Foto cedidaJuan Narváez. Acheron Partners Strengthens its Presence in Mexico
Acheron Partners, an executive recruitment firm, is still committed to the Mexican market, and proof of this is the incorporation of Juan Narvaez to the Aztec nation’s office. Narvaez has been transferred from the office in Spain, where he was a consultant for legal and financial processes and banking.
In his role, he will be responsible for managing and providing customer service to new and existing clients, as well as finding new projects, counseling, and the study of client’s needs and further branches of the business within the recruitment industry.
Before joining Acheron Partners, Juan was Corporate Banking Manager with Banesto, being in permanent contact with the general management of the companies assigned to his portfolio.
Wikimedia CommonsFoto: McKay Savage from London. La mano amiga de las microfinanzas
Microfinance, or the practice of lending to micro-entrepreneurs and small businesses that lack access to traditional banking and related financial services, takes place in different forms globally. The main goal of this type of lending is to offer loans to often low income or “unbanked” individuals in developing countries. With access to funding, borrowers stand a better chance of being able to start-up or further develop a business they believe meets a local need. In many cases, borrowers would otherwise not be able to help pull their families out of poverty, build personal assets and ultimately ascend the socioeconomic ladder. Global institutions, such as the World Bank, run programs that facilitate lending to farmers, women in village communities and small business owners. There are also for-profit organizations and commercial banks that operate various microfinance models. Loans can range from a few hundred U.S. dollars to several thousand U.S. dollars with annual interest rates north of 20%.
Given these high interests rates, the microfinance industry inevitably creates controversies as some claim it takes advantage of poor workers. In the Asia context, the degree of development and success of microfinance lending varies quite a bit given various political and social sensitivities.
Bangladesh’s model of lending to small groups of women whose group members act as co-guarantors for repayment has been an inspiration to many other countries. Approximately 40% of Indonesia’s 240 million people lack access to financial services. The model of lending to the “productive poor” to expand their businesses has been effective. Micro-loans are made to farmers or self-employed small business owners who might not otherwise be able to provide proof of income required in a traditional banking scenario. In general, borrowers are receptive to the merits of microfinance lending and, thus far, such models have thrived. In India, however, microfinance lending carries a rather negative connotation. This is due in part to overly aggressive lending and payment collections practices. In India, the practice of microfinance lending has met with scrutiny and criticism by regulators and politicians.
Whether microfinance is praised or not, the benefits or pitfalls are subject to the interpretation of the stakeholder. It is, however, important to keep in mind that while urbanization may be taking place across Asia, large populations still live in rural areas in the region’s less developed countries. Because of structural or social hurdles, gaining access to financial services is still amongst the many challenges faced by rural residents. There is obviously no “one-size-fits-all” solution to the problems in such a diverse region as Asia. It is nonetheless encouraging to see the ongoing developments and issues being addressed by both government-owned organizations and the private sector.
Lydia So, CFA,Portfolio Manager
The views and information discussed represent opinion and an assessment of market conditions at a specific point in time that are subject to change. It should not be relied upon as a recommendation to buy and sell particular securities or markets in general. The subject matter contained herein has been derived from several sources believed to be reliable and accurate at the time of compilation. Matthews International Capital Management, LLC does not accept any liability for losses either direct or consequential caused by the use of this information. Investing in international and emerging markets may involve additional risks, such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. In addition, single-country funds may be subject to a higher degree of market risk than diversified funds because of concentration in a specific geographic location. Investing in small- and mid-size companies is more risky than investing in large companies, as they may be more volatile and less liquid than large companies. This document has not been reviewed or approved by any regulatory body.
Photo: MarcusObal . Commodity Market Decreased in June Amid Continued Slowing Growth Signals from China
Commodities were lower in June as uncertainty surrounding the future of the global economic recovery remained high.
Nelson Louie, Global Head of Commodities inCredit Suisse’s Asset Management business, said, “Macroeconomic news out of China weighed on commodities in June. With China now shifting to a more moderate rate of growth and modestly improving conditions elsewhere, it is likely that supply divergences are playing an increasing role at a time when the higher correlation observed between other asset classes and commodities since 2008 has begun to normalize. This may signal a return to a more fundamentally-driven market. Within the current trend, the pace of supply growth is likely to remain the key factor in driving commodity returns.”
