A SHEFFIELD HAWORTH PUBLICATION EUROPEAN ASSET A summary featuring people news, industry updates with market trends and analysis

MANAGEMENT Patrick Morrissey H2 2019 Charles Bruce-Smythe Henry Spence Peter Hughes Tom Eagar Henry Milton H2 2019, Overview – Europe

MARKET OVERVIEW

The asset management industry has seen a variety of challenges in the second half of the year with illiquid investments and company governance in the limelight. In the last six months, the industry saw Woodford close its doors in October and H20 Asset Management suffer £1.2bn in withdrawals in one week in the summer.

The second half also saw similar trends that defined the first half of the year. A “white-hot” bond market (according to the FT in December) continued and again, despite the escalation in the US-China trade wars and political volatility in the UK, equities have improved.

ESG continued to grab the market’s attention with more and more inflows into ESG orientated funds, to the point where the FT labelled 2019 as the ‘year capitalism went cuddly’. Nevertheless, like any fast- growing innovation, it is not without its teething problems. While everyone appears to now know what ESG means, not everyone has settled on how to ‘do’ ESG. This diversity in approach can be a real challenge in an area short on long-term executive expertise.

. Peter Sanderson was appointed Group Chief Executive TABLE OF CONTENTS Officer of GAM, joining from BlackRock where he was a member of the European Executive Committee. Market Overview . Kames Capital confirmed that Martin Davis, the CEO for six Business Development years was stepping down, with the CIO Stephen Jones acting as interim CEO. - Institutional . After only three years, Matt Duncan, Chief Executive of - Wholesale Ostrum Asset Management in Paris stood down, being replaced by Phillipe Setbon, who was previously CEO of ESG Groupama AM.

Investment and Product

- Equities “A white-hot bond market…continued…despite the escalation in the US-China trade wars” - Fixed Income

- Multi-Asset . Nicolas Moreau was appointed CEO of HSBC Global Asset Management. He was previously CEO of European Asset - Alternatives Management at DWS. His predecessor, Sri Chandrasekharan will take on another role within the HSBC Contact Details Group.

. PGIM Investments has hired Ray Ahn from Capital Group as their new Chief Marketing officer as well as Indy Reddy, who joins the business as the Global CTO and COO and joins the

firm from Citi Private Bank.

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H2 2019, Asset Management Overview – Europe

BUSINESS DEVELOPMENT

The relentless pressure on fees in the institutional market does not appear to have reduced at all in the second half of 2019. Yet, despite that, Sheffield Haworth has seen robust hiring in this space. We see this, in part, as a continuation of the increasing sophistication required to be a competitive salesperson as well as a recognition that with fees so low, scale is key to a successful institutional business.

Challenges and Opportunities

While liquid assets continue to be the bread and butter of traditional asset managers, the focus on alternatives has created demand for sales leaders who can convincingly cover a broad range of asset classes. While this ties into the longer-term trend of more and more technical sales leaders, it presents an opportunity for candidates who do have this skillset to set themselves apart from the rest of the market.

INSTITUTIONAL

SELECTED PEOPLE MOVES:

Asset Management One has hired Andrea Favaloro as Head of EMEA Business Development. Previously Andrea was Head of Sales at Generali Investments before he founded his own business.

Atlas Infrastructure has hired Sam Carter as Head of Distribution from Kames Capital where he was Head of GFIs.

BMO Global Asset Management has hired Dominic Delaforce into their UK Institutional Sales team from Aberdeen Standard Investments where he was a Director.

Insight Investment has hired Andrew Stephens as Head of EMEA Distribution from BlackRock where he was previously Head of UK Institutional Client Business.

Janus Henderson Investors has hired Norbert Fullerton as Head of Institutional Client Strategy from MJ Hudson Allenbridge where he was a Senior Advisor.

Nuveen has hired Greg Ohlson as Head of UK Consultant Relations from Pinebridge Investments where he was a Consultant Relations Manager.

River & Mercantile has hired David Hanratty as Global Head of Distribution. Prior to this, David was Head of UK & Ireland and Head of Global Accounts at Pioneer Investments.

Western Asset Management has hired Dan Blass as Head of UK Institutional Sales. He previously worked for Legal & General Investment Management as a Client Services Executive.

