Monthly Intelligence Report: Asset Management. January & February 2013

Transcription

1 Monthly Intelligence Report: Asset January & February 2013

2 Industry Comment In 2012 it was all about defensive growth stocks: unregulated private companies with robust, defendable earnings and a growth kicker from the likes of the US, Latin America or Asia. But this gives rise for concern, fully valued quality stocks. They are some of the finest companies in their field but beware what you pay for defendable earnings streams. Valuations in many cases are now demanding. Looking to 2013 we all know that much of Europe is in bad shape. GDP growth is not expected, but as we say in fund management - it will be a game of 2 halves. A poor start to the year followed by a stronger finish. So if you can t buy defensive growth anymore where do you go? Certain domestic companies have proved resilient during the downturn (and they have, indeed, had a bit of practice at this). Some of these companies may even be consistently negative at the earnings growth level, but markets have punished them - and their share prices - enough. Sectors to search in are economically sensitive media companies who understand the transition to online business models; a bit of domestic construction perhaps; companies exposed to a rebounding China. Dare to add to some of the higher quality banking names they are repaying their LTRO loans; rebuilding capital ratios, and with now limited avenues to invest surplus capital could once more become lowly valued high dividend payers. Perish the thought. How to time your entry point? Trust in politicians to offer some weak spots for investors. Italian elections, Spanish debt rolls, German elections. We are a nation of worriers the reality won t be as bad. Comment from a European Equity Fund 2

3 Review Headline News Headline News Stories Headline ORIX acquires Robeco Five major names quit ING for Neuberger Berman Liontrust net inflows quadruple to 64m in Q4 Story ORIX Corporation (ORIX), Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., (Rabobank) and Robeco Groep N.V., (Robeco) have announced that ORIX is acquiring approximately 90.01% of the equity in Robeco from Rabobank, for EUR 1,935 million (JPY billion). The closing of the transaction is subject to legal and regulatory approvals, which are expected to be completed within six months. Part of the agreement is a strategic alliance between Rabobank and ORIX. This includes Rabobank retaining a 9.99% share in Robeco, and continuing to cooperate in maintaining and expanding Robeco s business platform. ORIX will allocate treasury stock to Rabobank as part of the acquisition price, and as a result Rabobank becomes a shareholder of ORIX. Also, ORIX and Rabobank have agreed that Robeco s banking activities, which are only based in the Netherlands, will be transferred to Rabobank with Robeco retaining its client service relations. The financial market has drastically changed since the financial crisis and ORIX believes that it is necessary to pursue a new business model by combining finance with related services in a strategy called Finance + Services. As one of the measures to drive this strategy, ORIX has been seeking to build its presence in the global asset management industry in recent years, as evidenced by the 2010 purchase of Mariner Investment Group in the U.S. Five senior members of ING Investment s emerging markets debt unit have quit the firm for Neuberger Berman, it has been revealed. Departing the firm with immediate effect are co-heads of the department Rob Drikkoningen and Gorky Urquieta, as well as fund managers Bart Van der Made, Raoul Luttik and Prashant Singh. ING IM confirmed the departures and said Sylvain de Rujiter will serve as acting head of the emerging market debt team following the departures. Jaco Rouw, a fixed income and currency specialist at ING, has also been added to the EMD team. It is understood the new hires will oversee the development of Neuberger Berman s emerging market debt offering Liontrust made a net inflow of 64m over the final quarter of 2012, over four times the equivalent period the previous year. The group's net inflows for the financial year to 31 December 2012 reached 253m, over three times higher than the same period the previous year. Retail net inflows were 147m over Q4, but there were net outflows of 53m from the institutional business and 30m from offshore. Assets under management (AUM) at close of business on 31 December 2012 were 2.53bn, up 65% since 31 March 2012.The bulk of AUM sits in portfolios run using the Economic Advantage process with 1.138bn in total at the end of last year. John Ions, chief executive, said: "We have continued to generate impressive growth in assets under management since the start of the financial year, delivering net inflows of 64m over the past three months. "We have broken through 2,500m in AUM and have recorded ten successive quarters of net inflows despite the ongoing volatile market and economic environment." 3