Christopher Burton, Senior Portfolio Manager for the Credit Suisse Total Commodity Return Strategy, added, “Markets continue to be caught between good economic news being positive, indicating that the recovery is gaining traction, or good economic news being negative as it may mean monetary policy will tighten. While the pace of these programs may eventually soften, we believe that most major central banks will continue to err on the side of providing more stimulus until the economy improves rather than risk tightening too much. In the meantime, while inflation continues to be muted, the risk of unexpected inflation remains elevated.”
The Dow Jones-UBS Commodity Index Total Return decreased 4.71% in June. Overall, 15 out of 22 index constituents posted negative returns. Precious Metals was the worst performing sector, down 12.27%, on persistent worries over the US Federal Reserve’s plan to wind down its monetary stimulus program and the rally of the US dollar in the second half of the month. Industrial Metals declined 7.11% as a preliminary survey showed that China’s factory activity weakened to a nine-month low in June as demand faltered. This may heighten risks that a second quarter slowdown could be sharper than expected and increase pressure on the Chinese central bank to loosen policy.
Agriculture ended the month lower, down 4.16%, pressured by higher-than-expected ending corn stocks and further data showing larger-than-expected US acreages planted despite the earlier weather related planting delays. News that Australia’s new-crop wheat production increased 15% from a year ago added to concerns over larger global supplies. Australia is one of the world’s largest wheat exporters. Energy decreased 2.55%, led by Natural Gas, following the higher-than-consensus storage injections in June as reported by the US Energy Information Administration. Livestock was the best performing sector, up 3.10%, with both Live Cattle and Lean Hogs ending the month higher. The USDA lowered its forecast for 2013 pork production and reported lower feeder cattle placements for May than a year ago.
Foto: Captain-tucker . El mercado residencial de Miami sube un 25% en un año
The Second Quarter 2013 Miami Residential Market Report reveals that the Miami market is continuing its momentum of market strength. For the ninth consecutive quarter, since 2Q 2011, Miami Dade’s overall median sales price has gone up year over year. Current median sales price is $219,000, a 25.1% increase since last year. This is the largest year-over-year median price gain since 1Q 2012. Average price also increased 13.9% since last year.
The Miami Residential Market Report is produced by StreetEasy.com, a comprehensive real estate information website. The report tracks the market trends of the greater metropolitan area with quarter-over-quarter and year-over-year comparisons.
“These price gains were driven primarily by strong condo resales and single-family home resales in Miami-Dade. When you separate out the housing types, the price gains are even more dramatic,” says Sofia Song, Head of Research at StreetEasy.com. According to the report, the median price forcondo resales jumped 48.6% to $208K and single-family homes went up 24.3% to $230K since last year.
Some highlights of the Miami report include the following:
New Developments– This quarter, there was 65% fewer new development sales compared to a year ago. This is a segment of the market that is truly constrained by the low inventory. Two-thirds of new development closings this quarter were under $300K.
Condo Resales – This segment of the market had a decrease of 11.1% in the number of transactions this quarter compared to a year ago. However, average PPSF jumped 34.3% to $341.
Single-Family Home Resales– 22% of all single-family homes sold this quarter were over $500K. Average PPSF climbed to $227, a 17% increase from a year ago.
StreetEasy.com’s partnership with DataQuick allowed the website to compile the recorded sales of residential properties that traded in the Miami-Dade County during Q2 of 2013.
In addition to overall Miami-Dade county data, the report also focused on six major markets of the greater metropolitan area, defined as such:
Greater Aventura & Bal Harbour : Golden Beach, Sunny Isles, Ojus, Aventura, Bal Harbour, Bay Harbor Islands, Surfside, and Indian Creek
Upper Miami Beach : La Gorce, La Gorce Island, Allison Island, Mid Beach, Nautilus, Bayshore, Sunset Islands, North Bay Road, Biscayne Point, Normandy Island, and North Beach
South Beach & Fisher Island
Urban Core : City of Miami (includes Downtown Miami & Brickell), Coral Gables, Key Biscayne, Pinecrest, and South Miami
Southwest Miami Dade : Kendall, Doral City, Sweetwater, Tamiami, University Park, Westchester, Fountainbleu, and Coral Terrace
Northeast Miami Dade : Miami Shores, North Miami, Biscayne Park, North Miami Beach, and Golden Glades
Foto: Raimond Spekking. Deutsche Asset & WM ficha a Caroline Kitidis para servir a clientes UHNWI de las Américas
Deutsche Asset & Wealth Management announced that Caroline Kitidis will join the firm as Head of Key Client Partners & Wealth Investment Advisory for the Americas, effective August 2013, said the bank in a press release.
