Pixabay CC0 Public DomainWalkerssk. China’s Risks on the Road to a Modern Economy
At present, there are three different world powers that dominate their respective regions in terms of trade and growth: the United States, the Eurozone and China. The first two, the United States and the Eurozone, are clear, but the last, China, arouses some uncertainty among investors and management companies, who are monitoring its economy.
Due to the size of its economy, China continues to be a key economy globally, and not just for emerging markets. According to market consensus, China will be fundamental player in the current synchronized global growth, although analysts warn that it could slow it down.
Among its main risks is its high level of indebtedness, both public and private. State companies combine high leverage levels and low productivity in sectors where excess capacity is extreme. “In the wake of the global financial crisis, credit to non-financial entities has gone from 100% of GDP to 165% at present. This government – driven massive injection of credit has stimulated the economy and explains to a large extent the solid economic performance of the last ten years. The high level of indebtedness and low productivity are currently considered a risk,” explains Yves Longchamp, Head of Research at Ethenea Independent Investors.
And its main challenge is to make the leap to a modern economy, a path that has already begun, after the National Congress of the Communist Party of China in October 2017. “The implementation of the structural reforms program once again became a priority. The objective of the Chinese authorities is to direct growth towards quality and not only towards quantity. This will imply a rebalancing that is expected to reduce traditional industries such as steel in favor of new activities such as electric cars and high technology. In the coming months, this strategic adjustment is expected to lead to a slight economic slowdown, as suggested by the recent slowdown in public spending and the tightening of monetary conditions. Should the deceleration become too marked, public authorities have the necessary resources to quickly adjust the approach,” explain sources from Banque de Luxembourg Investments.
Risks and Opportunities
In Longchamp‘s opinion, China lives in perpetual transition. Among reforms proposed by the country there are three that are very interesting for investors, according to Longchamp: “The restructuring and strengthening of state enterprises, the deleveraging of the financial system and the slowdown in inflation of housing prices ; and the eradication of poverty and the improvement of the quality of growth “. These three are national objectives and aim to determine the main economic weaknesses and the fragility of the financial system, as well as to improve the welfare of Chinese citizens. In addition, there is the Chinese government’s desire to control and reorganize some sectors, such as the industrial sector and real estate. Therefore, they are reforms that could open opportunities in very specific sectors, such as financial, industrial or real estate.
However, the management companies are cautious about China. The company Flossbach von Storch identifies the Asian giant as one of the potential risk factors within the equity market, given the country’s rate of indebtedness. “Despite this, we are confident that China’s central government has the muscle to counteract the effects in the case of a recession or crisis,” explainedsources from the management company.
Pixabay CC0 Public DomainCourtesy photo. Direct Lending: A New Alternative For Private Investors
Traditional asset classes have delivered robust returns over the last few years with exceptionally low volatilities. The outlook is less bright, however. The recent market turmoil is an indication that the high return/low volatility regime has most likely come to an end. This does not mean that the equity bull market has ended. The fundamental picture remains robust with strong earnings momentum and relatively low recession risks in major economies. Equities may well move higher in the next 2 years, but it is going to be a bumpy ride. Fixed income investors might even feel worse off. Rising yields from very low levels are putting downward pressure on prices of longer duration bonds. Credit spreads are very tight and should start to widen in the final stage of the economic expansion, driven by higher rates, rising default rates and increasing leverage.
The lack of value in fixed income assets and the rising volatility in equities has created renewed interest in alternative investments, which have become a key component of well-diversified investment portfolios. Initially, the asset class was mostly the realm of sophisticated investors, but it has developed into products now available to much smaller portfolios.
Nevertheless, private banking clients remain underexposed to alternatives. Despite the rising transparency and regulations, hedge funds continue to suffer from image problems due to some bad practices in the past. Private equity funds offer the most attractive risk/reward profile, but the lack of liquidity can be an obstacle for private investors that have uncertainties surrounding the adequate time horizon and risk profile. This is the main differentiator between private investors and big institutional investors such as endowments and sovereign wealth funds, which have a very consistent investment strategy based on long-term objectives. The most prominent example is the asset allocation of the Yale Endowment with 50% in illiquid assets and around 80% in alternatives overall, including liquid alternatives. Pension funds have also increased their exposure to alternatives from 5% in 1995 to around 25% now.
