REVIEW www.assettv.com • April 2017
VanEck Debuts The First U.S. Green Bond ETF PLUS INSIDE
Natixis celebrates U.S. ETF launch
Nuveen’s Bob Doll cautiously optimistic on U.S. stocks
REVIEW
Meet the team REVIEW brings to the page many of the best insights we have filmed and broadcast in recent weeks. With hotlinks direct to videos, it’s possible to mix and match your reading and viewing.
Contents
When you watch a video on assettv.com it is logged as a personal CE record that you can use to validate your research and learning. MASTERCLASS is accredited for CE credits by leading professional associations including the CFP Board, IMCA and the CFA Institute.
Neil Jeffery EVP – Head of Americas
Deb Wetherbee SVP – Sales
neil.jeffery@asset.tv
deb.wetherbee@asset.tv
Having worked with Asset TV in the UK since the company’s inception in 2003, in 2012 he crossed The Pond to establish Asset TV Inc. in NY.
Deb is a seasoned member of the industry bringing her expertise from kasina, FRC, Nuveen, and Nvest (now Natixis) to Asset TV Inc. Deb is currently spending most of her free time watching little league games from the sidelines.
Jason Brandt VP – Sales
Gillian Kemmerer Head of Programming
jason.brandt@asset.tv
gillian.kemmerer@asset.tv
A graduate from Binghamton University, BA, and Pace University, MBA, Jason was one of the first to join Asset TV Inc. He is also the current office champion of ping pong and bowling.
Lloyd Layton VP – Head of Business Development lloyd.layton@asset.tv A self-described FinTexpert, Lloyd can be found sailing the globe, walking his pug and thinking really hard about blockchain.
Scott McKenna Business Development Executive scott.mckenna@asset.tv An ever-prepared Eagle Scout, Scott supports the Asset TV sales team in NYC. He holds a Bachelor’s in Economics from SUNY Albany.
Most recently a hedge fund journalist for Absolute Return, Gillian holds an MSc from the London School of Economics and a BA from Columbia University. She is a competitive archer and sports fanatic.
Maya Chung Researcher and Presenter maya.chung@asset.tv A New York native and former paralegal in Paris, Maya traded the city of lights for a studio full of them. She graduated Columbia in 2015 with a degree in English.
Samantha Cohen Business Development Executive samantha.cohen@asset.tv Samantha is an MBA grad from Binghamton University. Aside from prospecting leads for Asset TV, she loves horses and improving the office mood with LED spotlights.
The First U.S. Green Bond ETF 4-5 VanEck rings the NYSE closing bell
Natixis Debuts First U.S. ETF Interviews from the NYSE floor
MASTERCLASS 8-9 Highlights from impact investing
The Leaderboard
10-11
Nuveen Channel
12-13
Trending on Asset TV
14-15
MASTERCLASS
16-17
FinTech Channel
18-19
Top 10 most watched people
Latest Nuveen videos on Asset TV
The most popular segments
Highlights from our flagship series
Highlights from the FinTech industry
HOT SEAT: Retirement Insights
No part of this publication may be reproduced without the prior permission of Asset TV Inc. Information, views and opinions contained in the articles have been compiled from interviews conducted by or hosted on Asset TV with regulated fund managers and other investment professionals. Asset TV Inc. accepts no liability for any loss arising from the use hereof nor makes any representation as to their accuracy or completeness. Whilst every care has been taken in preparing Asset TV Review, neither Asset TV inc. nor the authorities can accept responsibility for any errors it may contain or for any losses from or in reliance upon its contents. Asset TV Inc. is part of the Think Digital Group Ltd,6-7 Waterside, Station Road, Harpenden, AL5 4US, United Kingdom.
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SPECIAL FEATURE
INCOME WITH IMPACT: VANECK CELEBRATES THE DEBUT OF THE FIRST U.S. GREEN BOND ETF Investment management firm VanEck rang the closing bell at the New York Stock Exchange this March to celebrate its launch of the United States’ first green bond ETF. Head of ETF Product Management and Marketing Ed Lopez joined Asset TV’s Gillian Kemmerer to discuss the debut of the green bond fund and the growing investor interest in green projects.
Lopez explained why VanEck chose to launch the green bond fund, from providing access
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to core market segments to giving investors entry into evolving areas of the market.
He also notes that the US SIF: The Forum for Sustainable and Responsible Investment found that ESG-tied asset strategies increased by 33% from 2014 to 2016, and explains how VanEck intends to meet this growing investor demand through the launch of its fund. Lopez explains that a green bond is simply a conventional bond with a “green bonus.” In
directing funds toward green initiatives, Lopez discusses how VanEck addresses issues like energy efficiency and water conservation.
