Wikimedia CommonsFoto: Skinzfan23. TD Ameritrade lanza el Centro de Conocimiento de ETFs
Building a diversified portfolio of exchange-traded funds (ETFs) just got simpler and more efficient, thanks to the launch of a new ETF Knowledge Center from TD Ameritrade, Inc. (“TD Ameritrade”), a broker dealer subsidiary of TD Ameritrade Holding Corporation.
“The ETF market has expanded tremendously over the past two decades”
TD Ameritrade’s new ETF Knowledge Center arms retail investors with greater education and information on ETFs, as well as insights on key ETF investment strategies as they relate to current market environments. Plus, investors can test their knowledge of ETFs by taking a quick pulse quiz.
“When it comes to investing for the long term, many Americans still aren’t doing nearly enough to pursue their intended goals. Our new ETF Knowledge Center is designed to help investors make choices in a way that eliminates extra clicks, provides objective research more directly and makes building a portfolio more visual and intuitive,” said Marco De Freitas, head of products for TD Ameritrade.
A sampling of content in the ETF Knowledge Center includes video tutorials, articles and announcements about ETFs from the basics to in-depth specialty topics, such as:
“The ETF market has expanded tremendously over the past two decades, leaving investors with more choices and greater potential opportunity than ever. But, it also leaves them with a lot of questions about how to navigate the changing landscape,” continued De Freitas. “With the addition of new and different types of ETFs and the expansion of commission-free offerings, TD Ameritrade recognizes the need to help investors understand important aspects of ETFs, like liquidity, more easily identify whether ETFs are right for them, and choose ETFs for their investment strategy.
Wikimedia CommonsFoto: Roland Zumbühl. Julius Baer aumenta un 16% sus AUM gracias a la integración de Merrill Lynch IWM
At the end of April 2013, Julius Baer Group’s assets under management (AuM) amounted to CHF 220 billion, an increase of 16% from the CHF 189 billion at the end of 2012. This includes approximately CHF 24 billion from Merrill Lynch’s International Wealth Management (IWM) business outside the US, which Julius Baer is in the process of acquiring. Total client assets grew by 12% to CHF 309 billion.
Julius Baer is targeting to acquire between CHF 57 billion and CHF 72 billion of AuM from IWM over the next two years. The approximately CHF 24 billion AuM from IWM reported at the end of April 2013 comprise CHF 11 billion AuM of Merrill Lynch Bank (Suisse) S.A. in Geneva which was acquired on 1 February 2013 as well as approximately CHF 13 billion AuM from the IWM businesses in Uruguay, Chile, Luxembourg and Monaco, which were transferred to Julius Baer on 1 April 2013. In relation to the latter four locations, the client custody relationships are at this point still on the platform of Bank of America Merrill Lynch (BAML). In line with the transfer mechanism communicated last year, the revenues related to these client assets are allocated to Julius Baer, and Julius Baer is charged platform allocation costs by BAML. Starting in July 2013, the client custody relationships of these legal entities will also be transferred (in stages) to Julius Baer and booked on the Julius Baer platforms. At those points in time Julius Baer will pay BAML the agreed acquisition value (1.2% of transferred AuM), and the BAML platform allocation charges will cease.
Outside the acquisition impact, the increase in AuM in the first four months of 2013 was driven by a positive market performance, a positive currency impact, as well as net new money. Net inflows in the first four months 2013 were volatile and, on an annualised basis, somewhat below the Group’s medium-term target range. Julius Baer continues to have a positive view on the potential for inflows from the growth markets. However, total group net new money in 2013 will be impacted by the implementation of Switzerland’s final withholding tax agreements with the UK and Austria as well as the ongoing self-declarations by clients in other European countries (as continued to be recommended by Julius Baer); as a consequence, net new money for the full year 2013 could be close to the lower end of the 4-6% medium-term target.
