Foto: Nguyen@NYCity, Flickr, Creative Commons. La Française compra el 49,9% de la gestora Alger, especialista de renta variable con sesgo growth
La Française, an international multi-class asset manager, announces the signing of a strategic partnership (pending regulatory approval) with Alger Management, Ltd. La Française will take a 49.9% interest in Alger, an affiliate of Fred Alger Management, Inc., a U.S. asset management firm. Two executives of La Française will sit on the newly appointed five member Board of Alger.
This alliance offers a unique opportunity to create synergies in distribution, market development, and product diversification, says the firm. La Française, through its European network and with the support of its majority shareholder, Credit Mutuel Nord Europe, will provide distribution capabilities and acceleration capital, and Fred Alger Management, Inc. will contribute its recognized expertise in growth equities.
For more than 50 years Fred Alger Management, Inc. has been considered a globally recognized pioneer of growth style investment management, focusing primarily on U.S. equities with additional capabilities in international and alternative equities. It has a long-standing track record and has been recognized numerous times in Europe as a Lipper Funds Awards winner.
Fred Alger Management, Inc. manages approximately $22.4 billion (31/12/2014). Its investment philosophy, in place since its founding in 1964, seeks to identify the best investment opportunities for clients by focusing on companies undergoing “Positive Dynamic Change.” This philosophy, and its analyst-driven investment process, is built on original, fundamental, bottom-up research provided by a more than 40 person investment team.
Patrick Rivière, Managing Director of La Française says, “We pride ourselves in bringing institutional quality investment solutions within everyone’s reach. Together, with Alger, we’ll be developing new markets and building on its well-merited reputation among American retail and institutional investors as a high-standing and innovative asset manager. These past three years of intensive international development have led to this ultimate partnership, completing our now established equities expertise.”
“Establishing this relationship with La Française is another step we are taking to build our presence outside the U.S.,” said Dan Chung, CEO and Chief Investment Officer of Fred Alger Management. “La Française is one of the leading asset managers in Europe, and I am quite pleased that Alger will be working together with La Française to provide expertise in U.S. equities as we build this partnership.”
Lyxor Asset Management announces a new partnership with Quantmetrics Capital Management to join Lyxor’s AIFM managed account platform. With this partnership, Lyxor will launch its first AIFMD-compliant strategy on the platform.
In a context where the environment for CTAs has significantly improved in 2014, this strategy could appear as a strong diversifier to deliver positive and uncorrelated returns to investors.
James Fowler, Founder of Quantmetrics, commented: “With the current environment, institutional investors have difficulties to source opportunities that can offer sustainable performance. Our strategies have been developed to generate returns across different market environments. This is especially true during volatility peaks, where we believe our niche strategies can exploit short term opportunities in highly liquid futures. We are pleased that Lyxor has chosen to partner with Quantmetrics, and we expect institutional investors’ portfolios to benefit from our strategy.”
With over 80 managers running a diverse range of alternative strategies, Lyxor’s Managed Account Platform gives access to a broad universe of best-in-class talent. Superior capabilities in hedge fund selection, portfolio construction and risk management, combined with a high level of customization in terms of transparency or liquidity provide value to investors and address their key decision criteria.
Investment manager Neuberger Berman has announced the launch of its Neuberger Berman Global Real Estate Securities Fund a sub-fund of its Irish-Domiciled UCITS fund umbrella, Neuberger Berman Investment Funds plc.
The Fund invests in a portfolio of global real estate securities with the aim of outperforming the FTSE EPRA/NAREIT Developed Index. The portfolio will typically hold 50-70 securities, diversified by geographic region, countries and property sectors.
It is managed by the Neuberger Berman Global Real Estate Securities Group led by Steve Shigekawa. The team has on-the-ground regional resources, with portfolio managers Steve Shigekawa and Brian Jones based in the US, Gillian Tiltman in Europe and Anton Kwang in Asia Pacific. The Group manages approximately $2.7bn (€2.3) in AUM.
Steve Shigekawa, head of the Global Real Estate Securities Group, commented: “This new fund is a natural extension of our existing US strategy and has been launched in response to increasing interest from clients for global strategies. We have the right people in the right locations to build a focused and differentiated global real estate portfolio.”
Foto: Carlescs79, Flickr Creative Commons. Standard Life Investments convierte su trust de real estate en un REIT
Standard Life Investments has converted its Property Income Trust (SLIPIT) to a REIT (Real Estate Investment Trust) to ensure greater accessibility and tax efficiency for investors.