4 Review Headline News Headline News Stories Headline Polar Capital sees AUM boost Natixis unveils first onshore fund for UK retail market Aberdeen to slow flows into emerging markets funds with 2% charge Story Polar Capital has reported a jump in assets under management in its latest group update. As at 31 December 2012, group AUM increased by 18% to $6.02bn from the $5.08bn reported on 31 March The figure represents a 42% increase from the $4.24bn reported on 31 December In the nine months to 31 December 2012, long-only funds saw an inflow of $842m, while hedge funds saw an inflow of $81m. Market movements and performance led to a $19m loss on the long-only side, however, while market movements boosted the group s hedge funds by $34m. Total AUM in long-only funds was $5.2bn at the end of last year, and $833m in hedge funds. Performance fees over the nine months totalled 5.m, excluding staff allocations. In October 2012 we reported that in our first half year, to September 2012, the group had received $405m of net inflows."it is encouraging to report that the positive flows have continued with a further $518m of net inflows being received in our third quarter, across a range of strategies, taking the year to date net inflows up to $923m, the firm said. Assuming market conditions do not deteriorate, we are well positioned to continue to grow our AUM in Natixis Global Asset has launched its first offering under a newly set up OEIC umbrella, the Loomis Sayles Strategic Income fund, as part of the group's plans to make more funds available to the UK retail market. Investors will be able to access the group's funds in an onshore format for the first time following demand for this type of product. Natixis, which has 23 affiliates asset management groups with AUM of 454bn, plans to add other sub-funds to the OEIC including an offering from H2O, a global macro manager. The Loomis Sayles Strategic Income fund managers Dan Fuss, Elaine Stokes and Matt Eagan invest across the fixed income spectrum, looking to generate a higher income. Fuss said: "In an environment like this, investing in a fund that has the ability to sift through asset classes and pick specific bonds of companies with strong market share and growth potential is absolutely essential. "The beauty of our flexibility is we can shorten duration, when necessary, and we have already positioned for ourselves for a protracted rising rate environment. The US mandate has $14.7bn AUM and has been running since Aberdeen Asset intends to slow flows into its global emerging markets funds by implementing a 2 per cent initial charge. The initial charge will be applied to the 9.9bn Aberdeen Global Emerging Markets Equity fund and the 1.7bn Aberdeen Global Emerging Markets Smaller Companies fund from 11 March, while it will go on the 3.7bn Aberdeen Emerging Markets fund from 15 April. The asset manager has made efforts in the past to slow flows heading into the popular funds but says inflows have started to pick up again recently. It also expects more money to head towards emerging markets in the future as investor interest remains high. Aberdeen head of distribution John Brett says adding new stocks to the portfolios just because of money coming into the funds, rather than because they meet their quality standards, would not be in the interests of the funds investors. Further inflows, if unchecked, will give rise to liquidity issues which may in time result in the investment team being forced to compromise its investment process, resulting in the introduction of lesser quality companies, he comments. In addition, the group says it will close its US domiciled mutual and commingled funds. 4

5 Board Level Pierre Gil Lyxor Asset CEO - UK Lyxor Asset Head of International Development (role to be continued) Mark Armour Invesco Perpetual CEO (role to begin end of 2013) Invesco Perpetual Head of Global Institutional Business Hans Stoter ING Investment CIO ING Investment Head of Credit Laurent Tignard Edmond de Rothschild Group Global Head of Asset HSBC Global Asset (France) Managing Director 5

