Family Office Exchange (FOX), a global membership organization of enterprise families and their key advisors, announced the introduction of FOX Networks, a new way for members to problem solve and gain expertise in six key family office disciplines. The six disciplines areTechnology Operations & Data Security, Human Capital, Private Family Trust Companies (PFTC), and three types of investing—Direct Investing, Strategic CIO, and Endowment Model Investing.
There are three aspects to these networks: leadership from a seasoned, subject matter expert, peer discussion to gain the experience of other members, and high quality research and educational content. These elements are delivered through an online community, in person meetings, and a series of scheduled webinars. Recorded webinars, research, and top industry white papers will be available for each network through the association online Knowledge Center.
“FOX has provided special interest work groups to solve specific problems for decades and now we are formalizing Networks to deepen this problem solving,” said Alexandre Monnier, President of Family Office Exchange. “FOX Networks provide a clear, easy way to reach the ideas and get answers to important topical challenges in family offices.”
The association has recruited a number of distinguished practitioners to run the Networks. Technology Operations and Data Security is headed by Steven Draper, who has served as a technology consultant in the wealth management industry for 25 years. The Human Capital Network is led by Kelley Ahuja, Director of Human Capital, who joined earlier this year from the Lyric Opera of Chicago. The PFTC Network is run by Ruth Easterling, a Managing Director for 16 years. The Direct Investing Network is run by Linda Shepro, Managing Director, who joined from FDX Capital earlier this year. The Strategic CIO Network is headed by David Toth, Director of Advisor Research, who joined from PNC, and the Endowment Model Network is led by Karen Clark, Managing Director, who recently joined FOX from Sandaire, a leading multi-family office in London.
Access to the Networks is included in core membership for current members. Non-members are able to access membership in one Network on an a la carte basis.
Foto: Renato Targa
. MexDer implanta una nueva plataforma de control de riesgos
MexDer, mercado mexicano de derivados, implementará una nueva plataforma de monitorización y control de riesgos para sus miembros. La nueva herramienta, provista por FIX Flyer, ha remplazado la interface de riesgo pre transaccional existente en MexDer, permitiéndole crecer rápidamente y satisfacer las demandas del mercado al mismo tiempo.
El sistema monitoriza la exposición a riesgos de los miembros de MexDer desde una plataforma central, dando a los socios liquidadores máximo control y visibilidad y ofreciéndoles la posibilidad de establecer parámetros de control de riesgo para seguir la operación de sus clientes.
José Oriol Bosch,Director General de MexDer se muestras satisfecho con las mejoras que el sistema supone pues considera que “hemos dado pasos importantes para facilitar el acceso directo del mercado a nuestros productos. El Grupo BMV continúa estableciendo los más altos estándares para la comunidad financiera de México y de América Latina. Esta plataforma de última generación nos permite alcanzar nuestras metas globales . La solución se ha implementado efectivamente logrando que ejecutemos nuestra estrategia de facilitar el acceso a nuestro mercado y atraer flujo global ̈.
̈Nuestros miembros esperan un continuo crecimiento del volumen, lo que en ocasiones puede cargar nuestra infraestructura de negociación ̈ añade José Miguel De Dios, director de servicios transaccionales de derivados en MexDer ̈.
Rotterdam-headquartered asset manager Robeco has announced the launch of a multi-factor credit fund, aimed at offering investors access to a factor-based investment strategy.
The fund will be managed by Robeco’s Credit Team, with Patrick Houweling as portfolio manager. Houweling joined Robeco in 2003 and has also been managing Robeco’s conservative credits strategy since 2012, which exploits the low-risk anomaly in credit markets.
The fund will have 150 to 200 names in its portfolio. Although it mainly consists of investment grade credits, it can hold a maximum of 10 percent in BB in order to benefit from the attractive characteristics of fallen angels and rising stars.
Patrick Houweling comments on the launch: “At Robeco, we have been closely studying the possibilities of bringing our factor investing offering beyond the traditional equity markets. I am delighted that we have put theory into practice by introducing this factor investing fund to credit investors. This fund is driven by our proprietary quantitative multi-factor model, which offers balanced exposure to the low-risk, value and momentum factors.”
It seems the jury is still out over the future direction of the US equity market. Not even a month ago the S&P 500 index flirted with all time-highs, prompting the bulls to wonder if investors really could be the beneficiaries of a seventh successive year of share price gains. Up until then the bears appeared to have had the upper hand – cue recent downward revisions to Q1 GDP numbers, softer than expected retail sales in April and the havoc wrought on company results from a stronger dollar.