However, there are new segments in the alternatives space that could help to overcome the (sentimental) hurdles that discourage private investors from investing. For example, investors have recently begun to expand into providing debt to businesses, an area traditionally dominated by banks. The disintermediation process is part of a broader global trend known as shadow banking or shadow lending, whereby non-bank actors seek to provide credit to companies. The growth of private debt funds has been dramatic with very attractive risk-adjusted returns for investors. The trend is driven by three factors: Firstly, the post-crisis financial regulatory reforms have led banks to reduce their lending activities, particularly to small and medium-sized businesses. Secondly, the demand for credit from businesses has not fallen to the same degree, leading to unmet demand. And thirdly, the demand from institutional investors for debt that yields more than government debt remains robust. Historically, the private debt market consisted of specialized funds that provided mezzanine debt, which sits between equity and secured/senior debt in the capital structure, or distressed debt, which is owed by companies near bankruptcy. Following the financial crisis, a third type of fund emerged. Known as direct lending funds, these funds extend credit directly to businesses or acquire debt issued by banks with the express purpose of selling it to investors.
Leading alternative investors have all expanded their product offerings to include private debt funds. They are joined by many specialized new firms. The strong demand by institutional investors has enabled these funds to expand rapidly in size. Collectively, more than 500 private equity style debt funds have been raised since 2009. The private debt industry has grown its assets three-fold in the last ten years, hitting a record last year of $638 billion despite increased distributions to investors, with 25% of that coming from direct lending funds.
Direct lending funds are highly suitable for private investors. There is a wide range of strategies such as real estate bridge loans, equipment leasing, trade finance, consumer loans, just to name a few. The generally offer high single digit returns with strong collaterals, low volatility and very low correlation to traditional asset classes. There are specialized funds that offer monthly or quarterly liquidity. However, these are also more complex and sophisticated, so an adequate analysis and good advice are presented as essential to make the right decisions and not take unnecessary risks.
Join us on May 1st at BlackRock’s Factors virtual conference to learn more about the new lens for investing. Register here!
Movies moved from black and white to color, showing the richness of the world in its true form. Shouldn’t the way we build portfolios and evaluate managers also evolve?
Casablanca. It’s a Wonderful Life. Citizen Kane. Rebecca. Roman Holiday.
I understand that these classics are beloved by many. But I have a different take. They’re in black and white and I prefer color. The world is in color, and I like my movies to reflect the full spectrum of color I see outside the movie theater.
Investments, like movies, also evolve with data and technology. Just as color and other technological developments revolutionized the movie experience, I believe the lens offered by the Factor Box can dramatically change how we construct and manage a portfolio of investments by offering a more complete picture of the underlying factors that affect a portfolio’s investment performance.
Lights! Setting the scene
In 1992, Morningstar introduced the style box, a simple and intuitive method for constructing a portfolio. The equity style box was a 3×3 grid dividing funds into nine boxes, using value and size factors — broad persistent drivers of returns—in today’s language of investing. The ease of choosing funds across styles in various boxes helped millions of investors to construct diversified equity portfolios, and provided an objective way to compare managers to their peers with similar investment styles.
While the style box has served investors well for almost 30 years, our knowledge about investments has significantly increased. We know that more factors than just size and value have been historically associated with long-run excess returns. A large body of academic work has shown that quality, momentum and minimum volatility also have empirically enhanced returns or reduced risk relative to market-capitalization index benchmarks.
The way we view investments should reflect the advances made in data and technology. With a new lens, we can make more informed investment decisions and more efficiently benchmark active managers.
Ready for a close-up: Introducing the Factor Box
The Factor Box transforms the style box concept, incorporating a more complete view of the dominant drivers of returns within equity markets. The Factor Box pushes from two factors to a full color array of factors. In my last article, I discussed how value, quality, momentum, size and low volatility have historically beat the market on a risk-adjusted basis and have strong economic intuition. The Factor Box also adds yield — a measurement of high and persistent dividend yields — because income considerations are important for many investors, especially for those in retirement.
The Factor Box displays the relative factor exposure of a stock or a group of stocks versus a comparative universe, such as the broad market. Factor exposures may change over time. For illustrative purposes only. The Factor Box should not be interpreted as a recommendation of any security or investment strategy.
Action! Using the Factor Box
We can use the Factor Box in a similar way to the style box, but with more depth and richness. We can:
Assess portfolio diversification. Do we have all, not just two, factors? If a portfolio lacks exposure to quality, for example, and has too much momentum, we can take appropriate action.