As a relatively new concept, there hadn’t been guiding principles in the green bond space until 2014, when a number of market participants compiled the Green Bond Principles. These guidelines lay out the standards and assessment process for the green bond market.
And as impact and ESG investing become more mainstream, Lopez comments on Apple’s new green bond and some of the work it has done to incorporate energy efficiency.
For advisors or investors who are interested in incorporating green strategies, Lopez shares some approaches, emphasizing that green bonds function like conventional bonds but offer an added green benefit.
REVIEW OTHER FEATURED VIDEOS
Ed Lopez -ETF Product Management and Marketing Head at VanEck
Jan Van Eck - CEO of VanEck
“That’s what this Green Bond ETF is really doing: providing access to a new segment of the market that there’s a great deal of demand for. And to put that in perspective, just as financial markets evolve, so do investor values and preferences. And we’re seeing, I think, a mind shift in the investment landscape in terms of investor preferences towards ESG type investing or investing with...some societal or environmental impact.”
“If the commodity prices are going down for five years, the typical commodity rally is three years long - so we definitely think you want to own commodities coming into this year... gold shares had a good year and have another good day today, energy is probably the biggest core that we look at, crude oil probably more than natural gas.”
Fran Rodilosso - Head of Fixed Income ETF Portfolio Management at VanEck
Jim Colby - Portfolio Manager and Senior Municipal Strategist at VanEck
“By investing in local EM markets, you will get exposure to EM currencies, and this generally reflects a positive view on global growth, and commodities prices, but perhaps not such a positive a view on the U.S. dollar. This is one way to play the opportunities and to get extra yield, given this environment where we have $12 trillion in negative-yielding debt and virtually no yield opportunities in developed markets sovereign debt.”
“We have a suite of municipal ETFs that span the yield curve from short to long...we feel very confident about, in terms of recommending, the intermediate part of the curve. 12-17 years right now happens to offer one of the best incremental yield opportunities year to year and relative value to other asset classes.”
www.assettv.com April 2017 5
SPECIAL FEATURE
NATIXIS CELEBRATES U.S. ETF LAUNCH ON THE FLOOR OF NYSE To celebrate the launch of its first U.S. ETF, Natixis Global Asset Management rang the opening bell at the New York Stock Exchange and joined Asset TV’s Head of Programming Gillian Kemmerer on the floor to discuss the new ETF.
One of the world’s largest asset managers, Natixis holds more than $875 billion in assets under management and has over 25 investment management affiliates across the world. The Natixis Seeyond International Minimum Volatility ETF is Natixis’ first ETF in the U.S and is managed by Seeyond, the volatility management and structured product investment division of
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Natixis. The new ETF began trading on the NYSE ARCA in October 2016 under ticker MVIN.
MVIN offers a lower-risk international diversification option as well as long-term capital appreciation. It is an actively managed ETF that uses both quantitative and qualitative filtering to omit extremely risky stocks as well as those that are highly correlated with other stocks in a portfolio.
Kemmerer spoke with several members of Natixis’ leadership. David Giunta, CEO for the U.S. and Canada explained why Natixis decided to launch in the
U.S, commenting on Natixis’ investment discipline and why the ETF structure was appropriate for this particular launch. He explained why Natixis chose the Seeyond minimum volatility strategy and discussed the transparency within the ETF structure. Giunta also discussed another achievement Natixis was celebrating: winning the Barron’s Best Mutual Fund Family of the Year designation.
Emmanuel Bourdeix, Co-CIO of Natixis Asset Management and Head of Seeyond then joined Asset TV on the floor to explain how actively managing the ETF can achieve minimum volatility for investors. He explained that
Natixis uses both the qualitative overlay for stock selection and an active implementation: through this, the team is “bridging the gap between passive management and active management.” Bourdeix also shared how MVIN can fit into an investor’s portfolio and detailed the skills and specific expertise of its management team.
Finally, John Hailer, the retiring CEO for the Americas and Asia shared how the Seeyond fund exemplifies Natixis Global Asset Management’s philosophy through its global reach. He also shared what exactly about Natixis has made it so successful and the importance of putting the investors first and managing risk.
REVIEW
David Giunta CEO for the U.S. and Canada at Natixis Global Asset Management “With this particular strategy, we’re not as worried about being able to disclose the holdings throughout the day. The investment philosophy is a little bit more of a systematic approach. And so that transparency into the holdings is not a problem for us, so it fit in perfectly with the ETF structure.”
Emmanuel Bourdeix Co-Chief Investment Officer at Natixis Asset Management “We do believe that by actively managing this ETF we can achieve the minimum volatility portfolio for investors. And to achieve that, we have both a qualitative overlay for stock selection and also an active implementation. This is key. With this ETF, we are bridging the gap between passive management and active management.”
