DOCSLIB.ORG

The Cambridge Commentary

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Cambridge Commentary THE CAMBRIDGE COMMENTARY A Review of M&A Activity in the Investment Management Industry During 2017 January 1, 2018 780 Third Avenue, 7 th Floor, New York, NY 10017 (212) 826‐8290 www.cambintl.com CAMBRIDGE INTERNATIONAL PARTNERS provides top‐ quality M&A advisory services to the global investment management industry. We use our two‐plus decades of specialist experience and contacts to find, develop and structure lasting corporate relationships for our clients. We have over 25 years of experience providing transactional and related advice to the investment management industry. While based in New York, a significant portion of our business is derived from cross‐border or foreign transactions. Our extensive calling program keeps us current with managers and financial institutions globally. Cambridge prides itself on the objective, conflict‐free advice provided to clients. Our advice is untainted by investment activities and, as a member of FINRA, we follow the highest standards of compliance. Our experienced partners, who are also the owners of the firm, are fully engaged throughout the course of every assignment we undertake. John H. Temple David W. Abbott President Managing Director (212) 829‐8292 (212) 826‐8293 [email protected] [email protected] Richard H. Haywood, Jr. Managing Director (212) 826‐8294 [email protected] th 780 Third Avenue, 7 Floor, New York, NY 10017 (212) 826‐8290 www.cambintl.com A Review of M&A Activity in the Investment Management Industry During 2017 Strong equity markets and synchronized equity purchases, accounting for about growth in major economies characterized 20% of global transaction volume and 2017. International1 and US2 equities had three of the top ten – Stone Point Capital total returns of 25.0% and 21.8% and KKR acquiring Focus Financial respectively in the year. This favorable Partners, TA Associates’ buyout of Old economic climate helped mitigate but did Mutual Wealth’s Single Strategy Business, not reverse the secular headwinds being Annual Transaction Volume3 faced by the asset management industry ($ in billions) globally. Of these, the shift to passive $35.0 $33.0 management and concomitant fee $30.0 pressure among active managers remains $25.6 $26.3 $25.0 $16.1 $23.6 the most severe, but rapid changes in the $22.2 regulatory environment and the inevitable $20.0 $13.3 increase in regulatory costs have also $11.6 $14.1 $15.0 played a part. 3 $16.6 $10.0 $16.9 Not surprisingly, therefore, 2017 $12.0 $13.0 $5.0 $11.4 transactional activity, which was broadly $5.6 comparable to the last few years, $0.0 2013 2014 2015 2016 2017 continued to be driven by consolidation, both in asset management and, for Annual Transaction Count3 somewhat different reasons, in wealth 250 management. Indeed, seven of the top ten 207 transactions reflected a consolidation 200 188 178 theme, even more than the five out of ten 169 171 101 in 2016, with the Standard Life – Aberdeen 150 110 82 72 Asset Management merger leading the 90 way. Bank divestitures continued to be a 100 theme particularly outside the US, with sales by Banco BPM in Italy, ANZ and 50 106 96 99 Westpac in Australia, Citigroup in Mexico 78 79 and Société Générale in China. Themes of 0 consolidation and divestiture attract 2013 2014 2015 2016 2017 private equity so it was not surprising that Non-US Target US Target 2017 was another strong year for private 1 MSCI EAFE ND 3 Transactions involving managers with more than $200 million under management 2 S&P 500 TR 780 Third Avenue, 7 th Floor, New York, NY 10017 Page 1 (212) 826‐8290 www.cambintl.com Top Ten Investment Management Transactions of 2017 (All amounts in US$) Amount AUM % Paid Target ($bn) Acq’d Purchaser ($mn) Strategic Rationale Aberdeen Asset 383.6 100% Standard 4,670 Coming off several years of outflows caused by the Management Life industry’s shift to passive investments and Aberdeen, UK overexposure to emerging markets, Aberdeen combines with Standard Life in a no‐premium merger to form Europe’s second largest asset manager. Fortress 69.6 100% SoftBank 3,300 In a bold move typical of Chairman Masayoshi Son, Investment Group Group SoftBank extends its interests into asset management New York, NY by offering a 39% premium to buy Fortress Investment Group. Focus Financial 110.0e 70%e Stone Point 1,400e The success of Focus Financial Partners’ consolidation Partners Capital and of private wealth management firms is demonstrated New York, NY KKR by the $2 billion valuation achieved in its third refinancing by private equity. Guggenheim 36.7 100% Invesco 1,200 Invesco pays up for Guggenheim's ETF business, 60% Investments' ETF of whose assets are in smart beta products, Business reinforcing its market position as second in smart New York, NY beta and fourth in the global ETF business. Aletti Gestielle 21.1 100% Anima 810 Banco BPM, formed from the merger of Banco Milan, Italy