Pixabay CC0 Public Domain. China to Join Bloomberg Barclays' Global Aggregate Index
Bloomberg has confirmed that Chinese RMB-denominated government and policy bank securities will be added to the Bloomberg Barclays Global Aggregate Index starting April 2019 and phased in over a 20 month period. The inclusion is a result of the completion of several planned operational enhancements that were implemented by the People’s Bank of China (PBoC), Ministry of Finance and State Taxation Administration.
When fully accounted for in the Global Aggregate Index, local currency Chinese bonds will be the fourth largest currency component following the US dollar, euro and Japanese yen. Using data as of January 24, 2019 the index would include 363 Chinese securities and represent 6.03% of a $54.07 trillion index upon completion of the phase-in.
“Today’s announcement represents an important milestone on China’s path towards more open and transparent capital markets, and underscores Bloomberg’s long-term commitment to connecting investors to China,” said Bloomberg Chairman Peter T. Grauer. “With the upcoming inclusion of China in the Global Aggregate Index, China’s bond market presents a growing opportunity for global investors.”
The PBoC, Ministry of Finance and State Taxation Administration have completed a number of enhancements that were required for inclusion in the Global Aggregate Index in order to increase investor confidence and improve market accessibility. These include the implementation of delivery v. payment settlement, ability to allocate block trades across portfolios, and clarification on tax collection policies.
“It’s a pivotal time in the development of China’s markets and inclusion in our Global Aggregate Index is significant for facilitating Chinese market access for global investors,” said Steve Berkley, Global Head of Bloomberg Indices. “Our phased approach to inclusion is designed to give investors ample time to prepare for what we believe will be a positive impact on the investment community.”
In addition to the Global Aggregate Index, Chinese RMB-denominated debt will be eligible for inclusion in the Global Treasury and EM Local Currency Government Indices starting April 2019.
Bloomberg will create ex-China versions of the Global Aggregate, Global Treasury and EM Local Currency Government Indices for index users who wish to track benchmarks that exclude China. Bloomberg can also create customized versions of the indices as requested by investors.
CC-BY-SA-2.0, FlickrPhoto: Thomas Depenbusch. Has the China Collapse Finally Arrived?
China has been on the verge of a hard landing for many years, according to some analysts. Will they finally be right in 2019? In the latest issue of Sinology, Andy Rothman, Investment Strategist at Matthews Asia explains that in the fourth quarter of 2018, China’s economic deceleration was not significantly sharper than he expected, and several policy changes should lead to stronger activity and market sentiment in the second half of this year. In his opinion, a hard landing is still not on the horizon.
He believes that “everyone paying careful attention to China should have expected the year-on-year (YoY) growth rates of almost every aspect of the economy to slow a bit last year,but that it is still the world’s best consumer story… Services now account for 44.2% of household consumption, up 1.6 percentage points from a year ago.” Rothman also points out that manufacturing, excluding autos, is healthy, as well as property investment.
Considering that the degree of economic growth deceleration last year was largely within his expectations, Rothman points out four reasons why market sentiment in China abysmal:
Fear of a trade war with the U.S.
Concern that during the first three quarters of last year, Chinese leader Xi Jinping voiced strong support for state-owned enterprises (SOEs), while expressing little love for the private firms
The unintended consequences of the government’s efforts to de-risk the financial system.
A cloud of regulatory uncertainty
However, he believes that sentiment is likely to improve in the second half of this year, given that he expects a 1H19 resolution to the short-term trade dispute between the U.S. and China. :Trump seems to believe that resolving this problem and lifting his tariffs on Chinese imports is important to his re-election prospects, and he has therefore adopted a more realistic negotiating strategy, dropping his irrational focus on the bilateral trade deficit as well as demands for Xi to make deep structural changes, such as eliminating his industrial policies and support for SOEs. I think Xi recognizes that Trump’s remaining demands, including better market access for American firms and stronger protection for intellectual property rights, will contribute to China’s economic progress, and Xi also wants to avoid a conflict that could escalate into a tech war, jeopardizing China’s access to US semiconductors. A Trump–Xi deal will not resolve the longer-term challenges in the bilateral relationship, but it will lift short-term fears of an escalating trade war.”