Including the IWM businesses transferred in February and April 2013, the gross margin in the first four months of 2013 was 98 basis points (bps) and the cost/income ratio* improved to below 70%, compared to 71.6% achieved by Julius Baer in the second half of 2012 (when no IWM businesses had been transferred yet). The improvement in the cost/income ratio resulted despite the fact that the transferred IWM businesses currently operate at a higher cost/income ratio than the Group average and despite the fact that cost synergies are only expected to be realised at a later stage in the integration process. Between the principal closing of the IWM transaction on 1 February 2013 and the end of April 2013, on a net basis more than a hundred IWM financial advisers have been transferred to Julius Baer. Excluding the transferred IWM businesses, Julius Baer achieved in the first four months of 2013 a gross margin of 99 bps, an increase of 5 bps from the 94 bps level achieved in the second half of 2012. This recovery was driven by an improvement in client activity.
Julius Baer remains very well capitalised. At the end of March 2013, the Group’s BIS total capital ratio (under Basel III) stood at 27.5% and the BIS tier 1 ratio at 25.6%, well above the targeted floors of 15% and 12%, respectively.Julius Baer Group’s detailed financial results for the first half of 2013 will be published on 22 July 2013.
Foto cedidaFoto: James Waters, Investment Specialist at Threadneedle Investments. Threadneedle favors Venezuela among EMD investments
Threadneedle believes that short-dated emerging market debt offers compelling investment opportunities, enabling bond investors to capitalize on the potential of developing countries with some protection from macroeconomic uncertainties.
www.fundsupermart.com invites James Waters, Fixed Income Investment Specialist at Threadneedle Investments to share his outlook on this asset class.
Photo: Keony. Are equity markets ahead of themselves?
Markets continue to do well on the back of an ongoing search for income generating assets by investors. This has caused nearly all assets to perform well year-to-date as both bonds and equities offer cash flows that can be harvested. With respect to equities new psychological bars were broken with the S&P touching 1600 points and the Dow Jones the 15,000 mark. At the same time, core government bond yields reached new lows and spreads on peripheral bonds tightened dramatically. Both Italian and Spanish bond yields fell through the 4% level.
In its last Marketexpress ING IM describes the reasons for the favorable performances and focus on the outlook for equity markets. In the asset manager’s opinion it is too early to say that these markets are getting ahead of themselves.
Renewed acceleration in economic growth is expected
As already said, ING IM continues to believe that the current consolidation phase will be followed by a renewed acceleration in the second half of this year. The factor that really makes the difference this time is the structural dovish shift in central bank reaction functions. Since the summer of last year it has been made very clear that the main focus of monetary policy is now on dealing with high and persistent unemployment as well as ensuring financial stability. In ING IM’s view this has also imparted a structural positive shift in corporate and market sentiment. Of course, central banks have this luxury because inflation pressure will remain absent for some time to come.
Equity investors clearly reacted on negative indicators
Looking at the record highs of some equity indices, it looks as if recent disappointing data have not influenced stock markets. ING IM points out that this is not true, however. Within equity markets they notice that investors have indeed reacted to the disappointing movement in cyclical indicators. The graph shows the underperformance of cyclical equity sectors. The CESI (blue line) is the Citigroup Economic Surprise Index. The graph illustrates that the current cyclical underperformance has already gone very far. Cyclical sector performance has declined to the lowest level since the start of the global financial crisis. This makes ING IM, from a tactical asset allocation perspective, somewhat cautious. As said, they expect the current soft patch to be temporary while global central banks are injecting liquidity – leading to an expansion of global financial conditions. What if cyclical data will recover later this year?
Cyclical sectors perform in line with cyclical indicators
Turnaround in cyclical data positive for cyclical sectors
Actually, ING IM notices a shift in investor buying behavior from ‘equity-like’ bonds (high yield) to ‘bond-like’ equities (stable dividend growers). This also explains the unusual combination of a strong equity market with defensive sectors outperforming the cyclical and ‘high beta’ sectors.
According to the report, a turnaround in cyclical data may push investors further up the risk curve. Given valuations and performances of cyclical equity sectors versus defensive equity sectors, this push could be forceful, ING IM adds. In their sector allocation they therefore closed the underweight positions in Energy and Materials (to neutral) and reduced their positions in Health Care (to neutral) and Consumer Staples (to underweight).
