Wealth & Finance International - Fund Awards 2016
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The Very Best Services and Solutions We invited Head of Income and Capital Markets Funds at ICD, Abdullah Ashy to provide us with an absorbing overview of the firm and its service offering.
Islamic Corporation for the Development of the Private Sector
Taking Their Opportunities We invited Jean Paul Szita at Ethika Investments, a real estate private equity firm, to talk us through the firm and how it came to win this prestigious accolade.
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Welcome to the 2016 Fund Awards The health of the international fund industry has long been an indicator of global economic recovery, and as the world slowly improves following the recent economic crisis, this sector is increasingly having to innovate and adapt in order to grow and thrive. The 2016 Fund Awards is looking to reward and recognise the forward thinking and intuitive professionals from around the world who have worked tirelessly over the last twelve months to provide their investors with strong returns and reduced exposure to volatility.
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6 Ethika Investments Best North America Real Estate Fund: Real Estate Fund II & Best for Opportunistic Real Estate Asset Investment - California 8 Schroders Best Italian Equity Fund: Schroder ISF Italian Equity 10 Schroders Best Central & Eastern Europe Equities Fund (10 Years): Schroder ISF Emerging Europe 12 Schroders Best Ecology Equity Fund (3 Years): Schroder ISF Global Climate Change Equity 14 Schroders Most Trusted Global Asset Management Firm 2016 16 ICD Best Sharjah Compliant Open-Ended High-Yield Income Fund (Since Inception): ICD Money Market Fund (ICD MMF) & Most Innovative Asset Management Firm 2016 - Apac-Mea Region 18 Macrocapitales Best Multi-Sector Fund Manager 2016 - Peru 20 Stats Investment Management Co., Ltd. Best Hedge Fund Manager 2016 - Japan 22 1st Port Asset Management Best Capital Growth Mixed Assets Fund (10 Years): Hurlingham Growth Fund & Best Discretionary Portfolio Investment Boutique 24 Alpha Real Capital Best Closed-Ended Real Estate Fund: Industrial Multi-Property Trust 25 BMO Global Asset Management Most Innovative Asia Focused ETF (1 Year): BMO Asia USD Investment Grade Bond ETF & Best ETF Provider 2016 - Asia 26 Brockhaus Private Equity GmbH Most Innovative German Private Equity Firm 2016 & Private Equity Deal of the Year: Most innovative pro-active Deal Sourcing. Management 28 Changjiang Asset Management Asset Manager of the Year 2016 - Greater China & Best Long/Short Hedge Fund (1 Year): Changjiang Absolute Return China (Cayman) Fund 29 Dalfen America Corporation Best Real Estate Investment Manager - North America 30 EQ Investors Best Investment Management Boutique - UK & Award for Excellence in Low Cost Tracker Fund Investing 2016 31 Greiff Capital Management AG Best Absolute Return-Oriented Equity Fund (5 Years): Greiff Special Situations Fund OP & Best Investment Fund Manager 2016 - Germany 32 ICU Best Total Return Active Investment Portfolio (Since Inception): CIS Opportunities Fund & Best Securities Trading & Investment Bank – Ukraine 33 LOYS Best European Securities Focused Investment Fund (1 Year): Loys Europa System I & Most Innovative Fund Manager 2016 - Germany 34 Old Mutual Investment Group Best African Absolute Return Multi Asset Fund (Since Inception): Wealth Defender Portfolio & Best Absolute Return Portfolio Manager - South Africa 35 Principia Best Venture Capital Firm - Italy & Best New Healthcare VC Fund: Principia III - Health 36 Prophet Equity Best Data-Driven Private Equity Firm 2016 & Best for Special Situation Lower Middle Market Investments 37 Stratigis Capital Advisors Best Portfolio Management Boutique - Canada 38 Standard Bank Best Custodian 2016 - South Africa
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Company: Ethika Investments Name: Jean Paul Szita Email: jpszita@lauruscorporation.com Web Address: www.ethikainvestments.com Address: Suite 1016, 1880 Century Park East, Suite 106, Los Angeles, CA, 90067 Telephone: 1.310.954.2009
Best North America Real Estate Fund: Real Estate Fund II & Best for Opportunistic Real Estate Asset Investment - California
Ethika Investments is a real estate private equity firm formed to provide investors access to a unique platform by tactically investing in opportunistic real estate assets primarily in the United States. We invited Ethika President Jean Paul Szita to talk us through the firm and how it came to win this prestigious accolade.
Ethika Investments, an affiliate of Laurus Corporation, a real estate investment and development company that specializes in hotel and resorts, office buildings, multifamily and mixed-use properties, is a Registered Investment Advisor which specializes in management of private equity real estate funds with a vertically integrated solution.
It is this strategy which sets the firm apart within the financial market and highlights the suitability of its investment offering to clients, as Jean Paul explains. “Ethika is vertically-integrated, serving both as a fund manager and real estate services provider, and working in tandem with our affiliate Laurus Corporation, we are directly involved in the management of the business plan for every investment, ensuring execution of the value-add process from start to finish.
The firm’s fund partners vary throughout each real estate cycle, but generally are a 65% /35% split between foreign and domestic capital sources. Its clientele includes a wide variety of investors, from large institutional pensions to private sovereign wealth funds. Jean Paul explains the firm’s investment strategy and how it aims to provide these clients with the best possible financial solutions which meet their needs.
“The company puts together entire strategies for investing that encompass everything from sourcing the asset, underwriting the asset, escrow, design, construction, repositioning, accounting, investor relations and property management, consolidating the entire process to a single operation, again minimising risk and the room for error. Ethika also has a highly diverse client base and prides itself on developing and maintaining relationships with their clients as the core of its business.
“Here at Ethika, we believe timing and diversification are the key components to any successful investment strategy. “Therefore, our team focuses on investments in value-add and credit strategies where our team can stabilize the assets to produce dependable yields as well as upside opportunity, or provide financing that requires a deep understanding of transitional assets outside of the purview of traditional commercial real estate lenders to produce outstanding risk-adjusted yields. In today’s market, underperforming transitional assets remain attractively priced, and continue to deteriorate as distressed owners are unable to continue investing in them. After the strong acquisition period that occurred post 2009, we are finding that today is the era of strategic execution of value-add investment business plans and maximization of end value.
“Ultimately our midsize niche elevates us from the crowd of competitors; a typical deployment lies between US$15 to $30 million, with an increased value on our net multiple goal of 2.0x over the fund’s investment.” Central to the firm’s success is its experienced and dedicated staff, who are ambitious and eager to support clients however possible. “At Ethika our staff are integral to the firm’s continued expansion, into new markets and alternative investment strategies, as we explore unique approaches to value creation while upholding our commitment to delivering outstanding risk-adjusted returns to our investors. As such we look for individuals that prioritize relationships with clients and who possess a diversified and substantial background in the industry.
“Partnering with a local private equity real estate fund like Ethika provides foreign investors a trustworthy alignment of interest. Our funds also allow for vested interest as well as a clear objective, breadth of cycle-tested experience and an expansive skill set.”
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“Individuals who have a history of excelling in their careers both professionally and academically and in particular, value those who have demonstrated their ability to provide leadership in their prior organizations are highly sought after, and we aim to support them and provide a working environment in which they can flourish and grow in their careers.”
Looking at the challenges the market faces, additional interest in U.S. real estate is increasing competition, making it imperative that fund managers understand the subtleties affecting regional deals and dig deeper into secondary markets, moving beyond U.S. gateways. Ethika’s recent investments in Minneapolis, San Antonio and San Diego are cases of upside opportunity brought about by the dynamic growth in these local markets and beyond and are testimony to the success of the firm’s approach to investment.
Within the wider financial market, while there seems to be no shortage in available capital, funds and investment managers are taking their time, carefully combing for smart deals, and adopting a wait and see approach as the market transitions.
Moving forward, an increased migration of both domestic and institutional capital into alternative investments is predicted, with the real estate market set to increase its focus on funds that strive for alpha creation, or with respect to yield driven investments, which are insulated from risks of cap rate expansion. As such Jean Paul concludes by highlighting Ethika’s focuses for the coming months, which are revolve around supporting these industry changes.
“An experienced fund manager like Ethika Investments relishes this period in the market cycle because our team possesses a deep understanding of the nuances within the real estate marketplace and an ability to spot the pockets of opportunity, not only in the commercial office sector, but across the great real estate landscape, that will undoubtedly arise from this period of uncertainty”, Jean Paul comments proudly.
“Looking ahead, our plan is to continue to focus on our most recent fund, Ethika Diversified Opportunity Real Estate Fund II. The fund focuses on opportunistic and value-add investments in the top 30 U.S. markets, continuing to capitalize on underperforming assets priced below replacement cost with significant upside potential.
While there are some challenges in the hospitality sector as the gap widens between buyers and sellers, office and retail are offering solid investment opportunities with a substantial upside if you know where to look. For the office sector, positive projections for the next three years anticipate absorption of existing office space to total 175 million square feet, which is more than the past eight years combined. Jean Paul explains how his firm works to ensure that it stays ahead of market shifts in order to remain at the forefront of innovation in the industry.
“Additionally, the firm is enhancing its focus on credit strategies with its first platform dedicated strictly to debt investments launching in Q4 2016. With more cumbersome regulations impacting the desire and ability of banks and traditional debt capital channels to lend, the market for private lending continues to grow at an exponential rate. Ethika’s specific experience in value-add real estate provides the firm a unique capability to provide borrowers with financing solutions on projects not able to fit a narrowing criteria of bank, CMBS and traditional balance sheet lenders.”
“At Ethika, we diligently track trends in market level economic and real estate fundamentals and demographic shifts to predict where markets are growing, and maintain diversification across each fund. It’s important to look at opportunities that are not purely cycle-driven, selecting strong investments that take into account macro trends. Our team buys assets that are not perfectly stabilised in order to acquire properties at an attractive price. These practices place us as a leader in the investment market and build our clients’ trust in our investment judgment.”
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Company: Schroders Web Address: www.schroders.com Address: 31 Gresham Street, London, EC2V 7QA
Best Italian Equity Fund: Schroder ISF Italian Equity
Schroder ISF Italian Equity provides clients with unrivalled access to Italian companies, a flexible management style and a bottom-up investment approach. We asked the fund’s portfolio managers, Nicholette MacDonald-Brown and Hannah Piper, to tell us more.
Schroder ISF Italian Equity adopts a blended investment approach with the flexibility to invest in growth and value stocks, which widens the opportunity set and helps the fund to deliver superior returns.
underperformed the rest of Europe and that this has already given rise to some valuation anomalies and therefore opportunities for investors such as ourselves. We continue to maintain our focus on stock-specific risk.”
“Strategies that focus on one style of investing may experience prolonged periods of underperformance when that particular style is out of favour, so a blended approach is important in trying to generate outperformance across different market environments”, says Nicholette.