John Hailer Retiring CEO for the Americas and Asia at Natixis Global Asset Management “[Seeyond is] kind of the epitome of what we’ve been building over the last twenty years - a truly global company. So they’re based in Europe, we’re able to bring their expertise to the U.S. and able to build a market for them in the United States - and have something that’s truly a global company and be able to leverage all the resources that come with a global company.”
www.assettv.com April 2017 7
SPECIAL FEATURE
IMPACT INVESTING
Five experts discuss definitions, measurement and trends in the impact investing space As the practice of impact investing moves from niche to mainstream, Asset TV gathered a panel of experts to debate the future of this maturing industry in a recent edition of MASTERCLASS. The educational program featured five speakers who have devoted their careers to the practice of impact investing, and was moderated by Asset TV’s Head of Programming, Gillian Kemmerer.
As debates abound regarding the definition, perception, and measurement of impact investing, the panelists began by each sharing their individual understanding of the practice and reflected on the evolution of the industry over the years, before moving onto ESG’s contemporary circumstances.
Moving to a discussion of policy and politics, the panelists emphasized that though they are not adjusting their approach to impact investing under the Trump administration, they have noticed revived interest among their clients in aligning investments with values. Responding to a viewer question regarding impact investing and the millennial generation, the panelists noted that younger Americans are truly leading the charge in the impact investing sphere in communicating staunch commitment to investing along ethical standards.
Despite the impressive gains in impact investing over the years, one of the issues that continues to pose a challenge to the
industry is the benchmarking and measurement process. The experts analyzed best practices for measuring social impact and debated the common client concern that incorporating impact investing sacrifices financial returns.
The panelists, each with varying approaches to impact investing, then shared the ESG factors they prioritize when making their investment decisions. Aristotle Credit Partners’ Doug Lopez reflected on opportunities in the high yield space while RBC’s Ron Homer discussed capital access in low and middle income communities. Nuveen’s Amy O’Brien explained how a focus on thematic investing impacts product construction, and UBS’
John Adams commented on how ESG investing works to put democracy in action. Tessie Petion explained how Domini influences corporate action among its portfolio of companies.
In this edition of MASTERCLASS, experts weighed in on the process of impact investing, shared insights on how to position impact in a portfolio, and discussed trends in perception and measurement of the practice.
Achieving Social and Financial Returns Ronald Homer - President, Access Capital Strategies at RBC Global Asset Management “I think the biggest hindrance for this field growing is the confusion over whether there’s a trade-off or not. And I can tell you from RBC’s perspective, we look at ESG and impact investment as alpha activities… so I think looking at behaviors, looking at environmental factors and social factors are all part of a good investment practice and actually if applied diligently should deliver outperformance.”
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REVIEW
Defining Impact Investing
The Advisor’s Role in Impact Investing
Tessie Petion - Vice President, Responsible Investment Research & MIS at Domini Impact Investing
Doug Lopez - Principal & Portfolio Manager at Aristotle Credit Partners
“I think that one of the biggest things is that the definitions have expanded. So it’s really intuitive that a sustainable investment company is interested in renewables. I think what’s less obvious and what we have been able to see is that it’s not just investing at that point. It means looking at component companies that help connect electric companies to the grid. It means looking at asset managers that are investing in this space… and I think that we just have expanded the definition of what’s possible through investments.”
“Well, I think the advisor community needs to really come to terms with the fact that this is something that’s involved and should be involved in every decision in every portfolio that’s being constructed for their clients. I think that you need to have the awareness of the client in terms of the amount of impact they want to have in their portfolios.”
Measuring Impact
Investing After the Election
Amy O’Brien - Head of Responsible Investment at Nuveen
John Adams - Senior Vice President, Investments at UBS Financial Services
“But clients want to know this information. They’re interested in the ESG quality of a portfolio. But they’re also interested in the results. What positive social or environmental benefits came out of my portfolio this past year or quarter? I’d say as a practitioner in this space, I’d like to see more alignment around this. I think having common definitions of where we’re all heading is really important to the field…”
“I think that the level of consciousness around ethics and values that has occurred since the election, that’s the great thing in America is that people may be polarized, but we’re all talking about what’s important. And now people are getting more active in all of those areas wherever they are on the political spectrum. I think you’re seeing people become much more activist about how they’re engaging.”
www.assettv.com April 2017 9
SPECIAL FEATURE
THE LEADERBOARD
The Leaderboard represents the most popular industry experts as watched by investment professionals. The power of Asset TV to deliver video research to a network of over 230,000 investment professionals in the U.S. allows them to make better informed investments. Viewers from all major wire-house and broker dealer firms watch for their investment due-diligence and to benefit from an accredited source of continuing education.
