor, Central Bank of Uruguay; Sergio Argüelles González, President and Chief Executive Officer, FINSA; Anne Fulenwider, Editor in Chief, Marie Claire; Wandee Khunchornyakong, Chairwoman and Chief Executive Officer, SPCG Public Company Limited; Sherife AbdelMessih, Chief Executive Officer, Future Energy Corporation; Leonel Fernández, President, Global Foundation for Democracy and Development (GFDD) and Fundación Global Democracia y Desarrollo (FUNGLODE) and Former President of the Dominican Republic.
Global investors have significantly pared back U.S. equity allocations as belief grows that the U.S. Federal Reserve will raise rates in the second quarter, according to the BofA Merrill Lynch Fund Manager Survey for March.
A net 19% of global asset allocators are now underweight U.S. equities – the biggest underweight since January 2008 and a big swing from a net 6% overweight in February. The proportion of investors saying U.S. equities are overvalued has reached its highest since May 2000 at a net 23%.
Allocations to eurozone and Japanese equities have both increased, but investors have indicated that the shift to Europe has only just begun. A net 63% of respondents say that Europe is the region they would most like to overweight in the coming 12 months – a record since the question was first asked in 2001. The reading has spiked from a net 18% preferring Europe in January.
The move out of U.S. equities is also set to continue. A net 35% says that the U.S. is the region they would like to underweight the most, the most bearish reading in nearly 10 years. The spread between Europe and the U.S. has soared to 98 net percentage points – also a record.
The March survey indicates that investors have started to bring forward the date of the Fed’s first rate hike, rather than continue to push it back. The proportion of investors expecting the Fed to raise rates in the second quarter has risen to 34%, from 28%. The number expecting a rate rise in the third quarter has fallen. Accordingly, a net 2% of the panel has taken the view that the U.S. dollar is overvalued – the first overvalued reading since 2009.
“Investor consensus suggests that the strong dollar will act as positive rather than a negative for the global economy and markets,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research. “Bullishness towards European stocks has reached uncharted territory. Demand for financials highlights confidence in domestic growth, while belief in European exporters is building on gains seen last month,” said Manish Kabra, European equity and quantitative strategist.
Inflation and rate expectations up sharply
Investors’ expectations of higher inflation and higher interest rates have risen sharply, according to the Global Fund Manger Survey. A net 52% of the panel expects high global consumer price inflation this month, up from a net 29% in February and a net 14% in January. Furthermore, increasing numbers take the view that global monetary policy could tighten. A net 34% say that policy is currently too stimulative, up from a net 26% a month ago.
More investors are forecasting increases in both long- and short-term interest rates. A net 66% of respondents believe short-term (three-month) rates will be higher in 12 months’ time, up from a net 53% in February. A net 63% expect long-term (10-year) rates in 12 months, up from a net 57%.
European bulls rush into banks
Investors inside Europe have echoed their global colleagues’ bullishness towards the region and made big allocations towards financial services. The proportion of European investors overweight banks has surged to a net 22% from a net 26% underweight last month. The proportion of investors overweight insurance has risen to a net 31% from a net 3% underweight in February
Belief in a rebound in profits is strong. A net 38% of respondents to the regional survey say that they expect double-digit earnings growth in Europe in the next 12 months, up from just a net 3% in February and negative net 43% in January. A net 88% of the regional panel says that Europe’s economy will be stronger in a year’s time, up from 81%.
Investors mindful of China default threat
With questions hanging over China’s debt levels, concern of default has moved to the forefront of more investors’ minds. China debt defaults is now seen the second-largest tail risk in world markets – 19% of investors rank it as their greatest risk, compared with 14% a month ago. “Geopolitical crisis” remains the most voted for tail risk.
Furthermore, the proportion of asset allocators underweight global emerging markets has risen to a net 11% from a net 1% in the past month. A net 57% of the global panel say that global emerging markets is the regional asset class they most want to underweight in the coming 12 months – down from a net 63% but remaining close to historic survey highs.
Some six and half years on from the onset of the global financial crisis, it’s not just Irish eyes that are smiling. With St. Patrick’s Day festivities in full swing, Ian Ormiston, manager of the Old Mutual Europe (ex UK) Smaller Companies Fund, celebrates the investment opportunities that abound the Emerald Isle.
“For the last 20 years Ireland has been a source of alpha for us. It is interesting that across those two decades Ireland has arguably seen the wildest fluctuations in its fortunes among European countries and yet we have been consistently able to find companies that have delivered returns to our investors”, said Ormiston. The reason for this, explained, is that “we focus on the micro, not the macro, and look to quality businesses with strong management teams to deliver returns to our investors”.
“If we think of the Irish story over this period it has been constantly evolving. We started with the macro domestic growth story of the Celtic tiger, through the debt fuelled property development binge culminating in 2008 with the collapse of the banks, to the austerity dominated recession post financial crisis and now back to strong domestic growth and international expansion”.
Layered on top of the economic cycles we have seen exaggerated market cycles which have provided even greater return opportunities. To capture these returns, one has had to seize a variety of growth drivers, explained the manager of the Old Mutual Europe. “At the time of the tiger, you could buy upstart smaller companies like Ryanair, CRH and Kerry Group who quickly outgrew their small, albeit fast growing domestic market to become multinational leaders in their sectors. During the bubble investors were largely passengers unless they chose to back the banks heavily, but growth and outperformance was available through companies like DCC, UDG Healthcare, Greencore and Grafton, all of whom eventually shifted their main listings to London reflecting the shifting emphasis of their operations. The bust and the austerity that followed saw all stocks becoming far too cheap and several of the companies that I have already mentioned enjoyed the benefits of a survivors party as many of their competitors withered or disappeared”.