To conclude, Nicholette talks us through what they believe is the key driver of long-term returns. “A key facet of our investment process is how we do not solely focus on valuation when making an investment decision. We’re also searching for an inflection point or a ‘catalyst for change’. An inflection point is a credible potential catalyst that can lead to a positive long-term outlook for a company. These include an improving demand outlook, management change, cost restructuring, capital allocation, dividend policy, merger and acquisition activity or disposals. The combination of these two elements – valuation and the inflection point – then informs the strength of our conviction call.
The fund also invests in companies of all sizes, allowing investors to access the most attractive opportunities across Italian equities. Hannah goes on to highlight how the fund focuses on diversification and risk management, which is vital to ensuring strong returns for clients. “Risk management is an integral part of our investment process. We look to expose the portfolio to a range of companies, ensuring that the portfolio is not overly exposed to any one theme, sector or market style. The market rewards different types of styles at different times – we want to diversify to the point that, whatever is happening in the market, the portfolio will produce positive returns over the longer term.
“To be able to outperform on a consistent basis as well as producing superior returns over the long term, we must be able to challenge existing names and let go of lower conviction holdings. We regularly reappraise our holdings to make sure our investment thesis remains valid. This avoids what we refer to as ‘thesis drift’ and ensures that the portfolio is made up of our highest conviction ideas.”
“Importantly, the portfolio managers are also supported by 12 skilled bottom-up sector analysts. We feel this provides the portfolio with an extra layer of security and that our team-driven process enhances the decision-making of analysts while resulting in a high conviction portfolio of approximately 40 stocks. “This is particularly vital in the current market as we anticipate that the high levels of volatility seen lately are likely to continue. Stress test results for Italian banks are due shortly and a referendum on constitutional reform – an all-important issue for Prime Minister Matteo Renzi – is expected to take place in October/November. Both of these events will be very closely watched. We note that the Italian stock market has
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High top view on Basarab Bridge, Romania
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Company: Schroders Web Address: www.schroders.com Address: 31 Gresham Street, London, EC2V 7QA
Best Central & Eastern Europe Equities Fund (10 Years): Schroder ISF Emerging Europe
As part of our series on the work of Asset Management Specialists Schroders we invited the fund’s co-portfolio manager, Rollo Roscow, to provide us with an insight into Schroder ISF Emerging Europe.
Schroder ISF Emerging Europe is an equity fund that aims to provide capital growth by primarily investing in companies from Central and Eastern Europe. The fund predominantly adopts a bottom-up approach focused on stock selection and opportunistically invests in particularly fast growing and under-researched frontier emerging European markets such as Georgia and Romania. Rollo describes the fund’s proactive approach to risk management and how it helps to deliver consistent outperformance for clients.
“Our fundamental bottom-up stock research is the primary driver of returns for the fund. We look to derive 80% of our added value from stock selection driven by in-depth fundamental research and 20% of our added value from country allocation guided by our proven proprietary quantitative model with judgemental overlay. The stock selection process is driven by fundamental research conducted by our in-house analysts who are in direct contact with the companies and markets which they are analysing.
“Within Schroder ISF Emerging Europe the risks vary by country, and as such we pay close attention to current political and social factors. We are currently monitoring closely elevated political risk in Turkey for example. Here we try and mitigate risks by investing in companies best placed to weather or indeed benefit from any such instability.
“The case for investing in Central and Eastern Europe remains strong given the diverse nature of the universe including countries which benefit from close trade ties with developed Europe helped by low labour costs and fast growing domestic economies. Banking, consumer and internet industries are also often underpenetrated offering attractive investment opportunities.”
“Overall we adopt a proactive approach to risk management, indeed we believe it is one of our key competitive advantages. We target strong consistent alpha generation through the market cycle but with a close eye on risk.
The Bridge of Peace over the Kura River in Tbilisi during twilight
“Our philosophy when it comes to risk is when you are in a hole, stop digging. That is, minimise the impact where you are not performing but maximise it where you are. In practical terms, this means we alpha adjust tracking errors by flexing the risk we take in each country portfolio up or down versus the local market, depending on how well or poorly we are performing on a trending basis. We also adhere to a 15% relative stop loss rule. This proactive approach to risk delivers a portfolio return profile skewed to the positive over time.” In his final comments Rollo talks us through the fund’s investment process and how the outlook for emerging European countries remains positive.
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Company: Schroders Web Address: www.schroders.com Address: 31 Gresham Street, London, EC2V 7QA
Best Ecology Equity Fund (3 Years): Schroder ISF Global Climate Change Equity
Schroders is a global asset manager with £343.8 billion of assets under management and offices in 27 countries. As part of our series on the firm we examine its award winning fund, Schroder ISF Global Climate Change Equity, and invited its co-portfolio manager, Simon Webber, to tell us more.
Climate change is a long term-theme underpinned by government policy and regulation intended to de-carbonize the world’s economies. These efforts will have a profound effect on companies’ sales, costs and competitive advantage across industries; changes that will ultimately be reflected in financial and share price performance. Schroder ISF Global Climate Change Equity targets companies that are positioned to benefit positively from these trends.
“Overall we believe this framework provides a unique insight into risk management, something that is particularly important for this fund given its exposure to emerging technologies and disruptive change.” Simon illustrates the importance of technology and regulation to the theme. “The technologies that will ultimately facilitate transition to a low carbon world are developing at such a pace that many technology-driven solutions are not only now available but are also increasingly commercially scalable. By way of example, the rapid development and declining costs of battery technology will undoubtedly drive widespread adoption of electric vehicles over coming years. Elsewhere, we continue to expect rapid adoption of renewable energy practices worldwide, particularly in solar but also in wind, where technological gains are helping make installation more affordable. We have selective exposure to higher quality investments in these areas, mindful of inherent industry volatility. However, we are encouraged by recent developments in the US and China to extend the subsidy regimes for both of these primary renewable power sources.”
Funds such as Schroder ISF Global Climate Change Equity have increased in popularity in recent years as environmental awareness, and ESG considerations more broadly, have become more pertinent to both retail and institutional investors. Recognising the potential of the theme to deliver out-sized returns over time, the fund’s managers also recognise the risks of investing around an emerging and dynamic theme. Commenting, Simon outlines the fund’s approach to risk management and its significance within the investment process. “Risk appraisal is an important consideration when we think about both stock selection and portfolio construction for the fund. We make significant use of statistical analysis that allows us to better understand the risk exposures of the portfolio and sensitivity to macro and market variables.
Recognising the importance of emerging technologies, the fund is also permitted to invest across the market cap spectrum, enabling our portfolio managers to capitalise on smaller, high growth stocks, subject to the necessary deliberations about fundamental risk. The fund is also highly concentrated around its ‘best ideas’ and managed without constraints relative to its benchmark.
“In addition, we have also developed a proprietary framework for assessing fundamental stock risk. This framework ensures a dynamic, systematic approach to the appraisal of financial and non-financial risks of owning a stock. The analysis of Environmental, Social, & Governance (ESG) factors is integrated within our risk framework, alongside aspects such as management quality and competitive and strategic positioning.
Relative to its peers, Schroder ISF Global Climate Change Equity is more broadly diversified from a sector, industry and geographic perspective. The volatility that is therefore often seen in more focussed funds is significantly mitigated due to the diversification within the portfolio.
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“Together, the fund’s philosophy, process and portfolio characteristics translate into a genuinely unique proposition where the stocks selected are expected to drive attractive long-term returns.” Within the wider market, the weight of global climate change policy and regulation continues to increase yearon-year as political momentum builds in tandem with more-extreme weather patterns and increased public scrutiny. The Paris Accord in December 2015 galvanized global efforts to control and limit emissions, and in doing so, provided further momentum to the theme. “Ultimately, we believe it is an exciting time to invest in a theme that supports the potential for multi-year out-sized returns as companies and consumers adjust to a low carbon world.”
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Company: Schroders Web Address: www.schroders.com Address: 31 Gresham Street, London, EC2V 7QA
Most Trusted Global Asset Management Firm 2016
Schroders is a pure asset management firm, managing £343.8bn (as at 30/06/16) on behalf of institutional and retail investors, financial institutions and high net worth clients from around the world. In the final of our series on this innovative and dynamic company we look at how Schroders has maintained its success over the years.
As an asset manager, Schroders’ principal objective is to create longterm value for its clients in order to help them meet their future financial requirements. The firm offers an extensive range of actively-managed strategies across a diverse range of asset classes (equities, fixed income, multi-asset, alternatives and real estate), suitable for a variety of investors and market environments.
environment but also, and ultimately, better understand their clients and provide the best possible service to them. Overall, it is the strength of the firm’s staff which sets it apart from its competitors and has led to the firm’s success. Attracting, retaining and developing a deep pool of talent are core to Schroders. The firm employs over 3,800 individuals worldwide of 46 different nationalities, which reflects not only the background of their clients and the communities in which they operate, but also strengthening their local market knowledge that serves their clients’ needs. Having such diversity of thought is critical to a modern business and is the essence of innovation.
With over 200 years of heritage, Schroders has experienced and prospered through some the most challenging market environments. Schroders puts its success down to a combination of factors: diversification, innovation and people. A diversified business is a key part of the firm’s strategy; Schroders is diversified by client type, geography and product offering, which means the firm is well placed to respond to changing market dynamics – particularly important given today’s heightened economic and geopolitical volatility – and evolve as a business. Within this, Schroders places a great emphasis on being forward-looking with a strong commitment to innovation. This helps them develop new investment opportunities and solutions for their clients. From pioneering direct investments into Asian equities, being at the forefront of equity income and multi-asset income solutions, to developing hedge fund strategies in a UCITS format, Schroders has developed its product offering to reflect clients’ needs and anticipate changing market trends. Innovation is not only limited to the solutions they offer but also the ways in which they do things. Schroders continues to develop their use of big data to complement and enhance investment processes as well as analyse and understand client behaviour. By doing so, the firm expects to evolve and adapt to a changing regulatory and competitive
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Fund Awards 2016 LA16012
Company: ICD Name: Abdullah Ashy, Head of Income & Capital Markets Funds Email: aashy@isdb.org Web Address: www.icd-ps.org Address: P.O.BOX 54069 Jeddah 21514 Saudi Arabia Telephone: 966 12 646 8174
Best Sharjah Compliant Open-Ended High-Yield Income Fund (Since Inception): ICD Money Market Fund (ICD MMF) & Most Innovative Asset Management Firm 2016 - Apac-Mea Region
Islamic Corporation for the Development of the Private Sector
The Islamic Corporation for the Development of the Private Sector (“ICD”) is a multilateral development financial institution and is part of the Islamic Development Bank (“IDB”) Group. We invited Head of Income and Capital Markets Funds Abdullah Ashy to provide us with an absorbing overview of the firm and its service offering. Established in 1999, ICD is a financing institution that provides funding, advisory, and assistance to the private sector in ICD’s member countries. Funding is provided in many forms including equity and Shariah-compliant debt financing to private sector entities in ICD member countries. ICD has an authorized capital base of $4 billion and has 52 countries as part of its shareholder base. ICD’s clients are the private sector, sovereign wealth funds, and high net worth investors. Abdullah is particularly proud of the work his asset management division has undertaken, and outlines how it has worked to ensure that it provides the very best services and solutions to clients.