The second reason to expect better sentiment in China, according to Rothman is that Xi has already pivoted away from his rhetorical embrace of SOEs, with recent public statements expressing support to entrepreneurs. “His banking regulators have also announced a series of measures designed to boost lending to private firms. While it isn’t clear how effective those measures will be, the impact on entrepreneurial sentiment should be apparent in the coming quarters.”
He considers modest easing of monetary and fiscal policy is a third reason for optimism this year. “China’s banking regulators have indicated that they will take steps to mitigate the impact of the shadow banking crackdown, including increasing interbank liquidity, which will lower interbank rates. Mortgage rates have already begun to decline. This will be accompanied by modest fiscal policy easing, including further tax cuts and a small boost to infrastructure spending. Because the economy remains reasonably healthy, these policy fine-tuning measures will fall far short of a dramatic stimulus, and their objective is to boost sentiment and ensure the macro deceleration remains gradual, rather than to reaccelerate growth.”
Rothman also expects policy fine-tuning in the residential property sector with Chinese likely to buy another 12 million new homes this year, with a minimum of 30% cash down.
“Finally, although regulatory uncertainty will remain a fact of life in China for many years to come, investors are likely to see more clarity on some specific issues, including a relatively benign impact on company profits from more effective collection of social security taxes. All of these factors, along with relatively low valuations in the A-share market, are likely to result in better sentiment among domestic investors in the second half of this year.” He concludes.
Pixabay CC0 Public DomainRicardo Castillo, courtesy photo. Castillo, Pacheco Romero, Martin Cazenave and Pitre Méndez Join Credit Suisse IWM's LatAm Team
Credit Suisse IWM (International Wealth Management) is strengthening its LatAm operations. So far this year they have made five appointments that will be focused on the region.
According to a memo seen by Funds Society, which was written by Credit Suisse IWM’s LatAm Head, Jorge Fernández Amann: “The Latin American region is of key importance to IWM’s growth strategy. The future of IWM LatAm lies in the growth potential of our franchise across all our markets: Mexico, Cono Sur, Comunidad Andina, and LatAm-based External Asset Managers. Our clients look to us for our unique strength that combines best-in-class wealth management services, institutional capabilities, as well as UHNWI-specific solutions. This differentiation has driven growth in the region and is also attracting new talent. To grow our regional capabilities further we need to not only develop our internal talent pool but also attract external talent and I am excited to announce a number of appointments in IWM LatAm.”
In his opinion, in order to deliver best-in-class solutions to their clients, a robust Advisory & Sales organization is key, so they have hired, former JPMorgan Ricardo Castillo as Head of Advisory & Sales and member of the IWM LatAm Management Committee, effective immediately. “He will also lead the Investment Consulting team for ConoSur. Ricardo has a proven track record of more than 15 years in various investment roles: Investment advisory and sales, asset allocation across asset classes and tactical and/or thematic trading and hedging solutions. More recently he was Global Investment Specialist covering UHNWI, notably for Chile and Argentina. With Ricardo’s experience in international financial markets, I am confident that he will take our A&S offering to the next level. Ricardo will be located in Geneva.” Said the memo.
Also for the Geneva office, looking to serve both Cono Sur and Comunidad Andina clients, coordinated by Daniel Clavijo, are three more hires that report to Wenceslao Browne:
Marco Pacheco Romero joins as Senior Relationship Manager for ConoSur. He specifically covers Argentina, Chile and Peru and has a combined 20 years of experience in Private Banking, Lending, and Hedge funds. He also led credit teams in the past and will have an additional role to focus on growing our UHNWI-focused strategy as Head of Lending, where he will be part of our Management Committee.
Andrés Martin Cazenave joins as Senior Relationship Manager for ConoSur focusing on Argentina, Chile, Uruguay, and Colombia. Andrés has more than 25 years of wealth management and investment expertise across several institutions in Switzerland, the US, and Argentina. More recently he covered markets mainly from Cono Sur (Argentina, Chile, Uruguay) after being in charge of developing Comunidad Andina markets in the past (Colombia, Ecuador, Central America).