Accordint to the company, REITs are ideal for wholesale investors who want to buy into the commercial property sector, using the real estate expertise and team ethos within a reputable fund management house.
SLIPIT was launched as a Guernsey-based investment company in December 2003, to provide investors with an attractive level of income with the prospect for income and capital growth by investing in a diversified portfolio of UK commercial real estate. Standard Life Investments has managed the trust since inception and Jason Baggaley has been the manager since 2006.
SLIPIT hasa market cap of £191m (at 31 Dec 2014), and an investment portfolio of direct assets valued at £269.9 million. The Company pays a quarterly dividend, which at the end December 2014 represented an annualised yield of 5.9%.
Gordon Humphries, Head of Investment Companies, Standard Life Investments said: “SLIPIT has been a very successful investment vehicle for the past ten years and we fully expect it to continue to deliver robust returns for investors. We see a growing trend for Guernsey property investment companies to convert to REITs as they offer investors a more established, accessible and liquid form of investment, with greater tax efficiency going forward. Our priority is always to existing shareholders, protecting their value and ensuring there is no dilution. Jason Baggaley will continue to take an active approach to managing the property portfolio in the Company to maximise returns and currently has a fully invested portfolio of office, industrial and retail assets that we believe provide the prospect for attractive returns as rents and capital value increase at this point in the real estate cycle.”
In 2014 SLIPIT won two awards: the Property category at the ‘Investment Company of the Year’ awards, hosted by Investment Week in London and the Investment Adviser 100 Club Awards. In 2014 SLIPIT’s equity base doubled through share issuance and strong investment performance.
Also in 2014 (November) SLIPIT purchased a portfolio of five industrial and logistics units for £23.75 million, reflecting an initial yield of 7.25%. The purchase was funded from equity raised earlier that month. The five assets in Manchester, Birmingham, Cheltenham and Milton Keynes total 390,490sqft. The units are all single-let and have scope for further asset management.
. Laurent Crosnier, CIO de Amundi Londres, asistirá al Fund Selector Summit Miami 2015
Laurent Crosnier, CIO Amundi London, is set to present on the topic of ‘global fixed income in an absolute world’, when he takes part in the Fund Selector Summit Miami 2015, being held 7-8 May at the Ritz-Carlton Key Biscayne.
The event – a joint venture between Open Door Media, the owner of InvestmentEurope and Miami based Funds Society – is targeting locally based fund selectors with the opportunity to hear input from a range of managers.
As 2015 continues to present a complex environment for fixed income investors, Crosnier will argue that alpha generation will be a key driver of return at a time when high liquidity and low interest rates combine to limit the sources of return.
Crosnier began his career in the financial industry in 1989 as a futures trader at ODDO, a European investment banking boutique. He joined Amundi in 1991 as a Euro Fixed Income manager and has been focusing on Euro Corporate management since 1997.
He was was appointed head of Inflation, Duration & Credit management in 2006 and then promoted head of the Euro Fixed and Credit Department in 2008. In April 2010, he was appointed CIO of Amundi London Branch.
You will find all information about the Funds Society Fund Selector Summit Miami 2015 through this link.
Nikko Asset Management has hired four executives in New York, Tokyo and the United Kingdom to bolster the company’s institutional sales and marketing functions, the company has announced.
Fred DeSerio, based in New York, has been named head of Sales in the United States. He will be responsible for developing business in the institutional investment market in North America.
He joined the Tokyo-based asset manager’s US arm on January 30 from Invesco where he was a managing director. He previously worked for firms including Segal Advisors, American International Group and Smith Barney.
“We are very pleased to have Fred join Nikko Asset Management, and believe he will be very effective in cultivating institutional clients in North America,” said Takuya Koyama, Executive Vice President and Global Head of Sales.
“He has had a distinguished career and his experience will help us accelerate our global expansion in the institutional market.”
In the company’s Institutional Marketing and Proposition division, which acts as a link between product and institutional sales, Nikko Asset Management hired three professionals with strong international backgrounds.
Peter Knight joined the company as head of Global Product Specialists. Knight, based in Tokyo, will help drive the global sales effort by helping the firm articulate its product messaging from an investment perspective.
He most recently worked as a business development manager in Japanese equities at BNY Mellon, having previously worked for Citigroup Asset Management Japan.
Daisuke Kono, based in Tokyo, has been named Head of International Institutional Materials on February 1. He was previously a director of Invesco Asset Management’s product management section.
Cameron Kuwahara also joined the company on February 2 as head of Solutions Marketing based in Edinburgh, Scotland, where Nikko Asset Management has a global equity team.