Evaluate fund exposures. Perhaps the factor exposures in a traditional actively managed fund can be obtained in a more efficient way with lower-cost, fully transparent, smart beta ETFs. The Factor Box can help find the most appropriate smart beta factor exposure.
Conduct due diligence. The Factor Box can analyze factor exposures for each security. This provides a transparent view of a fund’s actual exposures based on underlying holdings, not just the exposures the managers claim to be targeting. This can help when choosing between funds to fill an allocation.
Tilt dynamically. The snapshot provided by the Factor Box could help investors position factor exposures through the business cycle. Tactical investors who believe the economy is signaling for value to outperform, for example, could use the exposure insights of the Factor Box to reallocate within their existing holdings to implement a short-term tilt.
And … Cut!
We believe factors have the potential to revolutionize the investment landscape. Join us on May 1st at BlackRock’s Factors virtual conference to learn more about the new lens for investing. Register here!
Column by BlackRock, written by Andrew Ang
Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses or, if available, the summary prospectuses, which may be obtained by visiting the iShares Fund and BlackRock Fund prospectus pages. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
In Latin America and Iberia: this material is for educational purposes only and does not constitute investment advice nor an offer or solicitation to sell or a solicitation of an offer to buy any shares of any Fund (nor shall any such shares be offered or sold to any person) in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction. If any funds are mentioned or inferred to in this material, it is possible that some or all of the funds have not been registered with the securities regulator of Brazil, Chile, Colombia, Mexico, Panama, Peru, Portugal, Spain, Uruguay or any other securities regulator in any Latin American country and thus might not be publicly offered within any such country. The securities regulators of such countries have not confirmed the accuracy of any information contained herein.
There can be no assurance that performance will be enhanced or risk will be reduced for funds that seek to provide exposure to certain quantitative investment characteristics (“factors”). Exposure to such investment factors may detract from performance in some market environments, perhaps for extended periods. In such circumstances, a fund may seek to maintain exposure to the targeted investment factors and not adjust to target different factors, which could result in losses.
The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.
The examples presented do not take into consideration commissions, tax implications, or other transactions costs, which may significantly affect the economic consequences of a given strategy or investment decision.
This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding the funds or any security in particular.
This document contains general information only and does not take into account an individual’s financial circumstances. This information should not be relied upon as a primary basis for an investment decision. Rather, an assessment should be made as to whether the information is appropriate in individual circumstances and consideration should be given to talking to a financial advisor before making an investment decision.
The Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).
Pixabay CC0 Public DomainFoto cedida. El #10YChallenge de los activos bajo administración de las Afores
Miguel Barbosa, Alfonso Barros, Juan Calderón , Ricardo Mendez, and Carlos Rodriguez-Aspirichaga have joined UBS Wealth Management’s international unit in a push to strengthen the firm’s business in Mexico.
The experienced ultra-high-net worth advisors used to work at JP Morgan Private Bank, and will be based out of UBS’ New York, Miami and Houston offices.
Sources familiar with the matter told Funds Society that this is a very good example of UBS’ appeal to UHNW advisors. “We recently aligned our wealth management business to be unified under a global wealth management umbrella… and one aspect of that too is to establish a much more aligned and direct focus on Latin America under the leadership of Sylvia Coutinho in Brazil.” Adding that the team of new hires “is a very talented team with an impressive client roster in Mexico. They represent some of the most sophisticated and wealthy investors in Mexico and that’s a very good fit for UBS. I think they will find this a very good move for them and their clients.”
UBS private banking and wealth advisors serve clients in 65 markets and work with approximately half of all billionaires in the world.
María Dolores Benavente, and Bjorn Forfagn. UniónCapital AFAP Becomes First Pension Fund in South America to Comply with the CFA Code
CFA Institute, the global association of investment professionals that sets the standard for professional excellence, has added UnionCapital AFAP to the growing list of asset owners that claim compliance with its Asset Manager Code (AMC). UnionCapital AFAP, a pension fund in Uruguay with $2.7 billion in assets under management – equating to 5% of the GDP of Uruguay – is now one of the more than 1,400 companies around the world that claim compliance with the code.
The AMC clearly outlines the ethical and professional responsibilities of pension funds or firms that manage assets on behalf of their clients. For investors, the code provides a benchmark for the behavior that should be expected from asset managers and offers a higher level of confidence in the firms that adopt the code.