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H2 2019, Asset Management Overview – Europe

WHOLESALE

SELECTED PEOPLE MOVES:

Capital Group has hired Manuel Geiler as a German Intermediaries Salesperson from Oddo BHF where he was previously Head of Capital Markets Advisory.

PGIM Investments have appointed Pascal Weber as Head of Financial Intermediaries from AllianceBernstein, where he was Head of Swiss Intermediary Sales.

CTAM has hired Eva Maria Hinter as Country Head for Switzerland from Aviva Investors where she was Head of Swiss Wholesale.

Novia Global have appointed Steve Andrews as a member of the Board and lead for business development from Aberdeen Standard Investments where he was Head of Third Party and Major Distribution, UK. Wholesale.

RELATED HIRES:

Carmignac has hired David Beacham and Edward Aram-Dixon into their Sales team as Business Development Director and Business Development Manager.

Janus Henderson Investors has hired Christopher Garcia, Dipesh Amin and Mark Buckley as regional salespeople from Old Mutual Wealth, Aberdeen Standard Investments and Kames Capital respectively.

Liontrust has hired Carol Hyner and Gonzalo Thomé into their sales team. Carol is a Multi Asset Salesperson covering East Anglia and Northern counties and Gonzalo will become an International Sales Director.

Asset Management Exchange have appointed Christopher Head as Head of Business Development. He was previously at BlackRock where he was Head of UK Local Authorities.

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H2 2019, Asset Management Overview – Europe

ESG

After almost three years of firms choosing to take ESG seriously and implement it into their business, we have reached a new hiring paradigm in the world of ESG. Up until now, ESG leadership hires have come off the back of senior decision makers wanting to have someone “do ESG” within their firm. However, three-to- five years into this cycle, asset management leaders have had time to grapple with what “doing ESG” actually means for their business.

Challenges and Opportunities

As such, we are beginning to see a new style of ESG hiring, where ESG leadership candidates are not expected to arrive with the ESG answer already fully formed, front-to-back. Instead, leaders are looking for specific skillsets that sit underneath the broad ESG umbrella. We expect to see these types of searches much more heading into 2020.

SELECTED PEOPLE MOVES:

BlackRock has hired Eric Rice as Head of Active Equity from Wellington Management where he was Head of Impact Investing.

Goldman Sachs Asset Management has hired Niamh Whooley as an ESG Expert to work closely with Corporate Research Analysts to identify the ESG and Sustainability themes. Prior to this, Niamh worked for PIMCO as their Head of ESG in USA and sat on their ESG Executive Leadership Committee.

JO Hambro Capital Management has hired Hermes Investment Management’s Impact Equity team consisting of Fund Manager Tim Crockford and analysts Mohsin Ahmad, Maxime Le Floch and Maxine Wille.

Lombard Odier has hired Christopher Kaminker and Ebba Lepage as Head of Sustainable Investment Research and Strategy and Head of Corporate Sustainability respectively. Christopher joined from SEB where he was Head of Sustainable Finance Research and Ebba joins from Stora Enso previously a corporate finance and M&A VP.

Neuberger Berman has hired Keita Kubota as a Japanese Equity PM (ESG Focus) from Aberdeen Standard Investments where he was Deputy Head of Japanese Equities.

Newton Investment Management has hired Andrew Parry as Head of Sustainable Investing from Hermes Investment Management where he was previously an Impacting Investment Strategist.

Royal Asset Management has hired Carlota Garcia Manas and Beth Goldsmith as Responsible Investment Analysts from Church of England National Investing Body and KPMG respectively.

State Street Global Advisors has hired Carlo Funk as Head of ESG strategy from BlackRock where he was an ESG Specialist.

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H2 2019, Asset Management Overview – Europe

INVESTMENT AND PRODUCT EQUITIES

Aside from Woodford’s fund being shut down, equities as an asset class has not seen significant changes over the last six months. Recent research of over 12,400 global has shown that 78% of stocks failed to beat the S&P 500 over two-year period. This has made all non-US asset classes look weak and this has been reflected in the hiring market this half year.

Challenges and Opportunities

Where we continue to see an interest however is in high conviction, alpha orientated funds, which will continue to be the most obvious differentiator for active funds over passive funds. This inevitably will create more of a ‘winner-takes-all’ market dynamic, meaning that making the right fund manager hire will be more critical than ever.

