Fidelity Institutional, the division of Fidelity Investmentsthat provides clearing, custody and investment management products to registered investment advisors (RIAs), banks, broker-dealers and family offices in the United States, has announced the opening of the Office of the Future on its Smithfield, Rhode Island campus. In collaboration with the Fidelity Center for Applied Technology (FCAT), Fidelity Institutional developed the Office of the Future as a physical space as well as an online interactive experience for financial advisors to experiment with some of the latest technologies poised to transform the financial advice industry.
Fidelity’s Office of the Future features frequently used work spaces for the “anywhere advisor,” including conference and collaborative office spaces, an airport lounge and a home environment. While the specific form factors will change over time as new technology emerges, the space currently focuses on technology that addresses seven trends most impactful for advisors today: mobile, pervasive video, evolving interfaces, cloud computing, social media, big data and gamification. Advisors can visit to experiment with the technology or take a virtual tour of the space with interactive elements that display details on the Office’s technologies.
Fidelity’s new technology research from its Insights on Advice series found that while almost eight in 10 (77 percent) financial advisors surveyed are making an effort to increase their use of technology in their practices, nearly all (95 percent) see challenges in integrating or utilizing it. This disconnect is mostly attributed to: 1) lack of knowledge on what technology is best for them and 2) how to set it up and integrate it with their existing technology. Financial advisors continue to face mounting pressure to adopt technology and meet investor demand. In fact, one-third (34 percent) of investors surveyed said they would switch their advisors if they were not using technology to enhance their services.
“Investors today expect technology woven into everything they do, and that includes their financial advice,” said Ed O’Brien, senior vice president and head of platform technology, Fidelity Institutional. “For advisors, using technology is not about abandoning what they do so well, which is providing financial advice. It’s about finding that sweet spot that brings together human touch with technology. With Fidelity’s Office of the Future, we can show advisors how to do that.”
According to the survey, 75 percent of advisors felt that they needed to use the latest technology to grow assets among younger clients — investors whose assets are forecasted to be $41 trillion by 2023 and who expect a different relationship than previous generations. Gen X/Y investors noted three core benefits of technology in their advisor relationships: communication, collaboration and accessibility.
1. Communication: Supplement Face-to-Face with Virtual Conversation
Financial advisors can use technology to their advantage to create the feel of an in-person meeting with more flexibility, particularly with younger investors who are comfortable with these mediums. The study found:
Video conferencing is on the rise and many advisors are interested in pursuing it.
While very few advisors use social media to communicate with their Boomer clients, many are using social media with their Gen X/Y clients.
Advisors are leveraging text messaging to engage Gen X/Y investors.
2. Collaboration: Investors Want to Validate, Not Delegate
Sixty-three percent of advisors said that recent technology developments have helped make their relationships with clients more collaborative. This shift will be important as Gen X/Y investors embrace the “validator” model, looking to make some of their own investment decisions, while turning to their advisors for second opinions. According to the study:
Financial advisors are using media tablets with Gen X/Y clients to view portfolios and reports, creating a more meaningful, interactive dialogue.
Advisors are making it easier for investors to “visit their money” and participate in the decision-making process with their advisors.
3. Access and Engagement: Quality, Not Quantity
As mobile and cloud technology becomes more pervasive, the concept of the “anywhere advisor” has gone from a possibility to a reality. In order to meet the demands on their availability, advisors are embracing technology for a more mobile lifestyle. The study found:
Not only are advisors using cloud-based applications, many are interested in using it to make their desktop accessible anywhere.
By leveraging e-signature, advisors can spend less time on paperwork, freeing up time for deeper client engagements.
Advisors are starting to see how webinars or webcasts can help them engage with clients and share their current insights.
To “walk” through the virtual tour of Fidelity’s Office of the Future, go to this link and to visit the Office of the Future in-person, please contact your relationship manager.
Relatively low equity returns year-to-date, ongoing concerns over an escalation of tensions between Russia and Ukraine and the growth slowdown in China; investors might be tempted to give in to the “Sell in May” adage. According to ING IM, there are not enough reasons to do so and stay the course with their risk-on allocation stance.
With investor positioning now less concentrated and investor sentiment less euphoric, it seems likely that fundamentals will become more important drivers for markets again.
With only a few days left in April, the temptation among investors might start to rise to give in to the “Sell in May” adage. Since most of the market evolution this year has been dominated by the behavioural side of investing (geopolitical fear factors and position squaring) it is not difficult to imagine that the old market mantra on cautiousness during summer might start to resonate over the coming weeks.