BOB DOLL 01 Nuveen
DAVID LAFFERTY 02 Natixis Global Asset Management
Bob Doll is a senior portfolio manager and chief equity strategist at Nuveen Asset Management.
David Lafferty is a senior vice president and chief market strategist at Natixis Global Asset Management.
LATEST VIDEO: HOW TO CHOOSE THE “RIGHT” ACTIVE MANAGER?
LATEST VIDEO: 2017 MARKET OUTLOOK – ASSESSING THE UNKNOWNS
SCOTT MINERD 03 Guggenheim Partners Scott Minerd is the global chief investment officer at Guggenheim Partners.
LATEST VIDEO: THE MESSAGE BEHIND FED’S MARCH 2017 RATE HIKE
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LUKE FARRELL 04 Capital Group Luke Farrell is a fixed-income investment director at Capital Group.
LATEST VIDEO: COULD HIGHER INFRASTRUCTURE SPENDING MOVE THE MUNI MARKET?
REVIEW
OLIVIA ALBRECHT 05 PIMCO
CHRIS DAVIS 06 Davis Advisors
Olivia Albrecht is a senior vice president and a portfolio strategist on the multi-sector fixed income team at PIMCO.
Chris Davis is chairman and portfolio manager at Davis Advisors.
LATEST VIDEO: STRENGTHENING ECONOMIC EXPANSION: PIMCO’S CYCLICAL OUTLOOK
LATEST VIDEO: DAVIS LAUNCHES ACTIVELY MANAGED EQUITIES IN TRADITIONAL ETF
CHARLES REINHARD 07 New York Life MainStay Investments
PAUL GRILLO 08 Delaware Investments
Charles Reinhard is the head of portfolio strategy and managing director at the New York Life MainStay Investments.
Paul Grillo is a fixed income portfolio manager at Delaware Investments.
LATEST VIDEO: MAINSTAY: INSIGHTS FOR 2017 FROM CORNERSTONE FUNDAMENTAL EQUITY TEAM
LATEST VIDEO: INVESTING UNDER TRUMP: A DEFENSIVE APPROACH
FRANCIS GANNON 09 The Royce Funds
EDWARD KERSCHNER 10 Columbia Threadneedle Investments
Francis Gannon is co-chief investment officer and a managing director at The Royce Funds.
Edward Kerschner is chief portfolio strategist at Columbia Threadneedle Investments.
LATEST VIDEO: WHAT MIGHT SURPRISE INVESTORS IN 2017?
LATEST VIDEO: ESG POINTS TO WELL-RUN COMPANIES
www.assettv.com April 2017 11
SPECIAL FEATURE
NUVEEN Latest videos now available on the Nuveen Channel
Equity Markets: Growing More Cautious (But Still Optimistic)
Opportunities in 2017
Bob Doll - Senior Portfolio Manager and Chief Equity Strategist at Nuveen Asset Management
Jon Bosse - Head of Global Business Development at Nuveen Asset Management
“I think the easy money in this bull market is in the rearview mirror... so I think you’ve got to be a little more cautious. I wouldn’t have all my money on the sidelines. People say, ‘I have money earmarked for equities. What should I do?’ Put some in now, dollar-cost average the rest of it, and maybe save a hunk for when the market gets hit.”
“Passive investment...has been amplified by a premise of interest rates are low and you can pay anything for companies that fit the bill... the market has significantly overvalued a set of companies really based on an interest rate environment and a tax environment that no longer seems to be the course going forward.”
Strategic Income Fund: Seeking Flexibility Across Multiple Bond Sectors
NWQ Global Equity Market Update
Tim Palmer - Portfolio Manager at Nuveen Asset Management’s Strategic Income Strategy
Gregg Tenser - Head of Global Business Development at Nuveen Asset Management
“One of the things we see in the bond market, and increasingly today, is that conditions change very rapidly. So with a broad playing field like that we can actively make adjustments across the parts of the bond market to find both good value for our investors and also protect them from some of the rising risks when they occur.”
“If you have 90% of the universe, as we used to have, actively investing in stocks...well that’s fine for a small sliver of the universe to kind of piggyback on us and go passive. But what happens when you turn that equation on its head? If you have 80% of the universe going passive...the remaining players can’t make the market efficient.”
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REVIEW
Preferred Securities Outlook: Opportunities in the Banking Sector
Fed Rate Hike: Bond Market Implications
Doug Baker - Portfolio Manager and Head of the Preferred Securities Desk at Nuveen Asset Management
Tony Rodriguez - Co-Head of Fixed Income at Nuveen Asset Management
“Our outlook is still that interest rates are going to continue to grind higher. And as a result, we continue to position our strategies defensively against a rising interest rate environment. And how do we do that? ...we use different coupon structures to help us reflect our outlook for interest rates...”
