Wikimedia CommonsFoto: Fabienkhan. Market Vectors realiza un split inverso en siete de sus ETFs
Market Vectors ETF Trust announced that its Board of Trustees has approved reverse share splits of seven ETFs.
The effective date of the split will be at market open on July 1, 2013. The Funds will continue to trade on the NYSE Arca under their current ticker symbols, but their current CUSIP numbers will be discontinued and the Funds’ new CUSIP numbers will be as follows, effective July 1, 2013.
The Depository Trust Company (“DTC”), the registered owner of all Fund shares, has been notified of the reverse share splits and has been instructed to adjust each shareholder’s investment accordingly.
Shares of the Fund will be offered on a split-adjusted basis on July 1, 2013. The total market value of the shares outstanding will not be affected as a result of this reverse share split, except with respect to the redemption of fractional shares, as discussed below.
Redemption of Fractional Shares and Tax Consequences for Each Reverse Split
For shareholders who hold quantities of shares that are not exact multiples of the reverse share split ratios (for example: a multiple of 3 for a 1-for-3 split), the reverse share splits will result in the creation of fractional shares. Post-split fractional shares will be redeemed for cash and sent to the broker of record. This redemption may cause some shareholders to realize gains or losses, which could be a taxable event for those shareholders. Otherwise, the reverse split will not result in a taxable transaction for holders of the Fund.
Wikimedia CommonsChristian Dargnat, nuevo presidente de EFAMA. EFAMA designa a Christian Dargnat nuevo presidente
Christian Dargnat who served as Vice-President of EFAMA from June 2011 will succeed Claude Kremer who has been President since 2011. Christian is Chief Executive Officer of BNP Paribas Asset Management (BNPP AM), the largest investment centre of BNP Paribas Investment Partners (BNPP IP), of which he is CIO. He joined the business in 2006 and became a member of the Executive Board and was also named Director General of BNPP AM in April 2009. In September 2010, Christian was appointed Chairman of the MEDEF committee “Currencies and International monetary system”. He has also lectured at Hautes Etudes Commerciales (the leading European university) since 2008.
The representatives of the European investment management industry also appointed Alexander Schindler, Member of the Executive Board of Union Asset Management Holding AG, as its Vice-President.
The new Vice Presidentwas elected as a member of the Board of Directors of EFAMA in May 2012 and as a member of the management committee of the Board of Directors of EFAMA in June 2012. He became a member of the Executive Board of Union Asset Management Holding AG in January 2004. Alexander has also been a member of the Board of Directors of BEA Union Investment Management Limited, Hong Kong since 2007 and a member of the Executive Board BVI Bundesverband Investment und Asset Management e.V. (German association of investment and asset management) since 2011. He is a qualified banker and lawyer.
In his inaugural AGM President address, Christian Dargnat said: “I am honored to be elected as President of such a widely respected and influential industry body as EFAMA. Having spent two years as Vice-President, I have witnessed my predecessor, Claude Kremer, work tirelessly alongside the EFAMA team to support the industry and the end investor and I am grateful for the solid foundation upon which I take on this role.”
Investors are currently more focused than ever on the US economy. According to Mark Burgess, Chief Investment Officer at Threadneedle, this follows comments from the Federal Reserve indicating that signs of the recovery gathering momentum would lead them to “taper” the level of quantitative easing, from the current rate of $85bn per month. Consumer confidence and expenditure are reasonably healthy and the housing market has shown a strong recovery, although this has been driven more by investors than occupiers. Employment is growing at a steady pace and whilst corporate capital expenditure has been disappointing, we anticipate some acceleration in the second half of the year. Our confidence in the US recovery is growing.
In contrast to the US, the eurozone shows little sign of improvement, with the French economy showing greater weakness than had been anticipated. Furthermore, recent yen depreciation will be an added headwind for exports, particularly from Germany.
We see very pedestrian growth in the UK at just 1% this year. Employment is showing reasonable growth, the housing market is improving and consumption is satisfactory despite pressure on real disposable income. The largest issue for the economy is the export market, which is heavily biased towards the weak eurozone. This will continue to be a drag on the UK’s performance
Japan’s economyis already responding to the massive package of quantitative easing, fiscal injections and other measures aimed at ending deflation and stimulating growth. Consumption has improved, exports will benefit from yen weakness and the increasingly likely plan to restart some nuclear generation would give a useful boost to the trade balance. We have an above consensus forecast for Japanese GDP growth this year and next.