UnionCapital is the first firm in Uruguay to comply with the code and shows leadership commitment to strengthening the capital markets and investment industry in the country by upholding investor-centric values and behaviors. It is also the first pension fund in South America and the second one in Latin America to comply with the code.
“Our investors expect and deserve the best governance and management practices when it comes to their retirement savings,” said Ignacio Azpiroz, CFA, CIO of UnionCapital AFAP. “UnionCapital is recognized in the industry for our high standards, ethics and professionalism, and we’re proud to reinforce this through our adoption of the Asset Manager Code.”
The Asset Manager Code is grounded in the ethical principles of CFA Institute and the CFA® Program, and requires that managers commit to the following professional standards:
To act in a professional and ethical manner at all times
To act for the benefit of clients
To act with independence and objectivity
To act with skill, competence, and diligence
To communicate with clients in a timely and accurate manner
To uphold the rules governing capital markets
“Building trust in the investment profession is at the core of the CFA Institute mission, as well as strengthening and ensuring the future vitality of the global financial system,” said Bjorn Forfang, deputy CEO at CFA Institute. “Compliance with the Asset Manager Code demonstrates dedication to raising standards in the financial system in Latin America, and we commend Union Capital, and all firms that have adopted the code, for displaying a resolute and tangible commitment to professional ethics and helping to build a better world for investors.”
UnionCapital serves 293,000 clients across Uruguay, and joins more than 1,400 other firms around the world claiming compliance with the Code. The pension fund also complies with the CFA Institute Pension Trustee Code of Conduct.
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as RWC Partners’ Davide Basile.
Convertible Bonds
“Convertible Bonds offer conservative equity participation whilst providing capital preservation which we believe is ideally suited for this market environment. Characteristics such as; inherent low duration, ability to benefit from a rising volatility environment, conservative equity exposure, contained valuations and recovery of the primary market all make for a compelling investment case today. Convertible bonds tend to outperform many asset classes in times of rising rates and increased volatility, and our fund is aimed at providing long only convertible exposure preserving the asset class’ asymmetry of returns to maximise the asset class’ long-term benefits.” Says Davide, Head of the Team and lead portfolio manager for the RWC Convertible Bond strategies.
The RWC Global Convertibles Fund, since its inception, invests purely in physical convertible bonds and does not use synthetic instruments or other investments which may dilute away the core benefits of the asset class.
Davide joined RWC in January 2010 to lead the team and he brought with him a long history in convertible bonds having worked at Morgan Stanley since 2001. At Morgan Stanley Davide worked with in both the Private Wealth and Investment Management divisions, and most recently held the Head of Convertible Bonds position. Davide graduated from Imperial College London with a degree in Material Science Engineering.
For more information on Funds Society’s Investments & Golf Summit 2018, follow this link.
Foto cedidaCourtesy photo. Old Mutual Sold 100% of its LatAm Operations to CMIG International
CMIG International, a Singapore-based holding company, has signed a contract with the South African group Old Mutual to acquire 100% of its business in Latin America. The operation, which is still pending approval by the corresponding authorities, would include, as it has transpired, the companies Old Mutual Mexico, Old Mutual Colombia and the Latin American investment adviser Aiva. It is also speculated if Old Mutual plans to sell its business in China.
The buyer, China Minsheng Investment Group International (CMIG), is a private investment holding company founded in August 2014 with 59 companies and with a registered capital of 50,000 million yuan. CMIG focuses on emerging sectors and actively promotes industrial modernization and economic transformation. The price of the transaction was not disclosed but according to international media, CMIG would have paid close to 400 million dollars in this operation.
The executive president of CMIG International, Kevin E. Lee, wanted to emphasize that “Old Mutual Latin America is a well-managed company with constant and sustained growth. It has always prioritized the interests of its clients, which is aligned with our values as a company. At CMIG International, we have a long-term commitment to strengthen and grow the company in the region. The acquisition of Old Mutual Latin America is an excellent platform for CMIG International and its entry into the regional market, which has great potential.”
In this regard, Lee added that, after carefully analyzing Old Mutual Latin America, “we are very excited about the prospect of becoming its shareholders. Our investment thesis is to find good assets, managed by exceptional teams, in such a way that we can guarantee the continuity of the business.”