Holding Popolare and Banca Popolare di Milano at the beginning of 2017, sells its asset management business to Anima, an independent asset manager in which it holds a 14.3% stake. Old Mutual Global 34.3 100% TA 800 Old Mutual’s plan to liquidate takes another step Investors’ Single Associates forward with the divestiture to private equity of the Strategy Business and Single Strategy business of Old Mutual Wealth, led by London, UK Management famed investor, Richard Buxton. OnePath Pensions 18.7 100% IOOF 770 The unusually named IOOF (originally International and Investments Holdings Order of Odd Fellows) becomes Australia's second Sydney, Australia largest wealth advisor as Australia and New Zealand Banking Group exits the wealth management business. Sentry 15.0 100% CI Financial 615 CI Financial underscores its position as the leading Investments independent asset manager in the Canadian market Toronto, Canada by acquiring Sentry Investments, one of the largest independent fund groups left in Canada. ETF Securities' 17.6 100% WisdomTree 610 WisdomTree moves up to ninth in the global ETF Exchange Traded ranking with this acquisition of Europe's leader in Commodities exchange traded commodities. London, UK Riverstone 27.2 12%e Petershill 500e Goldman Sachs’s Petershill Fund continues its push Holdings Fund into private equity by buying a slice of this successful New York, NY (Goldman energy‐focused private investment platform. Sachs) e: Indicates estimate 780 Third Avenue, 7 th Floor, New York, NY 10017 Page 2 (212) 826‐8290 www.cambintl.com and the Petershill Fund’s minority SoftBank, HNA and Nippon Life making big investment in private equity manager, investments. Riverstone Holdings. Last but by no means least was the Acquisitions to build market share in continuing – and accelerating – passives, and in smart beta in particular, consolidation seen in private wealth resulted in three major transactions, two management during the year. This was of which were also cross‐border particularly true in the US where a purchases by US managers, Invesco and combination of factors resulted in a record WisdomTree, of European firms. number of independent RIAs selling to Meanwhile, cross‐border activity by consolidators, other RIAs and regional and foreign managers buying into US asset community banks. management was up substantially, with ALL EYES ON A HIGHLAND FLING In the biggest transaction of 2017, Following the announcement of the Standard Life and Aberdeen Asset Henderson – Janus merger by only a few Management, both based in Edinburgh, months, the Standard Life – Aberdeen combined to form the second largest asset announcement caused a frenzy of merger manager in Europe. Mimicking the discussions in boardrooms around the Henderson – Janus deal announced the industry. Active managers, both previous year, no premium was paid and independent and institutionally owned, the merged group is headed by co‐CEOs, were forced to confront the prospect of one drawn from each company. As with rapid consolidation in the industry as a Henderson – Janus, incremental revenue response to the shift to passive investing. synergies through complementary After all, if the famously independent CEO investment capabilities and greater global of Aberdeen Asset Management, Martin distribution, and reduced unit costs Gilbert, was prepared to accept a no‐ through increased scale were cited as the premium merger, surely every asset principal strategic benefits. manager should reconsider its competitive position. The results of all Nevertheless, the combination was widely these discussions, though, have been less viewed as defensive as both firms had than impressive, with no further suffered recent outflows – Standard Life’s significant combinations announced to flagship Global Absolute Return Strategy date. One reason is undoubtedly the had suffered poor performance while difficulty in finding a dance partner Aberdeen was overexposed to poorly‐ sufficiently complementary that cost performing emerging markets. Cost savings might be expected to exceed savings are projected at £200 million revenue losses, but another has been the annually, which is 10.9% of the combined steadily advancing equity markets which cost base. have helped to mask continuing outflows 780 Third Avenue, 7 th Floor, New York, NY 10017 Page 3 (212) 826‐8290 www.cambintl.com from active managers. Indeed, Standard shows no slow‐down in the heavy Life Aberdeen’s first trading statement outflows of the prior year. PASSIVE CONTINUES TO MAKE INROADS It is not necessary to look further than based, or smart beta, ETFs where pricing Vanguard’s expected net inflows of $350 is higher, and where Invesco’s resulting billion in 2017 for confirmation that 19.9% market share is within sight of passive management continues to make iShares’ market leading 21.0%. inroads. Driven by reasons of cost and risk control, it is not a trend we expect to For WisdomTree, the largest specialist reverse anytime soon.