Positioning shake-out at an advanced stage
Before jumping to conclusions, however, it might be wise to consider what has changed and what has actually not changed since the beginning of the year. To start with the former, it seems fair to say by now that the needed positioning shake-out has progressed a long way. Especially in the performance of equity markets this has been visible, as global equities have lagged other risky assets like real estate, credit and commodities year-to-date. Also within equity markets the performance of sectors and regions has seen a clear pattern of outperformance by the most unloved segments at the start of the year (like defensive sectors) and underperformance of the most popular ones (like Japan).
On top of this, it is clear that investor sentiment has normalized. At the start of the year it stood at a 3-year high and not too far off the record-highs of the late ‘1990s. Since then, investor confidence has fallen back substantially and now hovers somewhat below its long-term average.
Fundamental picture is improving
At the same time, the fundamental undercurrent of support for risky assets still seems to be in place. Actually, the visibility on the evolution of the global business and earnings cycles has only increased. The weather distortions in developed market data releases is gradually fading, while the leading role and upward path of the “old economy” pack has only gotten more confirmation. In March, a “leading” index of business surveys from the US, Germany, Japan and European peripheral countries reached its highest level since September 2007.
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The European Fund and Asset Management Association (EFAMA), in collaboration with SWIFT, has published a new report on the evolution of the automation and standardisation rates of fund orders received by transfer agents (TAs) in the cross-border fund centres of Luxembourg and Ireland in 2013. This report, entitled “Fund Processing Standardization”, underscores the industry’s commitment to move away from manual processes towards more efficient automation and standardization practices.
The report is part of an ongoing campaign by EFAMA and SWIFT to highlight the progress and importance of automation and standardisation rates of cross-border funds orders. 31 TAs in Ireland and Luxembourg participated in the survey, cumulatively representing more than 80 percent of the total incoming third-party investment fund order volumes in both markets.
The report highlights are as follows:
* Total order volumesincreased by 21% in 2013, bringing the total volume processed by the 31 survey participants to 29.5 million orders last year.
* Total automation rates reached78.7% at the end of 2013, compared to 77.7% a year earlier. This trend was driven by an increase in the use of ISO messaging standards (+1.5 percentage points in 2013 to 45.3%), and a fall in the use of manual order processing and proprietary File Transfer Protocol (FTP) formats, which totalled 21.3% and 33.4% in Q4 2013, respectively.
* The total automation rate in Luxembourg increased to75.3% in Q4 2013 (+1.6 percentage points compared to Q4 2012), mainly reflecting a rise in the use of ISO standards, which gained +1.2 percentage points to stand at 57.7%.
* The total automation rate in Ireland rose to 85.6% in Q4 2013 (+0.3 percentage point compared to Q4 2012), thanks to a rise in the use of ISO standards (+1.6 percentage point to 20.9%).
Peter De Proft, Director General of EFAMA, noted: “Five years ago, at the time of the release of the first EFAMA–SWIFT report, we set an 80% target for the automation rate of orders of cross-border funds. The Transfer Agent communities of Luxembourg and Ireland have never been so close to reaching this goal. The achievement, and the regular monitoring of the progress made in this area, highlights the fund industry’s commitment to become more efficient to the benefit of its clients.”
Fabian Vandenreydt, Head of Markets Management, Innotribe and SWIFT Institute, added: “We applaud the continuous progress towards ISO adoption along with the substantial increase in funds order volumes. Together with EFAMA, we are making great strides to alleviate the high costs and inefficiencies associated with manual processing by supporting programmes that foster automation and standardisation for the funds industry. And it is clearly moving forward in the right direction, which is very encouraging.”
AllianceBernstein has established a new private credit investing platform that will focus on direct lending to middle market companies. The new platform – AllianceBernstein Private Credit Investors – will be led by the former senior leadership group of Barclays Private Credit Partners LLC, which was previously the registered investment advisor for Barclays Private Credit Partners Fund L.P.
This platform, established as part of AllianceBernstein’s broader efforts to build out a diversified offering of alternative investment products, specifically responds to increasing demand from clients seeking exposure to direct lending strategies. AllianceBernstein will leverage the past success and longstanding investment strategy of its new investment team by targeting primary-issue middle market credit opportunities that are directly sourced and privately negotiated. The team will emphasize secured lending by focusing on first lien, unitranche and second lien loans, while selectively considering mezzanine, structured preferred stock and non-control equity co-investment opportunities. This flexible mandate will enable AllianceBernstein to optimize the relative risk adjusted return profile for its clients while also offering creative and highly customized solutions for borrowers. AllianceBernstein’s initial focus will be on direct lending in the US marketplace, with a longer term objective of becoming a leading global provider of private corporate credit solutions.
