Wikimedia CommonsFoto: Jimmy Baikovicius. A debate el papel de los Family Offices en la gestión patrimonial de hoy
There are significant challenges facing wealthy families today as they think about provisioning the kinds of services they require. What are the characteristics of the ideal service provider? Do we go exclusively in house or do we go with more commercial offerings? Do we think our needs can be met in a multi-family office? Do we bring technology in house or can we utilize service provider platform? What about security? Where do we get it for our family members? What about privacy and keeping our data safe? How do we avoid the risk of cyber- attacks and fraud? All these matters are going to be discussed next September during the FIBA´s Wealth Management Forum.
The speakers of this panel are:
Allison P. Shipley – Principal, PwC
Annette V. Franqui, Managing Director, Forrestal Capital Limited
Jeff Kauffman, Chief Executive Officer, Global Family & Private Investment Office Group, Northern Trust
Santiago Ulloa, Managing Partner, WE Family Offices
If you want to attend register in the following ways:
FIBA’s Wealth Management Forumis an unique platform to facilitate knowledge exchange on cutting edge issues through targeted panel discussions and current case studies combined with the insightful perspectives of our invited experts.
Investors are focusing on fundamental strategies to generate benchmark beating returns as the correlation between commodities and other asset classes breaks down, as a new survey from Credit Suisse finds reveals.
Credit Suisse conducted the survey as part of its third annual New York City Commodities Day on Tuesday, June 25, attracting about 300 clients covering a wide cross section of hedge funds, institutional investors, distributors and mutual funds to showcase the bank’s competitive differentiation in areas ranging from energy and metals to investor products and business servicing.
“To have this kind of turnout on a day during a week of extreme market turbulence is a testament to Credit Suisse’s ability to deliver the type of products and thought leadership that top investors are looking for,” said Oscar Bleetstein, Head of Americas Institutional Sales for Commodities at Credit Suisse. “The market is in a sea change and across the bank we’re providing investors with new products to meet the challenge.”
The survey found that 42% of investors said they see fundamentally based directional trading as the best way to generate pure long-short alpha, the goal identified by half those polled as their rationale for investing in commodities.
About half of those asked said they expect commodities prices to maintain current levels or rise in the coming 12 months. While that’s in line with predictions from last year’s CS Commodities Day survey, far fewer this year expect prices to jump by 10% or more as the “fear premium” dissipates, Bleetstein said.
Among other results of the survey:
53% expect volatility to be higher in the coming 12 months than it was in the past 12 months.
46% of investors polled think we’ve seen the peak in crude oil prices
40% identified themselves as currently “underweight” commodities.
The normal cyclical rise in interest rates, which was delayed due to the financial crisis and recession and by Federal Reserve actions to hold down bond yields, is now emerging, according to BNY Mellon Chief Economist Richard Hoey as outlined in his most recent Economic Update.
“We believe that a persistent multi-year upward drift in interest rates is now likely,” said Hoey. “The aftermath of the three-decade-long decline in interest rates is likely to be labeled a secular bond bear market, but we prefer to view it in the context of the cyclical normalization of interest rates that we expect over a half-decade period.”
“If we are correct to expect real GDP growth of 3% or more for the next three years, 10-year Treasury bond yields are likely to eventually normalize at about 5% at the end of a half-decade-long process of interest rate normalization,” Hoey continued.
Hoey states that the economic impact of an interest rate rise is very sensitive to the cyclical stage of monetary policy and outlines what he thinks are five stages of monetary policy:
Aggressively stimulative
Stimulative
Neutral
Restrictive
Aggressively restrictive.
“The Federal Reserve plans a gradual move from aggressively stimulative to merely simulative, in response to evidence that the U.S. economy is in a sustainable economic expansion,” Hoey concludes.
Click this link for Hoey’s complete June 2013 Economic Update.
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.