Winning this award is a great honour and ICD appreciates the recognition of its funds from globally recognized media agencies. Abdullah is keen to talk us through the secret’s behind the firm’s success.
“The Asset Management Department within ICD manages various sector-based funds mainly divided into three programs, Private Equity, SME, and Income & Capital Markets Funds. All ICD Funds are subject to strong corporate governance and risk guidelines and they are all incorporated in regulated jurisdictions within different financial hubs.
Within the wider funds market currently, the political situation and the decline in global oil prices has caused many investors to reduce their investment activities beside governments in the MENA region to increasingly tap local and international debt markets to meet funding requirements. This has caused liquidity shortfall in the regional banking industry which has made it difficult to fund raise. Lack of available funding is the primary challenge facing ICD’s funds currently. In addition to that the currency devaluation mainly occurred in CIS countries has affected the availability of new promising investments in that region.
“Here at ICD, we believe that the secret behind our success is our client-focused attitude, as well maintaining strict underwriting discipline in terms of the credit worthiness of potential investments portfolio monitoring process as well as our procedure to maintain commercially viable sustainable investments which contribute to the real economy and has developmental impact results in superior sustainable performance.”
“Historically our Funds platform has been performing well and mostly beating the market average performance. This is due to ICD’s wide spread and global reach in its member countries. ICD’s multilateral status allows us to attract the best partners and invest in the best opportunities within our member countries, this grants us superior access to the clients and partners such that we negotiate the best terms for our fund investments resulting in superior performance of our funds vis a vis the market”
Additionally, lack of a unified Shariah code followed by member countries makes it difficult to navigate regulatory requirements in terms of placing funds with local financial institutions. Some countries allow Islamic banks to deal with conventional banks while some do not. This makes it challenging to adapt to every country’s regulatory framework.
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ICD, as a multilateral financial institution deals with all its 52 member countries, and this is very challenging taking in to account different regulations, laws, currency, and political environment.
As a final comment, Abdullah describes the attributes which he believes have helped make ICD the success it is today.
Despite these challenges, Abdullah is eager to explain how ICD uses its international presence to its advantage, and how this sets it apart from many of its competitors.
“Strict underwriting and investment selection discipline in terms of credit/investment worthiness is the key factor in differentiating successful funds from those that are unsuccessful. Good investing opportunities are present in various ICD member countries but it is crucial that proper due diligence of the investee is conducted from a credit, investment and legal risk perspective in order to avoid losses from investments. Further, it is paramount to have an efficient post investment portfolio monitoring system to alert the fund manager as an early warning sign to resolve potential issues in the investment from a credit perspective, this in turn will allow for an increase if not protect the target returns of the fund”
“ICD’s operational model is slightly different to that of other competitors. The firm have access to variety of deal pipeline since we operate in more than 52 member countries. Our multilateral status gives us privilege to tap in to different markets and to shift from market to another depending on available opportunities, as well as the ability to negotiate superior terms when agreeing on an investment/credit terms in order to participate in transactions. “In order to stay ahead of emerging developments in the sector across these various countries ICD is represented physically on the ground on all the key geographical regions via ICD and IDB gateway offices. We are always on the lookout for new investment opportunities and have a dedicated team that monitors credit/investment risk of existing investments as well as analysis of new transactions. “Alongside this, ICD has excellent relationship with regional financial institutions and can collaborate with them on deals and transactions on a case-by-case basis. Our reach into emerging countries as well as our relationship in developed countries allows us to provide a platform for knowledge transfer on innovation thus remaining connected to the changing dynamics of the various regions and responding to them adequately. “Most of ICD’s staff are multinational with extensive experience in emerging markets as well as international markets. This gives the firm a great edge. ICD’s clients are mostly private sector, Sovereign wealth funds, and High net worth individuals. ICD looks for the best performers who not only have the best education but also have work experience not only in emerging but also developed countries and have the ability to bring those best practices within our organization.” Looking to the future, Abdullah believes that the firm’s current projects will provide it with a promising and opportunity laden future, despite operating in a tough market. “All funds managed by ICD have an exciting pipeline of projects that are currently undergoing credit, investment and legal due diligence. We have transactions currently under review in Saudi Arabia, Turkey, Sub-Saharan Africa and part of the Southeast Asia. We have a focus on sectors contributing to the overall development of economies. Currently we are considering healthcare, agriculture, infrastructure, housing, and renewable energy projects. “Within the market currently, lack of liquidity is the biggest issue facing the funds industry. The best way of adapting to this is for ICD to differentiate its product offering from that which is available in the market, through partnering with the best fund managers with a track record in the focus of our specific funds, which will be our focus in the coming months.”
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Company: Macrocapitales Phone: (511) 500-4400 Address: Av. Camino Real N° 390 Of. 901, Torre Central, San Isidro, Lima 27, Perú. Email: dcosta@macrocapitales.com.pe Website: http://www.macrocapitales.com.pe/
Best Multi-Sector Fund Manager 2016 - Peru
Esatblished in 2010, MACROCAPITALES is a fund managment company based in Peru which is regulated by the SMV (Peruvian Security Exchange Commission). Managing Partners Dulio Costa (CEO) and Nicolas Polar (CFO) tell us MACROCAPITALES’ successful story. MACROCAPITALES operates as a fiduciary firm for third party’s funds with USD 350MM in AUM, each one with different strategies, and independent professional teams with proven track records and high reputation in its specific field. Two of these funds are private equity, and one is a debt fund focused in infrastructure.
In this context, Macrocapitales & FORTALEZA were born. Considering the timeframe of the country and Peru’s projections, the opportunity was perfect. Macrocapitales, acting as GP of FORTALEZA I – PE FUND, has a proven investment capacity, by being fully invested within the 4-year investment period and achieving an 18% IRR.
In addition to this fiduciary duty, MACROCAPITALES acts as Fund Manager and General Partner of FORTALEZA I - PE FUND (Fortaleza I – Private Equity Fund), a multi-sectorial fund established in 2012 focused on supporting Peruvian companies with high growth potential. Clients for this fund are all institutional investors from Peru, predominantly Pension Funds.
To achieve its business goals, FORTALEZA’s team has a permanent presence in companies in which it invests, by consistently supporting the companies’ management in implementing best industry practices. The team is actively involved in every investment and all team members work side by side with the administration, helping them analyze their issues and guide them through their decision making. Also, Macrocapitales prestigious professionals contribute to these companies by finding new business opportunities, through its “networking.”
FORTALEZA is managed by a team of professionals with many years of experience, led by Dulio Costa and Nicolas Polar, and it is their aim to promote the development of enterprises in various sectors of the economy.
MACROCAPITALES focuses on generating value to the brands and identifying improvements in operational processes in the invested companies. MACROCAPITALES business plans achieve its objectives with analyzed actions, and specific deadlines; alongside a team of specialists in various sectors who oversee decision making.
FORTALEZA I FUND´s team brings experience in financial consulting, buying / selling companies, capital markets, and over 40 years managing businesses successfully. Alongside this they are all prestigious professionals in the market, distinguished by their reliability, high technical level and absolute commitment to its investors.
FORTALEZA has a diversified investment policy, identifying expansion areas and partnering with companies with good growth prospects, providing the necessary advice and investment for their growth.
Private Equity started in Peru around 2004, however after the financial crisis, when new investment opportunities arose, new GPs appeared in the country.
In this way, FORTALEZA has investments in businesses within sectors of high forecasts in Peru, such as: HASS PERU: Agro-industry Company, located in the valley of Chao in the region LA LIBERTAD (500km northern Peru), avocado producer company and one of the pioneers in blueberry production in Peru. The company has 153 hectares of avocado production and 207 new hectares in the growth process.
During the five previous years of the financial crisis, Peru´s GDP grew at 7% rate annually on average, reaching a peak of 8% in 2007, when substantial changes occurred to the consumption level in the country, which marked the turnover point for a new consumer-driven-market. Since then, retail business and internal industry development have shown a different path. Companies soon realized the new challenges they would have to face, and understood the necessity to grow competitively in order to survive. Foreign investors soon arrived, and new demand for fresh capital for growth appeared in Peru.
In 2015, the company entered the blueberry cultivation. It achieved one of the highest productivity per hectare worldwide in the first year
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of harvest, accompanied by Driscoll’s, world leader in technology and commercialization of berries worldwide.
Product quality, as well as the low penetration of brand distribution channels, provide an excellent opportunity for growth in the coming years.
CAYETANO HEREDIA: Private clinic, located in the populous district of San Martin de Porras in the city of Lima. The clinic has over 20 years of experience and the support of Cayetano Heredia Peruvian University, the most prestigious university of medicine in the country.
PROMOTICK: Dedicated to generate new business solutions supported by e-technology. Transnational company with presence in Peru, Argentina, Chile, Bolivia, Ecuador, Colombia, Panama, Mexico and the United States, which has more than 15 years of experience providing integral solutions for the development of programs of incentive, loyalty and promotions. Managing to integrate marketing strategies successfully with new technologies tools and logistics operations, distribution and call center for its customers.
The partnership with FORTALEZA seeks to start its expansion process, in new infrastructure, modernization of equipment, and expansion in primary external healthcare services. FORTALEZA, through its network, supports the organization in finding investment opportunities that promote the expansion plan proposed.
PASTIPAN: This bread, pastries and pasta producer company has its own retail network, and FORTALEZA will support the company’s projections, which considers to triple retail stores in the next three years, and implementing new technology to improve operational performance.
RED MED: Company dedicated to the operation of medical centers with high quality standards as part of the health care network Cayetano Heredia. Currently RED MED provides services in two locations, and seeks to replicate its model in metropolitan Lima for primary healthcare, taking as a reference center Cayetano Heredia Clinic.
FORTALEZA is the first fund in Peru that has signed the commitment for Principles for Responsible Investment of the United Nations, PRI. Therefore, strongly supports its enterprises to improve their corporate governance practices, environmental effect and social responsibility.
CHARLOTTE: A family business with over 20 years in the market, dedicated to catering and gourmet cafeteria, currently serving more than 45 local. Thanks to strategic planning developed with the advice from FORTALEZA, Charlotte contemplate a sustained growth in the coming years, with major expansion plans.
FORTALEZA invests in companies in motion, in which identifies high potential and opportunity for expansion in the market. Through its experience, it provides the necessary support to empower them and bring them to a new stage in its development to enhance their business capacity.
