Photo: Tuxyso. Azimut launches the first UCITS IV-compliant hybrid bonds fund
Azimut has launched what is believed to be the first UCITS IV-compliant hybrid bonds funds in Europe. The fund – AZ Fund Hybrid Bonds – will invest 100 per cent of its assets in hybrid bonds and has an investment time horizon of four and a half years, reported investmenteurope.net.
The fund will offer diversification to investors in terms of issuer, sector, and geographic reach to produce a portfolio with an optimal risk/return profile. Stefano Mach, manager of the new fund, was quoted as saying: “Hybrid bonds are a funding source which is in between equities and traditional bonds in terms of investing costs,” adding that several issuers prefer to get funding through these financial instruments not only because it improves credit structure but also because “it does not dilute the value for shareholders and it accounts for only 50 per cent as debt”.
AZ Fund Hybrid Bonds is aimed at HNWI and has a minimum entry fee of €25,000.
El equipo de Allfunds Suiza. . Allfunds aterriza en el mercado suizo con la apertura de una oficina en Zurich
Allfunds Group has chosen Zurich for the establishment of its office in Switzerland, as a part of its long-term plans for expansion in the Swiss market through the incorporation of a wholly owned affiliate, Allfunds International Switzerland Ltd.
The Swiss Financial Market Supervisory Authority, FINMA, granted Allfunds International Switzerland Ltd the distributor license in late May of this year. The office in Zurich is led by Stig Harby, Allfunds’ Swiss Country Head, who joined Allfunds three years ago and has extensive experience in the financial industry globally and in Switzerland from his previous roles with UBS, Credit Suisse and State Street. Along with him, the office is supported by two senior members recently hired, Matthias Ritz who previously has been responsible for building the product platform of a leading Swiss fund platform, and Barbara Anger who previously led the fund provider management team at a leading Swiss universal bank.
Allfunds Group currently leads the fund distribution business in Europe with more than €100bn of assets under intermediation and has a very strong footprint across the continent. Allfunds has implemented abusiness model able to offer B2B fund solutions, bringing operational efficiency to the fund market, providing fund information and fund research support to leading financial institutions. According to Juan Alcaraz, Allfunds’ CEO: “Being close to our clients is part of our DNA and our commitment to the Swiss Market is now stronger thanks to the opening of our Swiss office. After completing the first milestone with the endorsement of the distribution license, we are now ready to provide our valuable institutional services to local financial institutions. For us, being local is key serving such an important market”.
He also added: “There is clearly room to expand our business here. So far, we have seen great acceptance for our services across Swiss institutional clients given our ability to meet their needs”.
According to Borja Largo, Director of Relationships with Fund Groups: “Fund Groups have specially welcomed our arrival given their need for a better platform solution that is more transparent, diligent and efficient. They believe we are the best partner to boost their business and are actively promoting our services”.
Photo: Heurtelions. Dexia in Exclusive Negotiations to Sell its Asset Manager to New York Life Investments
Dexia announced that it has entered into exclusive negotiations with New York Life Investments for the sale of Dexia Asset Management. The terms of the transaction have not been disclosed.
The thrice-bailed out lender has agreed with European regulators to dispose of Dexia Asset Management as part of a deal to receive state bailouts. Previously, a deal to sell the asset management business to Hong Kong-based GCS Capital for €380m ($507m) fell apart in July this year, as the acquirer was not in a position to pay the anticipated acquisition amount. Most recently, London-based asset management company FinEx Capital Management said that it made an offer to acquire Dexia Asset Management, which had €72.7bn of assets under management at the end of June 2013.
“New York Life Investments has an outstanding track record of acquiring investment firms and managing a “multi-boutique” business. The company is one of the largest asset management firms in the world, with over $388 billion in assets under management (as at 31 July 2013)”, explained the press release
Naïm Abou-Jaoudé, Chairman of Dexia’s Executive Committee added: “The anticipated sale of Dexia AM to New York Life Investments heralds a promising future for our company, particularly in view of the complementarity between the two firms.”
New York Life Investments is a subsidiary of New York Life Insurance Company, which was established in 1845 and ranks among the Fortune Top 100 companies. New York Life is the largest mutual life insurance company in the US and one of the largest life insurers in the world.
Any agreement by the parties would be subject to finalization of its key terms and of the employee consultation process in accordance with the applicable legal framework. These negotiations will be followed by the signing of a Share Purchase Agreement (SPA).
Photo: Beyond My Ken. Advisor Headcount to Shrink Through 2017 By 25,000 advisors
“By 2017, the industry will shed more than 25,000 advisors, down to just over 280,000,” reveals Sean Daly, analyst at Cerulli. “This reduction is largely due to retirement without sufficient backfilling of new advisors, and to a lesser extent, trimming of advisors with insufficient production. Headcount losses will accrue from the wirehouse, independent broker/dealer, bank, and regional channels.”