These varying economic environments around the globe lead us to adopt more of a regional equity strategy than previously. In the US, we have added to domestic cyclicals, especially housing related stocks, and are cautious on many defensive sectors such as utilities. In the UK and Europe, we are generally more cautious on cyclicals and are looking to add to some steady growth stocks, e.g. consumer staples, which have recently suffered in the market correction. In Asia, we favour cyclicals exposed to the US, such as technology companies, but are wary of some of the China exposed cyclicals, such as steel stocks. In all areas, good growth companies and those with high and growing dividend yields are likely to be in demand.
The recent talk of tapering by the Federal Reserve has sharply increased market volatility in all asset classes. Quantitative easing has been a huge force in driving markets and traditionally the start of a cycle of monetary tightening has been a difficult time for investors. However, tapering is only a reduction in the level of the Federal Reserve’s monetary stimulus, not a traditional tightening. We expect official interest rates to remain extremely low for an extended period. The Federal Reserve’s action would be on account of improved economic momentum, and we believe that there will be very little inflationary pressure in the short term. This combination of better growth, low inflation and still stimulatory monetary policy should be a reasonable background for equity markets. We remain above benchmark in equities and have used the recent correction to increase our Japanese exposure, moving to an overweight position. This reflects the recovery potential we see for corporate profits in the new world and “Abenomics”.
Government and investment grade bond markets, on the other hand, are showing very limited long-term value and therefore appear vulnerable if the growth outlook improves. We have been well below benchmark in government bonds for some time but have recently reduced our exposure to investment grade corporate bonds, where spreads are likely to offer only limited protection in the event of rising government yields.
We expect income hungry investors to continue searching for yield and assets that have lagged other markets in recent years. In addition, the issue of refinancing of UK properties that has hung over the sector for a long period is now underway. We have added to UK commercial property, moving to a small overweight on a medium-term view.
Wikimedia CommonsPhoto: AFP. Andrea Rossi is appointed CEO of AXA Investment Managers
AXA has announced the departure of Dominique Carrel-Billiard, Chief Executive Officer of AXA Investment Managers and a member of the AXA Group’s Executive Committee, who has decided to leave the Group. He will be replaced by Andrea Rossi, Chief Executive Officer of AXA Assicurazioni since 2008, who will also join AXA Group’s Executive Committee. Frédéric de Courtois, Chief Executive Officer of AXA MPS, will take the lead of AXA’s main insurance operations in Italy.
Andrea Rossi began his career at Olivetti in the Finance Department.In 2001, he joined the AXA Group as senior vice president, business support and development – Mediterranean region, Middle East and Latin America, with a subsequent post of COO of the MEDLA Region.
In 2006, he moved to Dubai as CEO and deputy chairman of AXA Insurance Gulf & Middle East before taking on the role of CEO of AXA Assicurazioni in Italy in 2008.
These appointments will be effective July 22nd, 2013.
Wikimedia CommonsBy UMCane . CISA Trust Believes that Miami is the Ideal City from which to Target the Latin American Client
A few months ago the Swiss company, CISA Trust, joined the long list of companies which continue to set up business in the area of Brickell Avenue, the financial heart of Miami, to serve high net worth foreign nationals with the purpose of reaching new Latin American clients.
Speaking to Funds Society in this regard, Myriam Bril, tax expert and lawyer and head of the CISA Trust office in Miami, said that the new office “provides high net worth clients with all necessary services and advice on legal and inheritance matters with jurisdictional implications.”
Miami headquarters works as a sales and marketing office and currently has a small group aiming to bring new customers from Central and South America and the Caribbean to the company.
CISA Trust Company, founded in Geneva in 1972, is one of the oldest and most renowned Swiss private trust companies in the industry. CISA, based in Geneva, is owned by a family group headed by John Ryan Jr., president of the company, with John Ryan III as President Emeritus.
For its president, “Miami seems to be the place to be to do business with Latin America. Latin Americans want to come here to meet with their lawyers and bankers, plus they have apartments here.”
Meanwhile, Bril stressed that wealth planning for Latin Americans is a booming business. “There is no better place for this than Miami. Many wealthy South Americans like to visit the city and even have a second home in Miami and they like to do business here, including private banking.”
The executive, aware of the importance that comes from being close to banks and major law firms, explains that her job in CISA is to “adequately structure customer’s investments, by working together with lawyers in order to achieve efficient tax planning while preserving assets for future generations.” She also pointed out that services are personalized and tailored to the needs of each client.