“Our belief is that a lot of the good news is priced into markets, so investors should have a modest amount of caution when looking at global risk markets. So the spread markets in fixed income...their valuations have certainly moved pretty significantly in the last year and in the last few months post election.”
A Broad Array of Income Opportunities: The Nuveen High Income Bond Fund
CEF Market Matters: The Discounts, Yields, and Leverage in the Current Market
Jeff Schmitz - Portfolio Manager at Nuveen Asset Management’s High Income Bond Portfolio
Mike Taggart - Vice President & Director of ClosedEnd Fund Research, Nuveen Investments
“We hear about a lot of fiscal spending and stimulus...at the same token, we think rates are going up. That creates a bit of a headwind, but again when you’re looking at high yield you’re looking for economic expansion. So even if rates are up...we think that there’s going to be underlying strong fundamentals...”
“There’s been a lot of investor interest in senior loans, floating rate loan closed end funds...they’re still offering distribution rates at price between 6-7% for basically a zero duration product that does have some credit risk with it. But the interesting thing about these is they are meant to float as rates go up so...the income that the individual loans are paying out will go up as short rates go up.”
WWW.ASSETTV.COM/NUVEEN www.assettv.com April 2017 13
Trending on assettv.com FIXED INCOME
ESG
Fixed Income in a Rising Rate Environment
Meeting ESG Challenges Head On
Dirk Hofschire - Senior Vice President at Fidelity Investments
Richard Mattison - MD & CEO at Trucost, part of S&P Dow Jones Indices
“Going forward, it’s a more constructive 2% type inflation. There’s a potential upside if we do some things that aren’t really that constructive, like protectionist measures and other things where you could get a jolt.”
“This is a relatively new space for investors in many companies. And whilst historically there has been attention paid to ESG issues, in today’s more volatile environment what’s so important is to have the right set of data.”
Opportunities in Fixed Income
ESG Points to Well-Run Companies
Carl Eichstaedt - Senior Portfolio Manager at Western Asset Management
Edward Kerschner - Chief Portfolio Strategist at Columbia Threadneedle Investments
“I think the yield curve is going to flatten. Short rates will rise as the Fed tightens policy, that’s rational. But I think long rates don’t need to rise as much, I think a lot of people forget that the rest of the world is in a very low-yielding environment.”
“If you look at recent data, it suggests there is no [performance] tradeoff. If you invest in a ESG-friendly way, you actually are investing in good companies. And these good companies, by looking at the data, perform as well as a broad basket of stocks.”
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REVIEW
FED WATCH
MUNI BONDS
What to Make of the Fed’s March Message
Municipal Bonds
Richard Clarida - Global Strategic Advisor at PIMCO
Thomas C. Casey - Vice President & Senior Portfolio Manager at Standish Mellon Asset Management
“We’re all conditioned to thinking that when the Fed hikes, it’s negative for risk markets, but because this was so well telegraphed in advance, it actually turned out to be positive for markets.”
“We have always focused on revenue bonds and revenue bond sub-sectors in the context of our portfolios. We feel, generically speaking, that they are perhaps undervalued and certainly perhaps underrated.”
Fed Rate Hike: Bond Market Implications
Munis as Core in a Rising Rate Environment
Tony Rodriguez - Co-Head of Fixed Income at Nuveen Asset Management
J.R. Rieger - Global Head of Fixed Income at S&P Dow Jones Indices
“We continue to believe that the economy over the course of the next twelve to twenty four months will continue to grow at about a 2-2.5% pace and inflation has continued to move up modestly consistent with the Fed’s two percent target.”
“Whenever you introduce uncertainty into the bond market, bond markets react that way--where rates jump up a little bit. Rates have come back down, I can’t say they’ve settled down... but we’ve seen positive performance in 2017.”
www.assettv.com April 2017 15
Active Management: The Power of Choice
2017 Investment Outlook
Carl Eichstaedt - Senior Portfolio Manager at Western Asset Management
Francis Gannon - Co-Chief Investment Officer, Managing Director at The Royce Funds
“As markets have become less liquid, I think that the advantage of active management over passive is even increasing. There’s just so many examples of how active has an advantage. But as we go into this kind of macro environment, you have to be aware of when a security gets kicked in or is out of the index. You have to worry about the ability to trade those securities.”
“We had over 26% correction in the Russell 2000 and not many people are talking about it. They didn’t talk about it while it was happening. So it was almost a stealth bear market that took place in the market this year from our perspective. And then you’ve had this incredible stealth bull market, if you will. The Russell 2000 is up over 45% from its low.”
Exchange Traded Funds
Energy & Master Limited Partnerships
Luke Oliver - Head of ETF Capital Markets at Deutsche Asset Management
Jeff Jorgensen - Director of Research at Center Coast Capital
“So if you look at the currency-hedged funds, if you look at the MSCI EFA hedged versus unhedged, the hedged has outperformed 276 basis points year to date. And just this quarter, the Japan currency-hedged funds have outperformed 1200 basis points.”