Rodrigo Pitre Méndez joins as Senior Relationship Manager for Cono Sur. Rodrigo has 20 years of private banking experience in Argentina, Bahamas, Uruguay, the US, and more recently Switzerland, where he has lived since 2013. In 2013 he moved from Miami, where he had spent 4 years developing an Argentine book to join another institution in Geneva. Since 2013 he has been in charge of developing a book for Cono Sur.
In January, the company hired Maria Vega Ibañez De La Cruz as Zurich-based deputy head of client management for ConoSur.
Pixabay CC0 Public DomainPhoto: KnutEgil1966 . Prodigy Network Surpasses 500 Million Dollars In Securitized Assets Through Flexfunds
Incorporating real estate assets as part of investment diversification is essential, which is why investors are increasingly analyzing alternatives that are not correlated with markets for stocks and bonds. Global platforms for investment and real estate asset development, such as Prodigy Network utilizing FlexFunds‘ asset securitization program, provide corporations, families and individuals access to institutional – quality investment opportunities in commercial real estate assets in the United States.
Prodigy Network has managed to raise funds in excess of US$ 690 million, connecting more than 6,500 investors from 42 countries and 27 states in the U.S. Its portfolio, with a projected value of US $1 billion, includes 6 buildings in Manhattan and 2 in Chicago, Illinois.
FlexFunds has securitized more than 25 assets and real estate projects for Prodigy Networks, surpassing US$ 500 million since their relationship began in 2013, becoming a flexible solution to enable real estate developers to access international capital markets. Both private and institutional investors can participate in these projects through their already existing private bank or brokerage accounts.
According to Lisandro Videla, Vice President for Distribution at Prodigy Network, “FlexFunds’ securitization program has transformed our business, offering a new distribution channel for our projects. Through Private Banking we have connected thousands of investors all over the world to investments of institutional quality to which they did not have access previously; this accounts for a substantial part of the success of our business model which has made us a byword in the real estate industry. In addition, FlexFunds has endowed the investment structure with a new level of auditing and control.”
FlexFunds CEO Mario Rivero had this to say: “As a leading service provider in asset securitization for third parties, FlexFunds gives access to capital markets globally. To securitize their assets with FlexFunds, our clients must comply with strict legal and operating requirements, so we congratulate Prodigy Networks for surpassing US$ 500 million in securitized real estate assets. This is one illustration of how suitable FlexFunds solutions can be for real estate developers.”
Pixabay CC0 Public DomainCourtesy photo. Return of the Fed Put
Birth of the Fed Put A put, is an option that increases in value when the underlying security’s price falls below a certain level. One of its most common usages is to protect a portfolio against a market decline.
The famous “Fed put” refers to the notion that the Federal Reserve will take action to support the equity market in times of increased risk and volatility. Since Alan Greenspan became chairman of the Fed during the 1980s, there has been a definitive pattern of the central bank increasing liquidity during times of crisis. This includes taking action to inject liquidity during major downturns in an effort to “fix” the stock market. Each successive time that the Fed does this, investors have become further reliant on this free put option. Eventually, the Fed put became priced in, pushing equity valuations higher and encouraging investors to take excessive risk. This has led to many criticisms of the Fed put for creating “moral hazard.”
Originally, the Fed put was known as the “Greenspan put.” When Mr. Greenspan finally retired in 2006 after leading the Fed for almost 2 decades, Ben Bernanke and then Janet Yellen both continued his policy of taking action to support the markets during times of crisis. This led to the Greenspan put morphing into what we now know as the Fed put.
When President Trump appointed Jerome Powell as the 16th Chairman of the Federal Reserve in early 2018, investors assumed he would continue the tradition of the Fed put. Investors were even willing to tolerate (albeit grudgingly) further interest rate increases by the Fed as long as they knew that the Fed put remained in place. With this understanding in place, Jerome Powell was able to increase the Fed’s target rate every quarter, which was a much faster pace than his predecessor Janet Yellen had done.
Death of the Fed Put
As the Fed raised rates throughout 2018 while imposing quantitative tightening through the reduction of its $4.5 trillion balance sheet, President Trump openly criticized both Powell and the Fed. The President warned that the higher rates were going to choke off economic growth. Of course, these criticisms went mainly unheeded by the Fed as it maintained its independence from the President and steadfastly kept on its course to raise rates.