Load more

Recommended publications
  • Pension Fund Investment in Hedge Funds", OECD Working Papers on Insurance and Private Pensions, No
    Please cite this paper as: Stewart, F. (2007), "Pension Fund Investment in Hedge Funds", OECD Working Papers on Insurance and Private Pensions, No. 12, OECD Publishing. doi:10.1787/086456868358 OECD Working Papers on Insurance and Private Pensions No. 12 Pension Fund Investment in Hedge Funds Fiona Stewart* JEL Classification: G11, G18, G23, J31 *OECD, France PENSION FUND INVESTMENT IN HEDGE FUNDS Fiona Stewart September 2007 OECD WORKING PAPER ON INSURANCE AND PRIVATE PENSIONS No. 12 ——————————————————————————————————————— Financial Affairs Division, Directorate for Financial and Enterprise Affairs Organisation for Economic Co-operation and Development 2 Rue André Pascal, Paris 75116, France www.oecd.org/daf/fin www.oecd.org/daf/fin/wp 1 ABSTRACT/RÉSUMÉ Pension fund investment in hedge funds Having outlined the potential concerns relating to pension fund investment in hedge funds, the OECD carried out a survey to investigate what information pension fund regulators have on these investments and how they are being controlled. The survey confirms that pension fund regulators have little information regarding how pension funds in their jurisdiction are investing in hedge fund products (in terms of size of investments, the types of hedge funds pension funds are exposed and to what type of product). Only the Slovak Republic and Mexico (for the mandatory system) prevent pension funds from investing in hedge funds. Although the level of such investment is still very low in other countries, it is almost universally expected to increase. Few countries impose specific quantitative investment restrictions on pension fund investment in hedge funds, with most regulators exercising control via general investment restrictions and requirements (for diversification, transparency, through the prudent person rule etc.).
    [Show full text]
  • Securitization & Hedge Funds
    SECURITIZATION & HEDGE FUNDS: COLLATERALIZED FUND OBLIGATIONS SECURITIZATION & HEDGE FUNDS: CREATING A MORE EFFICIENT MARKET BY CLARK CHENG, CFA Intangis Funds AUGUST 6, 2002 INTANGIS PAGE 1 SECURITIZATION & HEDGE FUNDS: COLLATERALIZED FUND OBLIGATIONS TABLE OF CONTENTS INTRODUCTION........................................................................................................................................ 3 PROBLEM.................................................................................................................................................... 4 SOLUTION................................................................................................................................................... 5 SECURITIZATION..................................................................................................................................... 5 CASH-FLOW TRANSACTIONS............................................................................................................... 6 MARKET VALUE TRANSACTIONS.......................................................................................................8 ARBITRAGE................................................................................................................................................ 8 FINANCIAL ENGINEERING.................................................................................................................... 8 TRANSPARENCY......................................................................................................................................
    [Show full text]
  • UNITED STATES SECURITIES and EXCHANGE COMMISSION Washington, D.C. 20549
    UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K X ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2012 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-33294 Fortress Investment Group LLC _____________________ (Exact name of registrant as specified in its charter) Delaware 20-5837959 (State or other jurisdiction of incorporation (I.R.S. Employer Identification No.) or organization) 1345 Avenue of the Americas, New York, NY 10105 (Address of principal executive offices) (Zip Code) Registrant’s telephone number, including area code: (212) 798-6100 Securities registered pursuant to Section 12 (b) of the Act: Title of each class: Name of exchange on which registered: Class A shares New York Stock Exchange (NYSE) Securities registered pursuant to Section 12 (g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. X Yes No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes X No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
    [Show full text]
  • Absolute Return Review
    Absolute Return Review November 2, 2016 Prepared at the request of: Kentucky Retirement System Important Information This presentation constitutes client reporting, is considered confidential, proprietary and includes trade secret information and is intended solely for the receipt (“Kentucky Retirement System” or “KRS”) and is not for further distribution or public use. The data and information presented are for informational purposes only. The information contained herein should be treated in a confidential manner and may not be transmitted, reproduced or used in whole or in part for any other purpose, nor may it be disclosed without the prior written consent of Prisma Capital Partners LP (“KKR Prisma”) and Kohlberg Kravis Roberts & Co. L.P. (together with its affiliates, “KKR”). By accepting this material, the Recipient agrees not to distribute or provide this information to any other person. The information is qualified in its entirety by reference to the Confidential Private Placement Memorandum and Subscription Agreement of Prisma Spectrum Fund Ltd (the “Fund”), each as amended and/or restated from time to time (the “Fund Documents”). The interests in the Fund (the “Interests”) have not been approved or disapproved by the U.S. Securities and Exchange Commission (the “SEC”) or by the securities regulatory authority of any state or of any other jurisdiction. The Interests have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), the securities laws of any other state or the securities laws of any other jurisdiction, nor is such registration contemplated. The Fund will not be registered as investment companies under the Investment Company Act of 1940, as amended (the “1940 Act”).