“I think the tailwinds that are back from an OPEC and commodity price uplift, rigs being put back to work, production is on the rise again. And you have a very accommodative administration to say the least, I think all those tailwinds will offset any kind of small interest rate increase.”
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April 2017 www.assettv.com
REVIEW
Cybersecurity
Impact Investing
John Araneo - Managing Director & General Counsel at Align
Tessie Petion - Vice President Responsible Investment Research & MIS at Domini Impact Investing
“Cybersecurity has really upended the risk management paradigm. And the tools that are in the market and even the skill sets that are out there are not prepared to address the threats holistically.”
“I think the fact is we’re looking at impact in lots of different industries in lots of different ways and looking for ways to really get companies to think about mitigating climate change or incorporating diversity.”
Target Date Funds
Municipal Bonds
Jody Jonsson - Portfolio Manager at American Funds
Adam T. Bergonzi - Managing Director, Chief Risk Officer at National Public Finance Guarantee Corporation
“So many people were defaulting to cash or stable-value options that just don’t generate the returns needed over time to prepare people for retirement. So the most important thing is that the participants are invested and that they stay invested. As you said, the compounding over many, many years is probably the single biggest driver of what the outcome will be.”
“So it took a while for the impact of the crisis to appear in the tax spaces that support these bonds. So I would say somewhere in the 2010-11 range you saw the beginnings of some real deterioration in some high profile credits, Detroit, Stockton, and others. And this led in fact to, I think, a greater awareness of political risk.”
www.assettv.com April 2017 17
FINTECH
CHANNEL
Videos available on the FINTECH Channel
Online Lending and the Access Economy
How to Enforce a Culture of Cybersecurity
Ron Suber - President of Prosper Marketplace
Sid Yenamandra - CEO & Co-Founder of Entreda
“We’ve moved from something called the sharing economy— where we just shared pictures and music—to this access economy, where we’ve tapped into the power of giving borrowers and investors access to each other for the first time.”
“When you look at the [SEC/FINRA regulatory] framework, it’s built around five things…having processes that allow firms to identify threats, be able to detect them, be able to protect them, and then respond and recover.”
Leveraging Tech to Achieve Tax Alpha
The Digitalization of Knowledge
Eric Clarke - Chief Executive of Orion
Paolo Sironi - Global Thought Leader at IBM
“As we met with our advisors, we found that they were spending literally hours trading client portfolios. As we dug deeper with them, we learned a lot about tax alpha, and how we can help automate processes to generate tax alpha.”
“The financial services industry has been struggling lately to generate value for their customers. The search for alpha became like the quest for the secret grail - it is not easy. But one asset banks own that they should be able to deliver to the customers is knowledge.”
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REVIEW
PRESENTED BY
FIS Derivatives Utility – Transforming the Clearing Industry John Avery - Global Head of Client & Industry Engagement at FIS Derivatives Utility
“Our industry will continue to face profitability challenges for the foreseeable future, and the complex operating models of banks means that making the changes required to address those challenges is difficult, time consuming and very expensive.”
Overcoming Regulatory Challenges in Financial Services Patrick Barnert - CEO of Qumram “One [priority of financial services firms] is regulatory compliance, which is still a big challenge for them to handle properly. And the other one is around digital transformation... we’ve seen the upcoming fintech wave and that’s impacting also heavily financial services organizations.” www.assettv.com April 2017 19
NEW CHANNEL ON ASSETTV.COM
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REVIEW Watch more HOT SEAT BORROW TO FUND Expert: Rohit Mathur, Prudential
HOT SEAT - RETIREMENT INSIGHTS EXPERT: BOB BOYDA, MANULIFE EXPERT PROFILE
Bob Boyda is the Senior Managing Director and Senior Portfolio Manager of Manulife. He is responsible for the day-to-day monitoring and portfolio management of John Hancock’s Lifestyle and Lifecycle portfolios as well as a wide array of other asset allocation portfolios offered in the U.S., Canada and Asia.