In October of 2018, Jerome Powell shocked the markets with the “we’re a long way from neutral” interest rates comment. The market was already dealing with the lingering trade war with China, the threat of a global economic slowdown, and the waning economic tailwind of the tax cuts in the US. Powell’s comments shook many investors faith in the Fed put as many feared the Fed was not acknowledging the many issues while continuing on its path to raise rates. In December, Powell doubled down on his comments from October saying that the Fed would stay the course on increasing rates and would continue to shrink its balance sheet at the same pace. This sent an already struggling market into another tail-spin that culminated in the Christmas Eve decline that saw the Dow Jones plunge more than 650 points.
This prompted David Tepper, who manages $14 billion at Appaloosa Management, to say, “Powell basically told you the Fed put is dead.” The market agreed with this sentiment, as it appeared the Fed was prepared to let the market fall without even attempting to intervene.
Return of the Fed Put
“Feel the market, don’t just go by meaningless numbers.” President Donald Trump’s tweet to the Fed
However, the market had not been completely forsaken by Powell. In early January, Powell abruptly changed his tune (maybe he was finally convinced by Trump’s tweets to feel the market) and acknowledged that the Fed will be closely watching market signals and will be patient with its monetary policy approach.
Powell also indicated that the Fed would be willing to adjust its balance sheet reduction efforts if needed, which sounded a lot like he was willing to inject liquidity in the system if the markets took another downturn. Investors that had feared the Fed was being to hawkish and was going to kill the economy, shouted a collective hallelujah as the market rallied strongly on the recognition that the Fed put was back!
Foto cedidaUnicorn's US Offshore team. From left to right: Mike Kearns, David Ayastuy, Renata Parra and Luis Alvarez. With BNY Mellon IM, Unicorn Has All the Partners it Wants in US Offshore and LatAm Retail
Unicorn Strategic Partners continues to grow. The firm led by David Ayastuy will be responsible for promoting and distributing the UCITS funds of BNY Mellon Investment Management in the US Offshore market. In addition, they have signed Renata Parra, ex-HSBC, as responsible for client services.
Unicorn, with offices in Madrid, Miami, New York, Montevideo, Buenos Aires and Santiago de Chile, will initially focus on servicing BNY Mellon IM assets already on the market, seeking to intensify the company’s presence in the portfolios of family offices, institutional investors and fund platforms in the region.
BNY Mellon, with its multi-boutique model, in addition to the 40Act versions, has more than 50 UCITS funds with exposure to most asset classes. As Luis Álvarez told Funds Society, “there is a great demand from the market in the liquid alts part, it is something that with BNY Mellon we will be able to promote very actively with its Global Real Return Fund”.
Sasha Evers, managing director at BNY Mellon IM for Iberia, Latin America and US offshore mentioned: “We are very excited to be partnering with Unicorn to establish and develop our presence in the US offshore market where we see many opportunities to provide investors with access to leading global investment capabilities. We will provide Unicorn with a range of relevant products managed by our world-class investment specialists, as well as all of the necessary resources and support to enable them to provide the highest quality client service in the local market.”
In an interview, Ayastuy added that it is a great honor to include BNY Mellon IM among its partners and that they are extremely happy with the results they are having when promoting the Vontobel and Muzinich strategies. He also mentioned that, with the addition of BNY Mellon IM, Unicorn does not want to add any other partners in US Offshore and/or LatAm retail “because our way of working is a way of partnership and we want to be able to be an extension of the firms. With BNY and Vontobel we are covered for US Offshore and with Vontobel and Muzinich we are covered for LatAm retail,” he says adding that they would be open to increasing the number of partners in institutional LatAm.
Wikimedia CommonsCourtesy photo. Juan San Pío Joins Amundi as ETF, Indexing & Smart Beta Sales Director
Amundi has appointed Juan San Pío as sales director of the firm’s ETF, Indexing & Smart Beta unit for Iberia and Latin America in an effort to strengthen the region.
San Pío will report to Marta Marín Romano, Amundi Iberia general director, and to Gaëtan Delculée, responsible for global sales of Amundi ETF, Indexing & Smart Beta.