According to the firm, Old Mutual’s decision to sell its business in Latin America follows a strategic review of its business, which concluded with the decision to concentrate on its operations in Africa. The presence of the firm in Latin America dates back to 1959 in Mexico, where it began to operate as a reinsurer under the Skandia brand. Subsequently, the company was established as an insurer and an operator and distributor of investment funds under the same Skandia brand; which had a very important growth in Mexico. Now this brand, recognized in the institutional field, will come back to represent the business in the region.
David Buenfil, CEO of Old Mutual for Latin America and Asia, said that “we are very proud to have an international investor of the stature of CMIG International, who believes in the growth potential of our region. This is a well-known company in Asia, and with a very good reputation. We are also very excited to know that they value our much-loved Skandia brand, and that they plan to return it to the market once the transaction is closed.”
Old Mutual Latin America includes pensions, life insurance, mutual funds, a broker-dealer, and an investment advisory with assets under management of over 13.5 billion dollars.
According to Julio César Méndez Ávalos, CEO of Old Mutual Mexico, “this is great news for all our clients, employees, advisors and strategic allies. CMIG International is a company that has valued our great potential and is committed to a continuity of our business model, as well as our human capital and management team, all our clients can rest assured with their investments and products because they will continue under the professional management that has distinguished us in these almost 25 years that we have participated in the Mexican market.”
In late February, President Trump promoted trade policy adviser Peter Navarro to assistant to the President. As a trade policy adviser, Mr. Navarro reported directly to White House Economic Adviser Gary Cohn. It is well known that Mr. Navarro (a Harvard-trained economist who wrote a book titled Death by China) has very protectionist ideals in regards to trade, while Mr. Cohn (the former President of Goldman Sachs) is a proponent of free trade. Effectively, Mr. Cohn served as a buffer between Mr. Navarro and President Trump. However, once Mr. Navarro was placed in a position where he could advise the President directly, we felt that some more extreme trade policies were on the horizon.
In less than a month, Mr. Navarro’s influence on President Trump was plain for all to see. Furthermore, Mr. Cohn resigned from his position following his futile attempt to convince President Trump not to go through with the tariffs. The equity markets suffered an immediate pullback on the announcement of Mr. Cohn’s resignation due to fears that the US would become even more protectionist without the influence of his globalist views. Fortunately for the market, Mr. Cohn’s replacement is CNBC commentator Larry Kudlow. Before embarking on a television career, Mr. Kudlow had been the chief economist at Bear Stearns and is known for having a very globalist view on trade. We believe the market will draw comfort from the appointment of Mr. Kudlow as Economic Adviser rather than Mr. Navarro.
This has happened before
In 2002, the administration of George W. Bush placed tariffs on steel products ranging from 15 to 30% in an effort to save the US steel industry. Back then, several steel producers had declared bankruptcy amidst a surge in steel imports. The government decided it needed to protect the companies of the steel industry for a period of three years to give time to restructure and emerge as more competitive players. Just like now, Canada and Mexico (thanks to NAFTA) were excluded from the tariffs of 2002.
Almost immediately, the European Union imposed tariffs and filed a case with the WTO. Several other countries filed similar cases and the WTO eventually ruled against the US. Following the international backlash and disappointing results for the economy, President Bush rescinded the tariffs only 18 months after their implementation.
“I don’t think it was smart policy to do it…The results were not what we anticipated in terms of its impact on the economy or jobs.” Andrew Card Jr., White House Chief of Staff under George W. Bush
Back in 2002, one of the actions considered by the EU was to place tariffs on oranges from Florida. For those not familiar with US regional politics, Florida is considered to be a swing state and President Bush won the state (and the overall election) by the narrowest of margins in 2000. The EU does not blindly select products on which to place tariffs; it wisely chooses products produced in politically sensitive states.
This time around, the EU is targeting Harley Davidson, which has manufacturing plants in Pennsylvania and Wisconsin, states that were important to Trump’s victory. Furthermore, Wisconsin is the home state of Speaker of the House Paul Ryan. Another product being targeted is Kentucky Bourbon which is made in the home state of Senate Majority Leader Mitch McConnell. The immediate economic impact seems mild but might only be the tip of the iceberg.
To be fair, steel and aluminum represent less than 2% of the country’s imports. Considering solely these two products, the overall impact to global trade should be modest. Unfortunately, these tariffs are not occurring in a vacuum and they might only be the tip of the iceberg as we await the outcome of the pending Section 301 investigation.