    [Show full text]
  • Quarterly Letter to Our Co-Investors
    QUARTERLY LETTER TO OUR CO-INVESTORS OCTOBER 2019 OCTOBER 2019 Dear co-investor, We finish the third quarter of 2019, a period of continuity with respect to previous quarters, in which investors' money continues to flow towards certainty, at any price, and flees from the most illiquid and/or cyclical companies, despite the attractiveness of their valuation. This situation is causing an unsatisfactory relative (and absolute) return on our portfolios in the short term, but nevertheless contributes to generating great opportunities for appreciation in the long-term. At Horos it is clear to us that we must flee from the "fashionable", as comfortable as it may seem to follow them, because our main objective as managers (and co-investors) of our funds is to maximise returns (in the long term) while minimising the risk we incur. Periods like the present should not make us despair, nor call into question an investment process built with this sole objective in mind. From the fruits we are sowing (our potentials are at historical highs) we will reap the rewards. As always, I would like to take this opportunity to thank you, on behalf of the entire Horos team, for your trust. Yours sincerely, ı———ı Javier Ruiz, CFA CIO Horos Asset Management 1 The great evasion We have in effect put all our rotten eggs in one basket. And we intend to watch this basket carefully. - Von Luger, the Kommandant (Great Escape, 1963) In the last quarterly letter (read letter) we discuss how various factors may be contributing to the relative poor performance of our portfolios when compared to benchmarks.
    [Show full text]
  • MERITAGE CAPITAL, LLC 500 West 2Nd Street, Suite 1850 Austin, Texas 78701 Telephone
    FIRM BROCHURE MERITAGE CAPITAL, LLC 500 West 2nd Street, Suite 1850 Austin, Texas 78701 Telephone (512) 637.9700 Fax (512) 320.0594 [email protected] www.meritagecapital.com THIS BROCHURE PROVIDES INFORMATION ABOUT THE QUALIFICATIONS AND BUSINESS PRACTICES OF MERITAGE CAPITAL, LLC. IF YOU HAVE ANY QUESTIONS ABOUT THE INFORMATION CONTAINED IN THIS BROCHURE, PLEASE CONTACT US AT (512) 637.9700, OR BY EMAIL AT [email protected]. THE INFORMATION IN THIS BROCHURE HAS NOT BEEN APPROVED OR VERIFIED BY THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION OR BY ANY STATE SECURITIES AUTHORITY. THIS BROCHURE DOES NOT CONSTITUTE AN OFFER, SOLICITATION OR RECOMMENDATION TO SELL OR AN OFFER TO BUY ANY SECURITIES, INVESTMENT PRODUCTS OR INVESTMENT ADVISORY SERVICES. ADDITIONAL INFORMATION ABOUT MERITAGE CAPITAL, LLC ALSO IS AVAILABLE ON THE SEC’S WEBSITE AT WWW.ADVISERINFO.SEC.GOV. March 30, 2020 Item 2: Material Changes This Item 2 discusses material changes that are made to this brochure since the last update of our Brochure dated October 14, 2019. There have been no material changes from the last update to the Brochure. The information set forth in this brochure is qualified in its entirety by the applicable offering materials and/or governing or account documents. In the event of a conflict between the information set forth in this brochure and the information in the applicable governing, account and/or offering documents, such documents will control. We encourage all clients and investors to carefully review this document
    [Show full text]
  • In the “Lost Decade,” Institutions Berkshire Capital Securities LLC Embrace Hedge Funds Is a Privately-Owned Investment for Most of the 1990S, While the U.S
    www.berkcap.com | NEWSLETTER | 1st Quarter 2008 NEW YORK | DENVER | LONDON In the “Lost Decade,” Institutions Berkshire Capital Securities LLC Embrace Hedge Funds is a privately-owned investment For most of the 1990s, while the U.S. stock market was in the midst of one of the bank that provides merger, greatest bull runs in history, West Virginia’s state pension plan managers watched acquisition, valuation and from the sidelines, their inaction the legacy of 19th-century rules that prohibited strategic advisory services public funds from investing in equities. Having played catch-up when the ban was to clients focused in the lifted in 1997, the state is moving far more rapidly to embrace alternatives: last investment management and year, the legislature gave the West Virginia Investment Management Board approval securities industries. Since to invest up to 20% of its $8.9 billion portfolio in such assets, including hedge 1983, Berkshire Capital funds. has completed over 220 West Virginia is hardly alone. Throughout the U.S., and indeed the world, pension transactions (with AUM transfer funds, endowments, insurance companies, banks and other institutions are of over $400 billion and an expanding their holdings of alternative investments. In part, this reflects a sea aggregate value of nearly change in investment philosophy. Amid what the Wall Street Journal recently called $10 billion) and over 185 the “lost decade” for stocks, alternatives are increasingly viewed as a prudent valuations, strategic reviews component in a diversified portfolio, not a heart-thumping roll of the dice. and fairness opinions. Among the largest institutional players, public employee pension plans, that _____________________________ conversion is also driven by a pressing financial reality: the need to fund the commitments made to retiring baby boomers.