He will be working in Edinburgh and the company’s full-service European headquarters in London, as well as its New York office. He was previously a senior sales director for Citigroup Global Markets in Singapore. He also worked for Bank of America/Merrill Lynch Securities and Deutsche Securities Tokyo.
“We are extremely pleased that Peter, Daisuke and Cameron are joining Nikko Asset Management, all of whom have extremely high-quality backgrounds and are bilingual,” said Stefanie Drews, Global Head of Institutional Marketing and Proposition. “These hires show our commitment to elevating our position in the institutional marketplace, both within Japan and globally.”
Paris head-quartered La Française, a US$54 billion multi asset-class manager (as at 31/12/2014), and London-based Inflection Point Capital Management (IPCM), a specialist firm focused on responsible, long-term Strategically Aware Investment (SAI), will commit to the 7 point voluntary Japanese Financial Services Agency (FSA) Code as the latest international signatories.
During the week of February 9th, a series of events are planned by La Française and IPCM in Tokyo, to commemorate the important step they are taking in signing the Stewardship Code. Ahead of the pivotal United Nations climate change summit scheduled for Paris in late 2015, the threats and opportunities for investors of global warming along with the greening of real estate assets will be a focus of the La Française and IPCM week in Japan.
Dr. Matthew Kiernan, Founder and Chief Executive of IPCM, currently advising on a roughly US$1 billion La Française Inflection Point global equities portfolio, explained: “The Stewardship Code highlights remarkable vision by the Japanese Government to pro-actively promote good governance, along with world class environmental and social practices, as a route to greater Japanese corporate success in a highly competitive global economy. IPCM is delighted to become a signatory to the Code today.”
Xavier Lépine, Chairman of La Française, commented: “We view the Japanese investment market and the influence of Japanese investors and companies around the world as a crucial component of 21st Century global economic vibrancy, financial stability and balanced growth. It is a genuine honour for La Française to become a signatory to the FSA’s Stewardship Code.”
“Along with transparency and good governance there are a broad range of new challenges for global investors such as climate change, resource depletion, ecosystems destruction and human rights issues in corporate value chains, ” added Mr Lépine. “As signatories to the Code, La Française’s knowledge will deepen and that will help our work with Dr. Kiernan and the IPCM team to create new investment opportunities for our clients and partners. Both the new Japanese Code and the country’s diplomatic success in delivering the 1997 UN Kyoto Protocol on climate change mark Japan out as a forward-looking global force as we seek to balance economy and environment.” 2 Paul Clements-Hunt, the original United Nations backer of the 2006 launched UN Principles for Responsible Investment (www.unpri.org), now backed by institutions representing US$45 trillion in assets, commented: “La Française and IPCM signing Japan’s Stewardship Code sends the strongest of signals of just how important this development in Japan is for global investment markets. The positive revolution unleashed by the three arrows of Abenomics is attracting the attention of the most sophisticated and forward-looking investors worldwide.”
Clements-Hunt, who left the UN in 2012 after heading the United Nations Environment Programme Finance Initiative for 12 years, is an IPCM Principal and Director, and advises La Française on Special Global Projects.
The FSA Code, capturing a set of Principles detailing sound approaches to responsible investment, was developed by a Japanese Government convened Expert Committee during 2013-2014 and was launched in February 2014. The Code allows large Japanese investment institutions, such as pension funds and insurance companies, to highlight their commitment to include a range of governance, environmental and social considerations in their long-term investment policy-making and investment decision-making. An increasing number of international institutions are now signing the Code.
La Française and IPCM, whose joint venture asset management company La Francaise Inflection Point (LFIP) was created in December 2013, are also taking a thought leadership role in the fast evolving, multi-US$ billion carbon investment space ahead of the pivotal United Nations climate summit that will convene in Paris in late November 2015. La Française and IPCM recently hosted a climate-investment focused dinner at the World Economic Forum in Davos, Switzerland.
In Tokyo on February 10th La Française and IPCM’s most senior executives will present on “From Kyoto to Paris: A Blueprint for Climate Success”, referencing the 1997 UN Kyoto Protocol agreement that created global carbon markets. During the Tokyo presentation La Française and IPCM will also introduce their Carbon Zero investment approach and cutting edge work to engineer Green Real Estate Investment Trusts.
BNY Mellon announced that it has signed an agreement with Deutsche Asset & Wealth Management to provide real estate and infrastructure fund administration services, representing roughly $46.3 billion in assets under administration.
