Wikimedia Commons. Universität Heidelberg and Santander Universitäten to Increase Their Cooperation
Heidelberg University and Banco Santander, though its Global Division Santander Universidades, are planning to intensify and expand their cooperation. To this end, Prof. Dr. Bernhard Eitel, Rector of Heidelberg University, and Emilio Botín, Chairman of Banco Santander, signed an agreement on the “TOP Programme Europe – Latin America” and the “ELITE Programme Latin America – Europe – Asia”. It is based on the long-term framework agreement concluded two years ago with Santander.
Santander Universities operates in Germany under the name of Santander Universitäten. With this step, the partner institutions want to support the geographical mobility of young scientists and scholars, develop top-class networks of strong research partners in Latin America, Asia and Europe, investigate innovative research topics on an international level and make the results of that research available to society.
Heidelberg University develops and coordinates European cooperation projects with leading universities in Latin America, especially Chile, Brazil, Argentina, Colombia and Mexico
Via its Centrer for Ibero-American Studies (IAZ), Heidelberg University develops and coordinates European cooperation projects with leading universities in Latin America, especially Chile, Brazil, Argentina, Colombia and Mexico. In the long term, the partner institutions hope to build a bridge of scientific collaboration between Europe and Latin America, for the benefit of junior researchers in particular. On another level, the partners in Europe and Latin America will work together to create networks of excellence with leading universities in South and East Asia, especially India, China and Japan. The IAZ, the South Asia Institute, the Heidelberg Centre for Transcultural Studies, the Centre for East Asian Studies and the International Relations Office of Heidelberg University will all be involved in the coordination and development of this project. The research partners on the three continents will be selected by mutual agreement with Santander Universitäten.
Within the framework of the “TOP Programme Europe – Latin America” and “ELITE Programme Latin America – Europe – Asia” summer and winter schools dealing with innovative research questions and aimed at doctoral candidates and junior researchers are funded by the bank through Santander Universitäten. They are to be organised in cooperation with the Heidelberg Center South Asia in New Delhi, the Heidelberg Center for Latin America in Santiago de Chile and the International Academic Forum Heidelberg as well as Japanese partner universities, if applicable.
The Center for Ibero-American Studies was funded in March 2011 via the existing framework agreement between Heidelberg University and the bank, through its Santander Universidades Global Division. The IAZ initiates and maintains scientific exchange with the countries of Latin America and the Iberian Peninsula. One of the centre’s major concerns is to establish networks for young scientists, especially in the humanities, and to support them with the required infrastructure. For this purpose, the IAZ – supported by Santander Universitäten – offers scholarships in linguistics, translation and interpreting, and literature that allow doctoral students to spend several months doing research at an international partner university. Research stays of international junior researchers at Heidelberg University are funded as well.
By Diego Delso . 2,408 Candidates Receive First Claritas Investment Certificate
CFA Institute, the global association of investment professionals, announces today that 2,408 participants have successfully completed and passed the ClaritasInvestment Certificate. The Claritas certificate provides a thorough understanding of how the investment industry works, and the knowledge that candidates have acquired will help to shape a more trustworthy financial industry by setting a new international education and ethics standard.
Participants from 70 companies in 50 countries took part in the Claritas pilot program, with candidates sitting the examination in March and April 2013. Since then a full review and standard setting process has been undertaken to evaluate the results and set the passing score for the pilot and future sittings of the examination. From July onwards, candidates who sit the examination will now be able to leave the test center with a preliminary result and receive their official result within a few days after the examination.
The profile of candidates who took part in the pilot ranged across operations, administration, IT, HR, marketing, sales, compliance and customer service. Candidates worked within asset management firms, commercial and investment banks, insurance companies, data and media businesses and professional services organizations. (A list of some of the companies that participated in the pilot can be seen here.)
85% reported they would recommend the program to others
76% said they had benefitted by increasing their industry knowledge
64% said that the program helped them to better understand their ethical obligations within the financial services industry
John Rogers, CFA, president and CEO of CFA Institute, commented: “The industry’s enthusiastic response to the Claritas program is a true indicator of the need to provide accessible education for those experts who surround investment decision makers every day. The commitment and accomplishment of these 2,408 individuals confirms that raising educational excellence is essential in shaping the future of finance.”
