Pixabay CC0 Public Domain. BNP Paribas manifiesta su intención por adquirir el 100% de Exane
FE fundinfo has announced in a statement the acquisition of the consulting and research house CSSP (Center for Social and Sustainable Products AG) to expand its ESG capabilities.
Specifically, the fund data and technology provider has acquired all of CSSP’s share capital, including its yourSRI.com platform which provides ESG screening and labels on thousands of funds. As part of the deal, CSSP founders Oliver Oehri and Christoph Dreher will co-head the ESG product group at FE fundinfo.
“At a time when ESG investing and reporting is rapidly becoming the major consideration for the investment industry, our acquisition of CSSP will enable us to expand upon our driving principle of connecting and supporting the global fund industry, through both a deep understanding of the market and the provision of clear, accurate and transparent data and reporting“, said Philipp Portmann, Head of Business Development & Strategy at FE fundinfo.
In his view, Oehri’s and Dreher’s vision of how important ESG investing will become, alongside their ambition to support investors to make better informed decisions, “clearly matches” their own.
The transaction will bring another important capability to FE fundinfo’s existing range of services, which help fund managers and distributors access accurate data and fulfill their regulatory obligations. The firm highlights that, as ESG due diligence requirements and reporting standards become more formalized in 2021, including the forthcoming introduction of the sustainable finance disclosure regulations (SFDR) across Europe from March 2021, they will continue to work with clients to meet these changes.
Meanwhile, Oehri and Dreher claimed to be “delighted” to be joining the FE fundinfo team at a pivotal moment in the evolution of ESG investing. “The reporting on extra-financial criteria has gained in importance in recent years and investors are rightfully asking for multi-dimensional risk assessments at portfolio level to effectively measure the corresponding exposure. Our services and bespoke solutions, that have been trusted by hundreds of clients, provide a holistic overview of the ESG profile”, they added.
Foto cedidaGuy Wagner, director general de BLI.. Banque de Luxembourg unifica sus unidades de gestión de activos
BLI – Banque de Luxembourg Investments, the asset manager of Banque de Luxembourg, and Conventum Asset Management, fund management company for third-party fund initiators and also subsidiary of the bank, have announced in a press release that they are combining their activities with effect from 1 January 2021.
This operation means that BLI will manage the 60 employees that constitute the workforce of the two entities, under the leadership of Guy Wagner, its Managing Director. Services to third-party fund initiators will be offered by BLI under the Conventum TPS (Third Party Solutions) brand.
“The merger of the two companies will enable us to enhance our expertise as a portfolio management company and provider of services for third-party funds, and share the necessary investments to strengthen our operational, technical and control systems,” explained Wagner.
The asset manager pointed out that this merger will strengthen its positioning by “capitalizing on the combined skills, expertise and systems of Conventum Asset Management and BLI”. It also revealed that their ambition is to continue to develop a full range of offers within two key business lines: portfolio management services and investment fund management company services for third-party initiators.
Michèle Biel, Director of Conventum Asset Management, highlighted that by pooling the resources of both companies, the new entity will enable them to combine their respective expertise in the best interests of or current and future clients. “The teams’ formidable experience will be the foundation for the development of our business in a constantly-evolving market and regulatory environment”, she added.
Pixabay CC0 Public Domain. Morningstar Indexes lanza un nuevo índice de género para mercados desarrollados
Morningstar announced the launch of the Morningstar® Developed Markets ex-Japan Gender Diversity Index℠, designed to provide exposure to developed market companies exhibiting strong gender diversity policy and practices.
In a press release, the firm pointed out that investor demand for ESG has increased drastically in the last decade, driving the need for these types of indexes. In this case, it will be powered by the data and scoring methodology of Equileap, a global provider of data and insights on gender equality for investors. More specifically, the constituents of the new index are weighted according to 19 gender equality criteria, including gender balance across the workforce, the gender pay gap, paid parental leave, and anti-sexual harassment policies.
The Japan’s Government Pension Investment Fund (GPIF), the world’s largest pension fund with approximately 1.5 trillion dollars in assets under management as of June 2020, has adopted the index as its benchmark to invest.
“During a tumultuous year consumed by a global health and economic crisis in which research shows working women pay a disproportional toll, transparent practices and policies that advance gender representation should be top of mind for companies. We are thrilled to be working with Equileap and GPIF on a meaningful endeavor that we believe will have the potential to not only act as a catalyst to shape corporate behavior but also help investors achieve their financial goals”, said Ron Bundy, president of Morningstar Indexes.
