Wikimedia CommonsFoto: Sanfranman59
. Hines e Invesco se unen en la compra del Rialto Building de San Francisco
Hines, the international real estate firm, andInvesco Real Estate, announced hat they have jointly acquired the Rialto Building located at 116 New Montgomery Street in San Francisco’s South Financial District, from Africa Israel USA (AFI USA). Financials on the transaction were not disclosed. Hines will oversee management and leasing of the property on behalf of the partnership.
Originally built in 1902, the H-shaped Renaissance-style building was designed by Meyer & O’Brien Architects. The nine-story building contains 135,486 square feet of office and retail space. After the great earthquake of 1906, the building’s interiors were completely rebuilt, leaving the steel, brick and concrete exterior structure intact. AFI USA acquired the building in 2007, and soon after, undertook a capital investment program to restore the property to its original grandeur. Restoration work focused on original architectural components in the main lobby, including the bronze staircase, ornate metal elevator doors, the painted panel ceiling and the marble flooring.
Hines Senior Managing Director, Cameron Falconer, commented, “The Rialto Building is one of San Francisco’s true architectural icons, and we are pleased to add it to our portfolio. Going forward, Hines and Invesco will continue to invest in the building to complete its transition to a ‘creative core’ asset that caters to San Francisco’s burgeoning technology and multimedia industry tenants.”
The Rialto Building is currently 85 percent leased to strong tenant roster including office tenants Trulia, Nelson\Nygaard and LaunchSquad, and retail tenants Walgreens and Chipotle.
“This sale proves that San Francisco is still unmatched as the nation’s top-performing office market,” said Tamir Kazaz, CEO of AFI USA. “The combination of historic architecture, creative layouts and central location make this a highly attractive property, one that will ensure long-term value and stable cash flows.”
Wikimedia CommonsDavid Samuels se incorpora a Promontory Financial Group como director general. Foto cedida. David Samuels se incorpora a Promontory Financial Group como director general
Promontory Financial Group, a premier strategy, risk-management, regulatory, and compliance consulting firm for financial services firms worldwide, announced that David Samuels, former Global Head of Risk Solutions and Analytics for S&P Capital IQ, has joined the firm as a Managing Director. Samuels, who is based in New York, but will continue to spend extensive time in Europe, the Middle East, Africa, and the Asia-Pacific region, will drive the development of a stress-testing solutions business and expanded analytical solutions, benchmarks and models, on a global basis.
“The financial crisis highlighted the critical importance of effective risk management. Today, institutions must handle heightened regulatory oversight as well as new and changing expectations,” said Promontory Chief Executive Officer and Founder Eugene A. Ludwig. “David brings the right mix of analytic and senior managerial strengths to this initiative and has developed a strong reputation for helping financial institutions proactively monitor their individual and enterprise-wide risks in an evolving environment.”
Samuels has spent more than 25 years developing and providing risk-management solutions across industry, asset, and geographic lines. During six years at S&P IQ in his role as Global Head of Risk Solutions and Analytics, he oversaw the development of an innovative suite of risk-management solutions, including analytics, services, and data sets. From 2004 to 2007 he was Chief Operating Officer and Global Head of SunGard ERisk, where he oversaw quantitative modelers, programmers, and consultants in developing customized risk solutions for clients. Before that, he was President and Chief Executive Officer of Zoologic Inc., a provider of flexible learning tools for the financial services industry.
Mr. Samuels holds a Bachelor of Science in Finance and Management Information Systems from the State University of New York at Albany.
Wikimedia CommonsFoto: U.S. Coast Guard Petty Officer 3rd Class Elizabeth H. Bordelon. La OCDE publica un estudio sobre el precio del crudo: el barril de Brent puede subir a 190 dólares en 2020
Following a sharp drop amidst the global economic crisis and a subsequent recovery, the spot price of crude oil has been broadly stable for the past couple of years. This paper discusses the factors that drive oil demand and supply and, hence, the price of the resource. A set of oil demand equations is estimated for OECD and non-OECD countries, which is then combined with assumptions about the behavior of supply to analyze the impact of a range of macroeconomic and policy scenarios on the future oil price path. The scenario analysis suggests that a return of world growth to slightly below pre-crisis rates would be consistent with an increase in the price of Brent crude to far above early-2012 levels by 2020. This increase would be mostly driven by higher demand from non-OECD economies– in particular China and India. The expected rise in the oil price is unlikely to be smooth. Sudden changes in the supply or demand of oil can have very large effects on the price in the short run.
Access to the OECD Paper: Fournier, J. et al.(2013), “The Price of Oil – Will it Start Rising Again?”, OECD Economics Department Working Papers, No. 1031, OECD Publishing.