John Bowman, managing director and co-lead of Education at CFA Institute, echoed Rogers’ congratulations: “CFA Institute developed the Claritas certificate in response to the financial crisis, and as part of a global call to action for industry participants to play their part in addressing the overall lack of trust in financial services. With the large majority of our pilot partners recommending deeper implementation of Claritas in their firms across a diversity of roles, businesses and geographical and cultural backgrounds, we are confident we’ve met that challenge. These candidates and their supporting pilot partner firms should be proud to stand as pioneers in their sector.”
Global registrations for the Claritas Investment Certificate launched on May 20, 2013.
Foto cedidaPhoto: Bob Geldof (www.bobgeldof.com). Sir Bob Geldof Provides Fresh Insight Into Investing in Africa
Fund Forum International, was honoured to have Sir Bob Geldof in attendance in 2013, where he provided fresh insights into investing in Africa. Why don’t investors turn more of their attention towards Africa? Hear what Sir Bob Geldof has to say in the exclusive interview with him at FundForum.
Foto: mattbuck . Global Asset Management Industry Recovery Begins
After four years of stalled growth, the global asset-management industry has finally entered a recovery, but it promises to be a bumpy one for traditional managers of the industry’s largest asset pools.
Worldwide money managers’ total assets under management reached a record $62.4 trillion in 2012, surpassing the $57.2 trillion set in 2007 before the 2008-2009 financial crisis, according to a Boston Consulting Group study released Tuesday.
Also, managers’ operating margins rose to an average 37% of net revenues and profit increased to $80 billion, although it remained roughly 15% below pre-crisis highs, according to the annual study, “Global Asset Management 2013: Capitalizing on the Recovery.”
The growth in AUM was largely market driven, due to higher global equity and fixed-income returns, with net new asset flows accounting for less of the increase.
Net new flows were a modest 1.2% of global AUM last year. Most flows went to solutions-based managers such as those offering LDI and target-date funds; into strategies other than traditional domestic large-cap equities and domestic fixed income; and into passive strategies. A quarter of traditional managers actually experienced significant outflows from their actively managed core strategies in 2012.
U.S. managers’ profits were above their European counterparts. While U.S. managers’ 2012 profits rose 10% above pre-crisis levels, European managers’ profits remained 31% below what they were before the crisis.
Wikimedia CommonsFoto: Gregory Phillips
. Los diamantes brillan como activos de inversión para los multimillonarios, especialmente chinos e indios
When Hong Kong millionaire Tiffany Chen revealed last month she had paid US$11.15 million for what Christie’s auction house calls “the largest and most perfect briolette diamond ever sold at auction”, it signaled a trend among the world’s ultra net worth (UHNW) individuals: investing in diamonds makes more sense than stocks and gold.
UHNW investors and gem collectors are investing in diamonds as a secure and lucrative asset in the current low-interest, uncertain financial climate, according to Wealth-X, the UHNW business development solution for private banks, luxury brands, educational institutions and non-profits, which has released a list of the world’s most avid billionaire collectors based on net worth.
“Based on our data, we expect the UHNW population, particularly in countries such as diamond-hungry China and India, to accelerate,” Wealth-X CEO Mykolas D. Rambus said. “This can only mean one thing for diamonds as an investment of choice among UHNW individuals: They have a sparkling future.”
Rough diamond prices have increased by nearly a third since 2005 and are likely to rise a further 20 percent between 2013 and 2017, bolstered by demand from China and India.
Hong Kong billionaire Yu Tung Cheng, honorary chairman of Chow Tai Fook Jewellery Group, is the wealthiest billionaire diamond collector with a net worth of US$19.6 billion. In 2010, he paid US$35.3 million for a 507-carat diamond, a record sum for a rough diamond. Since Cheng made his fortune through diamonds and other gems, he has named his racing horses “King of Diamond” and “God of Diamond”.
Others in the list include Nicky Oppenheimer, who owns Tswalu Kalahari Reserve, South Africa’s largest private game reserve. He ranks at number 2 with a net worth of US$6 billion. British billionaire Laurence Graff comes in at 5thplace with a net worth of US$2.1 billion. Graff, who founded high-end jeweller Graff Diamonds in 1960, has seen his business empire expand with at least 32 stores worldwide.
Wikimedia CommonsFoto: Giuseppe Castiglione. ¿Puede el fin del QE desacelerar los retornos asiáticos? Parte II
The monetary tightening is indeed happening. And it is happening in the two biggest economies in the world, the U.S. and China, simultaneously. Let’s remember that the monetary stimulus introduced by the Fed and China was in response to a financial crisis. And, the question was never if, but when, the Fed and China would taper.