Last July, BNY Mellon and Deutsche AWM announced that they had entered into exclusive negotiations to complete an agreement. Terms of the deal, which closed effective February 1, were not disclosed.
Under the agreement, Deutsche AWM will outsource its direct real estate and infrastructure fund finance,fund accounting, asset management accounting, and client and financial reporting functions to BNY Mellon. Up to 80 members of Deutsche AWM’s fund finance team are expected to transfer to BNY Mellon and become part of its Alternative Investment Services business.
“As investors shift into other alternative investments, the market for real estate asset servicing is poised for solid growth,” said Samir Pandiri, executive vice president and CEO of Asset Servicing at BNY Mellon. “Investment managers are turning to asset servicers like us who are better positioned to make the necessary investments in technology and people to deliver a higher level of service.
“This important new relationship will allow us to develop a more integrated accounting and client reporting solution that leverages Deutsche Asset & Wealth Management’s global presence and team, and help propel the growth of our real estate fund administration business,” Pandiri added.
“We have developed a close partnership with BNY Mellon and look forward to working with them on this innovative initiative,” said Pierre Cherki, head of Alternatives and Real Assets for Deutsche AWM. “Our goal is to provide clients the best service possible in this area and this strategic relationship will enable us to benefit from the resources of one of the world’s leading investment servicing companies.”
Foto: AndresNieto, Flickr, Creative Commons. El milagro del consumo emergente menos claro que hace un año por culpa del crudo y las divisas
India tops the Credit Suisse Emerging Consumer Scorecard 2015, moving up from fourth in last year’s scorecard. India was rewarded for its consistent performance; being the only country to score in the top three for each of the key metrics mentioned above. China falls from first in last year’s Scorecard to fifth this time round and while it tends to dominate the debate surrounding EM, Credit Suisse analysts would note that, although the gloss may have come off this story, it remains far from the greatest source of consumer vulnerability in emerging markets. That lies in Russia and South Africa according to The Credit Suisse Emerging Consumer Survey.
The report analyses which of these economies and consumers are most exposed to the current commodity and currency volatility. India, Turkey and China are less directly exposed versus Russia, Latin America and South Africa.
The Credit Suisse Research Institute has published its fifth annual Emerging Consumer Survey – a detailed study profiling consumer sentiment and its drivers across the emerging world. The study provides a timely insight regarding consumer sentiment and future consumption patterns at a time when emerging economies are under a spotlight of concern with growth rates slowing and the prevailing commodity price and foreign exchange volatility posing new challenges.
1. e-Commerce and the emerging consumer
This year’s survey provides very positive support for the outlook of e-Commerce across the countries surveyed, with feedback from this year’s study indicating that e-Commerce across the nine countries could become bigger as a share of total retail sales than in developed economies.
Some of the reasons for this are: the relatively underdeveloped “bricks and mortar” retail sector, especially in more rural areas, the rapid increase in the share of consumers with smartphone-related inter net access creating new verticals of spending and the underlying driver of expanding disposable income. Today’s survey estimates that this could lift total annual online retail sales across our surveyed markets to as much as $3trn, which would impact companies across multiple sectors including retail, finance, security and technology.
Of particular note is the growth in online behavior amongst Indian consumers. For example, the share of respondents in India that have used the internet for online shopping increased to 32% from 20% in 2013, while the share that is likely to use the internet for online shopping in the future is now higher than that of China. Sizeable potential also lies in Latin America.
2. Travel & leisure and the emerging consumer
The desire to increase future spending on holidays and travel has been a consistent theme of all our previous surveys, and this continues into 2015. The propensity to travel has risen again in this survey with consumers holidaying rising from 45% to 65% during the life of our surveys with multiple holidays now a feature.The short- term trends manifest themselves differently by country. For example, the desire to travel more has accelerated most meaningfully in Mexico and India but has slowed in China, Turkey and South Africa.
The interaction with technology is a related theme and visible in the survey. Global travel distribution channels are evolving rapidly, with more emphasis on web-based bookings via both direct (company owned) and indirect channels (third party online travel agents). The associated changes in consumers’ chosen booking channel are having profound effects upon the industry value chain, especially for hotels, where margins are coming under pressure, though presenting great potential for the on-line platforms themselves
3. Autos and the emerging consumer
Mobility is another key trend for economies where GDP per capita is rising. The largest car market in the world, China, has continued its strong positive trend in car ownership, growing at a compound annual growth rate (CAGR) of 13% since our 2010 survey, the strongest growth in our survey. Turkey is also moving up the curve rapidly with a CAGR of 6%. Ownership rates have remained broadly stable in other regions. India and Indonesia have the lowest household car ownership rates, at 19% and 7% respectively, and in that respect are a source of great potential.