This launch is in line with the white paper published by Morningstar and Equileap “Investing Inclusively: Building Shareholder Value Through Gender Diversity.” The report highlights that companies that foster gender diversity and create inclusive cultures are tapping into the potential of the full population and are positioned to benefit from the effects of cognitive diversity. In this sense, “they are not only advancing the cause of human rights but also have the potential to maximize shareholder value”.
The index is derived from the Morningstar Developed Markets ex-Japan Large-Mid Index, which includes large and mid-capitalization equities from the U.S., Canada, Western Europe, Israel, Australia, Hong Kong, New Zealand, and Singapore. “In addition to providing a similar risk/return profile to the broad market, it is built to provide exposure to publicly traded companies with strong gender diversity policies embedded in their corporate culture and that ensure equal opportunities to employees, irrespective of their gender”, Morningstar concluded.
Pixabay CC0 Public Domain. El departamento Federal de Finanzas de Suiza (FDF) levanta las restricciones al Reino Unido
Polar Capital has reached an agreement to acquire 100% of Dalton Capital, the parent company of Dalton Strategic Partnership, for 15.6 million pounds (around 20.85 million dollars). This UK based boutique asset manager had 1.24 billion pounds (1.68 million dollars) in assets under management as at 15 December 2020.
In a press release, Polar Capital stated that the acquisition has “a strong strategic rationale” with its growth and diversification strategy and adds “a leading European investment team” to its existing European Income team. It also provides the group with broader wholesale and institutional distribution into Europe, particularly in the German market.
The deal excludes the Velox Fund, which is on the Dalton platform, but includes the Melchior European Opportunities Fund and the existing Luxembourg SICAV umbrella which will aid the group’s product range for international distribution.
The transaction reaches 15.6 million pounds split between the initial consideration of 8.3 million of which 7.8 million will be paid in cash from Polar Capital’s existing resources and half a million pounds in Polar Capital shares. Afterwards, there will be a deferred cash consideration of 7.3 million pounds, payable 12 months after completion, with the amount being linked to the value of assets under management at the time.
A strategic fit for 2021
“The acquisition of Dalton Strategic Partnership is further delivery of our growth and diversification strategy and is an excellent strategic, geographic and cultural fit with our existing business. It delivers greater scale, new capabilities and an expanded distribution reach in Europe, as well as highly experienced investment teams with a good track record. This acquisition will also provide Polar Capital with its first Luxembourg SICAV”, said Gavin Rochussen, CEO of Polar Capital.
Meanwhile, Nick Mottram, CEO at Dalton, claimed to be “delighted” to be joining the group and pointed out that they have long been impressed by their strong client focus, proposition and growth aspirations. “It is a good cultural fit for us and that was important when we were looking to join a larger group, as we wanted to ensure we retained investment autonomy over our funds”, he commented.
Also, he pointed out that the managers of their two key investment strategies, David Robinson and Leonard Charlton, are “committed and enthusiastic” about the acquisition and the opportunity it will provide “to further develop their investment propositions to the benefit of their investors”.
The transaction is expected to complete in Q1 2021 with a transition of the DSP business onto the Polar Capital platform during Q2 2021.
Has it all worked out for you? Wake up, take stock, be honest.
Are you a gambler? Do you own real estate funds with office and hotel portfolios that were exposed to the Covid-19 lockdowns? Too bad. Do you own private equity funds that use leverage exceeding 7x cashflows for companies struggling during this crisis? Too bad. Are you invested in early-stage venture backed companies with no sure path to liquidity? Too bad! It really is too bad when investors gamble with risk.
The Covid-19 crisis exposed risk most investors never anticipated in owning leveraged office and hotel portfolios that will take years to recover, if they survive the financial pressures imposed by the crisis. Most investors never anticipated that their highly leveraged portfolio companies would see their revenues disappear during such a time. Investors never imagined that early-stage venture backed companies they liked would be scrambling for cash to survive over the last 12 months.
Conversely, those investors who cared about risk management and chose strategies that minimized use of leverage are feeling much more secure and hopeful. While GDP driven investment themes are cyclical and struggle during recessions, downturns, and global pandemics, we advised our clients to ignore temptations and instead commit to disciplined managers who create real value, avoiding unnecessary risk.
Over the last two years, we shared the following with our clients and these themes have served them well. Why? Because all of them have one thing in common. That is, they are all strategies that consider risk first and are mitigated.
Do you think proven, innovative biotech treatments will lead us to revolutionary outcomes? We do.
Do you think demographically driven real estate opportunities present less cyclical risk? We do.
Do you think proven pre-IPO growth companies have a chance to capture value that leveraged buyout transactions can’t? We do.