I’d counter this pessimistic sentiment. While exporters were hit in the Q1 results season (and yes 45% of S&P companies are overseas earners) domestic companies fared relatively well. Regarding softening GDP numbers, we bulls prefer not to talk about output but national aggregate income which, for the first quarter, registered 1.4% annualised growth. Economists still think there’s no reason for the US not to register 2.5%-3.0% growth in the second quarter annualised.
For me it seems as though we are still in the sweet spot of equity investing. The risk of the US Federal Reserve tightening has been kicked a little bit further into the long grass and, if the IMF has its way, is likely to stay there for some time to come. Yet raising rates is a sign that the economy is not only off life-support but recovering well in the process.
So let’s focus on what we know so far. Knock-out non-farm payroll numbers for May aside, if ever there was a sign of confidence returning to the US economy it’s in the escalating value of M&A deals. In May alone these totalled a staggering US$ 243bn, which if this rate continues could well top 2007’s record. If management didn’t believe the economy was stable they wouldn’t be committing such large amounts of cash to buying other businesses, surely?
And corporates are right to be optimistic. The US economy is one of just three to experience self-sustaining growth in 2014 – the other two being India and the UK. Corporate margins are nearing 50 year highs and, unlike many, I see no reason for them to revert to the mean given the double tailwinds of a fall in oil prices and advances in technology. So while optimistic on the economy, my only real concern is that the rate of corporate investment spend needs to increase. Companies are still in the ‘let’s return cash to shareholders’ mind-set, rather than ‘let’s invest in plant and machinery mentality.’
Unsurprisingly, given the concerted actions of central bankers to drive down bond yields and whip up demand for equities, risk appetite has increased substantially from its October 2014 lows, with investors favouring growth stocks over value. Although, as most US equity investors will know from bitter experience the rotation from growth to value styles and back to growth could change anytime soon.
The recent correction in global bond markets suggests that point may not be too far away. While style volatility has been less pronounced in the US than Europe that’s not to say it doesn’t exist. Watch this space. The trick is, as ever, to keep alpha returns diversified.
Ian Heslop, Head of Global Equities and Manager, Old Mutual North American Equity Fund.
Foto del Annual Investment Management Summit 2014 - foto cedida. Gestionar el riesgo y generar retorno en mercados complejos
The 6th Annual Investment Management Summit: Managing Risk and Generating Return in Complex Market Environments will bring together leading investors, financial advisors and market experts to discuss the recent developments and evolving trends that are shaping the industry.
Against the backdrop of a strengthening US economy and a slowdown in the pace of growth abroad, the summit will provide a comprehensive overview of today’s global economic climate and explore the various factors influencing investment strategy as investors adjust to the end of zero interest rates in the US. Attendants are welcome to participate in lively discussions to better inform asset allocation and risk management decisions.
The Summit will also highlight new trends in investment management and implications for the industry as a whole. From new entrants offering automated online investment advice to increased investor appetite for smart beta and liquid alternatives, the traditional asset management industry is facing a multitude of headwinds that are sure to challenge the status quo. Attend to hear senior industry leaders discuss the changing landscape and offer guidance for the road ahead.
Global investors have moved out of equities into cash ahead of an expected U.S. Fed rate hike, according to June’s BofA Merrill Lynch Fund Manager Survey (FMS). Investors have also shown concern about a Greek default and a possible bubble in Chinese equities as they have scaled back risk.
Cash levels rise to 4.9 percent of portfolios, up from 4.5 percent in May; proportion of investors overweight equities falls to net 38 percent from 47 percent.
Expectations of higher rates are the highest since May 2011, with a net 80 percent of the panel forecasting a rise in short-term rates.
The majority of the FMS panel sees a negative resolution of Greece talks: 15 percent predict Grexit, and 42 percent predict default without exit.
China worries: seven out of 10 investors say China’s equity market is in a “bubble.” A net 50 percent see China economy weakening.
The proportion of investors expecting to underweight global emerging markets surges to a net 21 percent from net 6 percent in May.
Corporate operating margins will fall in the coming 12 months, say a net 17 percent of investors – up from net 5 percent in May.