Wikimedia Commons. Neuberger Berman recauda 1.100 millones para su II Global Private Equity Co-Investment Fund
Neuberger Berman Group LLC, one of the world’s leading employee-controlled money managers, is pleased to announce the final close of NB Strategic Co-Investment Partners Fund II LP (“NBCIP II”), Neuberger Berman’s second global private equity co-investment fund. NBCIP II was oversubscribed, closing on $1.1 billion and surpassing its target of $750 million.
NBCIP II seeks to achieve superior risk-adjusted returns by investing directly into attractive deals alongside premier private equity firms in their core areas of expertise. It seeks to build a high-quality, diversified portfolio of strategic co-investments primarily in buyouts and growth financings on a global basis across multiple industries. NBCIP II has made nine investments to date for approximately $185 million and continues to experience strong deal flow.
NBCIP II is managed by six senior professionals with significant experience and a proven track record in private equity as co-investors. The Neuberger Berman team also manages NB Strategic Co-Investment Partners Fund I LP (“NBCIP I”), which closed in 2006 with $1.6 billion of investor commitments. The investment team leverages a large pool of talent within Neuberger Berman’s private equity group, which includes approximately 60 investment professionals in the U.S., Europe and Asia, and 115 investor services professionals.
NBCIP II’s global investor base of more than 25 institutional clients includes public pension plans, global asset managers, endowments and foundations, corporate pension plans, and insurance companies. Investors are based globally, including Asia, Europe, Latin America and North America. A substantial number of these clients previously invested in NBCIP I.
“We are delighted with client response to NB Strategic Co-Investment Partners Fund II LP and their support for our investment approach of serving as a strategic partner to lead private equity firms,” said David Stonberg , managing director and co-head of the team managing NBCIP I and II. “We estimate Fund II will have in excess of 30 portfolio company investments across multiple industries, geographies, enterprise value sizes, transaction types, vintage years and premier lead managers,” added David Morse , managing director and co-head of the team.
BNY Mellon announced that effective 20 February 2013, the WestLB Mellon Compass Fund, an umbrella fund providing investors a range of equity and bonds sub-funds, has been renamed BNY Mellon Compass Fund. With this move, the fund’s name now reflects the change in shareholder structure of the former WestLB Mellon Asset Management, which was fully acquired by BNY Mellon in October 2012.
The management company of the BNY Mellon Compass Fund has been operating under the name of BNY Mellon Fund Management (Luxembourg) S.A. since last November.
Launched in 1998, the BNY Mellon Compass Fund is a Luxembourg-domiciled SICAV with EUR 2.1 billion in assets under management. Through its 13 sub-funds, investors can build a diversified portfolio that meets a range of risk / return profiles. The BNY Mellon Compass Fund aims to offer investors core portfolio products such as global or corporate bond funds as well as ways to diversify their asset allocation through small caps, high yield or emerging markets funds. The sub-funds are managed by Meriten Investment Management GMBH (formerly WestLB Mellon Asset Management KAG) and other BNY Mellon Investment Management boutiques.
PeterPaul Pardi, Global Head of Distribution for BNY Mellon Investment Management, commented on the name change: “The BNY Mellon Compass Fund has in the past enjoyed investor interest from both inside and outside of Germany. As part of BNY Mellon’s multi-boutique investment management model, the Luxembourg-domiciled fund is a premier example of the rich array of complementary strategies available to investors. With this name change to better reflect BNY Mellon’s robust global reach, we intend to deepen and broaden our international footprint.”
BNY Mellon Investment Management has $1.4 trillion in assets under management. It encompasses BNY Mellon’s affiliated investment management firms, wealth management services and global distribution companies.
Wikimedia Commons. Market Vectors Emerging Markets Local Currency Bond ETF supera los 1.500 millones de dólares
Market Vectors Emerging Markets Local Currency Bond ETF (NYSE Arca: EMLC), has surpassed $1.5 billion in assets under management (AUM). EMLC has seen an increase of more than $500 million in AUM in the last three months.
“Many local currency-denominated emerging market bonds are currently delivering more attractive yields than traditional fixed income investments, while at the same time offering currency and credit fundamentals that appear to be on more solid footing than fixed income investments denominated in U.S. Dollars, Euros or the Yen,” said Fran Rodilosso, fixed income portfolio manager at Market Vectors ETFs and one of two EMLC portfolio managers. “EMLC offers an excellent way to gain exposure to this space and the list of constituent countries in the Fund’s underlying index has been growing, with Romania and Nigeria having been recently added.”