DI PERUGIA: A chocolate producer located in the city of Lima, has over 20 years of experience in developing products based on cocoa. The company handles all the stages of the manufacturing process of chocolate. It controls from the post-harvest stage of cocoa; as well as the production of cocoa liquor, refining, modeling, and packaging. The company has an independent general management with experience in commercialization and a partner in charge of the production area.
In the second half of 2017, the FORTALEZA II – PE FUND will be launched. This new fund is structured for USD 120MM in capital commitments with the same strategy as its predecessor FORTALEZA I and oriented to institutional investors. Ultimately, the FORTALEZA PE FUND is “your best partner for growth”, and going forward to firm is committed to continuing with its proactive approach to investing in order to continue to provide strong returns for investors.
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Fund Awards 2016 LA16036 Company: Stats Investment Management Co., Ltd. Name: Masahiko Iwai Email: miwai@stats.co.jp Web Address: www.stats.co.jp Address: COI Hirakawa-Cho Bldg. 7F, 1-7-20 Hirakawa-Cho, Chiyoda-Ku, Tokyo 102-0093 Japan Telephone: +81 3 6658 4361
Best Hedge Fund Manager 2016 - Japan
Stats Investment Management are based in Tokyo, Japan and has been running for over a decade. We invited Chief Operating Officer, Masahiko Iwai to talk to us about how the firm has achieved success.
First established in April 2005, Stats Investment Management Co., Ltd. (“Stats”) is a hedge fund manager based in Japan. Stats specialises in managing Japanese equity in long and short term strategies.
is extremely important. For this purpose, we limit our individual stock exposure to maximum 5% (under normal circumstances 3%). We also employ a paring strategy to avoid excessive tilts in sectors or investment themes. For this purpose, we adopt a proprietary sector allocation to capture the true natures of the businesses of our invested companies.”
The funds which Stats offer ensures the best possible return to investors. The flagship investment vehicle is the Ginga Service Sector (“GSS”) Fund, which is a Cayman unit trust established in June 2006. The strategy itself largely concentrates on the IT and Service sectors as sources of alpha. In addition, it also focuses on medium and small size stocks, which are not widely covered by analysts so that original research can generate alpha unexploited by the market.
Stats Investment Management is supported by members with long experience and deep insights. CIO Toru Hashizume is one of Stat’s founding members. He started his career as a sell side analyst with one of the major research institute in Japan and specialised in the IT and Service sectors for more than eight years. After this starting career, he moved to one of the largest mutual fund companies in Japan and managed its flagship long only Japanese equity fund with 3-billion-dollar asset for more than seven years. He joined Stats in 2006 and started the long short strategy with innovatively new risk management. Working with the CIO is the fund manager Yhu Kuni, who has worked with Toru more than ten years since inception of the GSS Fund.
Masahiko explains the company’s investment philosophy, which is a vital component of their client process. This process ensures the best possible returns for investors. “Our investment philosophy is based on the conviction that companies that are not widely covered by analysts provide greater opportunities for generating alpha through proprietary research. Also, we ensure liquid markets provide opportunities to exploit inefficiencies in stock pricing. Concentrating on sectors and companies with experience and knowledge is essential in understanding the businesses and products of your invested companies. Finally, ensure these sectors are one of the few areas that have the dynamism to dynamically change its business and pursue growth opportunities.
With experienced executives such as Toru, Stats has gone from strength to strength and has had tremendous success since their inception. “The combination of our solid investment philosophy and experienced staff has produced extremely good performance over the past ten years. With no single negative year, GSS Fund’s flagship Yen share class has recorded an annualised return of 13.92% with an annualised risk of 8.71%. This return itself, along with the longevity of our track record, makes Stats stand out above competition.
“Corporate research is the backbone of Stats’ investment decisions. The fund managers’ company visits are extensive and rigorous; each fund manager visits 400 companies per year, and as a team the total will be more than 1,000 companies. Since many information technology companies that Stats invests in operate in Tokyo, our office location provides us with a distinct advantage.
“This achievement was highly recognised by various awards in 2016. Currently, Stats manages near $250 million in assets under the GSS strategy, and its client base is spread across various regions and various investor types globally.”
“In order to make our long short strategy successful, we believe that the skills to manage risk both at individual stock level and at portfolio level
Masahiko describes in depth the current state of the finance industry in the region. After having a weak start to 2016, the Japanese equity
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market picked up in March until Brexit which had a negative effect on the market.
“Not only does our long-term return rank top class compared to our peers, but more notably our risk adjusted return represented by the Sharpe ratio is truly the top in the market. The hedge funds’ superior risk adjusted returns recorded before 2007 is diminishing, and most recent results after 2010 indicate that many strategies have produced Sharpe ratios very similar to long only market indices. This recognition among investors is creating downward pressures against investment management fees.
“The Japanese equity market in 2016 is mostly characterised by its weakness during the first two months of January and February. The year started with concerns over a weakening Chinese economy. In spite of the introduction of negative interest rates by Bank of Japan in February, the equity market continued to weaken. Against traditional wisdom, the Yen appreciated from around Yen 120 per US$, to Yen 112 per US$ as of the end of February, which sparked a large risk off movement in the equity market and added further downward pressure. In the two months alone, the Japanese equity market fell more than 16%.
“We believe that only true skills shall be rewarded, and with our superior long-term track records, Stats shall be in a position to be chosen by investors who are seeking stable and reliable returns.
“During this period, we lowered our net exposure, and shifted to value stocks by emphasising PBR and yield. The non-fundamentally driven February market was the most difficult month during 2016, but the positive return we could generate in January could cover this month’s minus and enabled us to overcome these two months with a small negative return.
“In spite of some controversy, we believe that the Japanese economy’s current growth and reform scenario laid out by the Abenomics is still viable. Our central bank BoJ is also in close proximity with the governmental policy to stimulate growth and encourage structural reforms. Following the adoption of negative interest rate policy for the first time in history, they have announced further measures to directly control the yield curve. We believe these measures will successfully support our economy, but on the other hand, the market is unlikely to move in a simple direction. Our stock selection and portfolio risk management skills shall also be in strong need to navigate through difficult and unprecedented times.”
“After March, the market started to recover, with individual investors leading the way, but the market was thematic. During April and May, the market maintained its stable or recovery tone, but the market was more top down oriented and lacklustre with low trading volumes. Neither conditions were favourable to our investment strategies, but although we could not match the market return of above 6%, we still managed to generate a positive return.
Looking forward to the remainder of 2016 and beyond, Stats plan to continue exploiting additional fund raising channels, such as a vehicle to accept onshore U.S investors. Stats is also developing various means to enhance its European channels. Masahiko states “We are highly grateful to the investors who have invested with us up to date, and we hope that our new initiatives will open the gate to investors who had interest in us but could not invest in GSS due to various limitations.” The last ten years have been a major success, and Stats Investment Management hope the next ten years will be even better.
“The Brexit vote in June was a historical event that will be marked forever. The market reactions are widely known, but the Japanese equity market fell nearly 10%, while the Yen currency appreciated from Yen 110 per US$ to Yen 103 per US$. In spite of this extremely negative market conditions, our strategy to mainly invest in domestic oriented stocks and focus on fundamental stock prices paid off. Although the positive return during the month was about +0.3%, the relative outperformance versus the market index in a single month is still the largest throughout 2016. “The main topic of the market after July became the discounting of the effects of Brexit, as well as finding ways to adjust the business and economic structures under the new framework, but it is also the general consensus that too little has been decided to draw any conclusions. The global monetary easing in both Japan and Europe has also drawn attention, but the markets are becoming more sceptical of the current monetary policies. Amidst such an environment, the Japanese equity market during July and August returned firmly near 7%, the rapid shift of market preference from domestic companies to external companies caused our investment return to fall into negative range.” Overall, the market environment in 2016 has proven to be the most difficult since inception. Based on the data from their Prime Broker, Stats have averaged 1.96% year to date in their Asian Hedge Funds’ returns has, but Japanese equity long short strategies in particular have suffered a -3.42% return. The year to date return until August 2016 is still holding relatively well at 1.74%. This also compares with the -14% return recorded by the Topix index. Stats Investment Management have proven again that even in the most difficult market environment, their strategy can hold up and produce satisfactory results. The accumulation and continuation of Stats’ efforts, consistently over the past ten years, has left the company with an outstanding record, especially measures from a long five-year perspective. Masahiko reveals his pride for the figures
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Fund Awards 2016 LA16002 Company: 1st Port Asset Management Name: Paul Stevens and Melissa Longley Email: paul.stevens@1stportasset.com; melissa.longley@1stportasset.com Website: www.1stportasset.com Address: 180 Piccadilly London W1J 9HF Phone: 020 7917 9555
Best Capital Growth Mixed Assets Fund (10 Years): Hurlingham Growth Fund & Best Discretionary Portfolio Investment Boutique
1st Port Asset Management is a branch of Raymond James Investment Services that specialises in working with private individuals as well as advisers. Paul Stevens, its principal, talks us through the firm and its approach to ensuring that clients receive the very highest quality service. 1st Port Asset Management is run according to a traditional model, with a focus on ensuring that the clients’ interests are fully incorporated throughout the investment process. Paul outlines this approach in more detail and explores how it has helped the firm to differentiate itself, an approach which he believes is vital in such a competitive market.
“We are a boutique investment house with two highly experienced investment managers, and we each have over 30 years’ investment industry experience looking after private individuals. Our aim is to provide cost-effective, personalised, institutional quality investment services to private individuals.
“At 1st Port Asset Management, we appreciate that there is a wide choice of investment management institutions available to private individuals which offer a greater or lesser degree of personalised service and flexibility. It can therefore be a challenge for investors to find a home where their specific interests are the main consideration.
“A core part of our service is that we take time to ensure that our clients can be confident we are working in their best interests. We make sure they understand the sound rationale that sits behind our investment recommendations and the costs associated with our services.” Ultimately it is flexibility, in-depth research and an investment team with considerable experience that underpin the firm’s traditional operational style. The company’s cumulative asset management expertise enables it to examine investments and portfolio construction from both a traditional and holistic perspective. Paul provides more detail on the firm’s approach and how it goes about supplying clients with the investment services they need.
“Integrity and high levels of expertise are key pillars of our service. We demonstrate this traditional approach in every aspect of our professional dealings with our clients and their advisers. “Our core offering is discretionary portfolio management, but our advisory service is suitable for individuals who choose to have more involvement in the management of their investments. We can manage both onshore and offshore accounts and we have the capability to work within various tax structures.”
“Our approach centres on truly understanding that each client has different requirements in terms of investments, risk profile, communication and care. We therefore aim to offer individuals seeking these traditional values a meticulous yet flexible approach to the management of their assets.