6 Equity Charlie Deptford TBC TBC Smith & Williamson UK Equity Fund Mark Boucher Smith & Williamson Director - Head of UK Equities Unknown UK Equity Fund William Stormont TBC TBC Henderson Global Investors European Equity Portfolio Paul Casson TBC TBC Henderson Global Investors European Equity Portfolio Simon Savill TBC TBC Henderson Global Investors Smaller Companies Sally MacDonald Marlborough Fund s Head of Asian Equities City of London Asset Fund Edward Cole Carmignac Gestion Emerging Market Equity Analyst - EMEA Finisterre Capital Portfolio Simon Peters TBC TBC Henderson Global Investors Global Financials Hedge Fund Jake Thomson TBC TBC Morgan Stanley Investment Edward Chan TBC TBC Royal London Asset Jonathan McClure TBC TBC Royal London Asset Asia-Pacific, International Small Cap/ Global Dividend Yield Analyst Far Eastern Equity Portfolio Japanese Equity Portfolio 6

7 Equity Peter Harrison Schroder Investment Global Head of Equities RWC Partners Limited CEO Alex Jones F&C Asset Analyst - Multi-Alternative Team Goodhart Partners Analyst - Multi-Alternative Team Ben Fox F&C Asset Co-Head - Multi-Alternative Team Goodhart Partners Partner Ralph Singleton TBC TBC Montaro Asset Head of Fund / Equity Income Portfolio Stephenanie Niven Tesco Pension Investment Global Equity Portfolio Javelin Capital Global Equity L/S Fund Paul Allison Tesco Pension Investment Global Equity Portfolio BAE Systems US Equity Fund Richard Falle Tesco Pension Investment European Equity Portfolio David Winbourne Tesco Pension Investment Asia/Japan/Emerging Market Equity Portfolio LV Asset Sarasin & Partners European Equity Portfolio Associate Partner, Asia and Emerging Market Equity Research Gregory Molinaro TBC TBC CPR Asset Mixed-Asset Portfolio Ben Russon Franklin Templeton UK Equity Fund Newton Investment UK Equity Fund Joël Le Saux Syz & Co Japan Portfolio UBP Asset Japan Analyst Scott Lothian Schroder Investment Senior Strategist - Strategic Solutions Team BEA Union Investments Jane Coffey TBC TBC Royal London Asset Head of Multi-Asset Head of Equities 7

8 Fixed Income Neil Birrell Premier Asset Portfolio - Alternative Strategies Fund AXA Framlington CIO David North TBC TBC Legal & General Investment Kumaran Damodaran Man Group Emerging Market Fixed Income Portfolio PIMCO Head of Asset Allocation & Global Macro Portfolio Portfolio - Absolute Return Pierre Verle Carmignac Gestion Credit Analyst Butler Investment Distressed Debt Investor Warren Hyland Muzinich & Co Emerging Market Corporate Debt Fund Schroder Investment David Scammell TBC TBC Schroder Investment Emerging Market Debt Fund Head of European and UK Interest Rate Strategies 8

9 Fixed Income Gorky Urquieta Rob Drijkoningen Bart van der Made Prashant Singh Raoul Luttik Neuberger Berman Investment Neuberger Berman Investment Neuberger Berman Investment Neuberger Berman Investment Neuberger Berman Investment Jonathan Cunliffe Tesco Pension Investment Head of Fixed Income and Investment Strategy EM Debt Portfolio ING Investment Co-Head of EM Debt EM Debt Portfolio ING Investment Co-Head of EM Debt EM Debt Portfolio ING Investment Lead Investment, EM Debt EM Debt Portfolio ING Investment Investment, EM Debt EM Debt Portfolio ING Investment Lead Investment, EM Debt Aberdeen Asset Head of Global Fixed Income Macro Strategy Salman Ahmed Lombard Odier Fixed Income Strategist EDF Trading Head of Global Macro Ashley Potter JP Morgan Asset Executive Director, Infrastructure Debt Team Ofgem Senior Adviser 9