Amundi’s latest appointment joins from Lyxor, where he was responsible for the ETFs and Indexed Funds unit in the same areas for which he has been now appointed. Previously, in 2008, he started working for Société Genérale responsible for Spain’s institutional sales. Prior to that, San Pío served at Santander Asset Management, where he was director of the firm’s external networks and institutional business.
Former roles include that of financial adviser at the private banking division of Morgan Stanley and head of the private banking unit at the Spanish Banco Guipuzcoano based in Madrid.
Foto cedidaEdouard Carmignac. Edouard Carmignac Leaves his Company's Day-to-Day Operations
Carmignac’s President and Founder, Edouard Carmignac, has decided to leave its Patrimoine fund management team as well as his company’s day-to-day operations. In a press conference in Paris today, he mentioned that the transition will be gradual and that he will try to work more efficiently but leaving the day-to-day to a very competent team. He will remain on the firm he founded as CIO and member of the Board.
Earlier this week, he announced that after almost 30 years running it, he has decided to pass on the stewardship of the 16 billion dollar fund to Rose Ouahba, Head of Fixed Income, and David Older, Head of Equities.
Accourding to the company: “30 years after the creation of Carmignac, the investment philosophy of Carmignac Patrimoine remains the same. David and Rose, as sole Fund Managers, have fully embraced their partnership and are focused on reinforcing alpha generation with specific attention to risk management in this challenging global environment.”
Last month he gave David Older the leadership of his 3 billion dollar Investissement fund.
David Older joined Carmignac in 2015 as Fund Manager and was later appointed Head of Equities in 2017. “Expert on global technology, telecoms and media, his considerable experience in alpha generation and long-short management is key in a challenging environment.”
Before joining Carmignac, David Older spent 2003-2015 at SAC Capital/Point72 Advisors in New York, as co-Sector Head of the Communications, Media, Internet and Technology team. Prior to this, David was an Investment Banking Associate in the Communications and Media group at Morgan Stanley. David received a Bachelor of Arts at McGill University and holds a MBA from Columbia University.
Rose Ouahba joined Carmignac in 2007 as Fund Manager to take over the bond component of Carmignac Patrimoine. She was appointed as Head of Fixed Income in 2011. “Rose has been reinforcing and reorganizing the team to strengthen our unique “unconstrained” investment philosophy.”
She started her career as Bond Fund Manager at Ecureuil Gestion in 1996 and joined IXIS Asset Management 3 years later, as Head of the “Bond diversification” team and, subsequently, Head of Structured Credit Allocation. Rose holds a Postgraduate DESS in Financial Engineering from the University of Paris XII.
Carmignac Patrimoine is the original fund of the Patrimoine strategy. In 2013, they launched Carmignac Portfolio Patrimoine, a sub-fund of the Luxembourg Carmignac Portfolio SICAV. Carmignac Patrimoine and Carmignac Portfolio Patrimoine share the same investment strategy, portfolio construction and the same management process.
Wikimedia CommonsFrédéric Lamotte, Photo Linkedin. Indosuez Wealth Management names new Chief Executive Officer for CA Indosuez Wealth (Miami) and Global Head of Americas
Frédéric Lamotte has been appointed Chief Executive Officer of CA Indosuez Wealth (Miami) and Global Head of Americas at Indosuez Wealth Management, the global wealth management brand of Crédit Agricole group. He assumed these roles at the beginning of this year and is based in Miami.
This appointment demonstrates Indosuez Wealth Management’s continued commitment to the Americas and the intention to further develop its wealth management activities in this key market.
Frédéric Lamotte had been Chief Investment Officer at Indosuez Wealth Management group since 2012.
His international experience and his extensive banking expertise will benefit the bank in developing synergies between all of Crédit Agricole group’s businesses in the region.
Frédéric joined Banque Indosuez in 1988 as a member of the ALM department of Saudi French Bank. He then moved to Crédit Agricole Indosuez’s Singapore subsidiary in 1993 as Head of Derivatives before becoming Head of Capital Markets and Derivatives for the Tokyo subsidiary. In 1997, he was appointed Head of Advisory and Structured Products at Crédit Agricole Suisse and later took over as Head of Markets and Investment Solutions at Indosuez Wealth Management Switzerland in 2007.