When EMLC was brought to market in 2010, it was the first U.S.-listed exchange-traded fund designed to provide investors with exposure to an index that tracks a basket of bonds issued in local currencies by emerging market governments. The Fund seeks to replicate as closely as possible, before fees and expenses, the price and yield performance of J.P. Morgan GBI-EMG Core Index. As of March 1, 2013, the Index tracked a selection of bonds issued in local currencies by 16 emerging market countries: Brazil, Chile, Colombia, Hungary, Indonesia, Malaysia, Mexico, Nigeria, Peru, Philippines, Poland, Romania, Russia, South Africa, Thailand and Turkey.
Guggenheim Partners announced the expansion of its real estate and infrastructure investment platform with the addition of a dedicated North American infrastructure investment team. Leading the initiative for the firm is Henry Silverman, who was appointed global head of real estate and infrastructure.
In the newly created role of global head of real estate and infrastructure, Silverman is responsible for managing and coordinating activity for all of Guggenheim’s real estate businesses, including Guggenheim Real Estate, Guggenheim Commercial Real Estate Finance, Pillar Financial, Generation Mortgage, and Guggenheim Retail Real Estate Partners.
Silverman joined the firm in early 2012 as vice chairman of Guggenheim Investments. Previously, he served as a director and vice chairman of the board and member of the executive committee of Apollo Global Management, and as its chief operating officer from 2009 to 2011.
The infrastructure investment team is led by William Reid, senior managing director, and includes Michael Madia, managing director and operating partner; Justine Gordon, managing director and head of acquisitions; Vince White, vice president, due diligence and asset management; and James Gabriel, vice president, acquisitions.
The infrastructure investment team will invest across the capital structure, including equity, structured equity and debt-related products, with an initial focus on core energy infrastructure assets, specifically power generation, midstream infrastructure, and electricity transmission, in the United States, Canada, Mexico, and the Caribbean.
Reid, Madia, Gordon, White and Gabriel have collectively participated in more than 30 transactions. Reid previously served as a managing director of North American energy infrastructure efforts at RREEF Infrastructure (RREEF).
Madia was formerly RREEF’s operating partner of infrastructure. Gordon previously served as a director responsible for business development and execution of energy investments at RREEF. White previously held project development, asset assessment and asset management roles for RREEF Infrastructure, International Power, GPU International and Con Edison Development. Gabriel previously served as an assistant vice president at RREEF responsible for identifying and executing investment opportunities.
Foto: Jnn13. The American Dream Goes International
As of June 30, 2012, 20% of total residential purchases in Florida were made by foreign buyers. They spent U$10.71 billion dollars according to a study by Florida Realtors. The City of Miami and its beautiful surrounding beaches remain the hot spot for international buyers, representing 31.3% of total sales. Buyers from Latin America and the Caribbean together made for 35% of all foreign purchases leading Western Europeans which represented 22%. Approximately, 82% of foreign sales were all cash in contrast to 87% of US buyers used mortgage financing [1].
In summary, foreign ownership of U.S. real estate has increased significantly in the last years because of the decline in US property values thus creating a lucrative investment opportunity for foreign investors. While many HNW foreign clients are tapping into these opportunities, are they fully aware of the tax implications made with these recent purchases?
When planning to acquire a U.S. based real estate, foreign individuals need to be aware that if purchased directly it is classified as “real property” and it is subject to U.S. Estate Tax and that as foreigners they are limited to a $60,000 tax exemption. Typical scenario – Brazilian national is seeking to purchase a $2,000,000 condominium on South Beach. Pressured by the Realtor he purchases in his/her own name and figures they can do the tax planning later. In doing so, the Brazilian would have an Estate Tax exposure of $679,000. If we advise the Client correctly and follow proper planning protocol this situation could easily be mitigated.
The Foreigner can consider various alternatives in planning for the purchase and how title should be held which may include:
Direct Ownership with Life Insurance funding the possible Estate Tax Implication: a common, low cost mechanism which is commonly utilized when clients prefer to purchase directly or those clients that may have purchased properties in the past.
Purchase via U.S. L.L.C. (Limited Liability Company): limits liability exposure to the individual but still bears the same U.S. income and estate tax burden.
Purchase via Foreign Corporation: Capital gain Tax rate could be jeopardized but individual will not be subject U.S. Estate Tax
Purchase via a combination of U.S. L.L.C tiered with a Foreign Corporation: The two – tiered approach is commonly utilized and can be very effective in limiting liability and tax exposure for the individual. The alternatives listed have advantages and disadvantages, but understanding the foreign investor’s wealth transfer planning goals, financial objectives and tax exposure will set the foundation to implement the optimal solution for the particular individual. The solution should not be standardized as we commonly witness in this area. The Wealth Protection Advisory team is equipped to provide both Clients whom have already purchased property and those considering the opportunity with a simple and cost effective solution that can avoid turning the American dream into a nightmare.
