Foto cedida. Hispania adquiere el hotel Meliá Jardines del Teide, en Tenerife
Hispania, through its subsidiary Hispania Real SOCIMI, S.A.U., has acquired the Meliá Jardines del Teide hotel for an amount of 36.7 million Euro, fully disbursed with Hispania’s own funds.
Meliá Jardines del Teide is a 4* hotel with 300 keys located in Costa Adeje, the most exclusive area in the South of Tenerife, in the Canary Islands. The hotel, which has more than 12,000 sqmof gardens with local species and terraces, is located in the surroundings of Playa del Duque beach and offers plenty of complimentary services, such as 3 swimming pools with solarium, bars and restaurants, 3 conference rooms with capacity for up to 450 people, discos and squash courts.
The hotel is currently operated under a rental contract and is managed by the hotel group Meliá. Hispania’s strategy for this asset contemplates an investment plan for its repositioning within Costa Adeje. Once this capex investment takes place, Meliá will remain as the hotel’s operator.
“The Canary Islands and, more specifically, the South of Tenerife, is one of the most relevant touristic destinations in Europe and it enjoys a relatively stable affluence of tourists all year round. The acquisition of a high quality asset such as the Meliá Jardines del Teide hotel fits perfectly within our strategy of investment in consolidated holiday destinations and it offers a repositioning potential which we expect to materialize with our business plan”, asserts Concha Osácar, Board Member of Hispania.
With this deal, Hispania has already invested 347 million Euro, 65.2% of the net proceeds raised in its IPO last March 14th, building a portfolio which includes a Gross Leasable Area of 91,218 sqm of offices in Madrid and Barcelona, 412 dwellings -213 in Barcelona and 199 in Madrid-and4 hotels totalling 639 keys, one in Marbella, two in Madrid region and this last one in Tenerife.
Foto: Arild Vågen . BOCHK AM y Citi lanzan un vehículo UCITS high yield en renminbis
Bank of China (Hong Kong) Asset Management (BOCHK AM) and Citigroup Global Markets have jointly launched the BOCHK RMB High Yield Bond Fund. This is BOCHK’s first Renminbi (RMB) high yield bond UCITS Fund registered in Luxembourg. The Fund aims to generate long-term capital growth and income by investing mainly in debt securities which are either denominated in RMB, hedged to this currency or have other exposure to this currency, giving investors the potential for investment returns from RMB fixed income investments and RMB currency appreciation.
BOCHK AM is one of the largest active RMB fund managers globally, with discretionary and advisory mandates of USD 7.7 billion. BOCHK AM first launched an RMB high yield bond fund in August 2011, which has produced an average return of 15.2% per annum over the past 3 years. Citi’s Markets and Securities Services business has collaborated with BOCHK AM to launch the new UCITS Fund. Citi and BOCHK AM will act as the Fund’s distributors, while BOCHK AM will take the role of investment manager, and Citibank International (Luxembourg Branch) is the Fund’s administrator and custodian.
The Fund benefits from BOCHK AM’s expertise and experience in investing in the RMB high yield market, leveraging BOCHK AM’s onshore and offshore China market insights. BOCHK AM has the full support of Bank of China (Hong Kong) Limited, the sole RMB clearing bank and a major RMB participating bank in Hong Kong. The Fund provides a highly liquid solution for those investors looking to deploy capital into the growing RMB markets and seeking participation in the ongoing internationalization of the currency. The Fund also builds on the growing importance of Luxembourg as a key investment centre for RMB, with RMB262 billion5 (USD42 billion) of assets held in Luxembourg-domiciled funds linked to RMB.
The Bank of China Group has been present in Luxembourg since 1991. Citi first opened for business in Luxembourg in 1970, and today provides a full range of Investor Services products to UCITS and non-UCITS clients including global custody, fund accounting, transfer agency, corporate secretarial, securities lending and depositary bank services.
Dr. AU King Lun, Chief Executive Officer of BOCHK AM, said, “The Fund launch is a major milestone for BOCHK AM. Our strategic collaboration with Citi highlights the growing importance of RMB bonds as a new asset class for investors globally.”
“Citi is delighted to work with BOCHK AM to facilitate global investors in accessing a world-class solution to gain exposure to the RMB fixed income marketplace.
BOCHK AM’s insights, delivered via the UCITS format with associated benefits and safeguards, represents a timely and exciting investment proposal for a wide range of global investors,” said Mr. Eric Personne, EMEA Head of Citi’s Multi-Asset Group.