He is a graduate of Ecole Centrale de Paris and holds a Master’s in International Finance from HEC.
Pixabay CC0 Public DomainPhoto: MichaelGaida. Worldwide M&A Activity Totaled 4 Trillion Dollars During 2018
Worldwide deal activity totaled $4.0 trillion during 2018, an increase of 19% compared to 2017, and only the third year on record M&A has passed the $4 trillion milestone. Global growth has been a theme of the current wave of M&A, and cross-border deal activity totaled $1.6 trillion during the year, a 32% increase over 2017 and the strongest year for cross-border M&A since 2007. Dealmaking in Europe was $1.0 trillion, the highest total in 11 years.
The merger arbitrage universe had a number of positive developments recently that met the headwinds of spreads widening. Specifically:
Tribune Media (TRCO-NYSE), a media company that owns television broadcast stations as well as other media assets, agreed to be acquired by Nexstar Media Group for $46.50 cash per share, or about $7 billion. Previously, in May 2017, Tribune agreed to be acquired by Sinclair Broadcast. Tribune’s deal with Nexstar is expected to close in the third quarter of 2019, and shareholders will receive a “ticking fee” consideration of approximately $0.30 per month if the transaction has not closed by August 31, 2019.
Shire plc (SHPG-NASDAQ) cleared its final hurdle in December when shareholders of acquirer Takeda voted to approve Takeda’s $80 billion acquisition of the company. The transaction is closed in January 2019.
Express Scripts (ESRX-NASDAQ) received all remaining state regulatory approvals in December and the acquisition by Cigna was subsequently completed on December 21. Express Scripts shareholders received $48.75 cash and 0.2434 shares of Cigna common stock per share of Express Scripts, which valued the transaction at about $70 billion.
In addition some notable deals announced in December included:
Tesaro, Inc. (TSRO-NASDAQ), an oncology-focused biopharmaceutical company, agreed to be acquired by British drugmaker GlaxoSmithKline for $75 cash per share, or about $4.5 billion.
Belmond Ltd. (BEL-NYSE), an owner and operator of luxury hotels, tourist trains and restaurants, agreed to be acquired by luxury goods group LVMH Moet Hennessy Louis Vuitton for $25 cash per share, or about $4 billion.
MINDBODY, Inc. (MB-NASDAQ), a cloud-based business management software and payments platform for the wellness services industry, agreed to be acquired by technology investment firm Vista Equity Partners for $36.50 cash per share, or about $2 billion.
We are excited about our prospects to generate returns uncorrelated to the market in 2019. Historically, periods of market volatility have been fertile ground for merger arbitrage investing, because we are able to purchase shares of target companies at cheaper prices.
Column by Gabelli Funds, written by Michael Gabelli
To access our proprietary value investment methodology, and dedicated merger arbitrage portfolio we offer the following UCITS Funds in each discipline:
GAMCO MERGER ARBITRAGE
GAMCO Merger Arbitrage UCITS Fund, launched in October 2011, is an open-end fund incorporated in Luxembourg and compliant with UCITS regulation. The team, dedicated strategy, and record dates back to 1985. The objective of the GAMCO Merger Arbitrage Fund is to achieve long-term capital growth by investing primarily in announced equity merger and acquisition transactions while maintaining a diversified portfolio. The Fund utilizes a highly specialized investment approach designed principally to profit from the successful completion of proposed mergers, takeovers, tender offers, leveraged buyouts and other types of corporate reorganizations. Analyzes and continuously monitors each pending transaction for potential risk, including: regulatory, terms, financing, and shareholder approval.
Merger investments are a highly liquid, non-market correlated, proven and consistent alternative to traditional fixed income and equity securities. Merger returns are dependent on deal spreads. Deal spreads are a function of time, deal risk premium, and interest rates. Returns are thus correlated to interest rate changes over the medium term and not the broader equity market. The prospect of rising rates would imply higher returns on mergers as spreads widen to compensate arbitrageurs. As bond markets decline (interest rates rise), merger returns should improve as capital allocation decisions adjust to the changes in the costs of capital.