Chris Ailman, Chief Investment Officer from California State Teachers’ Retirement System, CalSTRS. Within asset allocation, what would you recommend for a 45 year old person in their 401(k)? You’ve got to start by running a fully diversified portfolio, because let’s face it, diversification is the ground and bedrock on which the future investment returns are going to be built and you’re going to get something for nothing, a bit of a free lunch if you will, from the diversification benefit. But let’s frame the environment a little bit to get to the answer of what does a 45 year old do when they need to invest more aggressively for their retirement. The first thing I think we should understand is that that 45 year old is going to live probably to 90 years old. So we shouldn’t think about it as 45 to retirement. We should think about it as 45 to 90 or a 100, which is a 45/55 year investment horizon. The long term returns to equity are
still going to be very competitive. They may not be the 10% that we would have liked that we got off the charts from 1926. But they’re going to be in the 6/7% range. And with very low inflation that’s a real rate of return that’s very comparable to the long term averages. In fact stocks in for the long run, Jeremy Siegel talked about, what is the real rate of return we could expect for equities going back into the 1800s? And the answer was close to 6%. So if you can deliver a 6% return which is about a 16 multiple on equities, we’re currently trading around 18 or 19, so we’re a little bit elevated. On the European and Japanese side you’re finding good values, but you know those countries are rife with crises, every single week something blows up in Europe or in Japan. But in the midst of crises we’ve always found good value opportunities because the companies that are operating there are global in nature and they will be able to take
advantage of global opportunities and you’re being offered them at cheaper or less prices than you can get. So you want to stay fully diversified and your non-US developed is going to be 2025% of your allocation and the balance is going to be in the US. Now, what do you do on the fixed income side? So here we know that the returns are going to be in the ones to twos and that’s not very attractive and it’s quite frankly not going to fulfill someone who’s got a fairly aggressive growth trajectory out 45 years, so there you’re looking at high yield, corporate debt. And finally, you’re going to allocate about 10% of the portfolio that’s not gone into fixed income, into alternatives, liquid alternatives where the objective that the manager puts in front of you is to produce a 5-6% return with 6-8% volatility.
Prudential’s Senior Vice President and Head of Global Product and Market Solutions at Prudential Retirement answers questions related to company pension plan contributions, borrowing to fund a pension derisking strategy and more.
RETIREMENT INCOME SOLUTIONS FOR DEFINED CONTRIBUTION PLANS Expert: Roberta Rafaloff, MetLife
Metlife’s Vice President of Institutional Income Annuities shares her opinions on income annuities.
EVALUATING TARGET DATE FUNDS Expert: Ashley DiMayorca, Prudential
Vice President of Mutual Fund Product Management at Prudential Investments Ashley DiMayorca shares her evaluation process for target date funds and talks about some of the challenges that are faced during times of market volatility.
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CONFERENCE REPORT
ASSET TV DEBUTS AT DAVOS
by Gillian Kemmerer
The World Economic Forum’s Annual Meeting in Davos plays host to the most recognizable names in finance, government and media. Asset TV scored exclusives with many of them this year—from UN secretary-generals to Nobel laureates.
At 5,120 feet above sea-level, Davos ranks as Europe’s highest town—a fitting host to thousands of high-altitude leaders every year. The World Economic Forum’s Annual Meeting transforms the sleepy Swiss mountain town into an armored conclave where the global elite rub elbows before thousands of television cameras. Asset TV was one of a select number of U.S. media outlets to receive accreditation for the spectacle, and seized the opportunity to bring a bevy of unique perspectives to our viewers. Chinese president Xi Jinping was the headliner this year, extolling the virtues of free trade as some Western leaders step away from unilateralism. Reactions to Xi’s
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historic speech ranged from euphoria to harsh skepticism—dividing Davos attendees as much as cosmopolitanism seemed to unite them. One particularly interesting point of view came from Dr. Xavier Sala Martin, a Columbia University economist and advisor to the Global Competitiveness Report. He pointed out that China has a “big excess supply problem” whose cure is foreign exports, painting the remarks as economically motivated versus a selfless narrative on the benefits of globalism. WEF China head David Aikman, on the other hand, saw the moment as a historic opening up to the world. “Globalization has worked for China,” he told Asset TV in a lofted studio above the WEF Congress Center, “but China wants to make sure that globalization is also
working for the world.” As President Trump looks to rebalance global trade agreements and the UK negotiates the financial terms of Brexit, the discussions at Davos will only grow in pertinence. From a Nobel laureate focused on the supply and demand mechanisms of labor to Citi Group’s fintech challenge to fight government corruption, Asset TV is proud to present a diverse collection of interviews from the world’s most watched conference. You can find our Davos content on the MARKETS channel, or on your Bloomberg Terminal. Wirecode: TVA
REVIEW
A Nobel Laureate’s View on Brexit
The FT’s Gillian Tett on Davos 2017
Sr. Chris Pissarides - Regius Professor of Economics at The London School of Economics & Political Science
Gillian Tett - U.S. Managing Editor at The Financial Times
“I don’t think Britain will be better off outside the European Union, even now. What the Prime Minister was saying yesterday [on free trade] might bring Britain back to where it would have been if it remained in the single market..but I don’t see where improvement is going to come from. She’s saying she’s going to get free trade with Europe—well, she had it anyway.”