Foto: Robert Weißenberg. El optimismo de los inversores de EE.UU. está en su nivel más alto desde 2007
The Wells Fargo/GallupInvestor and Retirement Optimism Index jumped to +46 in the third quarter, its highest level in seven years. The index is up 17 points from the second quarter’s +29, with most of the gains stemming from investors’ heightened optimism about economic growth and the labor market. While the optimism index is at its highest point since December 2007, it remains well below the pre-2008 recession 12-year average of just under +100.
Optimism among non-retired investors jumped almost 20 points to +50 while the optimism of retired investors rose 11 points to +35. The Wells Fargo/Gallup quarterly survey measures the perceptions of U.S. investors with $10,000 or more in investable assets; results are based on phone interviews with 1,011 investors, aged 18 and older, from Aug. 15-24.
“Investors are saying they’re more optimistic about the economy and the job market. But non-retirees worry about their ability to earn more in their lifetime, and they are skeptical the stock market is the place for them to grow their savings,” said Karen Wimbish, director of Retail Retirement at Wells Fargo. “Clearly, average investors have not forgotten their recession experiences.”
Investors Tread Water Financially and Feel the Effects of Inflation
Looking to the future, the majority of non-retired investors expect their income to be stagnant: 56 percent say they do not foresee a time when “their income will be significantly higher than it is today” as compared to 42 percent who do foresee potential for growth in income.
Non-retirees with $100,000 or more in assets are especially pessimistic about the prospect of earning more: 61 percent say they do not foresee a time when their income will be significantly higher than it is today, compared with 51 percent of investors who have less than $100,000 in assets.
“Investors with higher assets appear to feel as if they’ve hit a ceiling. They have done well, but don’t see opportunity for continued income gains in the future,” Wimbish said.
When asked how their finances today compare to five years ago, a majority (58%) say they are doing “about the same” (34%) or “worse” (24%) than five years ago, while 42 percent say they are “doing better.” Similarly, just 37 percent say they are saving and investing more money in recent months than they did prior to the recession. A majority (63%) says they are saving “about the same” (34%) or “less” (29%). These figures are essentially unchanged from two years ago, indicating that investors have not been able to make much financial headway in the economic recovery.
When asked directly about the impact the 2008 recession has had on their finances, nearly half (46%) say they are still feeling the effects of the recession “a lot” (19%) or a “fair amount” (27%). Another 31% only feel its impact “a little,” while 22 percent say “not at all.”
In the midst of the national conversation about wage stagnation, half of investors (51%) think the pressure on American families’ ability to save today is due to rising prices caused by inflation, whereas about four in 10 (37%) say the pressure is caused by lack of wage growth or stagnation. Nine percent of investors say the pressure is caused by a combination of the two factors.
Caution Towards Stock Market Deemed “Wise” by Majority
A new Wells Fargo/Gallup question this quarter asked investors whether they think caution toward investing in the stock market is “wise because it protects people from possible market losses,” or “unwise because it prevents people from realizing significant market gains.” Sixty percent of all investors say such caution is “wise” while 37 percent call it “unwise, because it prevents investors from realizing significant market gains.”
In the poll, 68 percent of investors say they “actively choose stocks for their long-term investment accounts,” but almost a third (29%), say they “consciously avoid stocks in long-term investment accounts.” When respondents are divided between those with $100,000 or more in assets and those with less, 42 percent of those with less than $100,000 in assets say they “consciously avoid stocks in long-term investment accounts,” versus 20 percent of those with more than $100,000 in assets.
Of the 29 percent of all investors who say they consciously avoid stocks, less than half (41%) feel confident they can reach their financial goals without stock market exposure. The majority (56%), say they are notconfident they can reach their financial goals without taking on stock market risk, but they still think it’s better to avoid that risk.
“The fact that nearly seven out of ten say they choose stocks for their long term investing is a good strategy for growing assets over time, and yet it’s noteworthy that nearly a third actively choose to avoid stocks for long term accounts. And, this active avoidance is even more pronounced for people with fewer assets – these investors could stand to gain in the market through a long-term, gradual investing strategy and they seem to know it but they think avoiding risk is more important,” said Wimbish.
While most investors say they actively choose to include stocks in their long-term investment accounts, they may not be allocating enough to stocks. On average, investors say that 38 percent of their retirement savings are invested in the stock market. Naturally, this is lower among retirees, at 33 percent, but not much lower than among non-retirees, who say they have 40 percent invested in stocks.