    [Show full text]
  • Page 1 of 7 Minutes of the PRIM Real Estate and Timberland Committee Meeting Wednesday, November 1, 2017 Committee Members Prese
    Minutes of the PRIM Real Estate and Timberland Committee Meeting Wednesday, November 1, 2017 Committee members present: Committee members not present: • Jill S. Hatton, CRE, Chair • Treasurer Deborah Goldberg • Sarah Kim, Esq., Treasurer Goldberg’s • Jack Lutz, Ph.D. designee. • Peter O’Connell • Lydia Chesnick, Esq. • Robert Gifford • Anthony E. Hubbard, Esq. • William F. McCall, Jr., CRE • Garlan Morse, Jr., CRE • Carly Rose The PRIM Real Estate and Timberland Committee meeting was called to order at 9:36 a.m. Committee Chair Jill S. Hatton, CRE, began by praising PRIM’s staff work on the Mass+Main development in Cambridge. I. Approval of the Minutes (Voting Item) The PRIM Real Estate and Timberland Committee unanimously approved the minutes of the May 8, 2017 and August 2, 2017 meetings. II. Executive Director/Chief Investment Officer Comments Michael G. Trotsky, CFA, Executive Director and Chief Investment Officer, comments to the Committee included: The September quarter was strong, and despite the frequent weather and political storms affecting the United States, the overall economy is little changed since the last Board meeting. Economic indicators are still mostly strong, equity markets continue to move higher, to new records, while bond yields remain low and inflation is absent. The overall health of the economy remained on an upswing, even while several economic indicators were affected by the storms. National employment measures, automobile sales, retail sales and home building statistics all exhibited anomalies in the quarter, but are expected to rebound. More important, the September 2017 quarterly Gross Domestic Product (GDP) growth came in at 3%, annualized, beating expectations of 2.5% and only slightly below the 3.1% reported in the June 2017 quarter, which was revised upward.
    [Show full text]
  • 2Q 2017 Quarterly Commentary
    2Q 2017 4/1/2017 to 6/30/2017 Dow Jones 3.95% S&P 500 3.09% NASDAQ 4.16% Russell 2000 2.46% MSCI EAFE 6.12% QUARTERLY COMMENTARY July 2017 “The inherent irony of the efficient market theory is that the more people believe in it and correspondingly shun active management, the more inefficient the market is likely to become.” — Seth Karman – The Baupost Group Dear Friends and Clients, About once every decade I lament the day in college when I finished reading “The Intelligent Investor” by Benjamin Graham, and it clicked as I became an investor devoted to seeking “value.” Well, here I am again, feeling like momentum investors are having all the fun as my patience wears thin waiting for securities that we believe are both safe and cheap. Currently, most of the equity markets appear neither cheap nor safe to us. The momentum investors who are the current subject of my envy seem to only care that prices are going up, downside be damned, and pithy market aphorisms like “Don’t fight the Fed” and “BTFD” (buy the – uh, friendly dip) have worked out swimmingly for the last several years. To me, much of what I am observing in the equity markets is indicative of this momentum mindset, and frankly, why trend-following can work so well at times. I accuse most investors of “buying high and selling low” or, in the immortal words of the humorist Will Rogers, “Don’t gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it.