Brent Humphries, previously President of Barclays Private Credit Partners LLC, will lead the new group at AllianceBernstein along with four former Barclays colleagues, Jay Ramakrishnan, Patrick Fear, Shishir Agrawal and Wesley Raper. At Barclays Private Credit Partners LLC, Mr. Humphries and his colleagues were responsible for building a leading private credit business that oversaw approximately $1.5 billion of commitments across 48 discrete transactions. Barclays Private Credit Partners Fund L.P. was sold in December 2013.
“By offering direct lending capabilities, we will be better able to meet our clients’ needs for strong sources of income that also dampen volatility,” said Matthew Bass, COO of Alternatives. “Brent and his team collectively have deep investment expertise and an established presence in the market that will help us take advantage of the strong long-term return potential.”
Brent Humphriesadded: “Direct lending to middle market companies is an attractive space due to its enduring fundamentals and strong secular growth trends. By joining AllianceBernstein and tapping into its leading fixed income franchise and strong distribution capabilities, my colleagues and I can continue to execute our disciplined investment philosophy and relationship approach to lending.”
AllianceBernstein Continues to Build Out Alternatives Platform with New Team
In the past few years, AllianceBernstein has significantly expanded its alternatives platform and currently manages $16 billion spanning a variety of asset classes and liquidity profiles. The firm’s alternative offerings include multi-manager strategies, proprietary hedge funds, real-estate, direct lending and a suite of liquid alternative funds. The firm has also previously acquired proven outside managers to develop alternatives offerings such as a Select US Long/Short strategy managed by Kurt Feuerman and Hedge Fund of Funds managed by Marc Gamsin.
“We are committed to continuing to grow our alternatives platform and direct lending is a natural extension of our existing liquid credit and private placement capabilities,” said Bass. “Being on the cusp of rising rates and regulatory changes makes private credit strategies particularly attractive. We think the favorable supply and demand dynamics driven by bank disintermediation, the attractive relative value compared to large cap liquid credit, and the better risk controls available through direct origination, makes this a very appealing asset class.”
Hotel Isla Morada (Florida), Trust Hospitality. . EXAN Capital and Trust Hospitality Join Forces to Fuel Growth in New York and Miami
The asset management company, EXAN Capital, has reached an agreement with Trust Hospitality, a company with over 25 years experience in the hospitality industry, allowing it to extend its capacity and growth rate to be able to align their interests with those of investors through the opportunities presented in the market for hotels.
For EXAN Capital, a comprehensive real estate services platform focused on the commercial sector which is headed by Juan José Zaragoza, this partnership consolidates an important branch of its platform and strategically positions them within the hospitality industry in such important and competitive markets as Miami and New York.
Trust Hospitality, which is based in Miami, is a leading player in its sector, especially within the boutique hotel segment and primarily in Miami and New York. Its objectives are co-development and management, and it operates a portfolio of over 30 hotels in the U.S., the Caribbean and Latin America.
“Our company offers a comprehensive service to clients and investors in the world of hotels. Our extensive experience and flexibility in project structuring, management, and operation, has allowed us to participate, operate, and structure many operations in various national and international markets. We are hoteliers, it is what we do, what we know, and what has fascinated us for over 40 years,” explained Richard Millard, chairman and CEO of Trust Hospitality to Funds Society.
Photo: Mariordo (Mario Roberto Durán Ortiz). Fibra Macquarie designa COO a Juan Monroy, que seguirá fungiendo como jefe de Adquisiciones
Macquarie Mexican REIT (MMREIT) has announced the appointment of Mr. Juan Monroy as Chief Operating Officer. Mr. Monroy currently serves as MMREIT’s Head of Acquisitions and will maintain those responsibilities in his new role.
“I am pleased to welcome Juan into his new role,” said Jaime Lara, Chief Executive Officer, MMREIT. “Juan has been an integral part of our senior management team since MMREIT’s listing. He brings to the new role an in-depth understanding of the Mexican real estate market, as well as a background in both acquisitions and operations, making him the ideal candidate for the position. I look forward to his continued contributions.”
Mr. Monroy has 14 years of real estate investment and development experience. Prior to joining Macquarie, he was a partner in real estate investment platforms focused on residential and retail real estate development, primarily in Mexico City. He was former director of acquisitions at Acadia Realty Trust, a vice president of international operations at Loews Cineplex Entertainment, and a private equity professional at Onex Investment Corp.