“This year there’s a real recognition that something has fundamentally gone wrong with the system, which means that the people here at Davos—the elite, if you like—need to radically address the issues that are causing the discontent…all the opinion polls are showing the rising tide of anger against the elites and against the system.”
UN Secretary Kituyi: “Trade Has to Be Reformed as a Force for Good”
How FinTech Can Combat Corruption
Dr. Mukhisa Kituyi - Secretary-General of the United Nations Conference on Trade & Development (UNCTAD)
Julie Monaco - Global Head of Public Sector Coverage at Citi’s Corporate and Investment Bank
“86% of jobs lost in the US in the past ten years have been lost due to technological innovation, automation of production. Only 14% have been lost to shipping of jobs abroad. So if you address the wrong part, you cannot fix the right part…trade can be a force for good. But trade has to be reformed to be a force for good.”
“Have confidence to take more risks in your career. I think that often women when a new job or a new opportunity comes up within their firm or outside their firm, they always think about the attributes that they don’t have…you have to push yourself to be outside your comfort zone and know that you have the ability to learn.”
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MARKETS COVERAGE
VIEW FROM THE FLOOR
From NYSE to Nasdaq, Asset TV provides market updates from New York’s most recognizable trading floors, including exclusive interviews and bell ceremony coverage. The New York Stock Exchange was founded in 1792, less than two decades after bonds had been issued to fund the American Revolution. Its historic floor on 11 Wall Street has witnessed some of the most dramatic financial events in history, from the Great Depression to the Dow’s 20K milestone. Asset TV is proud to deliver markets coverage from the floor, with insights from top traders who stand on the front lines of global markets. From the Snapchat IPO to the wake of Brexit, Asset TV’s editorial team has delivered intelligence on positioning, performance and market sentiment to our viewers. As of March, Asset TV has also begun taping from the state-ofthe-art Nasdaq MarketSite. With sweeping views of Times Square, the studio plays host to both regular market updates and exclusive interviews. Asset TV correspondent
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Maya Chung was on the scene as nonprofit Women in ETFs rang the closing bell for International Women’s Day. She interviewed ETFGI managing partner Deborah Fuhr on the organization’s history and mission, and the inclusion of women in financial leadership. Asset TV clients VanEck and Natixis commemorated ETF launches with Head of Programming Gillian Kemmerer at NYSE this year. Natixis U.S. and Canada CEO David Giunta was among the executives interviewed after ringing the opening bell; he discussed the impetus behind the firm’s first U.S. ETF offering, the Natixis Seeyond International Minimum Volatility strategy (MVIN). VanEck also posted a milestone from the NYSE floor, listing the first-ever green bond ETF in the United States (GRNB). ETF Product Management
and Marketing Head Ed Lopez chatted with Asset TV from a lofted studio above the floor, describing the types of projects that green bonds finance and why VanEck debuted the strategy. You can check out our NYSE & Nasdaq content on the MARKETS channel, the Bloomberg Terminal (TVA) and Asset TV’s social media (@AssetTVUS).
REVIEW NEW SERVICE LAUNCH
WHITEPAPER VIDEOS
Asset TV is proud to launch a new service that summarizes industry whitepapers in a digestible video format. Our reports analyze and
condense whitepapers for easier promotion, drawing attention to the conclusions that matter most. Take a look at our first two episodes
to learn about Sprott Asset Management’s outlook for gold equities and Community Capital Management’s impact investing philosophy.
8 Factors That Are Driving Gold Equities
2016 Annual Impact Report
Sprott Asset Management
Community Capital Management
Gold has outperformed the world’s major currencies over the past decade, posting an average return of 109%. According to a whitepaper from Sprott Asset Management, gold and gold equities should maintain their momentum, and have posted stellar performances in both absolute and relative terms.
In its 2016 Annual Impact Report, Community Capital Management highlighted some of its impact outcomes and themes for the past year. A fixed income-focused manager, CCM works to incorporate environmental and social goals into its investment philosophy.
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REVIEW
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Changing the climate of target date funds
Natixis Sustainable Future Funds
Introducing the industry's first ESG-driven target date funds: Natixis Sustainable Future Funds. By combining sophisticated methodology with sustainable ideology, you can now invest in the future with purpose.
Target a better future: ngam.natixis.com/ESGTargetDateFunds Investing involves risk, including risk of loss. Principal invested is not guaranteed against losses. It is possible to lose money by investing in the Funds, including at and after the Funds' target date. Before investing, consider the fund's investment objectives, risks, charges, and expenses. Visit ngam.natixis.com or call 800-225-5478 for a prospectus or a summary prospectus containing this and other information. Read it carefully. NGAM Distribution, L.P. is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Global Asset Management, S.A.
1731078.3.1 ADUS116-0417