However, it important to note that the development of the car market in the emerging world, and particularly in China, cannot be looked at in isolation from regulatory developments in areas of pollution control, energy efficiency and also, if to a lesser extent, safety requirements. Where emissions are concerned in China, 2020targets for CO2, for example, require a 32% reduction from the 2013 actual level (versus 25% in Europe). This underlines the significance of technological developments in the auto component field addressing these needs.
4. Healthcare and the emerging consumer
Healthcare in emerging markets is seen as a structural growth opportunity by both companies and investors alike. Indeed the relationships between healthcare spending and rising GDP per capita are well established. The reality is that the picture is far more complicated than the simple relationships would suggest, particularly when translated into the revenue projections for companies. The nature of healthcare provision (public versus private), local versus global brand positioning and who is ultimately paying the bills are key considerations. Our survey provides a perspective on each of these issues and comes to a cautious view as to how the structural story translates to the corporate bottom line.
Access to healthcare growing -There is growing government involvement in most countries, with reported access to free medicines increasing from 26% of the emerging market population in 2011 to 48% in 2014.
Out-of-pocket spending remains stable – As a share of overall spending by consumers, out-of- pocket spending on healthcare has remained broadly flat at around 5% of income, but income that is of course growing.
Trust in local brands, safety concerns abating – We have seen an increase in overall trust for local brands (57% to 59% on a population-weighted basis, with increased confidence in India and China. The correlation between a lack of confidence in local brands and a willingness to pay for international brands continues to be a key feature.
The age/income conundrum – Both income and spending on pharmaceuticals increase with age in developed markets. The purchasing power and needs are aligned. Our survey continues to suggest that this is not the case in emerging markets in a world where disposable income continues to be more concentrated in the hands of the young. The need for healthcare and the location of purchasing power are not well aligned.
5. Brands and the emerging consumer
The report updates its unique brand analysis and draws out several key themes. The battle between domestic and global brands is a key focus, highlighting which products and preferences are skewed domestically.
The relevance of technology and e-commerce is a new feature to this debate and highlights the significance of domestic rather than global e-commerce brands and platforms and the challenges it poses to the global software companies and networks. In the hardware space, the analysis underpins the brand momentum of Apple, though Samsung displays the widest penetration and growing recognition across the emerging world. It is a standout brand across the widest range of categories.
Away from technology, a key theme from the survey is the accelerating penetration of the more typical “high street” brands such as H&M and Zara, at a time when luxury brands have been losing some of their gloss.
Photo: Mattbuck. Ficohsa Established as the Largest Bank in Honduras
After several consecutive years of growth, and following the acquisition of the consumer banking business of Banco Citibank Honduras and Cititarjetas de Honduras, Banco Ficohsa has established itself as the largest in Honduras, and among the 10 most important banks the Central American region. This is confirmed by official figures released by the National Banking and Insurance Commission (CNBS) in December 2014.
The financial institution has grown in several key banking indicators including assets, loans, and net worth, currently occupying the leading position in the country since the end of 2014.
“The results of the CNBS report confirm our position as the leading bank in Honduras,” said Camilo Atala, executive president of Grupo Financiero Ficohsa. “We believe in the region and will continue to explore growth opportunities that will allow us to reinforce our leadership position not only in Honduras, but in all of Central America.”
Ficohsa’s net assets grew 37.9% from December 2013 (USD $2,182 million) to December 2014 (USD $3,011 million), gaining 19.4 % of market share in Honduras. Ficohsa is followed by Banco Atlántida with 18.2% of market share (USD $2,821 million) and Banco Occidente with 13.7% market share (USD $ 2,123). The three Honduran banking institutions combined occupy more than 50% of market share in terms of net assets.
Additionally, Ficohsa occupies the leading position in terms of its loan portfolio, which grew 19.2%, from December 2013 (USD $1,596 million) to December 2014 (USD $1,902 million), granting Ficohsa 18.9% of market share in this area. Banco Atlántida’s loan portfolio reaches USD $1,751 million, followed by BAC with USD $1,348 million.
Ficohsa also leads in home loans, offering 18.3% of home loans in the Honduran market, totaling USD $299 million. It is followed by Banpaís with a current offering of USD $260 million and Davivienda with USD $211 million.
Banco Ficohsa’s net worth represents 21.1% of the entire Honduran financial market, followed by Banco Atlántida with 15.6% of market share and Banco Occidente with 13.6%.
