Category: Funds

Mutual Fund Industry Awards Winners Announced

Mutual Fund Industry Awards Winners Announced


Fund Industry Intelligence and Fund Director Intelligence, Institutional Investor’s exclusive publications for the mutual fund industry, have announced the winners of the 21st Annual Mutual Fund Industry Awards at a gala ceremony at New York’s Mandarin Oriental.

Around 500 mutual fund marketers, analysts and executives, as well as mutual fund company lawyers and independent trustees, attended the event.

The winners were announced after a six-month nomination and selection process conducted by the FII and FDI editorial teams. The picks were based on a combination of editorial research and mutual fund industry feedback. Follow the links below for winner profiles.

Fund Industry Intelligence’s winners:

Lifetime Achievement Award: Don Phillips, former head of global research, Morningstar
Fund Leader of the Year: George Aylward, president and CEO, Virtus Investment Partners
Fund Marketer of the Year: Shawn Alexander, head of Americas fund marketing, JPMorgan Funds
Ad Campaign of the Year: ING U.S. “Orange Money”
Deal of the Year: RidgeWorth Capital’s Management-Led Buyout
Sales Success of the Year: WisdomTree’s Japan Hedged Equity ETF
Retirement Leader of the Year: JPMorgan Asset Management

Fund Director Intelligence’s winners:

Lifetime Achievement Award: Joel Goldberg, of counsel, Stroock & Stroock & Lavan
Trustee of the Year: James Oates, independent chairman, John Hancock Funds
Small Board Trustee of the Year: John Brown, independent chairman, Blackstone Alternative Investment Funds
Independent Counsel of the Year: Brian McCabe and Gregory Sheehan, partners, Ropes & Gray

Read more about the awards and winners at

CIBC Mellon Earns $1.1bn Mandate Expansion

CIBC Mellon Earns $1.1bn Mandate Expansion

CIBC Mellon has announced that Horizons ETFs Management has selected CIBC Mellon to provide fund administration, custody and exchange-traded fund (ETF) services for the Horizons family of 38 leverage and inverse ETFs.

This CAD$1.1bn mandate expands on the asset servicing solutions CIBC Mellon already provides for the Horizons ETFs family of actively-managed ETFs. With the addition of these 38 ETFs, CIBC Mellon now services all of Horizons’ Canadian ETF business.

“We’ve been very happy with the service provided by CIBC Mellon on our actively managed ETF business. Both the technology used by their platform and the client service they offer have been terrific,” said Kevin Beatson, Chief Operating Officer of Horizons ETFs. “We’re quite happy to transition the rest of our ETF business to their custody and fund administration platforms, and feel our unit holders will be well served by this partnership.”

“We are committed to great service, strong support and continuous improvement here at CIBC Mellon, and we have enjoyed a very strong working relationship with Horizons – we are very pleased they have again selected us to service their family of funds. We look forward to delivering strong solutions for Horizons ETFs as they continue to expand their business and serve their investors,” said Ronald C. Landry, Executive Director, ETFs & Investment Funds, CIBC Mellon.

Horizons Exchange Traded Funds Inc. is an innovator in both actively-managed ETFs and inverse and leveraged ETFs. They are currently the largest provider of both actively managed ETFs and leveraged ETFs in Canada.

CIBC Mellon is a leading provider of ETF-servicing solutions in Canada, currently serving the majority of ETF sponsors operating in the Canadian market. Leveraging the award-winning capabilities of BNY Mellon, a global leader in investment servicing, CIBC Mellon’s ETF solution includes indicative net-asset-value (NAV) production, automated basket creation and redemption features, and a designated broker interface offering flexible, end-to-end automation of the order process. This solution delivers support and flexibility, meeting the operational needs of a spectrum of ETF industry participants.

Budget’s Pension Changes “Style Over Substance”

Budget’s Pension Changes “Style Over Substance”


The 2014 budget’s pension changes have been slammed as “style over substance” by the chief executive of one of the world’s largest independent financial advisory organisations, who also says it will “fuel pension transfers.”

The comments from Nigel Green, founder and CEO of deVere Group, follow Steve Webb, the pensions minister, yesterday hailing the pension changes announced in last week’s budget as “a big step forward.”