Despite new stock market highs, sentiment is far from euphoric
Sentiment in equity markets is far from euphoric, ING IM affirms. This is for them another reason that it is too early to say that equity markets are getting ahead of themselves. Looking at investor flows, ING IM sees no rush into equities. The US and Japan are witnessing inflows, but Europe sees outflows. All in all, the asset manager has taken somewhat more risk in equity sectors while we remain overweight equities and real estate equities versus fixed income categories.
Wikimedia CommonsFoto: Haeferl . BNY Mellon espera que la economía global atraviese un período de expansión en los próximos años
With monetary policy likely to remain supportive of economic expansion for an extended period of time, BNY Mellon Chief Economist Richard Hoey expects a prolonged multi-year global economic expansion, according to his most recent Economic Update.
“In the short run, the global economy has been in a subcycle of slower growth within its sustained expansion,” says Hoey. “This is due to a combination of factors, including the final months of the recession in the overall European economy, this year’s fiscal drag in the U.S. and some rebalancing in China. However, we expect acceleration in global economic growth near the end of 2013 that will significantly strengthen throughout 2014.
Other report observations include:
“Bottom of the Saucer” in Europe – Hoey expects the overall European economy to hit the “bottom of the saucer” in the last half of 2013. He expects a gradual saucer-shaped pattern in European economic activity rather than a V-shaped or U-shaped recovery and is hopeful that the European recession will end later this year.
Next Recession in U.S. Unlikely Until After Next Presidential Election – With the Federal Reserve likely to continue its easy monetary policy and the unlikelihood of substantial inflationary pressures soon, Hoey expects the next recession in the U.S. is likely to be postponed until after the next Presidential election in November 2016. Next year, Hoey expects a faster pace of growth in the U.S. economy, probably 3% or more.
No Hard Landing in China – Chinese policymakers appear to accept that the deceleration of trend economic growth is unavoidable says Hoey. Hoey does not expect a “hard landing” in China but rather a sustained economic expansion at a somewhat decelerated pace.
The IMF Spring Meeting confirmed that the world economy slowed down moderately in the first quarter, driven primarily by the negative growth in Europe and the anticipated slowdown in the US. Against this backdrop, the idea that the world economy, and the Spanish economy, will improve over the course of the year, is gaining more ground. Consumption data for peripheral European countries is very poor, causing core countries (Germany,France) to stagnate as well. The economy is becoming politicised due to the pressure caused by high unemployment rates. The outcome of the Italian elections foretells a political change on the horizon, likely after German elections in September.
Liquidity bolsters the equity markets as well as the credit markets, leading to a positive month. Strong cumulative results for the year might seem contradictory given the pessimism regarding the world economy, and the Spanish economy in particular, but it is not the first time this has happened. Meanwhile, the stock markets anticipate a certain amount of increased flexibility in terms of restrictive policies and welcome the initiatives of the central banks.
Our funds have performed well in this context. The main reason for this positive performance is the strength of the companies in which we invest, evident after the reporting of their profits.
With respect to fixed income, the credit markets have capitalised on the negative news regarding the world economy and have once again recorded price increases (and drops in yield). Private fixed income (credit) also performed well. In this case, the price performance was slightly lower than that of 2012 (exceptional), due to a lower average accrued interest as well as smaller contribution as a result of the improved spread.
“Sell in May and go away?”
This traditional Wall Street saying suggests that, at some point, we will see a correction in the equity markets. Long-term investments should take advantage of this and increase their exposure to equities, which we currently view as more attractive than fixed income. We believe that fixed income is overstated. We must be prepared for a change in trend in bonds, since the ridiculous yields offered leave little room for an increase (and quite a bit for a decrease). As always, we know in what direction it is heading but not when. The risk of a drop in the value of investment grade fixed income, particularly German bunds andUStreasury bonds (a safe haven recently for many conservative investors), is leading us to be very prudent regarding long terms, the most vulnerable in the event of a correction.
We continue to stand by the securities which compose our fund portfolios, whose recurring growth and sustainable profits make them more resistant and triumphant in an uncertain environment such as todays.