Bril, who has been working for CISA for over a decade, previously worked in Spain for a “big four” as a taxation attorney and specializes in advising high net worth Latin American clients. Bril is a law graduate from the University Pompeu Fabra and specialized in tax law with ESADE. In 2011, after completing an Executive Development Program at IESE in Spain, she was appointed by CISA to expand its business in Latin America from its Miami office.
Bril is certified as a Trust Estate Practitioner by STEP (Society Trust Estate Practitioners) since 2006 and has extensive experience in wealth planning advice within the legal and international taxation aspects of transnational transactions and advises private clients on their investments abroad.
According to its growth plans, the company does not rule out the opening of a New York office in the coming years.
By Alejandro Mejia. How Does the Global Market in Mexico work?
To mark the tenth anniversary of the International Quotation System (SIC) of the Mexican Stock Exchange (BMV), which allows investors in Mexico to invest in foreign securities, Claudio Curtius and Manuel Olivo of Deutsche Bank spoke to Funds Society to explain the process followed by SIC as well as its market expectations.
The Global Market (SIC) is the segment of the BMV where securities listed in foreign marketsare registered(whether shares or ETF’s) in order that investors in the country may have access to foreign instruments from any local brokerageand in Mexican pesos.
Ten years ago SIC began operations with 30 U.S. issuers (making up the Dow Jones), and currently operate 903 bonds – 439 ETFs, 353 shares and 111 debt bonds, surpassing 22,000 million dollars.
The amount of capital traded in the global market in 2012 accounted for 21% of trading volume across the BMV and to date about 20%, with over 12,000 investors participating in it. Last year the security with the highest amount traded was the SPDR Trust Series 1 ETF with 4,328 million dollars traded.
Under the SIC structure, the Deutsche Bank Group via Deutsche Bank Securities Mexico, acts before the BMV and the National Banking and Securities Commission (CNBV) as a sponsor of the listing of foreign issuers, providing all relevant and financial information about the issuers present within the local market. In turn, Deutsche Bank New York serves as foreign custodian of SD Indeval for all securities of the issuers listed by Deutsche Securities in Mexico traded on the SIC.
The process for making the list is relatively simple and can be performed in a period of less than a month, provided the bond meets the following characteristics:
It has been traded for at least three months in its market of origin
International Accounting Principles
Exchange of origin under regulators recognized by IOSCO
Be up to date on the delivery of information and on its obligations to the investor
Homogeneous corporate financial information
It is worth mentioning that today 90% of SIC operations, particularly of the private banking segment, are carried out in the BMV’s secondary market, which means there is no extra cost for arbitration to bring the shares from abroad.
Amongst the benefits of operating in this market highlighted by the executives, are those of diversification as well as those oftaxation (as capital gains have a favorable and transparent treatment), being able to trade in Mexican pesos (limiting the risk of exchange rate fluctuations), liquidity (in the event of not sufficient market in Mexico may trade in the market of origin), as well as the possibility of transfer of securities for those investors who hold positions abroad and who, due to changes in regulations derived from the FATCA act, prefer to operate their portfolios from Mexico.
Looking ahead, executives expect “to see growth both on the side of investors as well as on product offering”, of a system which has already been imitated in other countries.
Wikimedia CommonsJohn Williamson, CEO of EFG, and Victor Echevarría, President of EFG Capital,during the interview.. EFG, back to its Traditional Business, is looking for Bankers who are able to build and run their Own Business
In October 2011, EFG International began major restructuring of its business; this has led to refocusing on what has always been its traditional model, private banking. During this time, its investment strategy has changed, it has moved away from marginal businesses, it has reviewed the entire business of the company, it has liquidated its exposure to Greece, it has improved the productivity of its bankers dispensing with those who were not productive and improving the figures of those who remained. During this phase, all efforts have been focused on leading the company “onto the right path”, as explained by its CEO, John A. Williamson, in an interview with Funds Society.
As part of this restructuring process, part of EFG Financial Products was made public in October and its remaining stake, 20.2%, totaling 70.2 million Swiss francs (about 74 million USD) was recently sold to Notenstein Private Bank.
With all this restructuring completed and with the business redirected towards its traditional model of private banking, the Swiss bank, based in Zurich, is enjoying a period of rapid growth, in which Latin America is one of the main players, as explained to Funds Society by EFG Capital president, Victor M. Echevarria.