Relatedly, in sharp contrast to the common recommendation that investors’ scale their exposure to the stock market by age, the survey finds little difference in the average percentage of retirement savings that investors of various ages say they have invested in the stock market. This average is 33 percent among all retirees, 39 percent among non-retirees aged 18 to 49, and 41 percent among non-retirees aged 50 to 64.
Retirement Confidence Hinges on Social Security
Taking their savings and Social Security income into consideration, a majority (69%) of investors say they are “highly” or “somewhat” confident they will have enough money to maintain their desired lifestyle throughout their retirement years.
However, nearly half (46%) are “very” or “somewhat” worried about outliving their savings, including 50 percent of non-retirees and 36 percent of retirees. Retirees who run out of money could become entirely dependent on their Social Security checks.
“Clearly Social Security plays a key role in thinking about retirement income, and concerns about the government’s ability to address the system’s financial problems exist for both retirees and non-retirees,” said Wimbish.
Six in 10 (58%) don’t think federal lawmakers will address the financial problems with Social Security in time to preserve the system for future retirees. Two-thirds of younger investors (67%), those under age 50, are especially pessimistic, saying lawmakers will not fix the system. These same investors are also much more doubtful than older ones that they will ultimately receive their full or even slightly reduced benefits in retirement. A little more than a third (38%) of investors between the ages 18 to 49 believe they will get most or all of the benefits due to them under the current system, compared to 71 percent of those between the ages 50 and 64, and 73 percent among those 65 and older.
Despite these divergent perceptions about whether Social Security will be there for them in retirement, non-retirees on average expect Social Security to account for 26 percent of their annual retirement income, while retirees, on average, report that it currently accounts for 30 percent of their retirement funding.
Citi Private Bank announced that Tracey Brophy Warson has been named Head of Citi Private Bank in North America. Ms. Warson succeeds Peter Charrington, who was recently named Global Head of Citi Private Bank. Ms. Warson will report to Mr. Charrington and be based in New York. She will be a member of the Private Bank Global Leadership Team.
“Since joining Citi Private Bank in 2010, Tracey has done a remarkable job growing our footprint on the West Coast. Since that time, she has significantly increased revenues and AUMs and built an exceptional team of private bankers and specialists who are doing a superb job serving the fast growing number of ultra high net worth clients in that market,” said Mr. Charrington. “We are excited by this appointment and look forward to her leadership in North America.“
Ms. Warson has nearly 30 years of experience working with ultra high net worth individuals, families and institutions. She was most recently Western Region Market Manager for Citi Private Bank in North America. In this role she oversaw ultra high net worth banking offices in Beverly Hills, Los Angeles, Orange County, Palo Alto, San Francisco, Phoenix and Seattle. Before joining Citi, Ms. Warson served as West Division Executive for US Trust, Bank of America Private Wealth Management where she built and ran the Western Region. Prior to joining US Trust she was Executive Vice President and Regional Managing Director of Private Client Services at Wells Fargo Private Bank. In this role she was responsible for Wells Fargo’s investment management, trust, private banking, wealth planning and brokerage businesses in the Bay Area. Previously Ms. Warson served as an Executive Vice President and Head of Sales and Distribution for Wells Fargo’s foreign exchange and financial risk management businesses nationally. Ms. Warson worked in the investment banking division of Citi in Los Angeles and started her career in banking as an International Banking Officer at Toyo Trust & Banking Company in Los Angeles.
Ms. Warson earned her BA in Business Administration and French from the University of Minnesota. She also completed a fellowship at the Université de Tours, in Tours, France. Ms. Warson has repeatedly been named one of “The Most Influential Women in Bay Area Business” by the San Francisco Business Times.
A continued economic recovery, strong equity market performance, rising real estate values, and an “energy renaissance” that pushed U.S. oil production to its highest levels in over 20 years, boosted the population and wealth of High Net Worth Individuals(HNWIs) in the U.S. to record levels in 2013, according to the U.S. Wealth Report 2014 released by Capgemini and RBC Wealth Management.
The population of U.S. HNWIs jumped 17 percent to 4 million and their investable wealth by 18 percent to reach $13.9 trillion. Growth rates of both the HNWI population and HNWI wealth in the U.S. exceed the global averages of 15 percent and 14 percent respectively.
“Steady GDP growth, reduced unemployment, a falling deficit, and an energy renaissance boosted investor confidence and energized risk appetites in 2013,” said John Taft, Chief Executive Officer, RBC Wealth Management – U.S. “These factors contributed to record wealth levels in the U.S. Over the last five years, some of the strongest growth in wealth occurred in the energy and technology-centric cities of Dallas, Houston and San Jose, indicating that a broader mix of geographies and industries is driving wealth creation in the U.S.”