SELECT TEAM MOVES:

Janus Henderson Investors has hired Putnam Investments’ Global EM Equities team including Portfolio Manager Daniel Grana and Analysts Matthew Culley, Matthew Doody and Peter Li to replace the individuals who left the firm to join Skerryvore Asset Management earlier in the year.

M&G Investments has hired the Port Meadow Capital Management APAC Equity Team after the boutique was wound down in the Summer of 2019. The team includes Carl Vine, Dave Perrett and Valentina Luo based in London, Greg Moore, Vikas Pershad and Eleanor Kim based in Singapore and Nick Cunningham based in Hong Kong.

Skerryvore Asset Management’s Glen Finegan has hired several his former JHI colleagues including Stephen Deane, Nicholas Crowley, Michael Cahoon, Rohan Kelleher & Ian Tabberer as Portfolio Managers.

SELECT PEOPLE MOVES:

Eurizon Capital has hired Francesco Sedati and Guido Crivellaro as Head of Fundamental Equities and Italian Equities respectively. Prior to this, Francesco was an Equity PM at JP Morgan Asset Management and Guido was Head of Equity Portfolios at Symphonia SGR.

Jupiter Asset Management has hired Nahid Iqbal and Antoine Hucher as Equity Analysts from Mediobanca and Exane BNP Paribas.

Man GLG has hired Mike Corcell and Alex Robarts as Alternative Equities Managers both from RWC Partners where they were Long/Short US Equity PMs.

Newton Investment Management has hired Ilga Haubelt as Head of Equity Opportunities from Deka Investments. At Deka, Ilga was Head of Global Equities.

Polar Capital has hired Ali Unwin and Nick Williams as Investment Analysts, both from Neptune Investment Management where Ali was Head of US Equities and Nick was a US Investment Analyst.

RWC Partners has hired two Equity Analysts in Benjamin Hall and Nathaniel Clark from Mondrian Investment Partners and M&G Investments respectively. Benjamin was a Small Cap EM Equity PM and Nathaniel was a Global Equity Analyst.

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H2, 2019 Asset Management Overview, Europe

FIXED INCOME

Trends

This year has seen a “white-hot” bond rally as over $468bn of new assets have been added to bond funds, the largest haul since 2011, after central banks turned the taps back on and loosened monetary policy. Many markets have seen yield turn negative, entering an entirely new paradigm.

Challenges and Opportunities

Here at Sheffield Haworth we have seen a significant resurgence in interest in Emerging Market Debt, presumably fuelled by the ever-desperate search for decent yields.

This has occurred despite a very challenging 2018 for the area and another Argentinian default, demonstrating the very unusual situation the world of fixed income finds itself in.

SELECTED PEOPLE MOVES:

BMO Global Asset Management has hired Valentina Chen as Co-Head of EMD from Bank Vontobel where she was previously a Portfolio Manager running their local and blended strategies.

GAM has hired Florian Komac as an Investment Manager and Credit Specialist from XL where he was a PM in Corporate Credit.

JP Morgan Asset Management has hired Myles Bradshaw as an MD and Head of Global Agg Fixed Income Strategies from where he was previously Head of the Global Agg Fixed Income Team.

PGIM Fixed Income has hired a new team of Credit Analysts in Aman Mahal, Terry Nguyen and Gianluca Consoli from Janus Henderson, Bank of America Merrill Lynch and Columbia Threadneedle Asset Management.

T Rowe Price has hired Michael Ganske as an EMD Portfolio Specialist. Prior to joining the firm, Michael was working on a consultancy basis following his departure from AXA IM in 2017 where he was Head of Global EM.

Universities Superannuation Scheme (USS) has hired Ben Clissold as their Head of Fixed Income and Treasury. He joins from BlackRock where he was an LDI Portfolio Manager.

William Blair Investment Management has hired the NNIP EMD Portfolio Management team which includes Marcelo Assalin, Marco Ruijer and Lewis Jones.