Echevarria said that of the 3,000 million Swiss francs which the bank received in new assets in 2012, 500 million were in Latin America, representing a growth of 4%. For this year, the aim is to increase the growth from 4% to 8%, which means doubling the assets acquired to reach 1,000 million dollars under management. EFG has been present in the region for 17 years and 15% of the bank’s total assets, i.e. 11,800 million Swiss francs (12,500 million USD) are in Latin America, according to final data for 2012.
Williamson and Echevarria explained that one of the priorities in the short term is to assemble an advisory panel specialized in Latin American credit in Miami. On a global basis, they have 100 consulting professionals worldwide, of which more than 12 are in EFG Capital’s Miami office.
“We are back to our original business. We have a good model for enterprising people and we believe we offer a platform which is much better than others. This is our business and we don’t want to become distracted,” Williamson emphasized.
In full process of recruitment
In this respect, he added that although during the past year they had dispensed with the services of some bankers, a move which was part of the company’s aforementioned restructuring process, they are currently recruiting new teams and bankers to keep growing. “We are looking to expand our resources and relationships with private bankers in Latin America,” he said.
A few weeks ago Carolina Montiel and Arturo Neto, both from HSBC in Miami joined their ranks within the Investment Strategy department, Carolina Montiel has been appointed as head of the department.
“We don’t push our company’s product”
Williamson wanted to make it clear that EFG doesn’t tell bankers how they have to develop their business model. “They are free to build and run their own business. To develop their business as they see fit”. He added that the consultant is free to choose where they want to operate from and what products or vehicles to choose. “We don’t push our company’s product, particularly given the current regulatory situation. What we do expect is for people to be profitable and we pay a lot of attention to risk control,” he stressed.
He also added that in this respect, their business model is neither in line with that of the broker, nor with the discretionary management business. According to EFG’s CEO, a private banker should be able to build and run their own business as well as being flexible and quick to face the current market conditions. “The bank’s top management is one hundred percent focused on this model of private banking,” he said.
Meanwhile, Echevarría said that after the restructuring, and once out of marginal businesses and some risk positions, they find that many people are labeling them as conservative, although they are not paying this any attention, as he believes that currently their clients are offered great opportunities.
The average EFG Capital Latin America client has 1.5 million dollars, although there is another segment consisting of over 30 clients who are high net worth. A special division for family offices is projected within the group, in addition to the existing trust services in the Bahamas and Cayman islands.
Program for bankers
The company is developing a program to serve as a guideline to counselors on how and where they can operate and where they can travel to, among other issues; this guide shall be up to date and address all regulatory changes and due diligence. “Market risks have changed and we must ensure that our teams have all available means at their disposal,” said Williamson.
EFG is present in Switzerland, Europe, UK, Asia and America and has 88,000 million in assets under management. In Latin America they have a presence in Bogota, Quito, Lima, Montevideo and Punta del Este, although they don’t rule out opening elsewhere. Globally they are present in over 30 locations and have 2,300 employees.
Foto cedidaFiesta Inn Tlanepantla. FibraHotel Acquires Hotel in Tlanepantla and Opens The One in Guadalajara
FibraHotel, the first real estate investment trust specialized in urban business-class hotels in Mexico, announces last Monday that they completed the acquisition of Fiesta Inn Tlanepantla, as well as the grand opening of the hotel One Tapatío in Guadalajara.
According to a press release, the 6.5 million dollars transaction, which will immediately add 131 rooms in operation, represents the second closing of an acquisition outside of the Acquisition Portfolio and is part of the set of 15 hotels to be acquired and currently under progress, which were announced on March 14, 2013 and April 23, 2013.
The Fiesta Inn Tlanepantla hotel has 131 rooms and is located in the municipality of Tlanepantla, in the State of Mexico. During 2012, the hotel had an occupancy rate of 66%, an average daily rate of Ps. $793 and a RevPAR of Ps. $523.
The trust also announced the opening of the hotel One Tapatío in Guadalajara. A 126-room limited service hotel operated by Grupo Posadas under the One Hotels brand. The hotel is located in Avenida Chapala, in the municipality of Tlaquepaque (Guadalajara), in the State of Jalisco, inside the shopping center Espacio Tlaquepaque, and close to the most important industrial parks of Guadalajara.
With these events, FibraHotel’s portfolio consists of 34 hotels in operation and 3 hotels under development with a total of 5,132 rooms, including 4,798 rooms in operation.
Foto cedidaPhoto: Vital Menezes. JP Morgan names CEO of Investment Management in Brazil and announces Head of Latin America Funds Management
J.P. Morgan announced that Vital Menezes will become CEO of its Investment Management business in Brazil, effective July 1. He will report jointly to José Berenguer, Brazil Senior Country Officer of J.P. Morgan, and George Gatch, CEO of J.P. Morgan’s Global Funds Management business.