“The insurance channel accounts for the largest portion of the advisor population. The registered investment advisor and dually registered channels were the only sources of headcount growth in 2012, but together they amount to only 15% of the industry’s advisors,” Daly explains. “The independent broker/dealer channel experienced the largest marketshare change over the last few years.”
After peaking in 2005, industry headcount has declined by more than 32,000 advisors. Losses were measured and dispersed by channel. The industry contends with an emergence of competition and underwhelming client demand, causing firms to lower the supply of advisors.
“Increases in productivity, made possible by improvements in technology, support services, and advisor training, have put distance between top advisors and the rest of the pack,” Daly continues. “Advisor movement and client trends are projected to continue to favor the dually registered channel. The wirehouse and IBD (independent broker dealer) channels are expected to suffer market share losses.”
Cerulli recommends that sales organizations within asset managers position themselves in front of large high-asset teams, and concentrate distribution efforts accordingly.
Photo: Tamas Meszoly. Deutsche Asset & Wealth Management refuerza su oficina de Houston con tres nuevos advisors
Deutsche Asset & Wealth Management’s Private Client Services has hired a team of three client advisors in Houston to broaden distribution of wealth planning advice and investment solutions to wealthy individuals and families.
All three client advisors joined from Bank of America Merrill Lynch, where they managed over $1 billion in total assets. They are based in the Bank’s Houston office and report to John McCauley, a Managing Director and Houston Regional Executive for Deutsche Bank Wealth Management, Americas.
Michael C. Dawson joined as a Director and Client Advisor. Before Merrill Lynch, Dawson spent over 30 years advising ultra-high-net-worth individuals in the Private Client Group at Goldman Sachs.
Stephan R. Farber joined as a Director and Client Advisor. Prior to Merrill Lynch, he spent five years at UBS as a Vice President in the Private Wealth Management division.
Stephen R. Cordill joined as a Vice President and Client Advisor. Previously, he was President of Sanders Morris Harris Asset & Wealth Management and Managing Director and Head of Asset Management for Oppenheimer & Co.
“Texas is an extremely important region for us, with continued wealth creation as a result of innovation and outstanding ingenuity, particularly in the energy sector,” said Haig Ariyan, Co-Head of Wealth Management for the Americas. “This team is highly regarded and I am delighted to welcome them to the firm.”
Photo: Carlosr chill . S&P Capital IQ Opens First Mexico City Office
S&P Capital IQ announced the opening of a new office in Mexico City from which it will provide a variety of investment and credit in-depth information analysis tools and research for local financial professionals as well as increase data coverage of Mexican and Latin American securities.
Headed by Juan Carlos Perez Macias, a former banker and academic, the S&P Capital IQ Mexico office is located in Santa Fe, Mexico City’s Financial District. Other offices in Latin America include Sao Paolo, Brazil.
“Mexico is not only a destination for foreign capital, but also a net investment exporter,” said Juan Carlos Perez Macias, Director, S&P Capital IQ Mexico about this expansion. Lou Eccleston, president of the firm, added “We believe this is the right time for S&P Capital IQ to step up and provide our intellectual and technological capital to assist Mexico’s continued economic expansion.”.
S&P Capital IQ is a business line of McGraw Hill Financial and a leading provider of multi-asset class data, research and analytics,
Photo: Stefenetti Emiliano. More than 350 Professionals will Attend the Private Banking Latin America and Family Offices Forum
Terrapinn, a leading global provider of business conferences, will serve as host to the seventh-annual “Private Banking Latin America – Americas Family Office Forum,” on Wednesday, November 20, and Thursday, November 21, at The Trump International Beach Resort, Sunny Isles Beach
The conference will bring together more than 350 private bankers, wealth managers, family offices and HNWIs to network, solve problems and address topics such as FATCA, asset allocation and wealth management best practices. The agenda includes successful entrepreneurs and investors like hedge fund guru Hari Hariharan and reformed ex-con artist Frank Abagnale, the subject of the hit movie ‘Catch Me If You Can’. This is the only conference to offer a format of roundtables, 1-2-1 sessions and social networking
These are some of the private banking speakers who confirmed their attendance:
Andres Gonzalez, Head of Private Banking, Bancolombia (Colombia)
Gerald Aquilina, ex-Vice Chairman, Global Emerging Markets, UBS (Switzerland)
Salvador Sandoval, Head of Private Bank, BBVA Compass (Mexico)
Jose Luis Llamas, Managing Director, Head of N. LatAm, Deutsche Bank (US)
Flavio Souza, CEO, Private Banking, Banco Itau International (US)
Foto: Metatron. EFG Internacional nombra a Jean-Louis Platteau jefe de Banca Privada en Ginebra
EFG International appoints new Head of Private Banking, Geneva at EFG Bank.