As its name suggests, 1st Port Asset Management aims to be the go-to investment firm by collaborating with clients to ensure that it meets their needs. To achieve this, the firm works closely with its clients, who are predominantly individuals and their professional partners – typically accountants, solicitors and Independent Financial Advisers who specialise in wealth management. In addition to their discretionary and advisory service, Paul was also the manager of the Hurlingham Growth Fund to September of this year where he gained a AA CityWire rating and our 10 year award, and the fund maintained its top quartile performance over one, three and five years. Paul also provides Model Portfolio Services to IFAs with his colleague Melissa Longley.
“At a time when many investment houses have again focused on the use of standardised solutions to meet the needs of their clients, you will find that we do the opposite. We will always treat our client’s risk profiles and investment needs – and those of their trusts, charities, companies and pension funds – as unique. After carefully considering and discussing our client’s needs, we will construct and manage a portfolio to match the agreed risk profile and objectives, as we understand that no two clients are the same and that their needs and requirements are usually very different. “We believe that the key to successful investment is diversification across geographic regions, industry sectors, asset classes and asset managers. Our portfolio management services are specifically structured to meet these strongly-held beliefs, and to serve those clients who share our view that diversification in their portfolios is prudent.”
What truly sets the firm apart, according to Paul, is the experience that he and Melissa have gained over three decades and their dedication to client service.
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As a final comment, Paul outlines his predications for the future of the industry and expresses his confidence going forward. “Looking ahead, we believe that the industry is robust and perfectly able to manage and adapt to any future situation that it is presented with. The gyrations since 2008 have meant that the industry has become more transparent and client-focused; these are attributes that we have always wished to see develop in our profession and we are delighted that they are now evident.� Disclaimer 1st Port Asset Management is a trade name of Raymond James Investment Services Limited (Raymond James) utilised under exclusive licence. Raymond James is a member of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority
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Fund Awards 2016 LA16010
Company: Alpha Real Capital LLP Name: Phillip Rose (Chief Executive Officer) Email: philliprose@alpharealcapital.com Web Address: www.alpharealcapital.com Address: 338 Euston Road London. NW1 3BG. UK Telephone: 0207 391 4700
Best Closed-Ended Real Estate Fund: Industrial Multi-Property Trust
Alpha Real Capital Headquartered in London and owned by its partners, Alpha Real Capital has an experienced team of over 80 staff and partners offering a wide range of investment options. We profile the firm and explore the services it offers and the secrets behind its success. Established in 2005, Alpha Real Capital LLP is an experienced co-investing funds management group with circa £1.4 billion of assets under management. Operating in five core business areas, real estate investment management, capital markets advisory, renewables infrastructure, property lending and wealth management solutions, the firm’s team collectively has over 200 years’ experience of the real estate, banking and funds management industries gained with leading organisations including Lend Lease, Brookfield, Hammerson, Deutsche Bank, Barclays, Close Bros, General Property Trust, DTZ, Knight Frank, Cushman & Wakefield, Healey & Baker and CBRE.
In addition, the firm launched ILIF, its new fund investing in UK commercial ground rents earlier this year, and has the completed ILIF’s first acquisitions. Alpha secured subscriptions for ILIF totalling £355m for the first close from nine UK pension schemes, the majority of which are funds advised by Willis Towers Watson. ILIF invests in UK commercial ground rents with the aim of providing investors with secure inflation linked long term income and associated capital growth. The Alpha Group has completed the acquisition of 41 specialist healthcare assets in a ground rent sale and leaseback transaction with Care Tech Holdings plc, a leading provider of specialist social care services, traded on AIM.
Headquartered in London with an international network of offices with experienced management teams, Alpha has deep local market knowledge and an extensive investment sourcing, financing, asset management and realisation track record.
The total consideration was approximately £30 million and the properties are located in the south east of England.
One of the firm’s most recent triumphs was its acquisition in February 2011 of the Property Funds Management division of Close Brothers Group plc. The deal included a number of senior members of the Close Brothers Property Fund team transitioning across, bringing with them the capital preservation Inheritance Tax (IHT) products, which the team had been managing for many years. Following this acquisition, TIME Investments was launched in May 2012 as the wealth management solutions arm of the Group.
The company firmly believes that optimum way to be successful in the investment market and deliver returns to clients is to have a robust investment process. As such Alpha operates a robust investment process which integrates local market intelligence, strategic research, active management strategies with financial and risk management. Ultimately, what sets the firm apart is the fact that being independently owned and managed by its partners means Alpha has the ability to think independently, allowing it to respond quickly and creatively to opportunities. Alpha’s ability to co-invest alongside its funds and investment partners creates a strong alignment based on genuine partnership. Alpha operates seven expert platforms that provide deep expertise in a range of specialist investment areas including long-income investing, renewable energy, debt lending and multi-let industrial property.
TIME runs and manages the highly successful TIME:Freehold fund, which invest in ground rents and has a 23 year unbroken track record of delivering inflation beating returns. TIME has also launched a sister fund to TIME:Freehold, known as TIME:Commercial Freehold which builds on the consistency and stability of its flagship fund and opens up a new sector for retail investors. Alongside these funds, TIME also offers a range of tax efficient investment solutions, including TIME:Advance and TIME:CTC which utilise Business Property Relief to offer investors an attractive return and 100% IHT mitigation in just two years. The specialist team behind these products boasts the longest track record in its sector, with 20 years of successfully delivering IHT savings for investors.
The award-winning Industrial Multi Property Trust has delivered high total shareholder returns over a three year period through strong asset management that has boosted occupancy and cashflow with a corresponding improvement in asset values.
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Company: BMO Global Asset Management (Asia) Limited Website: http://www.bmo.com/gam
Most Innovative Asia Focused ETF (1 Year): BMO Asia USD Investment Grade Bond ETF & Best ETF Provider 2016 - Asia
BMO Global Asset Management BMO Global Asset Management is a global investment manager with US$238 billion of assets under management as of September 30th, 2016, and has offices in 14 countries servicing clients across five continents. It is a part of BMO Financial Group (NYSE / TSX: BMO), a fully diversified financial services organization with total assets of CA$692 billion as of July 31st, 2016, and more than 45,000 employees.
BMO Global Asset Management is one of the fastest growing ETF providers globally, offering ETFs on Toronto, Hong Kong and London Stock Exchanges. Since launching its first four ETFs on TSX on June 4th 2009, BMO ETF business has grown rapidly to over 80 funds, with US$24 billion of assets under management, and a wide array of strategies including innovative smart beta and specialty solutions as well as strongly competitive broad market benchmark funds.
Recognized by the quality and innovative ETFs, BMO Global Asset Management won multiple industry awards on firm and product levels, including Wealth and Finance International’s Best ETF Provider 2016 – Asia and Most Innovative Asia Focused ETF (1 Year) for its BMO Asia USD Investment Grade Bond ETF. As one of the world’s top ten fixed income ETF providers by assets, BMO Global Asset Management brings the first ETF offering Asia USD investment grade exposure to Hong Kong with BMO Asia USD Investment Grade Bond ETF (3141.HK). Not only the first ETF of its kind in Hong Kong, it is also one of the few bond ETFs available in Asia. 3141. HK tracks the Bloomberg Barclays Asia USD Investment Grade Bond Index, which is a market captialisation weighted index that measures the performance of fixed rate USD denominated government-related and corporate investment grade bonds of the Asia ex-Japan region.
Since announcing the establishment of BMO Global Asset Management (Asia) Limited in Hong Kong in December 2013, its Asia business has developed investment solutions in both active and smart beta forms, built a solid local investment team on the ground, and expanded its distribution capabilities to service investors across multiple geographies. Backed by the stability, size and global reach of BMO Financial Group, and drawing on the expertise of its global experienced passive investing team, BMO Global Asset Management (Asia) Limited launched three ETFs in Hong Kong on November 13th 2014, choosing Hong Kong as the city to be listing its first BMO ETFs outside of Canada. The offerings were structured to help address the demand for income, growth and access to the region’s robust financial sector. The three ETFs in Hong Kong were well accepted by retail and institutional investors alike, as well as recognized by the industry.
By the nature of the product, it provides investors regular income and long-term capital preservation. This ETF invests in high credit quality bonds from Asian issuers, and value of the underlying bonds in this ETF had been relatively stable during the period of high volatility in the equity space. 3141.HK provides core credit exposure of bonds from across the Asia ex-Japan region without being impacted by currency volatility. The low correlation with other asset classes results in strong diversification benefits. This ETF pays dividend on a quarterly basis.
On February 18, 2016, BMO expanded its platform and launched four more innovative ETFs, all achieving the first-of-its-kind in Hong Kong designed to provide local access to key sectors and global markets, and to generate high quality income for investors. It is a testament of BMO’s commitment to this region and the strong belief in the attractive growth and investment opportunities that exist in this market place.
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Fund Awards 2016 LA16030
Company: Brockhaus Private Equity GmbH Website: http://brockhaus-pe.com
Most Innovative German Private Equity Firm 2016 & Private Equity Deal of the Year: Best in Class for Proprietary Deal Sourcing
Brockhaus Private Equity is an independent private equity firm specializing in buy-outs and expansion/replacement financings, with a focus on the German-speaking regions. Founder and Managing Director Marco Brockhaus talks us through how the firm differentiates itself in the competitive financial industry.
As the current ultra-low interest rate environment shows no sign of abating, investors are increasingly seeing the need to widen their approach and look beyond standard assets if they want their portfolios to perform. Against this background, attention has shifted to Germany’s Mittelstand, the world-beating small and medium-sized manufacturing firms that form the backbone of the German economy. These companies have shown themselves to be exceptionally robust and resilient in the face of turmoil in the global economy, and it is largely due to their strength that Germany continues to be more competitive than most other countries in the EU.
All our investments are clearly focused on medium-sized innovation and technology leaders. Representing an elite group within the Mittelstand, these companies are characterized by highly innovative products and cutting-edge technologies that often set global standards, enabling them to achieve significant double-digit growth rates and EBITDA margins. Typically, they enjoy leading market positions in Germany and have embarked on successful expansion abroad, but still have some way to go before they can reach their full potential. For investors, gaining access to these “hidden champions”, frequently tucked away in small towns far removed from Frankfurt, Munich or Berlin, is no easy task. Identifying and reaching out to those firms is at the core of our business. Our institutionalized sourcing process - incorporating many different channels of information, including a close-knit network of cross-industry contacts - provides us with the best and most comprehensive Mittelstand insight available, enabling us to spot Germany’s most promising small and mid-cap firms at an early stage. As a result, we benefit from a steady stream of first-class investment opportunities provided by wholly proprietary deal situations. Bypassing middlemen and M&A advisors helps us maintain pricing discipline and protects us from unreasonable valuations. Successful investments in Wirecard and 360 Treasury Systems are perfect examples of what our proprietary deal sourcing technique can achieve.