    [Show full text]
  • Fixed Income Absolute Return Fund Semi-Annual Report
    Putnam Fixed Income Absolute Return Fund Semiannual report 4 | 30 | 21 Absolute return funds are designed for a wide range of investors and pursue positive returns with less volatility over time than more traditional funds. FUND SYMBOL CLASS A PTRNX Putnam Fixed Income Absolute Return Fund Semiannual report 4 | 30 | 21 Message from the Trustees 1 Interview with your fund’s portfolio manager 3 Your fund’s performance 8 Your fund’s expenses 10 Consider these risks before investing 12 Terms and definitions 13 Other information for shareholders 15 Financial statements 16 Message from the Trustees June 11, 2021 Dear Fellow Shareholder: With summer at hand, it’s worth asking whether the economy has returned to normal. More than half of the 50 states have lifted pandemic-related restrictions. First-quarter growth in U.S. gross domestic product was 6%, reflecting a return nearly to pre-pandemic levels of economic output. The global economy is a different story. Beyond our shores, many nations lag the United States in vaccination rates and business activity. While there are reasons to feel some relief, it’s important to recognize what may be a new normal. The pandemic is not in the past, and many of the changes precipitated by it could last. During this time, dynamic, well-managed companies have adapted to seize new, more sustainable growth opportunities. Putnam’s active philosophy is well suited to this time. Putnam’s investment teams are analyzing companies, industries, consumers, and even governments. They try to understand the fundamentals of what has stayed the same and what has changed to uncover valuable investment insights or potential risks.
    [Show full text]
  • Absolute Return Strategies
    REPRINTED FROM NOVEMBER 19, 2007 Absolute Return Strategies WILLIAM E. FLAIG JR., Chief Investment Officer at Arrow Investment Advisors, LLC, joined the firm in February 2007. He spent five years at Rydex Investments, working as Director of Portfolio Management, in which he managed the entire portfolio team. While at Rydex, Mr. Flaig defined the concept of hedge fund replication, initiated the research and investment strategies on which the Rydex Absolute Return Strategies Fund and the Rydex Hedge Equity Fund are based, and directed those strategies. He also developed best practices for creating leverage within the constraints of a mutual fund offering unlimited trading. Prior to Rydex, he spent six years at Bankers Trust Company in a range of roles including currency trading, proprietary trading, derivatives structuring, emerging market fixed-income, and currency trading. He graduated from Purdue University with a degree in Management. TWST: Please start with an overview of Arrow ponents to the recent sale of Rydex. I met this team when I was Funds. Tell us all about its investment philosophy and what the Director of Portfolio Management at Rydex. I joined Arrow you do there. Funds earlier this year, in the capacity of Chief Investment Offi- Mr. Flaig: Arrow Funds is one of the fasting growing cer, with a mandate to enhance the firm’s manufacturing capabil- investment management companies in the industry. The company ity of absolute return strategies and oversee other investment was formed in early 2006 and launched its first product, the initiatives. Absolute return strategies aim to produce positive re- Arrow DWA Balanced Fund, in August of that year.
    [Show full text]
  • Quarterly Investment Performance Analysis Wyoming State Treasurer's Office
    Quarterly Investment Performance Analysis Wyoming State Treasurer's Office Period Ended: December 31, 2017 Memorandum To Wyoming State Loan and Investment Board From RVK, Inc. Subject Investment Performance Analysis – Summary of Contents Date December 31, 2017 To assist in your review of the Investment Performance Analysis for the PORTLAND OFFICE quarter ended December 31, 2017, we have provided below an outline and 1211 SW 5th Avenue summary of the information contained within each section of this report. Suite 900 Portland, Oregon 97204 MEMORANDUM – Investment Performance Analysis Commentary MAIN 503.221.4200 This two-page memo provides a written summary of significant observations regarding performance of the State’s Funds and an CHICAGO OFFICE overview of performance during the quarter for each of the State’s 30 N LaSalle Street Suite 3900 asset classes. Chicago, Illinois 60602 MAIN 312.445.3100 TAB 1 – Market Environment This section is intended to review capital markets in general (i.e. not NEW YORK OFFICE specific to Wyoming), and includes a written summary of events 1 Penn Plaza Suite 2128 during the quarter, including economic influences and review of New York, New York 10119 equity and bond markets as a whole. This section also includes MAIN 646.805.7075 various charts and exhibits displaying key characteristics of major market indices representing the broad range of available asset classes, including alternative investments such as absolute return and real estate. Also included is an asset class summary that describes the structure of each of the State’s composites. Lastly, this section includes a review of the benchmarks referenced within the quarterly report.
    [Show full text]