Kitidis will lead a team that structures customized investment solutions for ultra high net worth clients in the Americas, including individuals and family offices.
Dario Schiraldi, Head of Global Client Group, Deutsche Asset & Wealth Management, said: “I am delighted a professional of Caroline’s caliber has joined our team to help provide ultra high net worth clients with comprehensive market access, high quality investment ideas, and swift execution.”
Jerry Miller, Head of Asset & Wealth Management Americas, added: “This is an exciting time in the development of our ultra high net worth business. Our investment platform spans all asset classes and is ideally suited to serve the needs of the most sophisticated investors.”
Kitidis joins Deutsche Asset & Wealth Management after 15 years at Goldman Sachs. She was most recently Head of the Americas Structured Solutions Group within Private Wealth Management. Before that, she led Equity Derivative Structuring for private clients.
Kitidis will be based in New York and report to Dario Schiraldi and Deutsche’s Co-Heads of Wealth Management in the Americas, Chip Packard and Haig Ariyan.
With €944 billion of assets under management (as at December 31, 2012), Deutsche Asset & Wealth Management is one of the world’s leading investment organizations. Deutsche Asset & Wealth Management is the brand name for the Asset Management & Wealth Management-division of Deutsche Bank AG and its subsidiaries.
Kathryn von Matthiessen. Foto cedida por Cantor & Webb. Cantor & Webb incorpora nueva socia al equipo de Miami ante el aumento de clientes
Miami-based attorneys Cantor & Webb have strengthened their tax and estate planning team, expanding for a sixth consecutive year with the addition of new trusts and estates partner, Kathryn von Matthiessen.
Von Matthiessen, who relocated her practice from New York to join Cantor & Webb P.A., brings more than fifteen years of experience in the field of international estate planning, both inbound and outbound. Her practice will focus primarily on sophisticated personal and estate planning for high net worth individuals and the administration of complex estates and trusts, including advising international trust companies on reporting obligations concerning U.S. matters.
“I have joined Cantor & Webb P.A. because of their excellent reputation among clients and my peers. Driven by the complexity of US reporting obligations and the global reach of an IRS newly armed with FATCA and extensive information exchange powers, there is also a demand for international wealth structuring from Miami is greater than ever, and now extends far beyond traditional Latin markets”, said Von Matthiessen.
This announcement complements a string of initiatives by the firm, which has expanded for a sixth consecutive year after seeing a substantial increase in client engagements. “This major hire was driven by client demand for our services and helps cement our standing as experts in complex global wealth structuring. More broadly, it shows that Miami is a dynamic center which attracts heavyweight legal talent and is more than capable of competing with other US cities for international clients,” said Managing Partner, Steven Cantor.
Wikimedia CommonsFoto: Gordon Joly. HSBC vende su negocio de banca privada en Luxemburgo a VP Bank
HSBC Trinkaus & Burkhardt (International) and HSBC Trinkaus Investment Managers, wholly owned Luxembourg subsidiaries of HSBC Trinkaus & Burkhardt AG, have entered into an agreement to sell their private banking activities and private banking-related fund business respectively, to VP Bank (Luxembourg) and VPB Finance, which are members of the VP Bank Group. The parent company of the VP Bank Group is Verwaltungs-und Privat-Bank Aktiengesellschaft which is based in Liechtenstein.
At 30 June 2013 the private banking activities to be sold had assets under management of approximately €1.5bn (US$2.0bn) and the private banking-related fund business had assets under administration of approximately €0.7bn (US$0.9bn). Approximately 20 employees working for the private banking business of HSBC Trinkaus & Burkhardt are expected to transfer to VP Bank as part of the sale.
The transaction is expected to complete in the fourth quarter of 2013.
HSBC Trinkaus is a commercial bank which draws on its tradition of over 228 years as a trusted advisor to its clients. As one of the country’s leading banks, it is also part of the HSBC Group, one of the world’s largest banking and financial services organisations. The strength of the bank is its international connectivity. This is characterised by its detailed knowledge of the international markets, mainly the emerging markets, and its global network. Germany is one of the HSBC Group’s priority growth markets.