Significantly, out of a worldwide total of some 3,000 companies recognized as global leaders in their respective industries, around half are German Mittelstand firms. Mostly family-owned and often little-known abroad, these companies are fuelled by a distinctive business culture based on perpetual innovation, long-term strategic thinking and responsible management. Harnessing the Mittelstand’s powerful dynamism through buy-outs, however, requires special capabilities and skills. Brockhaus Private Equity meets this challenge through its strength in proprietary deal sourcing. The firm has been a key player in Germany’s small- and mid-cap buyout market for more than 15 years. Brockhaus manages and advises funds with more than €285 million in total of capital raised and makes equity and equity-related growth capital investments in the range of €5 million to €25 million per transaction. In our daily business, we benefit from our independence as well as our solid investor base which includes, among others, pension funds, savings banks, insurance companies, family offices and a public separate estate managed by the German Federal Ministry of Economic Affairs and Energy. A highly attractive annual return rate in line with top PE industry benchmarks highlights our history of achievements, now in its third chapter since last year’s closing of the most recent fund, Brockhaus Private Equity III.
Following the same pattern is our most recent MBO, IHSE GmbH, a global leader in high-performance KVM (keyboard, video and mouse) technology suitable for a wide area of applications, ranging from broadcasting, air traffic control and control rooms to manufacturing, medicine and government. IHSE is a typical Brockhaus Private Equity portfolio firm: With its cutting-edge products for secure data connections between IT consoles and computer servers, the company is well positioned in a highly attractive and extremely dynamic niche market with minimal competition. Access to the resources provided by Brockhaus
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Private Equity, in terms of financing as well as management expertise, puts the company safely on track for yet faster growth, not least with a view to rapid international expansion. Furthermore, strong emphasis has been placed on safeguarding the firm’s operational continuity. To this end, the incumbent management has not only been kept on board, but has been granted long-term performance incentives through share-ownership. Our entrepreneurial reliability and strength in execution convinced the company’s founders not to involve M&A advisors and helped us succeed in closing the deal in a one-on-one situation.
Overall, hundreds of German “hidden champions” are still waiting to be discovered and transformed with the help of PE. Investors who wish to benefit from unlocking their vast potential should bear in mind that a strong track-record in proprietary transactions, such as Brockhaus’s, is what they should be looking for in their PE firm of choice.
Brockhaus Private Equity III has already made three acquisitions and is in line with its investment schedule. In addition to IHSE GmbH, the fund has purchased majority stakes in automotive safety component and heat shield supplier J&S GmbH Automotive Technology as well as a minority stake in high-temperature shielding specialist Thermamax Group, two more high-tech firms with excellent market positions, high profitability and exceptional rates of growth. Several further investments are already in the pipeline with the aim of closing a further transaction in 2016.
Frankfurt am Main - Alex Tihonovs / Shutterstock.com
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Fund Awards 2016 LA16044
Company: Changjiang Asset Management Name: Alan Fung Address: Suite 1908, 19/F, Cosco Tower, 183 Queen’s Road Central, Hong Kong Phone: (852) 2823 0333 Email: alanfung@cjsc.com.hk Website: http://www.cjsc.com.hk/en
Asset Manager of the Year 2016 - Greater China & Best Long/Short Hedge Fund (1 Year): Changjiang Absolute Return China (Cayman) Fund
Changjiang Asset Management Changjiang Asset Management (Hong Kong) Limited [CJAM] is an asset management firm fully licensed by the Hong Kong SFC. We invited Alan Fung to tell us more about the firm and how it aims to offer the best possible returns to investors. CJAM focuses on the Asian equity markets with a bias towards the Greater China region. Positioned as an expert in equity investments, the firm have been expanding its investment scope, in particular into the convertible bonds, a new focus which has seen the firm launch its first private equity fund. Alan outlines CJAM’s service offering in greater detail and explains how its expertise helps ensure that clients receive risk averse returns.
have segregated internally to develop specific skill sets so each member of staff has a specific area of expertise, and together we as a team are more dependable and able to support each other where needed.”
“Here at CJAM, we provide both investment and cross-border portfolio management solutions to investors ranging from high net-worth individuals to institutional investors. Currently we offer very niche investment funds that are privately placed amongst selected investors within our distribution network. These funds are mainly absolute-return focus, investing in the Hong Kong bourse. We take both the top-down and bottom-up approaches when it comes to risk management, and the result has been satisfying so far.”
The same can be said when it comes to investors, and the firm have a clearly defined objective for each investor which they communicate and agree with them to ensure that they are both working to the same aim.
Staff are clearly a vital asset to the firm, and CJAM adopts a pragmatic approach when it comes to staffing, choosing staff who are eager to perform and have the potential to improve in their own capacities.
“Through this approach we can be sure that the investor is with us on every step that we take in the future”, Alan explains. “It is this commitment to supporting our investors which sets our firm apart. We do things from our clients’ perspective, and we dare to be different when it comes to making market call or going the extra mile to help our investors.”
In the Asian investment market currently professional investors based in the Greater China region are facing a changing macro environment, which for those in Hong Kong is particularly challenging, as firms need to gauge accurately the next moves of major central banks in order to be better positioned to take advantage of anticipated market movements. Alan believes that flexibility is key to surviving this market and coming out on top.
Looking ahead, Alan is optimistic about the future, both for CJAM and the wider financial industry in Asia. “Ultimately we believe this is one of the best time to be in the asset management industry in this part of the World. With all major global crises being more or less resolved or handled, leading global economies are seeing modest growth and interest rates still at reasonable levels, and as such expert investors will have more investment vehicles and strategies that will allow them to make tremendous long-term profits.
“Asset management firms need to be more adaptive to a changing environment both in terms of regulatory and macro economical. Our clients need expert support and advice for them to make longer term investment decisions and only an asset management firm that has the capabilities and experience to deliver such expert service will prevail over the longer run.
“In order to take advantage of this economic stability we are looking to move into new classes of investment such as private equities and convertibles in the Asian region going forward. We will also consider launching Asian equity fund with a Greater China bias, something that is not common in the current product space and will allow our firm to further diversify and better support our clients.”
“Therefore, at CJAM we make sure that our team are well-versed in global key changes and the subsequent impacts that we would see. We
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Company: Dalfen America Corporation Address: 17304 Preston Rd, Suite 550, Dallas, TX 75252 Phone: +1.972.733.6954 Website: http://www.dalfen.com/
Best Real Estate Investment Manager - North America
Dalfen America Corporation Dalfen America Corp. is a real estate investment manager focused on industrial properties in key markets throughout the U.S. and Canada. We caught up with Director Max Gagliardi to learn more.
Dalfen’s Limited was founded in 1935 as a family-apparel retail chain. Since then the firm has grown into a leading investor. The company’s central investment focus is on high quality, strategically located, industrial warehouses, logistic centers, multi-tenant business parks, and manufacturing facilities. The firm. remains one of the most active buyers of industrial, with over $1 Billion in real estate transactions completed. Max talks us through how the firm has achieved this status.
dressing solvable issues, and Develop-to-Core opportunities where Core stabilized investments in strategic infill logistics locations near major ports or airports are developed (reference upload document – Core+ Industrial Platform). “Dalfen America Corp prides itself on its outstanding sourcing network and deal flow consistency of both on and off-market acquisition targets, finding investment opportunities on an off-market basis for 48% of its recent investments. Its stellar track record is further evidence of Dalfen America Corp’s operational excellence, with realized gross IRR of 24.3% for Dalfen Fund I, closed in 2010 and fully divested, and unrealized gross IRR of 27.9% for Dalfen Fund II which closed in 2013 and is in the harvest phase.
“As hands-on operators, our experienced team of real estate experts acquires, develops, and manages millions of square feet of premier commercial properties out of our five offices. Our investments are made with an in-depth understanding of market fundamentals in combination with local knowledge. We seek to acquire institutional quality properties in high-demand locations, with building attributes that cater to a broad range of industrial tenants including an emphasis on the rapidly expanding ecommerce and fulfilment industry.”
Ultimately, Dalfen America Corp’s full service platform draws upon regional expertise throughout the U.S. for investment, property and asset management, development, legal and capital market needs.”
Overall Max believes that his firm is the one that can provide clients with the services that they need, which is how it has come to achieve the success it enjoys today. “As ecommerce grows, so does the demand for industrial real estate. Dalfen Core+ Industrial platform offers our investors exposure to the growing shift in demand from retail to industrial product. Dalfen America Corp is able to capitalize on the rapid shift from traditional retail commerce to ecommerce by focusing on industrial investment opportunities in markets that exhibit significantly above average growth characteristics, are large population centers, and/or are key logistics corridor (reference upload document – Core+ Industrial Platform). “Our investment strategy is deployed across three risk profiles to take advantage of different market conditions: Core+ assets that have stabilized cash flows with upside potential, Value-Add assets that allow for the creation of Core stabilized investments at a lower basis by ad-
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Fund Awards 2016 LA16034 Company: EQ Investors Name: John Spiers, Chief Executive Email: learnmore@eqinvestors.co.uk Web Address: www.eqinvestors.co.uk Address: Centennium House, 100 Lower Thames Street, London EC3R 6DL Telephone: 020 7488 7147
Best Investment Management Boutique - UK & Award for Excellence in Low Cost Tracker Fund Investing 2016
EQ Investors (EQ) is an award-winning boutique wealth manager acting for private clients, small companies and charities all around the UK. Chief Executive John Spiers discusses the firm and the secrets behind its success.
EQ stands for Emotional Quotient, a measure of the firm’s ability to recognise people’s emotions, as well as reflecting the firm’s commitment to treat all people: clients, staff, and suppliers, as human beings and to value their feelings. It is this focus on supporting people that sets the firm apart, as John is eager to emphasise.
funds which can show that they are supporting companies taking steps to achieve a social or environmental impact as well as a financial return; Best Ideas a portfolio designed to invest in the very best ideas unearthed by our research team, unconstrained across all asset types; and Absolute Return for clients who are uncomfortable with the sharp swings that occur in stock market values but seek the potential for higher returns than available from investing in cash and government bond.
“At EQ we have a strong sense of being a member of a wider community, which differentiates us from many other firms in our space. We are proud to be one of the first UK companies to be awarded B Corporation status, for companies that believe in business as a force for good. We operate a Matched Giving programme to help our clients and staff raise extra funds for their favourite causes and we have set up the EQ Foundation as a registered charity. Our Positive Impact Portfolios are a unique proposition for clients who care about how and where their money is invested.
Following significant investment over the last eighteen months, EQ now offer a service for 90% of the savers and investors out there. Moving forward, the firm are focused on attracting new clients across its range of services and fine tuning its offering in order to better serve its clients in the ever evolving investment market. Ultimately, John believes that the firm’s long term focus will be on continuing to provide excellence, rather than achieving as much growth as possible.