Which brings us to today. Irish GDP grew by 4.8% in 2014 which is phenomenal by any standards, but is in stark contrast to the stagnation in the rest of the eurozone. Within the Old Mutual Europe (Ex UK) Smaller Companies Fund the most direct exposure to the recovery in the domestic economy is through real estate investment trust Hibernia, which has rapidly built up a portfolio of high quality, high yielding, and predominantly commercial property assets. Elsewhere in the portfolio, Old Mutual are approaching the end of the road for our investment in Smurfit Kappa as excellent execution of strategy by management has converted a debt-riddled basket case at the bottom of the cycle to a highly-rated international mid cap now. Where opportunity still abounds is in secular growth stories like Kingspan, which should see sales and margins augmented by the cycle, and Origin which is all about increased penetration and market share gains in the agronomy sector, explained Ormiston.
“So as the Irish celebrate St. Patrick’s Day we should congratulate them for surviving austerity and thriving now. We should also raise a toast to a small country with a disproportionately large number of quality businesses and hope that they will continue to deliver returns to us in the years to come”, concluded.
After a weak December the European mutual fund industry returned to its growth pattern in January, enjoying net inflows of €25.7bn into long-term mutual funds, according to Lipper Thomson Reuters data.
Single fund market flows for long-term funds showed a mixed but positive picture for January; 10 of the 33 markets covered in this report showed net inflows. The single market with the highest net inflows for January was Switzerland (+€4.1bn), followed by Germany (+€3.6bn) and Italy (+€3.3bn). Meanwhile, the United Kingdom (-€3.2bn), the Netherlands -€0.6bn), and Denmark (-€0.2bn) stood on the other side. BlackRock, with net sales of €6.1bn, was the best selling group of long-term funds for January, ahead of UBS (+€3bn) and State Street (+€2.2bn).
The majority of these flows (€25.7bn) were again seen into mixed-asset funds (+€15.6bn), followed by bond funds (+€7.6bn), equity funds (+€2.5bn), alternative/hedge products (+€1bn), and commodity funds (€0.7bn). In contrast, property funds (- €0.4bn) and “other” products (-€1.3bn) suffered net outflows for January.
In line with the long-term products money market products also enjoyed net inflows for January. In fact, money market funds (+€17.5bn) posted the highest net inflows of all asset types, while enhanced money market funds (+€0.8bn) also enjoyed net inflows.
These inflows lifted the overall net inflows for January to a healthy €44.1bn.
According to the overall net flows, asset allocation (+ €10.6bn) was the best selling sector with regard to long- term funds, followed by bonds EUR funds (+€4.7bn) and bonds EUR corporate investment-grade funds (+€3.7bn). At the other end of the spectrum equities emerging markets suffered net outflows (-€2.8bn), bettered somewhat by bonds USD corporate high yield funds (-€2.1bn) and bonds global high yield funds (-€1.7bn).
Early indicators for February activity
Looking at Luxembourg- and Ireland-domiciled long-term mutual funds, bond funds—with projected net inflows of around €24.3bn—should be the best selling asset class for February, followed by mixed-asset funds (+€12.1bn) and equity products (+€9.6bn). Even though these numbers are estimates, it seems European investors are again favouring bond funds.
Financial Express (FE) has rated Mansfield Mok ‘FE Alpha Manager’ for his exceptional track record, including investment management of the New Capital China Equity Fund. Mansfield is one of 181 managers recognised by FE as the top 10% of managers with funds registered in the UK. In the China/Greater China sector, Mansfield is one of only two managers with this rating. The FE rating is based on manager track record and three key components: risk-adjusted alpha generation; consistency of outperformance versus the benchmark; and outperformance in rising and falling markets. The New Capital China Equity Fund has beaten its benchmark, the MSCI China Index, by 28% since its inception in August 2012, and delivered a total return of 51.8% over the same period.
Hong Kong-based Mansfield, who has over 20 years of investment experience, joined EFG Asset Management (EFGAM) in 2012 to launch the New Capital China Equity Fund. He previously co-managed the $1.5 billion GAM Star China Equity Fund, which outperformed the MSCI China Index by over 72% during his five year tenure at the firm. In 2011, Mansfield was awarded ‘Best Fund Manager Over 3 Years’ and ‘Best Equity China Fund Over 3 Years’ by Professional Adviser and Lipper respectively.
Moz Afzal, Chief Investment Officer, EFGAM: “We are delighted that Mansfield has been recognised for his exceptional performance and expertise in this asset class. The exemplary performance of the New Capital China Equity Fund is the result of strong long-term macroeconomic fundamentals and Mansfield’s skill in selecting great companies. We believe the strategy will continue to be a great source of value for our clients.”
Mansfield Mok, Senior Portfolio Manager, New Capital China Equity Fund: “I am very happy to receive this prestigious award. China could easily be the leading economic superpower in the next five to 10 years but is hugely underrepresented in investors’ portfolios. Drawing on more than 20 years of investment experience in Asia, I look forward to building on our proven track record and continuing to deliver robust returns.”