Foto cedida. HSBC añade cuatro nuevos analistas a su equipo de Investigación de Latam en Brasil
HSBC announced it has added four equity analysts to its Latin America research team as part of the bank’s continued leadership in providing high quality emerging market research. The analysts will enhance coverage of the Latin American metals & mining and energy sectors.
“We are pleased with the range of expertise these professionals bring to their respective roles which will allow us to provide the global insights our clients have come to expect from us,” said Ben Laidler, Head of Research for the Americas. “This investment in the Latin America research platform will allow HSBC to deepen its coverage of these important sectors.”
Luiz Carvalho has joined HSBC as a Vice President responsible for covering the Latin America oil, gas, and petrochemicals sectors. Based in Sao Paulo, Carvalho brings a wealth of experience to this important role having worked in the oil & gas industry at Shell and Transocean. Most recently, he was an energy analyst at BTG Pactual where he was a member of the top Institutional Investor ranked energy research team in 2012. He is a graduate in industrial engineering from the University of Rio de Janeiro, and speaks English, Portuguese, and French. Filipe Gouveia has also joined HSBC as an Associate, from Barclays, to support Luiz Carvalho in oil & gas research coverage.
Based in Sao Paulo, Leonardo Correa has joined as a Senior Vice President responsible for covering the Latin America metals & mining sector. Correa is a well-established analyst in this key sector, and will be responsible for further enhancing the coverage of the sector. In this role, he will also serve as an important link into HSBC’s global sector coverage. He has eight years sell-side research experience. Most recently, he was the regional sector head at Barclays, where he was an Institutional Investor survey ranked analyst, and previously he was an analyst covering metals and mining at Credit Suisse. He is an Economics graduate from IBMEC University in Sao Paulo. Luiz Fornari has also joined HSBC as an Associate, from Barclays, to support Leonardo Correa in metals & mining research coverage.
Luiz Carvalho and Leonardo Correa will report to Ben Laidler, Head of Research for the Americas, and locally to Alexandre Gartner, Head of Brazil Equity Research.
Jonathan Brandt will transition from his current Latin America metals & mining role, to lead coverage of the pulp & paper sector in Latin America and Eastern Europe, Middle East, & Africa. This is a new sector of coverage for the firm, as HSBC looks to strengthen its natural resources coverage.
These key hires continue the expansion of HSBC’s Latin America research team, following the appointments earlier this year of Alexandre Falcao (Transport, Capital Goods, and Agribusiness), Sandra Boente (Utilities), and Francisco Schumacher (Southern Cone & Andean Strategy).
HSBC’s Latin America research team now consists of 25 senior analysts, equity strategists, and economists covering over 150 stocks across the region’s six main markets -Argentina, Brazil, Chile, Colombia, Mexico, and Peru – from research offices in Sao Paulo, Mexico City, Buenos Aires and New York City.
Wikimedia CommonsFoto: Bernd Untiedt. Warburg Pincus recauda 11.200 millones de dólares para su XI fondo de private equity
Warburg Pincus, a leading global private equity firm focused on growth investing, today announced the closing of Warburg Pincus Private Equity XI, L.P. (“WP XI”), an $11.2 billion global fund. This new fund is one of the largest private equity funds raised post the global financial crisis. WP XI, like Warburg Pincus’ prior funds, will invest in growth companies in the firm’s key industry sectors across the globe.
“We are pleased to announce our final close,” said Charles R. Kaye , Co-President of Warburg Pincus. “This successful fundraise, in a challenging environment, was driven by strong support from both existing and new investors. We see this success as a clear endorsement by our investors of our global growth investing model.”
WP XI’s Limited Partners include leading public and private pension funds, sovereign wealth funds, insurance companies, endowments, foundations and wealthy individuals. A significant number of the new investors in the fund are from outside of the United States. The firm held the final close of the fund within one year of the first close, as planned.
WP XI will continue to pursue a strategy the firm has followed for more than 40 years — partnering with management teams to build world-class companies. Growth is always a core aspect of Warburg Pincus’ investment thesis. The firm invests in businesses at all stages of development from start-ups and growth capital to special situations and buyouts. The firm invests globally with a focus on five key industry sectors: Energy, Financial Services, Healthcare, Technology, Media and Telecommunications (TMT), and Consumer, Industrial and Services (CIS).