“Specifically with regards to investments and funds, our main role is to make our clients investments work as hard as possible and support that with advice that helps them achieve their objectives. We do that by employing the best staff and supporting them in an environment that celebrates quality over quantity. Our portfolio managers are Chartered Financial Analysts and our firm has Chartered Financial Planning status.”
“Fundamentally, our ambition at EQ is to be the best, not the biggest. As such we are committed to keeping the business permanently under the control of staff so that we avoid the disruption that occurs with changes in control. The result is that we can think long term and put the interests of clients at the top of our agenda without looking over our shoulder to check that our owner approves. We also have an on-going programme to continually improve our services to clients. An example of this is the new client portal we have recently rolled out. It offers clients a clear view of all their assets in once place, including both those held with EQ and elsewhere, plus a transparent analysis of performance. It seems to be an attractive proposition judging by the number of new clients that we have attracted, and therefore this will continue to be our focus as we look to the future.”
In order to offer investment opportunities to a wide variety of clients, EQ offers a vast range of managed portfolios designed to reflect different investment themes and risk profiles, including Low Cost, which is designed for people who prefer the lower cost of passive funds and the greater certainty of tracking index performance; Positive Impact, which invest in
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www.wealthandfinance-intl.com LA16001
Company: Greiff Capital Management AG Website: http://www.greiff-ag.de/
Best Absolute Return-Oriented Equity Fund (5 Years): Greiff Special Situations Fund OP & Best Investment Fund Manager 2016 - Germany
Greiff Capital Management AG Greiff capital management AG is an investment manager and analyst for fund-based investment strategies. We invited Robert Habatsch to tell us more about the firm and its award winning fund.
Greiff capital management AG is a Freiburg/ Germany, based regulated Investment Management Company uniquely reflecting the spirit and requirements of today’s international financial markets. The firm is dedicated to catering to its clients’ individual needs.
absolute return fund in the category of M&A Stocks. The investment process is stock based but with hardly any systematic stock risk. The fund provides an asymmetrical risk/return profile and has daily liquidity. Looking ahead, we are looking forward to continue to deliver the highest asset management standards to our clients.
Since its establishment in 2005 as an independent Investment Management Company, the firm has grown into a multiservice and product advisor to its clients and partners. Our clients are pension funds, banks, wealth managers, family offices, Fund of Funds, insurers, consultants, independent financial advisors.
Ultimately, we are very pleased to receive the award, which we see as recognition for our focus on long-term orientated quality standards in managing absolute return portfolios.
The core focus and strength of the investment team are intelligent derivative, equity event driven strategies and disciplined fund of fund management in liquid financial markets. Greiff capital management AG is fully bank independent, the equity is owned by its employees and its non-executive Partners. The Investment Team consists of a seasoned group of Professionals with multi-year experience in Fund of Funds Management, Banking and Asset Management. The current division of responsibilities, between Portfolio Management, Trading, Analysis, and Risk Management, is identical to the proven and successful structure, which was implemented at our previous firm. In combination with our partner companies, we have assembled a highly professional team and a state of the art infrastructure combining local expertise and global reach. Within the last twelve months, Greiff has been growing fast and overseas approximately 0,6 bn â‚Ź in AUM. Since more than ten years, Greiff special situations Fund OP is one of our most successful strategies in our fund range. It is an innovative
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Fund Awards 2016 LA16039
Company: ICU Name: Konstantin Stetsenko, Managing Director Email: ir@icu.ua Web Address: https://www.icu.ua/en
Best Total Return Active Investment Portfolio (Since Inception): CIS Opportunities Fund & Best Securities Trading & Investment Bank – Ukraine
ICU is a leading investment banking, securities and asset management firm providing a board range of financial services to private and institutional investors around the world. We caught up with Managing Director Konstantin Stetsenko to find out more about the firm’s investment offering and how the firm intends to expand upon its current success in the future.
ICU’s award-winning team of portfolio managers and traders have delivered outstanding returns to investors. The firm’s investment strategy is generated via a top-down analysis of general economic conditions and key sectors of the economy as well as a bottom-up analysis of specific securities and investment opportunities. Konstantin talks us through how the company applies this strategy to ensure that clients receive the best possible return on investment.
“In choosing staff, ICU look for intelligent and ambitious people who are open to continuous development of their professional knowledge and skills. This is crucial as we welcome innovations and ideas from each of our team members whom we motivate to unleash entrepreneurial potential as much as possible.” Moving forward, ICU has a programme of new funds and investment focuses which Konstantin eagerly outlines in his concluding comments.
“Here at ICU we offer a broad range of products to help our clients reach their investment goals, accommodating a variety of investment styles and risk profiles. Our team is constantly evaluating new investment ideas to serve the needs of our clients.
“Successful performance of our CIS Opportunity fund induced us to expand our ambitions beyond the CIS region, which will be a key focus of our firm as we look towards the future. We are in the process of establishing operations of our Global Opportunities Fund, which is aimed at investing in assets around the world. Also, we think that distressed debt investing is an area which offers serious challenges but high opportunities and deserves a development of a separate project, and we look forward to taking advantage of the opportunities that this will bring.”
“As part of our investment strategy our Investment Committee establishes a range of outcomes, sets stop loss levels and determines target position size. These targets are closely monitored at the individual position and portfolio level and rebalanced as needed, helping us to meet our objective to maximize total return via investments into liquid financial market instruments in the CIS region. We employ an active portfolio management strategy that includes leverage and short sales as well as a wide range of derivative instruments and structured products to generate returns in both rising and falling markets.” Operating a complicated investment strategy and ambitious aims means that ICU requires professional, experienced staff who are dedicated to supporting both the firm and its clients. Konstantin explains what the firm looks for in new employees and how it utilises its human resources to ensure that it gets the very most out of them and provides the best possible investment portfolios and products to clients. The very nature of the firm’s business model and business approach imply that our services are demanded most by well-educated high-net-worth individuals who are familiar with investment industry but seek for additional resources, first of all expertise and experience, which Konstantin is proud to state his firm and its staff are more than able to provide.
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www.wealthandfinance-intl.com LA16004
Company: LOYS Name: Raphael Riemann - Sales manager E-Mail: riemann@loys.de Website: http://www.loys.de/ Address: Kirchnerstr. 6 60311 Frankfurt Phone: +49 69-677789-01
Best European Securities Focused Investment Fund (1 Year): Loys Europa System I & Most Innovative Fund Manager 2016 - Germany
LOYS LOYS AG is a fund management firm based in Oldenburg with offices in Frankfurt, Chicago and Zurich. We invited fund manager Ufuk Boydak to provide us with an absorbing overview of the firm and its European fund.
Established in 1995, LOYS is a boutique fund management firm specialising in actively managed funds which focus on long term stock investments. Currently, the company has five funds and four partners, with assets under management of 1.1 billion Euros. As a licensed financial services company in accordance with the German Banking Act, LOYS is governed by the German Financial Supervisory Authority (BaFin). Mr Boydak provides us with more detail about the firm’s approach to fund management.
The firm’s focuses its services on primarily institutional investors, including family offices and small to medium advisory companies, as these businesses tend to understand the firm’s investment approach and are more aligned with the firm’s long term focus. This is particularly important as LOYS looks to invest in firms for as long as ten years. Within the wider fund industry currently there is a growing focus on passively managed funds which focus on shorter term investment, which according to Mr Boydak is exposing investors to increased volatility.
“Here at LOYS all of our funds are actively managed, with a focus on investing in undervalued stocks of high quality companies with proven business models. In order to ensure that we have no conflict of interests and that all of our staff are fully focused on providing the best returns possible for our clients all of staff invest in our funds. By investing their own money in LOYS funds, our owners and fund manager’s financial interests are aligned with those of LOYS clients.”
“As actively managed funds become less popular and investors and fund management companies are turning towards passively managed funds there is a tendency to look towards shorter term investment. This is exposing investors to increased risk and market volatility, as they look for short term high yield investments. Our long term approach ensures that every stock we hold in our portfolio is high quality, and therefore capable of providing strong return on investment over time.”
Staff are a vital part of the firm, and as such Mr Boydak outlines the firm’s internal culture and focus on hiring employees who are passionate to stocks and fully committed to the company’s traditional investment approach.
Looking to the future, Mr Boydak emphasised that the company will continue to be a highly specialised niche player and offer the very best fund management services in the industry.
“LOYS culture is characterized by independent, consequent decision-making and we are focused on using this competitive edge in the global equity fund industry. In order to ensure that our staff are dedicated to supporting this we ensure that we hire the very best talent, who are not only interested in stocks and fund management, but are passionate about securing the very best returns for our clients.”
“Moving forward our focus is firmly on providing strong returns for our investors and providing them with the high quality of service which we have prided ourselves on for over 20 years.”
“Due to our lean structure, from the very start of their employment every one of our staff is actively involved in the funds so that they can learn about all aspects of the business. We put great emphasis on continuous learning and try to be an innovative employer to retain best in class talent.”
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Fund Awards 2016 LA16017
Company: Old Mutual Investment Group Phone: +27 21 5095022 Web Address: www.oldmutualinvest.com
Best African Absolute Return Multi Asset Fund (Since Inception): Wealth Defender Portfolio & Best Absolute Return Portfolio Manager - South Africa
Old Mutual Investment Group Old Mutual Investment Group has been awarded Best African Absolute Return Multi Asset Fund (Since Inception): Wealth Defender Portfolio & Best Absolute Return Portfolio Manager - South Africa. These awards highlight the game changing methods and results achieved by top performing businesses, individuals and departments in today’s fund landscape. We invited Sharmila Jaga to provide us with an overview of the firm and its award winning fund.
Old Mutual Customised Solutions is the investment boutique within the Old Mutual Investment Group that is responsible for managing the Wealth Defender Fund.
exposure to domestic and international asset classes that have the potential to beat CPI+4/5% (gross of fees) over three-year rolling periods. The risk objective of the portfolio is to minimise downside returns, and thereby generate absolute or positive returns on a consistent basis, aiming to achieve capital protection over rolling 12 month periods.
Parent company Old Mutual Investment Group is a leading African private investment manager, with a full complement of both listed and unlisted investment capabilities. Clients range from the man-on-the-street investing in unit trusts through to company retirement funds, international investors, sovereign wealth funds and development finance institutions.
In addition, we also offer unmatched investment capabilities in non-traditional, unlisted asset classes, including private equity, low-income housing, schools, infrastructure, agriculture, development equity and property.
Old Mutual Investment Group operates as a multi-boutique model. Each boutique has its own unique philosophy, proprietary research capability and robust investment process. Our boutiques have strong leadership with the boutique heads being experienced and well respected professionals in the industry.
