By Thomas Wolf. Henderson Signs an Agreement to Form a Real Estate Fund of USD 20 Billion
TIAA-CREF, a leading financial services provider, and Henderson Global Investors agreed to launch a new global real estate investment management company, TIAA Henderson Global Real Estate. The new company will offer clients expanded investment opportunities in the global real estate market while helping to accelerate the growth of each firm’s real estate business.
The combined total of real estate assets under management for TIAA-CREF and the new venture is $63 billion.
TIAA Henderson Global Real Estate will consist of TIAA-CREF’s European real estate business, Henderson’s European and Asia Pacific-based real estate businesses, and a new global distribution and client service organization
TIAA-CREF will hold a 60 percent interest and Henderson a 40 percent interest in the new venture, the U.S. real estate fund of Henderson is entering the English management with 175.4 million dollars (114 million pounds).
Pending regulatory approvals and customary conditions, the transaction is expected to close in the first quarter of 2014.
Wikimedia CommonsBy Alex Polezhaev . México: an Overview from New York
As the Institutional Revolutionary Party settles in for its return to power, many believe this is Mexico’s moment. From a macroeconomic standpoint, Mexico has seen positive economic growth through the financial crisis, has cut inflation in half, has kept its budget deficits to 2% and carries public sector debt at a level one-third of that of the United States. The country also stands as a leader in free trade, with more free trade agreements than any other of the Latin America nations. The Bloomberg Mexico Conference will look at the country from all angles, offer perspective on what to expect from public sector and private sector leaders as Mexico continues to hold the interest of the global investment community.
To analyze this and other cases, Bloomberg has organized a special one-day conference, where they will contemplate the country at every angle. During the day, where professional leaders of the financial sector will inform what they can expect from the public sectors and leaders of the public sector in the moment that Mexico still mantains interest in the global investment community.
Mexican minister of finance, Luis Videgaray Caso, has confirmed his assitance, along with the 44 potential members that they come across too. For example, Benito Berber, Latin American strategist of Nomura Securities; Eduardo Cepeda, President and CEO of JP Morgan Financial Group, Alonso Cervera, Managing Director of Fixed Income of Credit Suisse; Albert Chretin, CEO of Terrafina, and Jaime Lázaro, CEO of BBVA Bancomer Asset Management.
The Bloomberg conference will be celebrated in the New York Academy of Sciences on July 10. To obtain more information or to register, please contact Elena Tchainikova at +1 212 617 4820 or etchainikova@bloomberg.net
Wikimedia CommonsBy Alex Tora. We keep faith in Japan
Japanese stocks have taken a severe beating since the last week of May. ING Investment Management feels that the correction is not justified taking into account Japan’s fundamentals and they believe that the Japanese equity market can resume its outperformance. They asset manager stick to their overweight position in Japanese equities.
Investor confidence in the ‘reflation trade’ has diminished in the past weeks, after Kuroda failed to explain if the BoJ would like to see lower or higher yields as a sign of success of its policy actions. Japanese bond yields rose substantially while the yen reversed its decline and a sharp sell-off emerged in the Japanese stock market. We believe however that the fundamental story has not changed and expect the Japanese market to resume its outperformance.
Japanese stocks and yen move hand in hand
Japan stands out in economic and earnings momentum
For some time now, we observe increased divergence in global market performance whereby local factors are dominant. Economic momentum, earnings momentum and shifts in policy are the main determinants of these relative regional performances. Let’s take a look at each of these three drivers.
First, the economic momentum as measured by the economic surprise indices is on a rising trend. Japan is one of the few countries where the index is actually in positive territory. Not only the surprises are strong, also the data themselves improve.
Second, earnings momentum is highly positive with upgrades outnumbering downgrades in a 2 to 1 ratio. Momentum is one element but also the actual growth estimates are high. We forecast 40% earnings growth this year followed by an additional 18% in 2014.
Reform momentum to pick up after July elections
The third element is policy. True, the BoJ’s communication policy is not optimal and has contributed to the market volatility. Especially as the positive outcome from its real time policy experiment is not guaranteed. Its binary character implies that minor changes in expectations can lead to a disproportionate increase in market volatility. On the other hand, the BoJ will possibly take additional action as the market environment has diverged from its initial expectations.
Likewise, Abe has every interest in the support of financial markets in the run-up to the Upper House elections on July 21. The structural reforms he has announced are a necessary step to make the recovery sustainable. Details are scarce however and we will hear more about it in the months to come, mostly so after the elections.
To view the complete story, click the document attached.
By Marc Averette . Dominick & Dominick Appoints Rocio Harb as Head of its Miami Office
Dominick & Dominick has appointed Rocio Harb as head of the company’s Miami office. Harb becomes branch manager, a position which shall be effective immediately, as the company advised through an internal memo to which Funds Society had access.