Broad Market volatility can lead to widening of spreads in merger positions, coupled with our well-researched merger portfolios, offer the potential for enhanced IRRs through dynamic position sizing. Daily price volatility fluctuations coupled with less proprietary capital (the Volcker rule) in the U.S. have contributed to improving merger spreads and thus, overall returns. Thus our fund is well positioned as a cash substitute or fixed income alternative.
Our objectives are to compound and preserve wealth over time, while remaining non-correlated to the broad global markets. We created our first dedicated merger fund 32 years ago. Since then, our merger performance has grown client assets at an annualized rate of approximately 10.7% gross and 7.6% net since 1985. Today, we manage assets on behalf of institutional and high net worth clients globally in a variety of fund structures and mandates.
Class I USD – LU0687944552
Class I EUR – LU0687944396
Class A USD – LU0687943745
Class A EUR – LU0687943661
Class R USD – LU1453360825
Class R EUR – LU1453361476
GAMCO ALL CAP VALUE
The GAMCO All Cap Value UCITS Fund launched in May, 2015 utilizes Gabelli’s its proprietary PMV with a Catalyst™ investment methodology, which has been in place since 1977. The Fund seeks absolute returns through event driven value investing. Our methodology centers around fundamental, research-driven, value based investing with a focus on asset values, cash flows and identifiable catalysts to maximize returns independent of market direction. The fund draws on the experience of its global portfolio team and 35+ value research analysts.
GAMCO is an active, bottom-up, value investor, and seeks to achieve real capital appreciation (relative to inflation) over the long term regardless of market cycles. Our value-oriented stock selection process is based on the fundamental investment principles first articulated in 1934 by Graham and Dodd, the founders of modern security analysis, and further augmented by Mario Gabelli in 1977 with his introduction of the concepts of Private Market Value (PMV) with a Catalyst™ into equity analysis. PMV with a Catalyst™ is our unique research methodology that focuses on individual stock selection by identifying firms selling below intrinsic value with a reasonable probability of realizing their PMV’s which we define as the price a strategic or financial acquirer would be willing to pay for the entire enterprise. The fundamental valuation factors utilized to evaluate securities prior to inclusion/exclusion into the portfolio, our research driven approach views fundamental analysis as a three pronged approach: free cash flow (earnings before, interest, taxes, depreciation and amortization, or EBITDA, minus the capital expenditures necessary to grow/maintain the business); earnings per share trends; and private market value (PMV), which encompasses on and off balance sheet assets and liabilities. Our team arrives at a PMV valuation by a rigorous assessment of fundamentals from publicly available information and judgement gained from meeting management, covering all size companies globally and our comprehensive, accumulated knowledge of a variety of sectors. We then identify businesses for the portfolio possessing the proper margin of safety and research variables from our deep research universe.
Class I USD – LU1216601648
Class I EUR – LU1216601564
Class A USD – LU1216600913
Class A EUR – LU1216600673
Class R USD – LU1453359900
Class R EUR – LU1453360155
Disclaimer:
The information and any opinions have been obtained from or are based on sources believed to be reliable but accuracy cannot be guaranteed. No responsibility can be accepted for any consequential loss arising from the use of this information. The information is expressed at its date and is issued only to and directed only at those individuals who are permitted to receive such information in accordance with the applicable statutes. In some countries the distribution of this publication may be restricted. It is your responsibility to find out what those restrictions are and observe them.
Some of the statements in this presentation may contain or be based on forward looking statements, forecasts, estimates, projections, targets, or prognosis (“forward looking statements”), which reflect the manager’s current view of future events, economic developments and financial performance. Such forward looking statements are typically indicated by the use of words which express an estimate, expectation, belief, target or forecast. Such forward looking statements are based on an assessment of historical economic data, on the experience and current plans of the investment manager and/or certain advisors of the manager, and on the indicated sources. These forward looking statements contain no representation or warranty of whatever kind that such future events will occur or that they will occur as described herein, or that such results will be achieved by the fund or the investments of the fund, as the occurrence of these events and the results of the fund are subject to various risks and uncertainties. The actual portfolio, and thus results, of the fund may differ substantially from those assumed in the forward looking statements. The manager and its affiliates will not undertake to update or review the forward looking statements contained in this presentation, whether as result of new information or any future event or otherwise.