Do you think niche, sector specific, high quality private credit without much competition deserves our attention? We do.
Do you think a highly disruptive alternative to secondary liquidity providers deserve investment? We do.
Do you think owning minority stakes in a portfolio of large and growing private investment management firms is a good thing? We do.
So, we hope it has worked out for you! We hope you discovered a better way to invest in private investment funds by thoroughly understanding their risk profiles and choosing lower risk options. How many more shocks do we need to experience before we wake up and start taking risk considerations more seriously? Hopefully we are all aware now of how to invest by paying more attention to underlying risk because 2020 has been a needed wake up call for many private equity investors.
Column by Alex Gregory, founder of Better Way, LLC
Pixabay CC0 Public DomainAntoine Onfray, nuevo director financiero de Tikehau Capital.. Antoine Onfray, nombrado director financiero de Tikehau Capital
Tikehau Capital, the alternative asset management and investment group, has announced in a press release the appointment of Antoine Onfray as Chief Financial Officer. In this position, he will be responsible for developing and implementing the group’s financial strategy and will report to Henri Marcoux, Deputy Chief Executive Officer of the firm.
Onfray began his career in 2007 in the General Inspection department of Société Générale. Between 2010 and 2016, he was Head of Financing and Treasury and Head of Investor Relations at Unibail-Rodamco-Westfield and he was then named Deputy Chief Financial Officer at Eurosic. Prior to joining Tikehau Capital, Onfray was Group Deputy CEO of Paref, a listed real estate group, where he arrived at 2017 as Chief Financial Officer.
“We are delighted to welcome Antoine, who brings a wealth of expertise in the financial function of listed groups. He will be a major asset in the growth dynamic of Tikehau Capital, whose solid financial structure with 2.8 billion euros shareholders’ equity, contributes directly to the achievement of the Group’s strategic objectives,” said Henri Marcoux, Deputy CEO of Tikehau Capital.
Foto cedidaAdrie Heinsbroek, director de sostenibilidad de NN Investment Partners.. NN Investment Partners nombra a Adrie Heinsbroek director de sostenibilidad
NN Investment Partners (NN IP) has announced in a press release the appointment of Adrie Heinsbroek as Chief Sustainability Officer, as of 1 January 2021. In this newly created role he will advise the Board on sustainability matters and challenges, and their implications for the entire organization.
Heinsbroek will be responsible for bringing external developments that shape the operational surroundings and society, such as increased regulations and climate change, directly to the Board. He will also advise on NN IP’s own footprint and the further implementation of its responsible investing approach in its strategies. He will continue to report to Arnoud Diemers, Head of Innovation and Responsible Investing Platform, and will additionally take on a direct advisory role to Satish Bapat, CEO of NN IP.
The asset manager believes that Heinsbroek will help them remain “at the forefront of global sustainability and ESG developments”. In their view, his appointment enables NN IP to leverage on his knowledge and experience whilst setting priorities and make decisions for the future.
“As a responsible investor, we aim to improve both our clients’ returns and the world we live in. We do this by looking beyond financial performance, because the people we work for and with, represent more than just the investments we manage. The announcement illustrates our strong commitment as a responsible investor”, said Satish Bapat.
Heinsbroek joined NN IP in February 2017 as Principal Responsible Investment and has over 20 years of experience in the field of sustainability and ESG integration.
Pixabay CC0 Public Domain. Amundi amplía su gama de ETFs ESG con una nueva estrategia de renta variable alemana
Amundi announced in a press release the expansion of its ESG ETF range, with the addition of a new passive investing strategy that offers broad exposure to the German equity markets while incorporating sustainable investment criteria. The fund is listed on Xetra and is offered “at a competitive price of 0.19% OGC”, stated the asset manager.
The Amundi DAX 50 ESG UCITS ETF is composed of the 50 largest German companies with strong sustainable profiles. It tracks an index that excludes all companies violating the international standards and involved in controversial weapons, as well as some sectors such as tobacco and thermal coal.
Amundi offers a comprehensive range of ETFs designed to make sustainable investing accessible to investors no matter what their ESG integration requirements and risk budgets are. In their view, this approach empowers investors to cost-effectively reflect their individual goals and values within their ESG allocations.
“We are delighted to enhance our offering of responsible ETFs, providing investors with the choices they need to implement cost-effective ESG portfolios. Building on our existing range of core ESG ETFs, we are now extending our offer through country flagship exposures like the S&P 500 ESG and today the DAX 50 ESG”, said Fannie Wurtz, Head of ETF, Indexing and Smart Beta at Amundi.
