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People Moves: NY Life names CIO; Schroders loses two to Investec, Gresham House
Asset Management
<p>&nbsp;</p> <p>New York Life Investment Management names CIO. Jae Yoon is filling the newly created role, effective immediately. Yoon has worked for NYLIM since 2005, including boutique affiliate MacKay Shields. He moved to the firm from Western Asset Management.</p> <p>Investec grabs ex-Schroders leader. Investec Asset Management has hired Matthew Oakeley as CTO. Oakeley previously worked with Schroders in London for a decade, before stepping down in March. While at Schroders, Oakeley shook up the tech team and changed the technology the firm used. CIO</p> <p>JP Morgan boosts global equities with portfolio manager. Alex Stanic has joined JP Morgan as portfolio manager for growth equity strategies under Howard Williams. He comes to the firm from River &amp; Mercantile Group, where he worked as head of global equities. Pensions &amp; Investments</p> <p>Acadian hires portfolio manager. Boston-based Acadian Asset Management has hired Kurt Livermore as portfolio manager. Livermore previously worked as partner and portfolio manager for U.S. and global equity strategies at GlobeFlex Capital.</p> <p>Ex-Schroders Private Bank CEO moves to Gresham House. Rupert Robinson, former CEO of Schroders Private Bank, is now managing director at Gresham House Asset Management. He will report to CEO Tony Dalwood. The Gresham House trust voted to become a fund house after a shareholder vote last November. Investment Week</p> <p>Allianz Global Investors brings two fixed income funds in house. The firm hired Mike Riddell to manage the Gilt Yield and Sterling Total Return funds, which are currently being managed by Pimco. Ridell left M&amp;G in July after 12 years. He will now report to Allianz GI's CIO for conviction fixed income, Mauro Vittorangeli. CityWire</p> <p>Baring Asset Management hires former Schroders sales manager. Simon Jagger has been named head of U.K. wholesale for Baring. Jagger previously worked at Schroders since 1999, most recently as sales director for the London region. He will make the transition at the end of the year. FundWeb<br /> Photo: ©<br /> &nbsp;</p>
How charity leadership deepens client bonds
Lifestyle, 4:01
<p>Many advisors volunteer in their communities, quietly and anonymously as a matter of personal choice. But recent conversations with advisors show that over a period of time, letting clients know about your involvement with the right charity sends a hugely positive message that deepens bonds.</p> <p>Here are some important lessons, whether you are thinking about supporting a charity or currently volunteering but not letting clients know about it.</p> <p>Show don’t tell</p> <p>For clients, the first and paramount considerations in working with an advisor are whether he or she is trustworthy, capable and a good communicator. Once clients are confident of those dimensions, however, other factors come into play. For many, these factors may include an advisor’s personality and values.</p> <p>That’s why having pictures of your family in your office helps convey a sense of who you are beyond the advice that you provide. And that’s why letting clients know about your charitable activity will communicate your values to clients.<br /> The question is how best to do this.</p> <p>We’ve all heard the expression “actions speak louder than words.” When it comes to writing, Ernest Hemingway was a proponent of the “show, don’t tell” technique, which states that writers should engage readers by actions and feelings rather than by exposition. Here’s how Hemingway explained his “iceberg” theory of writing:<br /> If a writer of prose knows enough of what he is writing about, he may omit things that he knows and the reader, if the writer is writing truly enough, will have a feeling of those things as strongly as though the writer had stated them. The dignity of movement of an iceberg is due to only one-eighth of it being above water.<br /> In communicating your values to clients, the same principle applies; what works isn’t what you say but what you do. Here are four lessons from advisors who’ve let clients know about their commitments to good causes.</p> <p>What are you doing next?</p> <p>Conrad is a veteran advisor who celebrated his 60th birthday five years ago. To mark the occasion, he climbed Mount Kilimanjaro to raise funds for an orphanage in Haiti that was devastated by the 2010 earthquake. While he didn’t approach clients for contributions, he did feature his training regimen and his progress towards his goal in his quarterly newsletter. And since that initial climb, he’s done adventure challenges in Alaska and Morocco to raise funds for this orphanage in 2012 and 2014 and next year is planning a climb up Machu Picchu in Peru.</p> <p>Here’s what Conrad had to say:<br /> I’ve had an amazing response from clients to these treks. A number of clients have offered to support me with donations. But beyond that, many will start meetings by asking about the orphanage and also what I’m doing for my next challenge.