Foto cedidaRobeco Chief Strategist Ronald Doeswijk. Tectonic shifts in the world economy
RobecoChief Strategist Ronald Doeswijk, thinks they probably have and that “Fed tapering is less imminent than the market expects”. With the PCE price index, the Fed’s preferred inflation indicator, still hovering around 1% and a hefty downward revision for Q1 GDP (from 2.4% to 1.8%), tightening doesn’t really seem to be just around the corner. This notwithstanding, and despite Mr. Bernanke’s assurances that policy is data-dependent, as Doeswijk put it “the tightening consequences of his remarks were felt worldwide”.
But for Doeswijk, the key question is whether the US economy is strong enough to cope with tightening, especially in the light of what he terms the “fragile global environment”.
Japan – bright spot in the Pacific? The Japanese economy continues to look positive. The Q2 tankan shows what Doeswijk refers to as “a clear improvement in business sentiment among major manufacturers” and this is supported by expectations for strong Q2 economic growth.
The yen has continued to weaken against the dollar, breaking the psychological 100-level at the end of June. Although bond market volatility has increased, 10-year yields are still hovering below 0.9%.
Europe – signs of stabilization do not extend to the periphery The euro zone is showing what Ronald Doeswijk terms “new signs of stabilization” with the composite PMI showing a slower rate of shrinkage (48.7).
Even such tentative signs of a pick-up should be enough to deter the ECB from further easing – especially with the uptick in headline inflation to 1.6% and the rising oil price.
Political tension is increasing in Southern Europe – the weakened Greek government is encountering difficulties in fulfilling the troika’s demands, while in Portugal the Prime Minister is attempting to avoid early elections.
The calm in the European bond markets is “fragile” according to Doeswijk, who does not expect the ECB to rush to bail out euro-zone sovereigns in trouble.
Equities – set to move higher Despite market fears resulting from recent Fed’s statements that have stopped equity market rallies in their tracks, Ronald Doeswijk maintains a ‘positive view’ and sees room for equities to move higher.
The US market has proved most resilient in the recent market turbulence and remains the favorite. The Fed is overly optimistic on growth prospects according to Doeswijk, who continues to favor risky assets and does not expect “the removal of excess liquidity through Fed tapering” until Q4 2013.
His preference is for defensive sectors in the current scenario, where more pessimistic or ‘risk-off’ sentiment still prevails.
BoJ offers shot in the arm for real estate The outlook for real estate remains positive. In Japan, the BoJ has also targeted real-estate funds in its QE agenda, which “makes investors less nervous about overstretched valuations”, says Doeswijk. Dividends remain attractive and Doeswijk expects the recent interest rate rise to “moderate”, lessening the impact of interest rate sensitivity on this asset class.
“US economy not expected to accelerate in Q3, but to see moderate growth”
Emerging markets – sentiment has turned sour EMD has suffered a double whammy of widening spreads and ongoing EM currency depreciation against the dollar, which has caused Doeswijk and his team to reduce their outlook to neutral for this asset class.
Risk in the form of Fed tapering fears compounded by heightened political tension in a number of major emerging markets (Brazil, South Africa, Turkey, Egypt) means that the trend of wider spreads and currency volatility is set to continue.
From an emerging market equity perspective, things are not much better with weaker underlying economic fundamentals, structural problems – like those in India, and subdued growth.
Chinese authorities have bitten the bullet, allowing interbank rates to skyrocket and seem to be more concerned about tackling the shadow banking system and discouraging speculation than in achieving what is becoming an increasingly ambitious 2013 growth target of 7.5%.
Recent sell-off enhances appeal of High Yield Chief strategist Doeswijk’s preference for High Yield has increased in the light of last month’s sell-off during which HY declined by 3.2%. With attractive running yields, a favorable interest-rate environment and default rates below historical averages, Doeswijk expects these issues to rebound. He also notes that covenant lite issuance, which has reached an all-time high, should not be a cause for concern as most is used for refinancing and not, as in the past, with the more risky objective of financing leveraged buy-outs.
Government bonds least attractive asset category A further rise in global yields is not likely, after bond markets reacted negatively to the news that the Fed might taper its bond purchases. Still, Doeswijk thinks government bonds remain the least attractive asset category: “We expect riskier assets to outperform government bonds”.