Meanwhile, Juan San Pío, Head of Sales at Amundi ETF for Iberia and Latam pointed out that with the expansion of their range, they make available to investors “new instruments that allow them to build and diversify their ESG strategies by helping to meet their sustainable investment needs with a simple, transparent and cost-efficient solution”.
Pixabay CC0 Public Domain. Aberdeen Standard Investments crea una plataforma para invertir en el universo hedge funds
Aberdeen Standard Investments (ASI) has created a new platform that will allow investors to track a broad spectrum of investable hedge fund benchmarks for the first time. Drawing on the public market equity tracker model, where half of US equity assets are passively invested, the product looks to take a share of the 3 trillion dollars hedge fund market and attract new investors, explained the asset manager in a press release.
The platform will allow ASI to launch products which track the HFRI 500, a fund weighted index comprised of 500 investable hedge funds across a broad range of strategies calculated and published by Hedge Fund Research Inc. (HFR). The flagship HFRI 500 index tracking strategy is targeting an initial fundraising of 500 million dollars by May 2021 and will have an investment capacity in excess of 50 billion dollars.
The platform will also give access to HFR’s investable index family, with almost 30 underlying investable hedge fund strategy, sub-strategy and thematic indices giving investors the opportunity to choose those most suited to their needs. This is the latest development following a partnership formed in 2019 between ASI and HFR which will see the launch of a series of products on ASI’s dedicated index tracking platform.
“Own” the benchmark
“Our partnership with HFR means we are able to launch genuinely innovative benchmark tracking products. Before now products that attempted to track hedge fund benchmarks were both narrow in scope and the implementation approach resulted in investment outcomes that deviated from the return of the hedge fund industry. The funds available on the ASI index tracking platform are able to address these issues by physically owning each underlying fund benchmark constituents at the index weights, helping overcome the historical impediments”, said Russell Barlow, global head of alternative investment strategies at the asset manager
He also pointed out that the platform not only allows allocators to “own” the benchmark but also to express strategy, sub-strategy and thematic views in a pure way. “By doing so they can avoid the variability in return outcome comes from the idiosyncratic views expressed by a single fund”, he added.
Meanwhile, Joseph Nicholas, founder and chairman of HFR, stated that they are pleased to support this launch because, for the first time, investors can access HFRI Benchmarks. “The flagship HFRI 500 index is a global, equal-weighted benchmark comprised of the largest hedge funds that report to the HFR Database which are open to new investment and offer quarterly liquidity or better. It offers clients a benchmark that’s more representative of the hedge fund industry return while also allowing tracking products to deliver the return of the index as a gateway to investing in a broad, diversified set of hedge fund strategies from some of the most prominent managers in the world”, he commented.
Pixabay CC0 Public Domain. Los activos en fondos europeos alcanzaron los 11,8 billones de euros en 2020
Franklin Templeton has announced the launch of the Franklin K2 Emso Emerging Markets UCITS Fund, a sub-fund of the Luxembourg-domiciled Franklin Templeton Alternatives Funds (FTAF) range.
This new Emso product seeks to generate capital growth through strategic investment exposure, both long and short, primarily to debt securities of sovereign and corporate obligors and currencies, including derivatives related thereto, all principally in emerging markets, explained the asset manager in a press release.
The fund will mirror the strategy of the Franklin K2 Alternative Strategies Fund and will be managed by the same team, Emso’s CIO Mark Franklin and John Hynes, Senior Portfolio Manager. Since becoming a co-manager in April 2015, the strategy has an annualised return of 5.4% with a standard deviation of 4.5%.
Franklin Templeton stated that this range –which was launched last October- offers European investors access to liquid hedge fund strategies in a UCITS format with daily liquidity and transparency from K2 Advisors, “one of the pioneers in the development and use of low fee liquid hedge funds”, through their Managed Accounts Platform (MAP).
“We currently have five managers spanning across long/short equity, relative value, and event driven strategies and are delighted with the addition of the K2 Emso Emerging Markets fund to the platform. The manager’s flexible mandate allows the team to invest where they see value across a large universe, applying a consistent investment framework”, said Bill Santos, Senior Managing Director at K2 Advisors.
Meanwhile, Julian Ide, Head of EMEA distribution at Franklin Templeton, pointed out that, since the acquisition of Legg Mason in July, they have become “one of the biggest providers of alternative solutions globally” with 124 billion dollars in assets under management. “As we continue to focus on strengthening our cost-effective product range of liquid alternative solutions in Europe, we are pleased to launch this fund, which offers a differentiated global macro style of alpha generation and provides further robust diversification to client portfolios”, he added.