</p> <p>I think there are a number of reasons for this. First, I’ve kept these treks top of mind with clients. I visited the orphanage to deliver the first cheque and featured photos of that in my newsletter and on my website and also have pictures of that visit in my office. In fact when I meet with prospects, they’ll sometimes see the pictures and ask about the orphanage or about the things that I’ve done.</p> <p>Second, this wasn’t a one-off effort. I have built this into my routine to the point that clients now are used to this. The fact that it was unusual also helped. People are accustomed to weekend walks and runs to raise money, but my adventure treks stand out as being different. The cause is also a bit different. No one can quarrel with supporting a Haitian orphanage. Now that I’m 65, I think these treks also send a positive signal to clients about my health and energy level. In fact I have had clients ask if I’d t</p>
Tiger cub is standout in HSBC performance ranking
Hedge Funds
<p>&nbsp;</p> <p>It is a Tiger Cub that is delivering strong performance in a long / short value strategy while other disciples of theJulian Robertson family find difficulty to various degrees in a sea of generally negative stock performance. The recent HSBC Holdings plc (ADR) (NYSE:HSBC) (LON:HSBA) Hedge Weekly performance update showed wide dispersion of returns and pointed to winners, including a big bank’s dynamic long / short hedge fund that is finding success in Europe.</p> <p>Tiger Cub Lee Ainslie’s $1.6 billion Maverick Fund is playing to its namesake definition for delivering independent performance in 2015, up 19.68 percent year to date and cracking the top ten of HSBC’s Weekly performance ranking.  Ainslie might have appropriately dialed down his long / short ratios as his performance through September 25 was down a scant -0.70 percent while stocks were themselves significantly lower. After enduring a difficult 30 percent drawdown in 2008, Maverick quickly dialed up positive performance over the last three years with volatility of 11.32 percent.</p> <p>Another winner in the HSBC Equity Diversified / Global category is John Burbank’s $2 billion Passport Global Strategy Fund, which finished August up a slight 0.80 percent, which was actually a big relative win that month. On the year Passport is up 14.57 percent as of August with slightly higher volatility at near 25 percent.</p> <p>A newcomer to the top 20 list is JPMorgan’s Europe Dynamic Long/Short Fund, up 13.54 percent year to date. The €413 million fund operated by Jonathan Ingram, John Baker and Anis Lahlou-Abid is delivering noncorrelated performance with 8.28 percent volatility, having endured its worst drawdown from June of 2008 to November of 2009, down just 16.39 percent at a time when the S&amp;P was down nearly three times that amount. The HSBC Equity Long / Short European average is up 6.91 percent year to date.</p> <p>A consistent performer to watch is Chenavari’s $222 million Regulatory Capital Strategy is up 7.15 percent year to date after turning in an August with a slight 0.22 percent gain. In the Europe / Credit category, they are only outdone by their own Toro Limited fund, which is up 13.89 percent year to date having turned in a 0.64 percent performance during what was a vola</p>
Fintech funding surge: $1.3 billion in a week
<p>Fintech startups are seeing a surge in funding. According to Finovate, The past week  has seen 19 start-ups raised $1.3 billion - and that's not including the $1 billion SoFi round led by Softbank, which despite wide coverage this week, actually closed a few weeks earlier.</p> <p>Here is Finovate's run down of funding for the past week:</p> <p> Paytm, e-commerce and payments, India - $675 million<br /> Avant, consumer lending , U.S. - $325 million<br /> Kreditech, consumer lending, Germany - $92 million<br /> Elevate, consumer lending, U.S., - $70 million<br /> PushPay, mobile payments, New Zealand - $18.7 million<br /> Ellevest, investment platform, U.S. - $10 million<br /> Credible, student lender, U.S. - $10 million<br /> Zameen, real estate hub, Pakistan - $9 million<br /> Cloud Lending Solutions, enterprise lending platform, U.S. - $8 million<br /> Qualpay, payments, U.S. -  $8 million<br /> QuanTemplate, reinsurance platform, Gibraltar - $7.6 million<br /> MMKT Exchange, loan syndication platform, U.S. - $5.9 million<br /> InForcePRO, insurance analytics, U.S. - $4 million<br /> MX (MoneyDesktop), loan syndication platform, U.S. - $4 million<br /> AboutLife, retirement planning, U.S. - $3 million<br /> Orb (Coinpass), payments, Japan - $2.3 million<br /> Safe Cash Payment Technologies, paynents, U.S. - $1.2 million<br /> BloOom, wealth management, U.S. - $50,000<br /> Adyen, payments, Netherlands - N.D</p> <p>Photo: Ed Ivanushkin<br /> &nbsp;</p>
Booking and bottle service app TableLink makes London debut
Lifestyle, 4:01