10 Sales & Client service Nicola Hayes Baring Asset Head of Client Service and Relationship Development Axel Lomholt Vanguard Asset Head of European Product Developement and Invesco Perpetual BlackRock Associate Director, Global Sales & Relationship Head of ETF Europe & Asia Anne Bellavoine Carmignac Gestion Head of Marketing Societe Generale Relationship - Financial Institutions David Palmer Ashcourt Rowan Asset Jon Bailie Pioneer Investment Head of Distribution - Western Europe and LatAm Business Director Generali CEO - Portfolio Division AXA Investment Global Head of Distribution Nick Casey Carmignac Gestion UK Sales Aviva Investors IFA Distribution Mark Skinner TBC TBC Henderson Global Investors Director of Global Retail Distribution Richard Wilson HSBC Global Asset Global Marketing Henderson Global Investors UK Retail Marketing James Senior Henderson Global Investors Marketing Consultancy Role Ignis Asset Head of Marketing Communications Nick Webb Neptune Investment Intermediary Sales - Central England and East Anglia Skandia Sales 10

11 Sales & Client service Kevin Bull SEI Investment Strategic Alliance Investment Director Hearthstone Investments Key Account - Consultancy Contract Simon Pinner SEI Investment Sales Director SWIP Head of Sales Support Michael van Riesen Assenagon Group Managing Director Sales & Head of Munich Branch DekaBank Head of Sales - Capital Market Products to Savings Banks David Bower Invesco Perpetual Head of Marketing EMEA Region BlackRock Head of EMEA Marketing Steven Bayly BlueBay Asset Head of German Sales BlackRock Head of Institutional Sales Sjef Pieters Russell Investments Head of Nordic Sales - Institutional Sail Advisors Senior Vice President - Sales Europe Russell Lancaster Fidelity Investments Sales Director RSA Distribution Director Frank Richter Standard Life Investments Investment Director - Institutional Sales, Germany and Austria AXA Investment Head of Institutional Sales - Germany & Austria Anna Troup BlueBay Asset Product Goldman Sachs Asset Roz Amos UBS Global Asset Head of European Consultant Relations Philippe Fidaire ING Investment Institutional Client, ING France Towers Watson Allianz Global Investors Insurance Client Portfolio Senior Investment Consultant Head of Insurance Channel 11

12 Sales & Client service Stephen Moore Impax Asset Head of Wholesale Distribution (ex North America) DWS Investments Head of UK Wholesale Sales Gavin Lewis UBS Global Asset Director, Institutional Business Development, UK and Ireland Ed Tomlinson SEI Investment Senior Business Development Director Russell Investments BNP Paribas Associate Director, UK Institutional Sales UK, Ireland & Offshore Institutional Sales Angus Woolhouse Baring Asset Global Head of Distribution Matrix Securities CEO, Asset Division Staffan Kampe BlueBay Asset Director of Sales, Nordics Lyxor Asset Head of Institutional Sales, Nordic region Paul Trickett TBC TBC Goldman Sachs Asset Lead - EMEA Global Portfolio Solutions Group Mikael Fellbom Carmignac Gestion Head of Country - Nordics Corum Asset Partner, Head of Business Development Axel Weiss Affiliated s Group Director & Country Head for Germany Patrick Sege Affiliated s Group Director & Country Head Switzerland, Austria and Lichtenstein Fidelity Liongate Capital Director of Relationship & Sales Head of Business Development for Switzerland and German speaking Europe 12

13 Contact Asset EMEA Sheffield Haworth EMEA 60 Gresham Street, London EC2V 7BB t: +44 (0) e: w: William North Associate Andrew Thompson Associate e: t: +44 (0) e: t: +44 (0)

14 The information contained in this document has been compiled by Sheffield Haworth from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. This document does not constitute or form part of, and should not be construed as advice. Sheffield Haworth accepts no liability whatsoever from any consequential loss or damage arising from any use of this document or its contents. This document may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without the prior, written consent of Sheffield Haworth. Sources: efinancialnews.com, Investment Adviser, Investment Week, FTfm, City AM, citywire.co.uk, bestinvest.co.uk