In the last few weeks, we have seen clear evidence from both the U.S. and China that the time has come. The Fed was clear yesterday in noting that the U.S. economy is getting stronger and that it is planning to taper off quantitative easing. There is also clear evidence that the Chinese resolve to tighten is finally happening. Shanghai interbank offer rates, also known as Shibor, have shot up, indicating a short-term liquidity squeeze. The significance of this increase is not the magnitude of the rise in interbank rates, but the duration of the rise. Why? Because the People’s Bank of China (“PBOC”) has had days, indeed weeks now, to inject liquidity in the interbank market. The prolonged rate increase indicates not a lack of ability, but lack of willingness to do so. This to me is a telltale sign that the PBOC is finally serious in its resolve to tighten.
So what does this all mean to Asia’s credit, currency and interest rates?
First, while yields have come off their historical lows in the U.S. and Asia, there is substantially more room for rates to continue to rise.
Second, in terms of credit spreads, we have seen investment grade and high yield spreads widen. We believe that spreads will have some room to widen given a repricing of risk across the globe. However, credit spreads are unlikely to spike as long as default rates stay low. Global high yield rates are still hovering around 3%, with recovery rates better than average. As the availability of capital falls, increasing the cost of capital, this would be negative. However, if U.S. growth is indeed solid, this should eventually have a positive spillover into higher cashflows for global companies.
Finally, rising yields and a solid U.S. recovery bodes well for the U.S. dollar. As such, we expect local Asian currencies will underperform the U.S. dollar in the near term. This is especially true for fiscal and current account deficit countries. However, the silver lining is that it is also precisely tough times like these that push governments to take on tough reforms. Indonesia comes to mind. This week, the country’s parliament passed a controversial fuel price hike. While this will likely increase inflation and inflation expectations in the near term, the long-term positive effects far outweigh the negative. Removal of the subsidies frees up much needed funds for other sectors more critical for future growth such as infrastructure and education. This serves as a reminder that crisis begets change, and it is precisely these seeds for positive change that we hope will blossom in the long term.
Teresa Kong, CFA, Portfolio Manager Matthews Asia
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.
Foto: Tomas Castelazo. América Latina hace los deberes: mejoras de rating para México, Uruguay y Colombia
Sovereign rating actions in Latin America have had a positive bias in 1H13, according to Fitch Ratings. Positive rating actions in 1H13 have included the rating upgrades of Mexico and Uruguay and the revision of Colombia’s Rating Outlook to Positive from Stable.
The only negative rating action was on Jamaica where Fitch downgraded the Foreign Currency and Local Currency Issuer Default Ratings (IDRs) to Restricted Default (‘RD’). The downgrade took place in February following the implementation of a domestic debt exchange that adversely impacted the original contractual terms of domestic bondholders.
Fitch is projecting Latin America’s real GDP growth will reach 2.9% in 2013 compared to its previous forecast of 3.3%
The Rating Outlook for the majority of sovereigns in the region is Stable, which suggests that positive and negative rating pressures are evenly balanced. Currently, Colombia and Ecuador have a Positive Outlook, and El Salvador, Venezuela and Argentina’s Local Currency IDRs have a Negative Outlook.
“Slow global recovery, slower domestic demand growth, softer commodity prices and country-specific factors are leading to a slowdown in most of the regional economies in 2013,” said Shelly Shetty, Head of Fitch’s Latin America Sovereigns Group. “As a result, improvements in fiscal and external solvency and liquidity indicators may be hindered, thus weighing on the upward potential of sovereign ratings.”
Fitch is projecting Latin America’s real GDP growth will reach 2.9% in 2013 compared to its previous forecast of 3.3%. However, excluding Brazil, Latin America’s real GDP will slow to 3.2% in 2013 from 4.1% in 2012.
Fitch expects the multiple speed growth in the region to continue. The five highest growth countries are Bolivia, Chile, Peru, Panama and Paraguay, with the latter forecasted to be the fastest growing economy in the region after a mild contraction observed in 2012. The smaller economies of Ecuador, Colombia and Suriname will record growth above 4% in 2013, while Brazil and Mexico are forecasted to drag the regional performance by growing at 2.5% and 3%, respectively. On the other hand, El Salvador, Jamaica and Venezuela will underperform with growth below 2% in these countries.