The final close of WP XI follows a very active 2012 in which the firm invested over $2.3 billion in 28 new companies and made follow-on investments into several existing companies. Several of these new investments were made by WP XI including Venari Resources, a start-up company focused on deepwater exploration and production in the Gulf of Mexico; China Auto Rental, the leading car rental company in China; and InComm, a global prepaid product, services and transaction technologies company.
The firm has also been active in distributing capital back to investors in prior funds. Warburg Pincus’ funds distributed $6.2 billion to investors in 2012 and another $3 billion in the first quarter of 2013. Some of the companies contributing to this significant flow of distributions included Targa Resources, a leading midstream energy company in the United States; Ziggo, the largest cable TV company in the Netherlands; InTime, a department store chain in China; CAMP Systems, a global software provider for business aircraft; and Kotak Mahindra, a leading financial institution in India.
Wikimedia CommonsFoto: Wikimedia Commons. ¿Está cambiando la marea en Brasil?
Last year, the Brazilian government’s intervention in various sectors led to heightened uncertainty for corporations, resulting in the postponement of pro-growth investments that are vital if Brazil’s economic growth is to recover in 2013. In the utilities sector, the government made changes to concession terms aimed at reducing electricity prices, whilst in the banking sector, public banks were forced to lower loan rates, squeezing the profitability of the private banks. There was even pressure placed on the Brazilian central bank to extend the interest rate cutting cycle, despite worrisome inflation data. This government interference caused uncertainty for investors and a fall in private sector investment, culminating in sluggish gross domestic product growth of 0.9% last year. The forecast for 2013 is that private sector investment could be the ‘swing’ factor for the economy.
2013 has begun with some signs of positive change in Brazil. The government has recognised that investments by the private sector are needed in order to spur an economic rebound. The government has re-examined its policies with respect to privatisations and has increased the rates of return offered to private investors. This has prompted a marketing drive to attract investors ahead of infrastructure concession auctions due later in the year. Importantly, having offered paltry returns in the last round, the finance ministry has indicated that more attractive returns will be on offer this time. In addition, there has been recognition that rising inflation is a problem. To this end, April saw the central bank raise interest rates from the record low level reached last year. Given the scale of the cuts in the past, coupled with loose fiscal policy (the use of government revenue collection and expenditure to influence the economy), this should not be viewed as an impediment to a reacceleration of growth.
The long-term outlook for Brazil is compelling. The country is resource-rich and has favourable long-term demographic trends (e.g. rising disposable incomes). However, the government has often created problems that have held Brazil back from reaching its full potential. The tide may be turning as the incremental changes described above indicate that the government is becoming more open and conciliatory with the private sector in order to promote investment. The hosting of the next World Cup and Olympic Games provides imposing deadlines that ensure progress has to be made. These events and the recent appointment of a Brazilian to head the World Trade Organization show the country will be in the spotlight like never before in the coming years. It is up to the politicians to ensure that an improving economic picture is part of that display.
Wealth managers typically coordinate estate planning, legal and tax advice, and investment portfolios for high-net-worth individuals, while concierge companies are more likely to be involved in arranging support and advice from experts in more domestic affairs such as travel and education. However, Tutors International have remarked on a noticeable blurring of the lines between concierge and wealth management organisations, with wealth management often being provided as a branch of a client’s one-stop advisory service.
Tutors International, provider of full-time private tutors and travelling tutors, reported an increased number of enquiries for private tuition from wealth managers on behalf of their clients. The wealth managers extend their services beyond financial and investment management and into lifestyle and domestic affairs.
“Wealth Managers are often in a position to appreciate the non-work stresses of their clients, such as academically-failing children or those with learning difficulties, or stressful exam preparation, for example. Being able to recommend professionals of standing who have a track record of successful management of these things means that the client can spend less time worrying about them, safe in the knowledge that they have the best possible help”, said Adam Caller, founder and director of Tutors International.
“Not only does this help the client maintain and grow his or her wealth without so much distraction, but it shows that the wealth manager takes a sensible and helpful interest in the overall well-being of their client.”