Twelve cities are home to the majority of U.S. HNWIs
Growth in U.S. HNWI wealth was driven by the top 12 cities by HNWI population – New York, Los Angeles, Chicago, Washington D.C., San Francisco, Boston, Philadelphia, Houston, San Jose, Dallas, Detroit, and Seattle – which are home to more than two-thirds (69 percent) of U.S. HNWIs and three-quarters (75 percent) of U.S. HNWI wealth.
While New York still reigns, holding almost three times more HNWIs (at 894,000) and wealth ($3.2 trillion) than second-ranked Los Angeles (at 330,000; $1.2 trillion), it recorded the second lowest growth rate (12 percent) in HNWI population of the top 12 MSAs, ranking only slightly higher than Detroit (11 percent).
Tech and energy-centric cities increasingly leading HNWI population and wealth growth
The Texas cities of Dallas and Houston were stand-outs, leading in both HNWI population growth – at 20 percent and 18 percent respectively – and wealth growth, at 24 percent and 22 percent respectively. In fact, Dallas entered into the top 10 HNWI population centers for the first time, edging out Detroit.
While HNWI wealth remains mostly concentrated along the East and West coasts, the report notes that, between 2008-2013, three of the four fastest-growing cities in HNWI population and wealth have been those with ties to energy – in the case of Dallas and Houston, and technology – in the case of San Jose, pointing to a new pattern of HNWI wealth creation in the U.S.
Greater risk-taking supported by surging trust in wealth industry
According to the report’s Global HNW Insights Survey, U.S. HNWIs’ trust in all aspects of the wealth management industry surged by double-digit rates between early 2013 and early 2014. Trust in wealth managers and firms increased 12 percentage points each to 84 percent and 87 percent respectively, putting U.S. HNWIs well above their peers in the rest of the world (71 percent and 72 percent respectively).
Increased trust supported a greater appetite for risk, with allocations to alternative investments up by four percentage points to 13 percent of portfolios, while equity allocations remained the highest across the globe at one-third of portfolios (and up to 41 percent in Washington D.C., highest in the U.S.). U.S. HNWIs were also more inclined to invest beyond North American borders, with their international allocations up to 33 percent in early 2014 from only 20 percent of portfolios a year earlier. This trend was particularly driven by HNWIs aged under 40 who invested 53 percent of their wealth in foreign markets.
Despite increased trust in wealth managers, HNWIs’ assessment of wealth manager performance dropped by six percentage points to 73 percent, though remains much higher than the rest of the world average of 59 percent. Declining scores signal opportunities for firms to reposition their offerings to meet specific HNWI preferences, especially for HNWIs under 40 versus their counterparts aged 60 and over.
Younger HNWIs are more likely to classify their needs as complex (38 percent vs. nine percent), seek family wealth advice (35 percent vs. 13 percent) and demand digital (internet, mobile, email) contact over direct personal contact (39 percent vs. 15 percent). Given the strong preference for digital interactions, wealth management firms will need to take proactive steps to meet increasing demands in this area.
“There is great opportunity for wealth management firms to reposition and strengthen their offerings in response to declining performance scores,”said Jean Lassignardie, Chief Sales and Marketing Officer, Capgemini Financial Services. “One way to respond to clients is by developing an integrated channel experience that not only maintains their wealth manager relationship but enhances it through digital enablement.”
As U.S. HNWIs expressed a pronounced preference to work with a single firm (54 percent vs. 11 percent multiple firms), firms that work with them will need to continue to deliver against the specific needs of their clients to drive high satisfaction levels.
Younger and female HNWIs could signal shift in causes supported by U.S. wealth
Making a positive impact on society through investing time, money or expertise is important to the vast majority (88 percent) of U.S. HNWIs and extremely or very important to 56 percent. HNWIs under 40 are particularly focused on driving social impact, with 81 percent citing driving social impact as extremely or very important.
Younger HNWIs also favor different causes than their older peers (aged 60 and over), citing social programs, race relations, gender inequality, energy security and unemployment as their top five priorities, while their older counterparts favor child welfare, education, and health. Given the rising wealth among younger HNWIs, there could be a shift in the types of social issues that get the most attention in the U.S. moving forward.
Female HNWIs are likely to have a greater influence on driving social impact going forward. As with younger HNWIs, female HNWIs place great value on driving social impact, with 62 percent citing it as extremely or very important, compared to 50 percent of male HNWIs.