The investigation is focused on determining whether China’s actions relating to intellectual property and the forced transfer of technology discriminate against the US. The White House has signaled that there could be an announcement in regards to the investigation within a few weeks. Media reports are already speculating that the White House is considering imposing several new tariffs on $60 billion of Chinese products due to disagreements on intellectual property rights.
In fact, indirect actions against China may have already started. President Trump recently ordered Broadcom to “immediately and permanently abandon” the acquisition of Qualcomm for reasons of national security. The government did not disclose the details of why it is in the interest of national security for Qualcomm to stay independent, but Wall Street analysts are speculating that there was a fear that Broadcom would cut the R&D budget at Qualcomm, allowing Chinese telecommunication equipment company Huawei take the lead in the development of 5G wireless technology.
Pixabay CC0 Public DomainPhoto: Longines Global Champions Tour. The Longines Global Champions Tour is Set to Begin Next Thrusday
The 2018 season of the Longines Global Champions Tour is about to start. Spread over four days, the magical destination of Mexico City will welcome the world’s best horses and riders to the stunning Campo Marte grass arena for what promises to be an electric season opener.
Between march 22nd and March 25th, top riders will compete in Mexico before continuing the tour in Miami, Shanghai, Madrid, Hamburg, St Tropez, Cannes, Cascais, Monaco, Paris, Chantilly, Berlin, Londron, Valkenswaard, Rome, Doha, and Prague. The prizes top over 40 million euros, a new record.
The Mexico program with 1.165.380 in prizes along with each Longines Global Champions Tour and GCL event can be separated into two categories – CSI5* and CSI2* classes. The CSI5* is the top level competition, where the top ranked riders in the world will compete for the highest prize money, over the biggest fences – up to 1.60m which is the highest in the sport. The CSI2* classes are slightly smaller in height, and offer opportunities for many local athletes as well as international rising stars.
All the CSI5* rounds will be streamed live via our website featuring exclusive studio interviews, expert commentary and of course all the action from the arena.
Last year over 20,000 fans watched as the world’s best battled it out for top honours at the spectacular debut of Mexico City, with the grassy picture perfect arena of Campo Marte the stunning setting for the first even of the season. With the top riders in the world hungry to get the season started and lay down an early gauntlet for the 2018 Champion of Champions title, the event promises to be full of fierce rivalry, top entertainment and world-class sport.
Pixabay CC0 Public DomainPhoto: Mark Heslop. Columbia Threadneedle Investments' Mark Heslop Will Shed Light on Investing in Global Small Caps at the Investments & Golf Summit 2018
On April 12th and 13th Funds Society will host its fifth Investments & Golf Summit 2018. Sponsors include Janus Henderson Investors, RWC Partners, Thornburg Investment Management, Vontobel Asset Management, GAM Investments and AXA Investment Managers. The event will take place at the Blue Monster in Trump National Doral Club Golf, host of the prestigious PGA TOUR events for the past 55 years.
On April 12th, at the Investment day, sponsored also by Schroders Investment Management, Columbia Threadneedle Investments and MFS Investment Management, participants will be able to take the opportunity to discuss about Global Markets as well as the latest portfolio management strategies and investment ideas from top-performing Asset Managers from the nine sponsors, such as Columbia Threadneedle Investments’ Mark Heslop.
Global Small Caps
Mark Heslop joined Columbia Threadneedle Investments in 2008 as a smaller companies analyst in the European equities team. He manages the Threadneedle (Lux) Pan European Small Cap Opportunities, the Threadneedle European Smaller Companies Fund and the Threadneedle (Lux) Global Smaller Companies Fund. Before joining the company, he spent nine years as an analyst with Citi. He began his career as an accountant and consultant at PriceWaterhouseCoopers.
The Global Smaller Companies Portfolio seeks to achieve capital appreciation by investing principally in the equity securities of Global Smaller Companies. It invests at least two thirds of its assets in shares of smaller companies worldwide, typically no bigger than the largest company included in the MSCI World Small Cap Index. The Fund invests in what the manager believes to be the most attractive smaller companies investment opportunities globally, providing access to a portfolio of well researched companies from around the globe, with country, sector and industry diversification. It gives access to an investment process with a ‘quality growth’ approach, managed by a team that have broad experience of different market conditions. “Smaller companies can be a source of long-term growth: seeking the industry leaders of tomorrow”, he states.
To learn more about the Investments & Golf Summit, follow this link.