Harb has over 21 years’ experience in the securities business; before joining D & D in 2004, the new manager had worked in TuckerAnthony, DLJ / Credit Suisse and First Securities, gaining experience in a number of areas, including administrative and operational matters, the note reads.
Dominick & Dominick was founded in 1870 and is one of the oldest financial services firms in the United States. The company serves through three business divisions: wealth management, investment banking and institutional sales. Headquartered in New York, as well as its Miami office, Dominick and Dominick also have offices in Atlanta and Basel. In 2004, they decided to return to Miami with a new regional office located in the downtown area which employs about 25 people offering their brokerage, wealth management, currencies, and international securities services to international, domestic, and institutional clients.
Wikimedia CommonsBy Fabio Rodrigues Pozzebom/ABr . Pacific Rubiales States "Absurd Rumors" about their Alleged Participation to Plot Against the Venezuelan Government
Pacific Rubiales Energy announced that while it is a general policy not to comment on market or media rumours, the Company would like to formally respond to completely untrue media reports published in Colombia.
Recent articles, reported in various Colombian newspapers, claim that Pacific Rubiales is involved in a politically motivated plot against the Venezuelan government. The allegations are absurd and have no factual basis. Pacific Rubiales categorically denies these reports and any involvement in these untrue allegations.
Pacific Rubiales is a Canadian incorporated and publicly listed company and as such holds itself to the highest standards of corporate governance. The Company, which has oil and gas operations and development properties in Colombia, Peru, Brazil, Guatemala, Guyana and Papua New Guinea,is focused on providing value to its various stakeholders and conducts all of its activities in a sustainable and socially responsible manner.
Wikimedia CommonsBy mattbuck. Terranum Capital’s First Fund Closes at US$235 Million
Terranum Capital, the Latin American real estate investment firm with offices in Bogota, Lima and New York, has successfully completed its inaugural fundraising effort, resulting in commitments of US$235 million and making it one of the largest private equity funds of its type. The Fund has attracted a broad range of investors including pension funds in Peru and Colombia, institutions in the US and Europe, and a select group of Latin American family offices.
The Fund executes a unique strategy, investing in the development of low and middle-income housing and retail projects in Peru, Colombia and Mexico. Terranum Capital partners with pre-eminent local developers to address the huge housing deficits within these countries. The real estate market in Latin America represents an excellent growth opportunity, with demand for middle and low income housing significantly outstripping supply, and strong government incentives supporting first time home buyers. Terranum Capital’s investment team has held executive positions at leading international investment firms including Och-Ziff Capital and has a strong track record investing in the Latin American region.
Terranum Capital has made strong progress since its inception in 2012, having already invested over US$65 million during the past year in five housing projects in Peru and Colombia, two of the fastest developing economies in Latin America. Several of these investments are already generating returns.
Gregorio Schneider, founder and Chief Investment Officer of Terranum Capital, commented, “We are delighted to have achieved such a successful fundraising for our first fund. We are particularly pleased with the strong endorsement we have received from the Latin American institutional and private investor community.”
Wikimedia CommonsMain Entrance of la Bolsa Mexicana de Valores. The BMV global market, Mexican invention and an example for other countries
The International Quotation System (SIC) in Mexico is a success story and will look to increase the number of investors in the future, increasing anonymity, reducing the spread, and increasing liquidity and improving listing processes, according to several experts gathered for the celebrations of the tenth anniversary of the SIC in Mexico, which was held on Thursday in the nation’s capital.
During the event Luis Tellez, BMV’s president, congratulated Deutsche Bank for achieving the launch of the global market ten years ago; while he added that this is “a Mexican financial invention” which technology has been imitated and has proven very useful for this type of markets to be established in other countries, particularly in the developing nations.
The market, which openned in May 2003 with 30 issuers’ shares, currently has more than 900 different securities of different foreign assets and represents about 20% of the total value traded on the Mexican Stock Exchange, being “an extraordinary option for Mexican investors both individuals and institutions”, according to Tellez.
Juan Hernandez, head of iShares in Mexico, mentioned that there is a huge opportunity for growth within the global market to internationalize portfolios.
Meanwhile, David Plasencia, Director of Financial Supervision for CONSAR said that the Afores currently have an exposure to foreign markets of 17% of their portfolios, 67% of which is carried out through the SIC. In this respect, Octavio Ballinas, Technical Deputy Director for the Amafore, highlighted as the key challenges: the review of the current 20% limit on foreign investment “so as to avoid bubbles within the local market”, and encouraging greater participation by institutional investors- in order to achieve and to maintain anonymity-, because the afores represent 60% of the SIC’s operations, and without anonymity there is a disclosure of strategies, a situation which is not ideal when competing in profitability.