Guggenheim Partners has announced the hiring of Gerald A. Donini as a Senior Managing Director. Mr. Donini will work closely with senior management to identify and develop business opportunities for the firm.
“We are pleased to welcome Jerry to our team,” said Alan Schwartz, Executive Chairman of Guggenheim Partners and CEO of Guggenheim Securities. “Jerry’s reputation as a leader and his expertise in building markets platforms will enhance our ability to scale our businesses. Moreover, Jerry is a perfect fit with our team-oriented culture.”
“I am excited about the business that Alan and the team at Guggenheim are building,” Mr. Donini said. “In a short time, Guggenheim has emerged as a highly respected partner known for its client service and differentiated approach within the securities industry. That recognition and trust from the clients provide us with a great foundation to move forward.”
Mr. Donini was most recently the Chief Operating Officer of Barclays Global Corporate and Investment Banking. Prior to that, he served as the Global Head of Equities at both Lehman Brothers and Barclays. Mr. Donini served on both firms’ Executive Committees.
He graduated with a B.A. in Economics from Brown University.
Foto: Phil Whitehouse. Los flujos de fondos podrían apoyar la deuda de mercados emergentes
Outflows from emerging market debt during the 2013-2014 correction amounted to a significant US$31 billion. In the subsequent months, Investec AM has been encouraged by sustained inflows into the asset class as investors re-engaged with the asset class, attracted by the higher yields on offer. Certainly Investec’s own investor base has added to their holdings on average and new institutional clients have entered the asset class over the past year.
The period of continuous inflows came to an end in August, with some outflows from hard currency debt. According to the asset manager, this is entirely healthy – the asset class had performed well and some profit taking was inevitable – and it is likely there will be more two way movements in flows in the coming months.
While Investec AM does not expect 2015 industry net flows to reach the heady $40 to 80 billion levels, they do expect a gradual improvement. Given the scale of the 2013-2014 sell-off, the asset manager still views overall positioning as relatively light and expects supportive flows from institutional investors, particularly in the US, who are expected to address their under-allocation to the asset class. The broader reform agenda across many emerging markets should also help to sustain positive investor sentiment and encourage flows into emerging markets assets.
You may access the full report by Investec AM through this link.
Marathon Asset Management, a New York-based global investment advisor overseeing approximately $12.5 billion in assets, has announced that Diego Gradowczyk, former Head of Emerging Markets Trading at Barclays Plc, has joined the firm as a Senior Managing Director and co-Head of Emerging Markets. In his new role, Gradowczyk will co-run the firm’s emerging markets group with Partner and group co-Lead, Gabriel Szpigiel and be a member of the firm’s executive committee. Marathon also announced that it has added Andrew Szmulewicz, a former Executive Director at J.P. Morgan Chase in the Global Index Research Group, to its emerging markets team.
A focus of the firm since its inception in 1998, Marathon’s Emerging Markets Group is comprised of a highly experienced global team of professionals in the firm’s New York, London and Singapore offices. The group takes an opportunistic, flexible approach to capitalize on the wide array of opportunities available across the different emerging market geographies, including Latin America, Eastern Europe and Asia.
“Emerging markets is one of our core competences and main strategic areas of focus,” said Louis Hanover, co-Managing Partner and Chief Investment Officer for Marathon Asset Management. “We are highly committed to continually looking for ways to strengthen this team to provide our clients with best-in-class investment opportunities. Adding these two extremely accomplished individuals is a testament to this promise and will help us ensure we continue to deliver cutting-edge investment ideas in this space.”
“We are very excited to announce the addition of Diego and Andrew, two very high-caliber investment professionals, to our emerging markets team,” said Gabriel Szpigiel, Partner and Co-Head of Emerging Markets for Marathon Asset Management. “Together, they will help us increase our franchise and investing capabilities in these geographical regions. We look forward to integrating Diego and Andrew into our team and working with them to grow our business.”
Gradowczyk added: “This is an amazing opportunity and I am extremely honored to join a world class firm like Marathon Asset Management. Right now is an exciting time in emerging markets and I am greatly looking forward to working together with Gabriel and the rest of the team to help grow the firm’s emerging markets business.”
With more than two decades of experience working in the space, Gradowczyk brings a tremendous amount of emerging markets investing experience to Marathon. After joining Barclays in 2001, he ran the firm’s Emerging Markets Trading desk for nearly ten years. Prior to Barclays, Gradowczyk was a partner and portfolio manager at Compass Group, a New York-based investment management firm focused on emerging markets.