In the investment grade category, low debt countries with fiscal buffers like Chile and Peru have the most fiscal space to implement counter-cyclical fiscal policies. Brazil, Colombia, Mexico and Uruguay are more constrained. In the speculative grade space, several Central American and the Caribbean countries continue to face weak growth prospects and challenging debt dynamics that will limit their ability to provide stimulus. Costa Rica will incur the highest fiscal deficit in the region while Argentina’s growing fiscal pressures could lead to greater monetization of the deficit given its lack of market access.
Elections were held in Paraguay and Venezuela in 1H13. The tight victory margin in the Presidential elections in Venezuela could maintain political uncertainty and reduce the scope and pace of policy adjustments. The election calendar is relatively light in 2H13 with legislative elections in Argentina in October and general elections in Aruba in September and Chile in November. The electoral calendar heats up in 2014 with several countries including Brazil, Bolivia, Colombia, Costa Rica, El Salvador, Panama and Uruguay holding presidential elections. Fitch does not foresee dramatic shifts in economic policies following the elections in most countries.
Photo: Uwe Hermann. Afores’ Resources Fell by 3.78% in June
According to figures released by the National Savings System for Retirement (Consar), the SAR, “Sistema de Ahorro para el Retiro de México” (Mexican Retirement Savings System) had 1,919,494 million pesos (approx. 147 billion USD) under management as at the end of June.
These resources, belonging to over 49 million individual employee accounts, and which decreased by more than 75,000 million pesos (approx. 5.7 billion USD) or 3.78% compared to the balance as at the end of May 2013, generated historical returns for the system of12.73% nominal annual average versus 13.07% in May, and 6.22 % in real terms during SAR’s 16 years in operation, a slight fall from the 6.49% recorded previously.
The performance of the past 12 months falls to 5.7%, while the system’s average net yield at 50 months equals 11.1%, and 10.20% at five years, which represents a slight recovery from the 9.87% of the previous month.
Luis Téllez, presindent of BMV. Photo: IPC Sustentable . Financial Reform will Boost the Middle Market in Mexico
Luis Tellez Kuenzler, president of the Mexican Stock Exchange (BMV), expects the Mexican economy to grow by 3% in 2013 and a larger number of medium-sized companies to enter the stock markets.
In an interview with Notimex, the executive explained that although there has been a weak first quarter and in the second quarter some sectors showed less dynamism, “there were industries, such as the automotive industry which performed well in the United States”, therefore he expects the Mexican economy to reach growth levels of around 3% this year.
Tellez also said that the federal government’s initiative for financial reform will help the placement of medium sized companies on the BMV. “Everything that has been raised so far in terms of structural reforms, those which are already approved and those which are still to be approved, once they enter into force and start applying will have a positive effect on the productivity of the country,” Tellez emphasized that of the 11 new placements recorded in the first half, six belonged to this type of company: Cultiba, Vesta, Hoteles City Express and three FIBRA issues.
The executive also highlighted that financial reform defines many positive functions of the National Banking and Securities, and creates the conditions for the BMV to establish routing agreements with other markets, allowing Mexico to enter the Latin American Integrated Market (Mila) by amending the legislation which to date does not allow the BMV and brokerage firms to send customer orders to other markets.
Photo: Jacobolus. Western Union Sees Mexico as a Land of Opportunities
Luis Felipe Rodriguez, vice-president and general manager of Western Union in Mexico, spoke to Funds Society about the sector, as well as about the company’s short and medium term plans.
Western Union, the world’s largest remittance services company, which in 2012, at an average of 28 transactions per second, registered Money Orders totaling 79,000 million USD, approximately a 20% share of the market, considers Mexico as a land of opportunity.
Rodriguez said that despite the reduction in the volume of remittances to Mexico, Western Union managed to grow by 9% in the first quarter, and expects further growth in the future, supported by an improvement in the U.S. job market and the strategy of the firm, which is focused on moving towards electronic media channels and products.
Likewise, Rodriguez added that he hopes his operation, which has been recovering since November last year after the adjustment made in October by regulatory changes in the United States, will continue with a “favorable performance”.
For 2015, the executive expects a diversification of services supported by the regulatory developments towards financial inclusion, which will help to “improve industry development.”
According to information, published by Banxico on the 1st of July, more than 2,033 million dollars in family remittances entered Mexico in May this year, which is 6.94% higher than in April, but 13.17% below the same month in 2012, which in monthly terms means four months on the rise, but in annual terms represents 11 months of falls.