Edwin Reyes, Managing Director, Global Head of Deutsche Bank’s Depository Receipts, said that the success seen in the ten years of operation of the SIC is a cause for celebration and a model which they aim to duplicate in other countries. The executive also highlighted its importance for business and said he will continue to work with stakeholders to grow the market, both in terms of the number of investors and of the products offered.
Claudio Curtis, Deutsche Bank Director in Mexico, explained that as at the end of May 2013 his institution held 22,000 million dollars of SIC assets, of which 55-60% were from Afores, 15% from mutual funds, 5% from corporate pension funds and insurance, and the remainder from qualified investors and individuals.
Foto cedidaRafael Fernández, director of Grupo Empersarial Arcallana, Founder of URBA Inmobiliaria and Director of FLEX – Financial Solutions - Paraguay. Paraguay, a 21st century American miracle
Knowing about Paraguay is as simple as learning to count to 10:
1 st largest net exporter of electricity globally
2 nd largest producer and exporter of stevia globally
3 rd largest fleet of barges globally, after the U.S. and China
4 th largest soybean and charcoal exporter globally
5 th largest soya flour exporter globally
6 th largest maize exporter globally
7 th largest producer and largest exporter of organic sugar globally
8 th largest soybean industrialization globally
9 th largest meat exporter globally
10 th largest wheat exporter globally
An export capacity coupled with negligible public debt and the world’s healthiest financial system, make Paraguay the nation with the greatest economic potential in the region and one of the greatest worldwide, with a real GDP growth estimated by the International Monetary Fund, at 11% in 2013 and inflation of 4.25%.
Access to capital markets to finance large business ventures is poor, without even a secondary market developing in the stock exchange, i.e. Paraguayan firms are financed only by fixed income bonds.
This scenario is favorable for investment funds, since this nation has a brilliant future, with a strong estimated population growth until 2040 due to its population under 30, which exceeds 70%, and the yields offered due of the lack of development of the financial markets are exorbitant, hovering around 20% annually.
Wikimedia CommonsBy Marcelo Páez Bermúdez. Credit Suisse Chile strengthened its team with the addition of Borja Martín de la Torre
Credit Suisse Securities Agency Limited (Chile) is strongly committed to growth in Chile, where it has been in operation with its brokerage format for over a year with an operations team and a team of bankers of about twenty members. Borja Martín de la Torre, from the International Private Banking division of Banco Santander in Miami, is the latest banker to join the project, according to information given to Funds Society by bank sources.
From Chile, the organization offers financial advice and intermediation through its Credit Suisse AG in Switzerland and Pershing, U.S.A. platforms, while it also signed an agreement with a local brokerage firm in Chile. Credit Suisse is aiming to strengthen and grow its business in Chile through these three avenues, plus they are also aware that this local presence will support them in their goals.
Martin de la Torre, a CUNEF (Spain) graduate, has spent his professional career between Spain and the United States. The last three years from Santander in Miami as a banker for Chile, while the previous three years he worked for Banif in Madrid.
Previously, he worked for two years in Morgan Stanley Spain, firstly in product information, joining the firm’s commercial team later on. Martin plans to take up his new post in Santiago, Chile on 1st August.
Japan is growing in self-esteem. A good example is the growing appetite the country has to consume luxury items. A good prelude for Prime Minister Shinzo Abe trying to pull their compatriots deflationary spiral in which bogged down decades ago.
After many years demoralized, the pioneer in real estate crises has seen its citizens lost since the late 80s over 75% of the value of their stock investments. The global financial crisis, the earthquake and tsunami of 2011 Okinawa helped to boost morale.
But the campaign launched by Shinzo Abe to revive the economy is paying off. Consumer confidence is surged strong, especially in the luxury brands. Jack Neele, responsible for the strategy of Robeco Consumer Trends, follower of trends in consumption, follows closely names like Richemont and Salvatore Ferragamo, direct beneficiaries of the growing interest in luxury in Japan.
Brands like Baccarat sales have risen 20% so far this year. Some firm’s of jewelry and high-end watches and Richemont’s target market, are seeing sales doubling in recent months. Kering, the parent company of Gucci and Bottega Veneta is giving a facelift to its stores in Japan to the growing interest in their products.
Although the Nikkei is taking a breather in the past weeks, in line with other markets, from November to May, the index has come to appreciate more than 50%, contributing significantly to improving the mood of the country.
The policy called “abenomics” seeks to return the country to a sustained growth in the next two years, removing the specter of deflation even if it means to flood the yen markets.
Japan, along with other Asian countries, seems to be taking the baton from China, where economic uncertainties are weighing on consumption of exclusive products. While, in the opinion of Jack Neel, names like Salvatore Ferragano still have tour in the Chinese market, the manager has lowered its exposure to that country in favor of other markets in the area, which still sees great potential.
Luxury is one of the trends of consumption in Neel focusing to achieve excellent performance in their management. Through its analysis, Robeco Consumer Trends has managed to outperform the world in more than 9% annually over the past five years.