Mr Green observes: “It was a budget in which there were several headline-grabbing pension policies annoucned, but scratch the surface and it was more style over substance.

“For instance, the scrapping of restrictions on pensions access will be a policy that will have little real appeal to the vast majority of people. This is because accessing a pension will be taxed at the individual’s highest marginal rate of income tax – which for anyone with total UK income (including salary, rental and investment income) over £31,866 will be 40 per cent and 45 per cent on all earnings over £150,000.

“Anyone who has worked hard and saved hard all their life for their retirement will be, rightly, loathed to drawdown their pension and handover almost half of their nest egg to the Treasury, simply for the privilege of having earlier access to their own funds. The average pension transfer we encounter is £320,000, which will lead to considerable tax charges if accessed all at once.”

Regarding the Chancellor’s much lauded budget pledge that “no one will have to buy an annuity,” Mr Green notes: “The requirement to purchase an annuity was actually removed in the 2011 budget and people could opt to take income drawdown instead. However, despite this change the number of people taking annuities remained relatively unchanged.

“Whilst I support the Chancellor releasing individuals from buying annuities because it encourages people to save, knowing that they can access the full capital rather than purchase an annuity, I suspect that most people will continue to buy annuities, perhaps not realising that there are better ways to create an income in retirement.”

Despite insisting that these two highly-publicised changes to pension policy will do little to alter most people’s long-term financial strategies, there is one area of pension planning which is set to be impacted from the Chancellor’s statement, according to the deVere Group CEO.

Mr Green explains: “To my mind, the primary change for our industry is that civil service pensions will not be able to be transferred outside of the UK unless there are ‘exceptional circumstances’.

“The government’s reasoning behind stopping civil service schemes transferring is that they are massively underfunded and they will be left with the debts.

“Now that it has been admitted that their schemes are underfunded, an increasing number of civil servants will want to review their pensions options and take advantage of any alternative arrangements, such as QROPS (Qualifying Recognised Overseas Pension Scheme), that may currently be available to them, before the government disempowers them to do so.

“It should also be stated that the government is also actively reviewing the possibility of prohibiting the transfer of all defined benefit schemes.”

He adds: “We have found that QROPS enquiries have increased since the government’s proposals were announced and this upsurge, it can be reasonably assumed, is being driven by those who might shortly not be able to take advantage of the many associated benefits of QROPS. Such benefits include a greater freedom over pension investments, a choice of major currencies, and often far more efficient tax treatment of the pension – both when income is accessed and on the individual’s death.”

Mr Green concludes: “In short, Chancellor George Osborne’s 2014 budget was, perhaps unsurprisingly, an electioneering budget that promises a lot and that will impact little on pension planning, except for fuelling demand for overseas pension transfers.”

European Leveraged Loans Regaining Ground

European Leveraged Loans Regaining Ground

The European leveraged finance market is set to undergo a shift this year, as private equity sponsors veer back towards loans to finance leveraged buyouts, says S&P Capital IQ Leveraged Commentary and Data (LCD), a provider of real-time coverage of the leveraged finance markets.

European high-yield bond issuance has surged in recent years as sponsors have tapped into the liquid, cheap, and covenant-lite financing offered by bonds, to refinance loans and to support mergers and acquisitions (M&A).

However, there are early signs that the popularity of financing M&A via high-yield bonds is waning, while loans are regaining ground.

In 2013, 59% of M&A financings (mainly leveraged buyouts) tracked by S&P Capital IQ LCD across the European loan and bonds markets were financed by term loans and a revolving credit facility (RCF) – the lowest share in four years – while 14% were financed by high-yield bonds and an RCF, the highest share in four years. In contrast, in 2014 year-to-date 77% of all M&A deals have been financed by loans only and bond-plus-RCF financing has not yet been used.

Supporting this trend is the growing acceptance of covenant-lite loans in Europe, as investors become accustomed to seeing deals structured in this way. Covenant-lite loans (i.e. loans with no maintenance covenants) have begun appearing in Europe via cross-border transactions syndicated in Europe and the U.S. In 2014 year-to-date*, approximately €2bn of covenant-lite loans have been sold in Europe. This compares to 8bn in 2013 (full year), €1.4bn in 2012, and €7.7bn in 2007.