<p>Nightlife in London is changing. The days of calling up your regular restaurant and calling up friends individually to make plans are something of a relic. Now, there’s an app for that. Two brothers, Floris and David Wentholt, fresh from business school, started with company with an ex Deutsch Bank banker and former Forex trader, reports FinBuzz.  </p> <p>On Friday, September 25th TableLink, an application to book tables and bottle service and split bills between friends, launched its service at the Libertine Club by Chinawhite.</p> <p>Two amazingly tall and attractive blond-haired blue-eyed men, co-founders Floris and David Wentholt, welcomed guests at the entrance. The club was filling up with party-goers who wanted to “reclaim” their nights out, as the app promises.</p> <p>TableLink is the first book and pay platform which claims to “revolutionize” our ordinary social life, starting with the way we go out. Yes, booking a table with friends in a nightclub is a pain! With TableLink, club goers are now able to quickly scroll through a list of their favourite nightclubs and lounges, book the table, bottles, and tickets they want, invite the friends they want to come and pay together directly through one integrated platform.</p> <p>At the big kick-off people enjoyed free drinks and souvenirs and were treated to scantily clad female dancers and a flame-inspired light installation. Floris and David gave a small speech and the night began.</p> <p>The event was attended by gurus of London club scene, namely, John Stephen, co-founder and Senior adviser of the TableLink. Stephen is an iconic figure in nightlife and is the original founder of one of London’s most venerated nightclubs, Chinawhite. Knowing all the influential people in the restaurant and nightlife industry, John Stephen is one of the best-connected individuals in London nightlife. John continues works as a hospitality consultant in London and Dubai.</p> <p>At 11:00pm, the crowd was split into two groups. The first group, which your humble reporter was part of, was transferred to the VIP lounge with tables full of Moët &amp; Chandon Nectar Imperial Rose and canapes. This was the first real-life experience of the app – being VIP and feeling the difference. When I was leaving the party, a long queue outside had gathered.</p> <p>The idea came to David when he once was rejected from a club.</p> <p>On top of that, Floris and David have always worked as a team and had dreamt of starting a business together at some point. The fact that they are very different from each other allows them to benefit from versatile skill sets.</p> <p>Before venturing out on their own, both had been well on their way in their own individual careers.</p> <p>Floris, 26 worked as an engineer for P&amp;G and has a very methodological thought process and likes thinking out of the box. Having worked as a management consultant on investment transactions of over £3bn in cumulative value, he has nurtured a passion for precision and data has consequently become a very data driven person.</p> <p>Floris, holds a master’s in management degree from London Business School and a Master’s degree in engineering from University of Leuven In Belgium. He speaks English, Dutch, French, and Spanish.</p> <p>David, 27, has lived and thrived in over seven countries and also speaks the four languages fluently. As a sportsman and ‘bon vivant’, David loves travelling, going out and making the world his playground, this is why he founded TableLink. David holds a dual Master’s degree from t</p>
As the US IPO market tanks, VC M&A deals hit $5.1b
Venture Capital
<p>The rate of VC-backed start-ups going public in the US may have dwindled rapidly in recent months but a new report by the National Venture Capital Association (NVCA) suggests M&amp;A deal flow has had its strongest quarter this year.</p> <p>There were 90 venture-backed M&amp;A deals in the third quarter, 20 of which had a total value of  $5.1 billion - a 39% jump from the previous quarter. Deal volume meanwhile saw a 42% uptick.</p> <p>The tech sector led the charge, accounting for 69 of 90 deals, with a disclosed aggregate deal value of $3.4 billion.</p> <p>Headline deals included EMC Corp's $1.2 billion purchase of Virtustream,  an enterprise cloud solution provider back by the likes of Blue Lagoon Capital, Columbia Capital, and SAP Ventures. The other big deal was the $675 million acquisition of Warburg Pincus-backed cloud supply chain platform  Gt Nexus by Infor Inc.</p> <p>Its a stark contrast to the amount of IPO activity in the space. VC-backed public offerings raised a total of $1.7 billion for period - a 55% drop from the previous quarter - thanks to global markets being sent into a tailspin by China economic turmoil.</p> <p>In total there were 13 venture-backed IPOs, 11 of which listed in NASDAQ, the rest on the NYSE. Interestingly it was the life sciences industry that accounted for the lion's share of offerings. The most recent to go public on NASDAQ was Austria-based Nabriva Therapeutics which raised $92.3 million on September 17th.</p> <p>Bobby Franklin, president and CEO of NVCA, thinks there is still cause for optimism regarding IPO exits. He noted the two-thirds of those who did IPO are trading above their offering price, indicating the of quality of VC-backed IPOs.. Franklin added: <br /> “In addition to market volatility weighing down IPOs, another recent and important trend that has impacted the venture-backed IPO market is the increased activity of both VCs and non-traditional investors making late-stage investments into private companies that might otherwise file for an IPO.  While these so-called ‘private IPOs’ are weighing down the current IPO market, it also means the venture-backed IPO pipeline is deep and we are hopeful exit activity picks up steam in future quarters.”<br /> Photo: 드림포유</p>