The U.S. dollar is the most crowded trade as Fed tightening looms; 72 percent predict the euro will weaken vs. the dollar in coming year.
“Higher cash levels show how caution is in the air, with 65 trading days until we expect the Fed to tighten,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Global Research.
“Investors remain bullish on European equities but are increasingly concerned about Greece and higher yields,” said James Barty, head of European equity strategy.
Photo: Otto Nassar
. Pension Plans, Local Managers and Regulation, Topics of the 2nd Annual Private Equity Andean Forum
El Segundo Foro Andino Anual de Private Equity, organizado por Markets Group, tendrá lugar el 13 de agosto en el hotel W de Bogotá. Similares pero diferentes entre sí, Colombia, Perú y Chile ofrecen algunas de las mejores oportunidades de inversión en Private Equity de América Latina. El foro, centrado en la zona, permite descubrir su naturaleza y conocer las ventajas a través de ponentes locales que aportarán una perspectiva sobre cómo manejar el PE en cada país y sus extensas oportunidades.
El foro, una plataforma centrada en inversores, acogerá a más de 200 inversores profesionales, fondos y advisors en una jornada informativa y de discusión, con ponentes como Jorge Rosenblut, de Enersis (Chile); Omar Rueda Galvis, de AFP Protection (Colombia); Juan Carlos Felix, de The Carlyle Group (Brazil); Richard Rincon, de la University of Texas Investment Management Company (US); Sergio Vargas, de Provenir (Colombia); o Jorge Espada, de Profuturo (Peru).
Los temas a tratar incluyen una discusión sobre las aportaciones de las estrategias locales o internacionales de Private Equity a los cada vez más sofisticados portfolios de los fondos de pensiones andinos; el análisis del binomio “instituciones globales y gestores locales”, cómo pueden los inversores internacionales aprovechar los retornos de la rápidamente creciente selección de manager locales emergentes; o una puesta al día sobre regulación y cómo ésta puede afectar a los inversores y gestores activos en la zona
Para más información o inscripciones puede utilizar este link
A new Fitch Ratings study of corporate bond liquidity takes a different approach to the topic by focusing on the characteristics of corporate bonds pledged as collateral in the tri-party repo market. The analysis identifies key features of a sample of bond collateral that could contribute to the risk of fire sales, or forced selling of collateral in a repo funding squeeze.
Corporate bond collateral characteristics such as long-dated maturities, low trading frequency and industry concentration (‘wrong way’ risk) could raise risks of a forced unwinding of repo-funded trades in a scenario where risk aversion increases sharply. Such risk aversion could limit the ability of dealers to finance securities in the repo market. Cash investors such as MMFs could also be forced to sell collateral in the event of a dealer default.
Maturity mismatches between short-term repos and the long-term corporate bond collateral they finance could exacerbate fire sale risk if repo trades are unwound quickly. Over 90% of the bonds in Fitch Rating’s collateral sample have maturities of one year or more. These bonds carry greater interest rate risk, and could be more difficult to sell in a period of market dislocation.
Fed officials have highlighted the risk that fire sales of securities could amplify price dislocation in a period of market turmoil. New York Fed researchers have estimated that up to $250 million per day in corporate bonds can be liquidated without negatively affecting bond prices. Total corporate bond tri-party repo collateral averaged approximately $75 billion in 2014. Forced selling of even a small fraction of that amount could accelerate price pressure during periods of market stress.
The Fitch study is based on a broad survey of corporate bonds pledged as collateral by dealers in the tri-party repo market as of Dec. 31, 2014. Data was reported by prime money market funds in their monthly N-MFP filings made with the SEC.
TSG Group es una empresa boutique de inversión y desarrollo de bienes raíces con sede en Miami. La firma fue fundada en 2008 con la visión de conceptualizar oportunidades inmobiliarias a través de estrategias innovadoras.
Entre las actividades comerciales del Grupo TSG se encuentran el desarrollo, la adquisición de activos, la administración de activos y la administración de propiedades, con un enfoque en los mercados residenciales, de oficinas y de hotelería. A través de su socio estratégico Black Salmon, el grupo transforma propiedades comerciales en rendimientos rentables y ajustados por riesgo para un grupo seleccionado de inversionistas.
A medida que surgen nuevas oportunidades en el sector inmobiliario en constante cambio, TSG Group se posiciona continuamente para lograr los mejores resultados para sus inversores y clientes que honran a toda la organización con su confianza.