Mr. Menezes most recently was a Partner at Gávea Investimentos, which he joined in October 2011. Gávea Investimentos was co-founded in 2003 by Arminio Fraga, former President of the Central Bank of Brazil. In October 2010, J.P. Morgan Asset Management purchased a majority interest in Gávea.
Before joining Gávea Investimentos, Mr. Menezes served as Global Head of the Financial Institutions Group for Banco Santander, based in Madrid. Prior to that, Mr. Menezes was a Partner with Nitor Investimentos, a São Paulo-based hedge fund.
The Firm also announced the appointment of Giuliano De Marchi as Head of Latin America Funds Management. Mr. De Marchi joins J.P. Morgan from AllianceBernstein, where he was Brazil Country Manager and Latin America Regional Manager, responsible for strategic planning and leadership of client coverage for banks, pension funds, family offices, IFA and other financial institutions. In his new role, Mr. De Marchi will report to Mr. Menezes and to Lee Beck, Head of J.P. Morgan Funds’ Global Strategic Relationship Group.
Wikimedia CommonsFoto: Bo Mertz. HSBC traslada Wimbledon a la Gran Manzana
HSBC, official banking partner of Wimbledon, is bringing an authentic taste of the world-famous tennis championship to New York City June 25-27. Complementary outdoor activities at “HSBC Serves Up the Perfect Day at Wimbledon” include playing tennis on Manhattan’s only grass court, watching live matches courtesy of ESPN on a giant LED screen, and enjoying the traditional tournament treat strawberries & cream. The three-day tennis celebration takes place on Broadway between 23/24th Streets, next to the historic Flatiron Building and Madison Square Park.
At the June 25 kick-off event during week one of Wimbledon, select attendees will play tennis with former world No. 1 ranked players Monica Seles and Jim Courier on a specially-built grass court.
“As the official Wimbledon banking partner, only HSBC can connect a renowned international event like this to our customers, employees and the New York City community,” said Patrick Nolan, CEO, Global Banking & Markets, HSBC Americas, and this year’s local host. “This is our fifth year bringing the championships to life in Manhattan, allowing tennis fans to experience ‘the perfect day at Wimbledon’ without traveling across the pond.”
Jason Bernstein, ESPN senior director, programming & acquisitions, added, “ESPN is proud to be the exclusive U.S. home to Wimbledon with ESPN, ESPN3 and WatchESPN, and this is a fun way to bring the special flavor and the action from the All England Club to tennis fans in New York and add to the profile and exposure to one of sport’s great events.”
COMPLEMENTARY ACTIVITIES OPEN TO THE COMMUNITY
Live Wimbledon Screenings: Watch live matches daily from 7am – 5pm courtesy of ESPN on the big screen in the HSBC Bank outdoor seating area. Henman Hill, the famous grass-covered Wimbledon viewing area, will be recreated for spectators.
Play Singles Tennis:Sign up to play on Manhattan’s only grass court. Court times available June 26-27 from 7-11am, 1-3pm and 5-7pm. Visit www.us.hsbc.com/wimbledon to reserve court times. The grass court installation is being overseen by Sports Turf of Connecticut, using Bentgrass from New England Turf in West Kingston, RI.
Pass the Pro:Match your skills against tennis pros with a simple match-style game. Gotham Tennis Academy, the leading operator of high-performance tennis programs in NYC, Westchester and the Hamptons, is providing tennis professionals to host the event. Walk-ins welcome June 26 and 27, 11am – 1pm and 3 – 5pm.
Photo Booth:Take a commemorative photo of your winning moment on Center Court at Wimbledon, complete with tennis- themed props.
ENJOY A TASTE OF WIMBLEDON AROUND THE BIG APPLE Beginning in 2008, HSBC Bank and California Giant Berry Farms have served complementary strawberries & cream to event attendees during the Wimbledon tournament. To enable more New Yorkers to enjoy a taste of Wimbledon, HSBC is teaming up with local eateries to serve twists on the traditional tournament treat. The restaurants, bakeries and food trucks participating June 24-27 will include: Carnegie Deli, Chinatown Ice Cream Factory, Jacques Torres, Prohibition Bakery, Serendipity, Tea & Sympathy, Wafels & Dinges. Locations and descriptions of strawberries & cream-themed dishes available at at www.us.hsbc.com/tennis