The dollar drop and credit spreads: How to fix this
Capital Markets
<p>The dollar drop and credit spreads: How to fix this, by Mauldin Economics<br /> This is a pickle wrapped in a conundrum surrounded by a puzzle, or something like that. The Fed declined to hike rates, which everyone thought was bullish, and then stocks got on the vomit comet. They’ve been going down on an elevator ever since.</p> <p>I think what’s interesting here is how shamefully far behind the Fed is on this. Dudley is out there still talking rate hikes. Like, just the other day. He has gone right out of his tree. It’s almost as if he lost his B-Unit and can’t log into Bloomberg.</p> <p>It was like this in the financial crisis, too. The Fed was very slow to act. It is a known fact that the Fed has never forecasted a recession (in spite of employing hundreds of nerd economists whose job it is to do precisely that). They don’t even react to them very well. I’m not certain we’ll get a recession, but the Magic 8 Ball says, “It is decidedly so.”</p> <p>Like junk bonds, for example.</p> <p>Credit spreads tend to be the best capital markets indicator of bad juju. The underlying bonds are even worse than the ETF. There are bonds that are gapping 10 points lower at a time.  There is no dealer participation.  We are going to get hung bridge loans.  Some of the larger deals are troubled.  It is a mess.</p> <p>My guess is that over the course of the next few weeks, the Fed is going to change their minds on rate hikes. Maybe they have already. It’s been my view that they won’t hike until 2017. I still believe that to be the case. I think you and I know what the Fed is going to do better than the Fed itself.</p> <p>There are some people who think we’re FUBAR, that the Fed is out of ammo and we just have to get run over by the Mack truck because we can’t hike rates anymore, and what good is QE going to do, anyway?</p> <p>Well, the one thing QE did was to raise asset prices, which happens to be the thing that currently ails us.</p> <p>But remember, the Fed has all kinds of tools that haven’t even been explored yet.</p> <p> They can lower reserve requirements<br /> They can lower IOER (interest rate on excess reserves)<br /> They can do some magic stuff with the repo market that I don’t understand<br /> Helicopter money</p> <p>The latter refers to when the central bank prints money and doesn’t buy bonds with it… it just mails out checks to everybody.</p> <p>If I were a gold bear, I’d be nervous.<br /> Let the Dollar Drop<br /> The only way the Fed can get out of this is if they somehow manage to get the dollar to go the other way. To sell off</p>
Are "honey badgers" the new unicorns?
Venture Capital
<p>Unicorns - startups valued at over $1 billion - are so common now that their cachet has waned. In an age of frothy private market valuations a new, even more elite breed of startup is on the rise: the honey badger. </p> <p>Fortune's Dan Primack has coined the term to describe startups that have raised over $1 billion or more in equity funding. They are not to be confused with Decacorns - startups valued over $10 billion - but there is some overlap.</p> <p>Fintech start-up SoFi is the newest member of the honey badger sett. raising $1 billion in round led by SoftBank this week - the startup has now raised $1.42 billion plus $400 million in debt financing.</p> <p>Of all the firms to raise $1 billion or more in private funding, research firm Mattermark puts SoFi at number 26 - 21 of these companies are still privately held. The five that have since gone public are Facebook, Alibaba, Groupon, Clearwire, and Fisker Automotive.</p> <p>Unsurprisingly, Uber tops the list of private honey badgers. Other members of this exclusive group include Chinese Uber rival Didi Kuaidi, AirBnb, and India's Flipkart.</p> <p>This may be the group to watch in the coming months. Looking at the middling public performance of those who have already listed - and the prospect of VC-backed IPO drought - there is as big question mark over where these honey badgers are headed.</p> <p>They may turn just around and give their late stage investors a nasty bite.<br /> Photo: Laurens</p>
The other side of Credit Suisse: baking cookies and pulling weeds
Lifestyle, 4:01