Mr. Monroy received his BA in Business and Finance from the Instituto Tecnológico de Estudios Superiores de Monterrey (ITESM) where he graduated with honors. He received his MBA from NYU Stern Business School and completed the Real Estate Management Program at Harvard Business School.
Foto: Thomas Pintaric. Apollo compra una cartera de 18 hoteles en Europa a Ivanhoé Cambridge
Apollo European Principal Finance Fund II, a fund affiliated with Apollo Global Management today announced the successful completion of the acquisition of a portfolio of 18 European hotels from Ivanhoé Cambridge. Terms of the transaction were not disclosed.
“This sale brings to a conclusion a long-term investment for Ivanhoé Cambridge, and we are very pleased with the transaction process.”
The investment includes hotels located in Austria (1), Belgium (1), France (1), Germany (11), the Netherlands (2) and Spain (2) operated under the IHG brands of Crowne Plaza, Holiday Inn, and Holiday Inn Express.
“This transaction is in line with our strategy of rationalizing our overall hotel exposure and reinvesting our capital in our core asset classes and in key markets globally,” said Sylvain Fortier, Ivanhoé Cambridge’s Executive Vice President, Residential, Hotels and Real Estate Investment Funds. “This sale brings to a conclusion a long-term investment for Ivanhoé Cambridge, and we are very pleased with the transaction process.”
Commenting on the transaction, Roger Orf, a Partner of Apollo EPF II as well as Head of Apollo European Real Estate, said, “This acquisition builds on the strong foundation of successful investments Apollo’s funds have made in the hospitality sector for nearly two decades. Over the past several years, the first Apollo European Principal Finance fund acquired and successfully realized gains on investments in several large European hotel properties through non-performing loan transactions. It’s our view that the European market will continue to generate opportunities in the hotel and other commercial property sectors which are consistent with our strategy of focusing on complex and illiquid situations where we can work with sellers to provide solutions. We are pleased to have been able to build upon our strong relationship with Ivanhoé Cambridge to make this transaction a success and look forward to collaborating on other projects in the future.”
JLL brokered the transaction. Hogan Lovells provided legal counsel to Ivanhoé Cambridge and Ashurst LLP was legal counsel for Apollo on the transaction.
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, Toronto, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of approximately US$161B as of December 31, 2013, in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources.
Ivanhoé Cambridge is a world-class real estate company that leverages its high-level expertise in all aspects of real estate including investment, development, asset management, leasing and operations, to deliver optimal returns for its investors. Its assets, held through multiple subsidiaries and located mainly in Canada, the United States, Europe, Brazil and Asia, totalled more than Cdn$40 billion as at December 31, 2013. Its portfolio consists mainly of shopping centres, office and multiresidential properties. Ivanhoé Cambridge is a real estate subsidiary of the Caisse de dépôt et placement du Québec, one of Canada’s leading institutional fund managers.
StepStone Group LP, a leading global private markets firm, has announced that it has opened its first Latin American office in São Paulo, Brazil, and that the Firm has named Duncan Littlejohn and Bruna Riotto, both formerly of Paul Capital in Brazil, as Partner and Vice President, respectively. Their appointments are effective May 1, 2014.
Mr. Littlejohn and Ms. Riotto will be responsible for the Firm’s investment activities in Latin America, including reviewing primary, secondary and co-investment opportunities, and leading research efforts. They will also handle client development in Brazil and the wider Latin America region.
“These strong additions to our team and office expansion allow us to enhance our global coverage of the private markets,” said Monte Brem, CEO of StepStone. “Investors, including institutions and family offices, increasingly want access to private markets opportunities in Latin America, particularly in Brazil, which has the largest economy and population in the region. As our clients increase the capital they deploy there and Latin American clients look at global opportunities in alternative investments, we are pleased to be able to offer a full-service local presence.”
“We welcome Duncan and Bruna to the StepStone team,” added StepStone partner Jose Fernandez. “With talented and experienced Brazilians heading our new office, we will be well-positioned as we continue to invest in Latin America and serve our clients based in the region. We believe in building local teams with deep expertise in the markets in which we operate and we are sure that strategy will serve StepStone and its clients well in São Paulo.”
Mr. Littlejohn, 60, a 25 year veteran of the private equity industry in Latin America, joins StepStone from Paul Capital, where he had led the firm’s Latin American efforts since 2008. Previously, he was a Partner of BPE Investimentos and its predecessor, Brasilpar, a Brazilian primary private equity fund manager, which he joined in 1995. Prior to that, he worked in executive roles for companies such as AVM Auto-equipamentos Ltda, Pirelli Fintec Ltda, S&W Berisford (UK) Group, and Productos Ecuatorianos (Prodec). Mr. Littlejohn holds a BA in International Relations from the University of Pennsylvania. He has served on the boards of multiple portfolio companies, non-profit organizations, ABVCAP (the Brazilian private equity and venture capital association), and on various Latin American private equity fund advisory boards.