1. Miami Herald 8/27/12
If you want moreinformation about Mary Oliva Wealth Protection Advisory click here.
Wikimedia CommonsFoto: NASA/Crew of Expedition 22. Tapering
Morningstar, today published its first Global Fund Flows Trend Report. The research report examines the trends that drove 2012 mutual fund asset flows in five key markets—Australia, Canada, Europe, Japan, and the United States—and provides a worldwide overview that includes these regions as well as other markets in which Morningstar tracks fund performance and assets.
“Despite ongoing worldwide economic uncertainty, the global fund management industry grew at a 3.9 percent organic growth rate in 2012. Excluding money market funds, USD 565 billion flowed into mutual funds during the year. These massive inflows, though, fell short of 2009 and 2010, which saw inflows of USD 746 billion and USD 672 billion, respectively. Moreover, the average management fee that the industry gathers from investors has fallen dramatically since 2007 due to the cyclical shift to fixed-income products and a secular inclination toward less expensive funds,” Syl Flood, product manager, investment research for Morningstar, said. “The prevailing global trend in 2012 was investors’ hunger for yield and quest for the perceived safety of fixed-income funds. Worldwide, fixed-income funds gathered USD 535 billion in 2012, or nearly 95 percent of long-term net inflows.”
Highlights from Morningstar’s Global Fund Flows Trend Report include:
U.S. fixed income, which houses the intermediate-term bond category and American heavyweights PIMCO Total Return and DoubleLine Total Return, is by far the largest long-term global category, with nearly USD 2 trillion in assets under management (AUM). U.S. investors contributed USD 199 billion of the category’s USD 227 billion total inflow in 2012. The PIMCO fund is by far the world’s largest actively managed strategy, with USD 442 billion in assets (including assets managed for institutional clients).
In 2012, interest from cross-border investors propelled funds in the U.S. fixed-income category to a 47 percent organic growth rate. Many of the most popular offerings are tended by U.S.-based managers, including AllianceBernstein, Muzinich, Neuberger Berman, and PIMCO.
While 78 percent of worldwide mutual fund and exchange-traded fund (ETF) AUM still resides in actively managed funds, passive products captured 41 percent of estimated net flows—USD 355 billion—in 2012. With the exception of Australia and New Zealand, index funds grew faster than actively managed funds in every geographic region during the year, and the United States is leading the way in its appetite for low-cost, passive strategies.
Newer funds—those without a three-year track record—captured 87 percent of worldwide inflows in 2012.
The nation’s largest bank holding companies have continued to improve their ability to withstand an extremely adverse hypothetical economic scenario and are collectively in a much stronger capital position than before the financial crisis, according to the summary results of bank stress tests announced by the Federal Reserve on Thursday.
Reflecting the severity of the stress scenario–which includes a peak unemployment rate of 12.1 percent, a drop in equity prices of more than 50 percent, a decline in housing prices of more than 20 percent, and a sharp market shock for the largest trading firms–projected losses at the 18 bank holding companies would total $462 billion during the nine quarters of the hypothetical stress scenario. The aggregate tier 1 common capital ratio, which compares high-quality capital to risk-weighted assets, would fall from an actual 11.1 percent in the third quarter of 2012 to 7.7 percent in the fourth quarter of 2014 in the hypothetical stress scenario.
“Significant increases in both the quality and quantity of bank capital during the past four years help ensure that banks can continue to lend to consumers and businesses, even in times of economic difficulty.”
The Federal Reserve’s stress scenario estimates are the outcome of deliberately stringent and conservative assessments under hypothetical, adverse economic conditions and the results are not forecasts or expected outcomes.
Despite the large hypothetical declines, the aggregate post-stress capital ratio exceeds the actual aggregate tier 1 common ratio for the 18 firms of approximately 5.6 percent at the end of 2008, prior to the government stress tests conducted in the midst of the financial crisis in early 2009. This is the third round of stress tests led by the Federal Reserve since the tests in 2009, but is the first year that the Federal Reserve has conducted stress tests pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Federal Reserve’s implementing regulations.
“The stress tests are a tool to gauge the resiliency of the financial sector,” Federal Reserve Governor Daniel K. Tarullo said. “Significant increases in both the quality and quantity of bank capital during the past four years help ensure that banks can continue to lend to consumers and businesses, even in times of economic difficulty.”
You may access the complete report (pdf file) on this link.