<p>&nbsp;</p> <p>Once a year Credit Suisse employees across the world take part in the bank’s social-volunteer projects. Instead of sitting in the office, curious employees can spend a day volunteering in the community.</p> <p>The volunteer program has been around for 9 years and is extremely popular, since the employees can themselves choose the volunteer activity which interests them. All of the bank’s 45,800 employees, from managers to entry level, are eligible for the program.</p> <p>In 2014, more than 7,800 Swiss employees took advantage of the opportunity and together contributed 63,000 volunteer hours. Most bankers are motivated by the opportunity to help society, as well as learn something new.</p> <p>Bankers get a chance to do hands-on activities, like learning how to bake traditional Swiss croissants, call ‘gipfels’, from locals. This gives employees an opportunity to spend a day in a bakery and learn about the peculiarities of a new profession and at the same time acquire a new skill set.</p> <p>It’s not all fun and games, the baking volunteer days start at 6:30 am, and the new bankers-turned-bakers must go through rigorous hospital-like hygienic procedures and then dive into baking.</p> <p>Volunteers aren’t given instructions how to make the cookies but have to learn on the job, which takes them out of their comfort zone. Employees get a chance to work with a new team and learn from each other.</p> <p>Besides mastering the art of baking, potential volunteers are exposed to a wide range of other programs, such as managing events for people with limited abilities, repairing items at the Transport Museum, planting fruit trees, or cleaning up the woods.</p> <p>Another activity involves taking a group of bankers into a special forest management zone, where there is a special focus on preserving unique landscapes and taking care of local types of fauna. The essence of the job here is removing weed and removing sedge from ponds. All these activities help preserve a forest and prevent the unnecessary migration of fauna – butterflies, frogs, and birds.</p> <p>Credit Suisse employees constantly give positive feedback on the day spent in the open air.</p> <p>This story originally appeared in FinBuzz.<br /> Photo: Michael Verhoef</p>
A fragile transition supported by (further) policy accommodation
Asset Management
<p>SUMMARY</p> <p> At the Cyclical Forum in September, PIMCO investment professionals from around the world gathered in Newport Beach to discuss and debate the state of the global economy and markets and identify the trends that we believe will have important investment implications over the next 12 months.<br /> The Asia-Pacific region definitely falls in the slow lane of PIMCO’s multi-speed world. While absolute levels of growth in countries like China remain high, the region as a whole is going through a fragile transition, with many countries experiencing slowing rates of growth and/or growth that remains below potential.<br /> This is likely to result in further easing of monetary conditions across the region as policymakers attempt to support cyclical growth, either via lower interest rates, weaker currencies or a combination of both.</p> <p>In the following interview, Portfolio Managers Adam Bowe, Isaac Meng and Tadashi Kakuchi discuss conclusions from PIMCO’s quarterly Cyclical Forum, in which the company’s investment professionals debated the outlook for global economies and markets. They share our views on economies and investment implications across the Asia-Pacific region over the next 12 months.</p> <p>Q: PIMCO has described the global economy as having a multi-speed growth trajectory. How does the outlook for Asia fit within that framework?<br /> Bowe: Asia definitely falls in the slow lane of PIMCO’s multi-speed world. While absolute levels of growth in countries like China remain comparatively high, the region as a whole is going through a fragile transition, with many countries experiencing slowing rates of growth and/or growth that remains below potential. While China continues to grapple with its own domestic transition away from export- and investment-led growth, the rest of the region is struggling to adjust economic growth models to a new environment. China has become a headwind rather than a tailwind, with its continued progress toward financial liberalization causing bouts of volatility across equity and currency markets.</p> <p>This fragile transition is likely to result in further easing of monetary conditions across the region as policymakers attempt to support cyclical growth, either via lower interest rates, weaker currencies or a combination of both. Even in Japan, where we expect growth to improve over the next year as consumption recovers from the valued-added tax hike in 2014, persistently low inflation and the impact of China’s weaker growth trajectory and currency devaluation are increasing the likelihood of an expansion of Abenomics over the cyclical horizon.</p> <p>Q: Could you elaborate on PIMCO’s view on China over the cyclical horizon? What are the implications of the plunge in equity markets and the yuan’s devaluation?<br /> Meng: The Chinese economy is going through a multi-year New Normal adjustment. Growth will inevitably moderate as policymakers rebalance the economy away from investment and toward consumption, over-leveraged borrowers repair their balance sheets and frothy asset prices adjust.</p> <p>Indeed, the adjustments got very bumpy in the third quarter. The credit-fueled equity bubble crashed and China’s A-share market has fallen by about 40% from its peak on 12 June. This sent severe shocks via the wealth, expectations and balance sheet channels. PIMCO estimates that the equity market crash will drag down GDP growth by up to 100 basis points (bps) over the next 12 months.</p> <p>On 11 August, the People’s Bank of China (PBOC) relaxed the yuan’s quasi-peg to the dollar, a move that was followed by devaluation of around 4% in one week. Although thi</p>