Daniel Eustaquio, nuevo responsable de deuda emergente en moneda fuerte de ING IM. ING IM appoints Daniel Eustaquio as Senior Portfolio Manager to EMD team
ING Investment Management has announced additional senior appointments to its Emerging Market Debt (EMD) team.
Daniel Eustaquio joins the company as Senior Portfolio Manager Hard Currency based in Atlanta, USA as per 22nd July 2013.
Daniel has more than 15 years’ experience in EMD Fixed Income markets and joins ING IM from Oppenheimer & Co where he was Director of Investments, EMD FI Sales. He previously worked at ING IM US as part of the EMD team from 1998-2009.
Hans Stoter, CIO ING Investment Management:“We are very pleased to welcome Daniel to ING IM. He has a long track record in managing Emerging Market Debt portfolios and will therefore strengthen the capabilities of our EMD team”
Besides the recruitment of one additional senior portfolio manager, ING IM has further expanded the EMD team by recruiting 3 senior dedicated EMD corporate analysts. Patricia Medina joined the Atlanta office and Jasmine Li and Shilpa Singhal joined the Singapore office.
With these additions the dedicated EMD corporate analysts team now consists of 6 professionals.
Hans Stoter: “Reiterating our ambition to have a top notch EMD team back in place, the recruitment of 3 experienced corporate analysts has further strengthened the EM corporate capabilities of our team.”
ING Investment Managers ha contratado a Daniel Eustaquio como manager senior responsable de deuda en divisa fuertepara su unidad de renta fija emergente (EMD), continuando con su proceso de fortalecimiento de este equipo de inversión.
Desde que a primeros de año, ING IM sufriera la salida de parte importante de este equipo, clave para la casa, con destino a Neuberger Berman, ING IM reaccionó con contrataciones de calado que incluyen la incorporación de Jerry Brewin como director de EMD en junio de 2013, proveniente de Aviva Investors. Daniel Eustaquio viene de Oppenheimer & Co donde trabajaba como director de inversiones para EMD y va a incorporarse a la sede de ING IM en Atlanta el 22 de julio, Georgia. Eustaquio ya había trabajado para ING IM en su división americana de deuda emergente entre 1998 y 2009.
ING IM también ha informado de la contratación de tres analistas senior de deuda corporativa emergente. Patricia Medina se unirá a la oficina de Atlanta, mientras Jasmine Li y Shilpa Singhal trabajarán en ING IM en Singapur. Con estas nuevas incorporaciones el equipo de analistas de crédito de ING IM suma 6 miembros.
Hans Stoter, director de inversiones de ING IM, señalaba que estas contrataciones se enmarcan en su “ambición de tener un equipo de deuda emergente de primera clase de nuevo en funcionamiento”.
Imagen de sátelite de Europa (Foto: NASA). Guggenheim nombra a Tyler Page director de Soluciones de hedge fund para Europa
Guggenheim Partners announced that Tyler Page, Global Head of Business Development for Guggenheim Fund Solutions, has become Head of Hedge Fund Solutions for Europe based in London.
Prior to this appointment as Head of Hedge Fund Solutions for Europe, Mr. Page led marketing efforts resulting in several billion dollars of commitments to the Guggenheim hedge fund managed account platform. “We are growing our business rapidly throughout Europe as institutional investors seek to improve the quality and transparency of the hedge fund reporting they receive, address a shifting regulatory environment and improve their own risk management,” said Mr. Page.
“European institutions have expressed a strong interest in our capability to oversee, monitor and report on their hedge fund portfolios, and we believe Tyler’s proven ability to deliver innovative solutions will add significantly to our continuing European expansion,” added Ajay Chitkara, Senior Managing Director of Guggenheim Fund Solutions.
Earlier in his career, Mr. Page held senior-level positions at various investment banks including Goldman Sachs and Lehman Brothers. He began his career as an attorney focusing on derivatives with Davis Polk & Wardwell. Throughout his career, he has worked on a wide range of bespoke investment solutions for both institutional and private clients.
Guggenheim Partners is a privately held global financial services firm with more than $180 billion in assets under management. The firm provides asset management, investment banking and capital markets services, insurance services, institutional finance and investment advisory solutions to institutions, governments and agencies, corporations, investment advisors, family offices and individuals. Guggenheim Partners is headquartered in New York and Chicago and serves clients around the world from more than 26 offices in eight countries.