According to S&P Capital IQ LCD, since the financial crisis, no covenant-lite loans have been sold purely into the European market, but investors’ hunger for assets is encouraging them to take a more tolerant stance towards this type of loan. On this basis, leveraged companies with strong credit profiles could tap the domestic market without maintenance covenants during the course of the year.

“Sponsors have traditionally preferred loans over bonds, because they can be repaid more easily,” commented Ruth McGavin, Associate at S&P Capital IQ LCD. “This natural preference is re-emerging, and will be aided by investors’ willingness to buy covenant-lite loans in Europe.”

Multi-manager Yousefian Joins Charteris
FundsReal Estate

Multi-manager Yousefian Joins Charteris

Charteris Treasury Portfolio Managers Limited is pleased to announce the appointment of the highly experienced multi-manager, Tony Yousefian.

Yousefian joins the firm from City Financial, where he managed the EFA OPM Fixed Interest Fund and the EFA OPM Property Portfolio Fund. Formerly Chief Investment Officer of OPM Fund Management, Yousefian joined City Financial in April last year following the acquisition of OPM Fund Management Ltd by City Financial.

Yousefian will continue to manage the £9.5 million EFA OPM Property Portfolio Fund in his new role at Charteris. The Fund, which has delivered a return of 6.1% over the year to 28 February, against a sector average of 2.37%, will continue to be managed according to the same investment mandate and objectives. Way Fund Managers will continue to act as the Fund’s Authorised Corporate Director.

Commenting on the appointment, Charteris Chief Executive Officer and Fund Manager, Ian Williams, said: “We are absolutely delighted that Tony has decided to join us at this exciting stage in the firm’s evolution, and that the EFA OPM Property Portfolio Fund will be coming to Charteris with him to take its place alongside our existing fund range. Tony brings more than 25 years of fund management experience to his new role at Charteris, and we look forward to Tony playing a fully active role in our efforts to build the Charteris fund range, and to broaden our wider investment proposition.”

Tony Yousefian is equally delighted with his new role. He said: “With 35 years’ experience in the Equity and Fixed Income markets, Ian is one of the most experienced and most talented managers working in the fund management field today. I am thrilled to be joining Ian and the team at this time. I would like to wish all my former colleagues at City Financial the very best for the future, and am looking forward to the challenge ahead.”

Andrew Williams, Chief Executive Officer at City Financial said: “We’d like to thank Tony for his contribution and wish him well for the future.”

Chelverton Asset Managemnent Appoints Richard Bucknell

Chelverton Asset Managemnent Appoints Richard Bucknell

Chelverton Asset Management has confirmed that it has appointed Richard Bucknell as Investment Director in its unquoted equities team, which is responsible for sourcing and executing quality investment opportunities in private UK companies for a range of High Net Worth (‘HNW’) investors and private investment offices.

Bucknell, a highly experienced private equity investor, has been working with CAM as a consultant since September last year, and will report to CAM’s Managing Director, David Horner in his new role.

Prior to CAM, Bucknell led more than 20 new investments in small and medium-sized enterprises, and has previously held senior investment management positions with Barclays Ventures, ISIS Equity Partners and Catapult Venture Managers.

Bucknell joins CAM at an exciting moment in its evolution. The Company launched the Chelverton Investor Club, an exclusive private members club for HNW individuals, only last year. Since launching the Club, CAM has seen a significant uplift in unquoted investment activity. Bucknell will lead transactions of equity investment of between £500,000 and £3m on behalf of Investor Club members, and will also help to identify and transact larger equity investments on behalf of those amongst CAM’s unquoted equity clients requiring bespoke investment solutions.

Commenting on his appointment, Bucknell said: “It’s a really exciting time to be joining Chelverton, with the equity gap under-served by the more established private equity community. It’s also an area of the market where investors recognise that good returns can be delivered, with business valuations at sensible levels and company growth prospects looking better than for some years. HNW individuals can access these opportunities through the Investor Club, and we’re seeing strong levels of new investor interest.”

Bucknell boasts a highly developed network of Corporate Finance contacts, in the Midlands and the South West in particular, and as part of the Company’s unquoted equity team, will be based in the Bath office.