Ms. Riotto, 29, also joins StepStone from Paul Capital, where she had been since 2010. While at Paul Capital, Ms. Riotto was involved in all aspects of diligence, including company research, valuation, portfolio analysis, and transaction structuring. Previously, she worked as a financial analyst within the M&A team at Grupo Stratus. Ms. Riotto began her career with the Financial Controller team at Siemens. She earned her BBA with a concentration in Finance from Fundação Getúlio Vargas in São Paulo, where she was also a member of the University’s consulting team.
Foto: Kevin Hutchinson. La corrección de las acciones USA
The Chief Executive Officers of 6 of the leading companies in Mexico will be presenting at the 4th Annual Mexico Day Investor Luncheon on Monday, May 12, 2014 from 12:00pm – 2:30pm at the New York Stock Exchange. This year’s event will focus on the leaders of the Mexican economy, those heads of companies who, via their ideas, talent and dedication, have shaped Mexico’s financial markets and redefined the concept of business in the region.
Presenting at Mexico Day 2014 will be:
Mr. Alonso Quintana Kawage, CEO of Empresas ICA (NYSE: ICA, BMV: ICA)
Mr. Fernando Bosque, CEO of Grupo Aeroportuario del Pacifico (NYSE: GAP; BMV: PAC)
Mr. Alejandro Valenzuela del Rio, CEO of Grupo Financiero Banorte (BMV: GFNORTE)
Mr. Jose Manuel Contreras, CEO of Grupo Senda Autotransporte
Mr. Luis Barrios, CEO of Hoteles City Express (BMV: HCITY)
Mr. Alberto Chretin, CEO of Terrafina (BMV: TERRA)
Other companies participating in the event include:
America Movil (NYSE: AMX; BMV: AMX)
Alpek (BMV: ALPEK)
Coca-Cola Femsa (NYSE: KOF; BMV: KOF)
Consorcio Ara (BMV: ARA)
FEMSA (NYSE: FMX; BMV: FEMSA)
Genomma Lab Internacional (BMV: LAB)
Gentera (BMV: GENTERA)
Grupo Carso (BMV: CGARSO)
Grupo Financiero Inbursa (BMV: GFINBUR)
Grupo Sanborns (BMV: GSANBOR)
Televisa (NYSE: TV; BMV: TLEVISA)
Industrias Bachoco (NYSE: IBA; BMV: BACHOCO)
The luncheon will be held at:
New York Stock Exchange
2 Broad Street, 7th Floor Main Dining Room
(security checkpoint at corner of Wall Street & Broad Street)
New York, NY 10005
After the luncheon, the participating companies will be available for group investor meetings at BNY Mellon’s offices. Registration and Picture ID are required for entry. To register for the investor luncheon or group meetings, please visit.
This event is sponsored by NYSE Euronext, BNY Mellon and i-advize Corporate Communications, Inc. and is open to investors and analysts at no cost.
For more information, please contact Melanie Carpenter at Tel: 212-406-3692 or mcarpenter@i-advize.com
Artemis Investment Management announces the proposed launch of the Artemis Pan-European Absolute Return Fund – subject to regulatory approval.
The new Artemis Pan-European Absolute Return Fund will be managed jointly by Tim Steer and Paul Casson, and is based on the Artemis Pan-European Hedge Fund strategy (formerly Artemis UK Hedge Fund), a Cayman Islands-domiciled vehicle managed by Tim since 2009. When Paul Casson joined Artemis in April 2013 from Henderson, the Cayman fund broadened its opportunity set to include Pan-European equities.
“Tim and Paul have extensive experience of investing in UK and continental European stocks. They use a fundamental bottom-up approach to stock analysis, coupled with a proprietary screening tool, and have generated good annualised absolute returns for investors”.
While exact timings have yet to be decided, it is expected that the new fund will launch in Q3 2014, initially for Sterling investors. Multi-currency share classes should become available in Q4 2014, allowing international investors to access the fund. At first two GBP share classes will be made available: R class with 150bps AMC and I class with 75bps AMC. Subject to a high watermark, a performance fee will apply.
Commenting on the launch, Richard Pursglove, Artemis’ Head of Retail said: “We are delighted to bring this strategy to a wider audience. We are doing so in a UCITS fund for the first time, and in a sector that continues to be popular with our clients.”