Szmulewicz previously worked in J.P. Morgan Chase’s Global Index Research group, where he contributed to many of the firm’s emerging market indices, including being a key contributor to the CEMBI index.
Barclays has today announced that Akshaya Bhargava has been appointed as Chief Executive of Wealth and Investment Management. He will join Barclays on 13 October 2014.
With over 35 years’ experience in the financial services industry, Akshaya joins from InfraHedge which he founded in 2010 and was acquired by State Street Corporation at the end of 2013. Prior to this he was CEO of Butterfield Fulcrum Group and founding CEO of Infosys BPO. He spent 22 years at Citibank, leading teams in London, India and the Czech Republic.
Announcing the appointment, Ashok Vaswani, Chief Executive of Barclays Personal and Corporate Banking, said:
“I’m delighted that Akshaya is joining to lead our Wealth and Investment Management business. Akshaya brings with him deep management experience and a strong track record of business development and growth. Appointing Akshaya, with his breadth of global financial services knowledge and experience in creating bespoke investment platforms, is a significant coup for the business.
“The wealth management industry is evolving and clients’ needs are changing. A leader who can drive success through transformational times and harness new technologies to enhance the client experience will help to position Barclays at the forefront of this industry revolution.”
Akshaya Bhargava, Chief Executive, Barclays Wealth and Investment Management, said:
“Barclays Wealth and Investment Management is well placed to deliver a market leading set of global banking and investment solutions to high net worth clients. This is an exciting time to be joining Barclays and I feel privileged to be taking charge of the next chapter in the growth and evolution of the business.”
Akshaya began his career at Citibank in India in Operations and Relationship Management roles before moving into Transaction Services, based out of London. He was Chairman and Country Manager of Citibank in the Czech Republic for four years, before heading back to London as Global Product Management Head for Small Business Banking.
After 22 years with Citibank, he was approached by Infosys to set up a Business Process Outsourcing offering in India. He led the business from a start up to No 7 rank in the industry in four years by focusing on the more complex and high value segment of the market. After Infosys absorbed the business in 2006, he took on the CEO role for the hedge fund administrator Butterfield Fulcrum. He saw the business through the financial crisis, restructuring it into a profitable business. In 2010 he set up InfraHedge, a hedge fund managed account platform, which was acquired by State Street Corporation at the end of 2013.
Akshaya graduated in India with a BA in Economics and MBA in Finance and Marketing. At State Street Bank he holds the following 3 active authorisations from the FCA – CF1 (Director), CF3 (Chief Executive) and CF30 (Customer).
. CONSAR Approves the Funding of the Mandate Awarded by Afore Banamex to Pioneer Investments
CONSAR, the Mexican regulatory authority for pension funds, has given the green light to the funding of US$400mn for the European equity mandate which Afore Banamex awarded to Pioneer Investments in October 2013. The total amount of the mandate, which was also awarded to BlackRock, BNP Paribas, Franklin Templeton, and Schroders, is for US$1bn. As Gustavo Lozano, director of Pioneer Investments in Mexico, confirmed to Fund Pro, the contract between the asset management company and the Afore will be signed this week.
Pioneer Investments is the second firm which obtains the funding of a mandate, after the two Afore Banamex mandates awarded to Schroders, in global and European equities, which have been funded already.
Meanwhile, in a telephone conversation with Funds Society, Gustavo Lozano expressed his great satisfaction at having received authorization for this mandate by the regulator as “that means that a Mexican Afore now has two managers,” adding that “in two to three weeks, once the contract is signed, the transfer of funds will occur.”
CONSAR’s president, Carlos Ramirez Fuentes, has reaffirmed an opinion which he has already stated on other occasions, that the mandates are an important vehicle for diversifying the management of Afore’s assets, but that the process should be more streamlined. In this case, although the mandate was awarded a year ago, they have been unable to fund it until now, so a very significant part of the rally experienced by European equities has been missed. Gustavo Lozano commented to Funds Society in this regard that all parties involved “have learnt a lot from this process and are working in conjunction with authorities, the different funds, and the asset management firms so that these investment projects become more agile and may be funded within a maximum period of six months from time of awarding.”
As was disclosed to Funds Society, certain constraints and problems posed by State Street, the mandate’s trustee and liquidator, have been the main cause of the delay in this particular case. Pioneer Investment was also awarded a global equities mandate by Afore Sura totaling US$700mn, for which BlackRock, Investec AM, and Morgan Stanley Investment Management were also selected.