Ultimately, the Fund is ideal for retirement funds, medical aids, corporates, asset aggregators because it has a time horizon of more than three years and a moderate risk profile in an equity context. Disclaimer: Old Mutual Customised Solutions (Pty) Ltd (Reg No 2000/0289675/07) is a licensed financial services provider, FSP 721, approved by the Registrar of Financial Services Providers (www.fsb.co.za) to provide intermediary services and advice in terms of the Financial Advisory and Intermediary Services Act 37 of 2002. Old Mutual Customised Solutions (Pty) Ltd is a wholly owned by the Old Mutual Investment Group Holdings (Pty) Ltd and is a member of the Old Mutual Investment Group. Market fluctuations and changes in rates of exchange or taxation may have an effect on the value, price or income of investments. Since the performance of financial markets fluctuates, an investor may not get back the full amount invested. Past performance is not necessarily a guide to future investment performance. The contents of this document and, to the extent applicable, the comments by presenters do not constitute advice as defined in FAIS. Although due care has been taken in compiling this document, Old Mutual Customised Solutions does not warrant the accuracy of the information contained herein and therefore does not accept any liability in respect of any loss you may suffer as a result of your reliance thereon. The processes, policies and business practices described may change from time to time and Old Mutual Customised Solutions specifically excludes any obligation to communicate such changes to the recipient of this document. This document is not an advertisement and it is not intended for general public distribution. For more detail, as well as for information on how to contact us and on how to access information please visit www.oldmutualinvest.com
The boutiques are well resourced with our investment teams having a good blend of experience and fresh innovative thinkers who are incentivised to create wealth for our clients. There is no single house view. Our boutiques are committed to providing our clients with excellent longterm returns. Having managed money for an extensive period, we are able to demonstrate long-term track records, giving our clients peace of mind that our processes are tried and tested. As an awarding-winning pan-African investor, our customers can benefit from the outstanding investment potential of Africa’s stock exchanges, via both actively managed and index-tracker funds. The Wealth Defender Fund, managed by Old Mutual Customised Solutions, has delivered an average CPI+ 8.2% a year since its inception in September 2003 to June 2016. The Wealth Defender Portfolio targets stable absolute returns in excess of inflation. This moderate risk portfolio aims to maintain a diversified
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www.wealthandfinance-intl.com LA16015
Company: Principia SGR Address: Via Pietro Mascagni, 20 Milano, MI 20122 Italy Phone: +39 02 36589750 Fax: +39 02 36589779 Email: segreteria@principiasgr.it Website: http://www.principiasgr.it/
Best Venture Capital Firm - Italy & Best New Healthcare VC Fund: Principia III - Health
Principia SGR is a market leader in the Italian venture and growth capital market, a field in which it has been operating for more than 10 years. We profile the firm and explore how it came to achieve industry leading success.
Established in 2002, Principia currently manages three investment funds; Principia Fund, Principia II and Principia III - Health.
entrepreneurs by providing not only financial skills. In addition, the firm support the most promising start-ups in their growth, with the aim of them becoming successful businesses. This dedication is what sets the firm apart from its competitors.
The firm’s latest fund, Principia III - Health, is the first Italian Fund Venture Capital and Growth Capital specifically aimed at the Healthcare sector. Principia III - Health acquires both majority shareholdings that qualified minority in target companies with high innovation content, including start-ups, spin-off industrial and academic, companies in expanding and SMEs. The main aim of Principia III - Health is to contribute to the development of a sector that in Italy suffers from shortages financial support, although it is characterized by the presence of very high skills - and internationally recognized - quality.
CEO Antonio Falcone manages the funds and the asset management company. In investing he is assisted by Paolo D. Siviero, Stefania Petruccioli, Alessandro Damiano, Alessia Rigoni, Piero Angelone, Michele Fodde and Adriana Piccitto. Completing the team for administrative tasks are Stefano Ronchi CFO, Silvia Mossali, Giacomo Francesconi and Giada La Micela as an Office Manager, as well as Marketing Manager Eleonora Granata.
The firm’s more established product, Principia Fund, is a generalist fund dedicated to investments in innovative companies were born thanks to the academic or industrial research. The fund, which is currently undergoing decommissioning of the investment portfolio, has made several investments and divestments and has, to date, one entry, Banzai Spa, recently managed by the Italian Stock Exchange. Principia Fund has become the protagonist of one of the most important exit of the history of the Italian Venture Capital, with the sale of EOS Spa in Clovis INC. in 2013.
Looking to the future, the firm has plans to launch another fund, Principia IV, which will be, focused on fashion and design, with an expected 120 and 150 million Euros in investment set to be collected by the fund, primarily through start-ups and SMEs.
Finally, Principia II is dedicated to innovative companies located in the areas of central and southern Italy. The Fund’s investments are focused on the process or product innovations using digital technology. Today the fund is fully invested and has a portfolio of around 20 companies, including DoveConviene who has just concluded one of the most important B-round to an Italian start-up, collecting more than 5 € / million. Principia’s investment approach is defined by the firm’s believe that the commitment of the management is an essential and often a key factor of success of the operation. As such the firm supports the company and
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Fund Awards 2016 LA16007
Company: Prophet Equity Name: Ross Gatlin Email: rgatlin@prophetequity.com Web Address: www.prophetequity.com Address: 1460 Main St Suite 200 Southlake, TX 76092 USA Telephone: 817-898-1500
Best Data-Driven Private Equity Firm 2016 & Best for Special Situation Lower Middle Market Investments
Prophet Equity is a private equity firm that uses proven, data-driven analytical techniques coupled with over 100 years of investment and management experience to invest in, unlock and realize future value today. We caught up with Ross Gatlin to learn more.
Over the last sixteen years Prophet Equity’s Principals have invested control equity in special situation, lower middle market companies creating over $2B in value across entities with over $4B in revenue. Currently the firm is deploying capital from Prophet Equity II LP ($345M fund), the focus of which Ross outlines in more details.
important role in building the Prophet Equity brand among thousands of intermediaries across North America to ensure we are seeing every opportunity that fits within our investment parameters. Additionally, we have developed a team and a track record for moving faster than our competitors on fast-paced transactions that have to close within an expedited timeline. As a result, we have been able to uncover unique value through our efficient and thorough due diligence process.”
“Prophet Equity’s principals use proven value creation methods and rely on cross functional knowledge to make control investments and drive improvements in both profits and balance sheets. Collaborating with owners, management teams, outside advisors and leading industry experts, our principals have experience in highly complex, special situations and use an advanced strategic and operational toolkit to identify and unlock value.
“Fundamentally Prophet Equity’s success is driven by Prophet Equity’s team, which has senior level expertise in operations, strategy and deal execution. They are able to identify strategically strong, yet underperforming companies, develop and implement value creation plans that significantly improve cash flow over the life of our investments and acquire companies at reasonable valuations. As investors in the lower middle market, we surround our executive teams with Prophet Equity employees to implement and monitor value creation initiatives in a collaborative way. Moreover, we align incentives with our management teams and investors by not charging management fees to our portfolio companies. Instead, incentives are aligned to generate equity value for all stakeholders.”
“Through this collaborative approach our team of experts utilizes a Holistic Value Creation™ (HVC™) strategy and Prophet Full Potential Value™ (PFPV™) system that is Fortune 500 tested and private equity proven to diagnose and drive dramatic value creation.” Within the wider fund industry currently, while larger acquisition financing opportunities (companies with EBITDA north of $50M) are experiencing credit challenges, the middle market space in which Prophet Equity focuses, continues to see a robust financing environment. Debt providers are particularly interested in finding transactions that are non-energy, non-metals related, and are offering very attractive financing options for those type of opportunities.
As his concluding comment Ross outlines the firm’s predictions for the future of the industry and how it will adapt around these developments. “Moving forward, private equity will continue to require more and more operational improvement capabilities within the general partnership, rather than relying on third party operating partners. Identifying value creation initiatives on the front end of an investment from a team that has implemented the initiatives first hand drives certainty of success during the investment period, and we are confident that we can achieve this through our innovative approach.”
As such, Ross believes that staying ahead of the latest industry developments and working to identify the most suitable investments is crucial. “Identifying and closing unique investment opportunities is the lifeblood of our business. Therefore, the Prophet Equity team has developed a robust sourcing process whereby every person on the team plays an
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www.wealthandfinance-intl.com LA16045
Company: Stratigis Capital Advisors Address: Royal Bank Plaza, South Tower, 200 Bay St., Suite 2925, Toronto, Ontario, M5J 2J2 Phone: +1 416 368 6002 Email: info@stratigis.ca Website: http://www.stratigis.info
Best Portfolio Management Boutique - Canada
Stratigis Capital Advisors Stratigis Capital Advisors (SCA) is a Canadian boutique that specializes in providing fee based Portfolio Management and sophisticated strategies to high net worth individuals, family offices and wealth managers. We profile the firm and explore how it aims to offer investors the very highest level of service and products which meet their requirements.
SCA is registered with the Ontario Securities Commission as a Portfolio Manager, Exempt Market dealer, and Investment Fund Manager, with the Autorite des Marches Financiers as Investment Fund Manager, and the British Columbia and Alberta Securities Commission as an Exempt Market Dealer.
The Fund seeks to provide investors with above average equity returns by investing in attractive growth potential companies in the Canadian exempt market, that meet the Fund’s investment criteria and mandate. Rob and his investment team have a proven track record, and significant experience across all components of the Fund’s investment strategies.
Developed with the vision to create a culture where individuals left to work on their own core competencies, but working as a team, would flourish. Leveraging proven experience with the firm’s partners has resulted in stronger performance and a better experience for the investor, which is the overall goal for SCA.
A process driven structure and methodology allows the Fund to capture returns in private equity investing, pre-IPO investing and securities trading through the facilities of regulated platforms, including the TSX Private Markets.
Collaboration is key, and as such SCA partners with experienced professionals who have a defined skillset and a proven track record to create products that are unique to the marketplace and offer a value added opportunity to the sophisticated investor.
The investment thesis intends to optimize the returns associated with this asset class investing in a shorter time horizon, effectively smoothing the J-curve return profile. The portfolio of securities is actively managed with a liquidity bias towards events such as public offerings, and cash is re-deployed in the Fund’s investment process, and is a great investment for those seeking strong, risk adjusted returns.
In order to ensure it provides the best possible opportunities, SCA selects clients carefully, working with corporate executives, medical professionals and entrepreneurs. Typically, clients are successful in their respective field and understands that they need a proven professional to manage their nest egg. They expect nothing less than high levels of expertise and professionalism from their advisor, and this is exactly what they receive working with SCA.
Ultimately, modern wealth management calls for new tools, techniques and agility. The Stratigis Investment team has been successfully navigating various market conditions since 1987, leveraging superior technology and proprietary trading experience in its investment decisions, which sets it up well for continued future success.
One of the firm’s key products is the Uber Strategies Fund which seeks to exploit inefficiences and capture opportunities presented by the market while providing embedded and active tail risk protection. The Fund employs equities and options to achieve its objective. It is presented in the Canadian marketplace and is managed by experienced Portfolio Manager and the firm’s CIO Rob Celej.
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