EFG Bank, EFG International’s principal Swiss subsidiary, has appointed Jean-Louis Platteau to the position of Head of Private Banking, Geneva, with effect from 23 September 2013. He will report to John Williamson, Group CEO, in the latter’s capacity as CEO, EFG Bank.
Jean-Louis Platteau was formerly Head of Private Banking Switzerland (Romandie), and Geneva branch manager, for BSI. Before that, from 2008-2011, he was CEO Private Banking, and member of the executive board, at Banque Cantonale de Genève. Earlier roles included CEO of Dexia Suisse and various client facing positions in Europe as well as Asia.
John Williamson, Chief Executive Officer of EFG International said “We have ambitious plans to grow our business in Switzerland, and in recent weeks we have appointed new heads of private banking in Zurich and now in Geneva. I am delighted that Jean-Louis Platteau is joining EFG. Jean-Louis brings extensive international and client experience, and has a proven track record as a business builder.”
Jean-Louis Platteau, Head of Private Banking, Geneva, EFG Bank added.“This is an exciting new challenge, to be joining a dynamic business such as EFG, with exciting plans to grow its business in Switzerland. I can’t wait to get started.”
Photo: www.youtube.com. Three Phases of Interest Rate Normalization Expected Over Next Five Years
A gradual interest rate normalization is expected to occur during a prolonged multi-year economic expansion, according to BNY Mellon Chief Economist Richard Hoey as outlined in his most recent Special Report entitled, “Interest Rate Normalization”
“The aftermath of the three-decade-long decline in interest rates is likely to be labeled a long-term secular bond bear market, but we prefer to view it in the context of the cyclical normalization of interest rates that we expect over a half-decade period, a return to a ‘secular neutral’ center-of-gravity for interest rates,” Hoey said.
Overall, Hoey expects a three-phase normalization of bond yields over a half-decade period:
A sudden rise from artificially depressed bond yields to free-market yields (most, if not all, of which has already occurred);
A prolonged gradual upward drift over the next two years in response to normal cyclical forces; and
A late spike in interest rates when Fed policy turns restrictive following seven years of economic expansion.
“With QE3, the Fed has held down bond yields like a beach ball held below the surface of the water,” Hoey concluded. “Once it indicated that it might let go of quantitative easing, that beach ball jumped quickly to the surface, with the bond yield rising to its free-market level. From now on, however, if our economic forecast is correct, there should be a slower rise in bond yields as a gradually rising cyclical tide lifts the free-market level of bond yields. The recent rapid rise in bond yields made fundamental sense as the markets discounted the end of an artificial bond scarcity, but it is likely to be followed by a much more gradual upward drift over roughly the next two years as cyclical fundamentals evolve.”
International Wealth Protection's new logo. Mary Oliva Wealth Protection Advisory Becomes International Wealth Protection
Mary Oliva Wealth Protection Advisory, a premier Wealth Transfer and Asset Protection firm will begin operatingunder the new nameInternational Wealth Protection effective immediately. With the adoption of the new brand, tagline and logo, International Wealth Protection has simultaneously launched their website
This is the positive outcome of the company’s success in the LATAM region, unprecedented growth and increasing recognition. The rebranding will continue to build International Wealth Protection’s unparalleled dedication to offering innovative Wealth Protection Strategies.
International Wealth Protection caters to high net worth individuals and corporations in the Latin American marketplace. Our unique concierge approach provides our Private and Corporate clients instant access to World Renowned experts, Best of Breed Providers, Competitive Products and the Highest Service standards.
The idea of rebranding Mary Oliva, LLC was proposed by its President and Founder Mary Oliva. She said, “When I founded the company two years ago, my experience, commitment and reputation in the Latin America marketplace was the company’s most valuable asset and it was important to convey this in the brand. Now that we have solidified a leading position and unique offering in the marketplace it is the ideal time to expand our corporate identity to best communicate our mission which is to fill the void in the Wealth Management world with Wealth Protection.”
“Our rebranding represents our evolution, focus and direction”, said Vice President Martin Martin. “Our clients do business with us due to our international expertise and knowledge of the 20 jurisdictions that make up the region. It makes sense for us to incorporate International as part of our company name.” The new tagline “Protecting Your World” embodies International Wealth Protection’s vision to be a single-source solution dedicated to providing protection across a complete spectrum of risk.