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H2, 2019 Asset Management Overview, Europe

MULTI-ASSET

Trends

After 2009, multi-asset enjoyed a resurgence as the prospect of equity-like returns for less risk appeared too tempting to ignore. However, ten years into an equity bull market, these promises have not delivered quite as much as promised. Yet, in the fast-evolving world of asset management, multi-asset is set to be at the cutting edge once more.

Challenges and Opportunities

Bespoke solutions continue to grow in importance, and it is difficult to find a large asset manager that does not have solutions somewhere near the top of its strategic agenda. However, when everyone is offering bespoke solutions, it is very difficult to stand out from the crowd. Naturally, this presents both a challenge and an opportunity for firms, who must be careful to hire experts who think originally and marshal the rest of the business to deliver on those original ideas.

SELECTED PEOPLE MOVES:

Aviva Investors appointed Emma Halley as Head of Investment Process for Multi-Asset and Macro. She was previously at Fulcrum Asset Management where she was Head of Portfolio Management for .

M&G Investments hired Mason Woodworth as Head of Investment Solutions from BlackRock, where he was Managing Director, Head of Platforms, Foundations and Family Offices, as part of the Client Portfolio Solutions business.

Manulife Investment Management appointed Luke Brown in London as their Head of Asset Allocation, APAC. He was previously at UBS Asset Management where he was Head of Investment Solutions Specialists.

Invesco hired Ali Zouiten and Derek Steeden as Derivative Solutions Development and Solutions Portfolio Manager respectively. Ali joined from HSBC where he was Head of Product Development and Derek from Legal & General Investment Management where he was a Multi-Asset Portfolio Manager as well as Head of Investment Guidelines Management.

Invesco also hired Ben Gutteridge to lead their new Model Portfolio Services from where he was Head of Fund Research.

Premier Asset Management has hired Wayne Nutland as Head of Managed Indexed Solutions from HSBC Global Asset Management where he was Head of Discretionary, UK Multi-Asset.

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H2, 2019 Asset Management Overview, Europe

ALTERNATIVES

Private Debt remains topical and despite increased competition in the European Direct Lending market (tighter pricing and increasing number of cov-lite deals), there remains a steady flow of new fund raises, all larger than previous incarnations.

There is a continued and growing focus on private credit from the investor base (especially insurers) and in addition to the debt businesses of and Hedge Funds we are seeing increasing interest from the traditional Asset Management space in growing their alternatives and private credit capabilities (including structured credit and speciality finance).

Updates

New Entrants: BlueBay spun out their successful Direct Lending business, led by Anthony Fobel in a move backed by Dyal Capital, forming a new business, Arcmont Asset Management. Additionally, Golub Capital are thought to be the latest US business close to developing a European Private Debt team with a view to originating European deals.

Hiring in the distressed/special sits space has mostly been at mid-level, as firms look to ensure they have analysts in place for as/when there is a correction.

CLO’s remain topical, and there is increasing interest from US managers in developing a European capability given the appeal of the European market on a relative value basis.

SELECTED MARKET ACTIVITY:

Alcentra have had a difficult year, with a raft of senior departures which will likely impact their successful direct lending business in addition to the firm as a whole. Key departures this year include, Vijay Rajguru (CIO), Jack Yang (Global Head of Business Development), Klaus Svendsen (Co-EU Head of Business Development), Nick Haaijman (Head of Product Development), and Patrick Ordynans, Pascal Meysson & Natalia Tsitoura (all MD’s within the Direct Lending business).

BlueMountain was acquired by the insurer Assured Guaranty in the summer. There had been a number of senior departures following poor performance through 2018 and early 2019, a trend that is expected to continue through 2020 as it becomes clear who will be asked/want to be part of the new business.

CVC have followed the trend of PE funds developing specific Credit capital raising teams, hiring Nick Haaijman from Alcentra in October as an MD to lead Client Servicing for the Credit Business. This followed the hire of Martin Munte in January from Bluebay to lead capital raising for the DACH region and Nordics.

GLG hired Patrick Kenney and Santiago Pardo and as PM’s into their Credit business. Patrick previously worked for Overland Advisors and before that led International Credit Opportunities at DE Shaw. Santiago previously worked at the Abraaj Group.

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H2, 2019 Asset Management Overview, Europe

The information contained in this document has been compiled by Sheffield Haworth from sources believed to be reliable and is presented in good faith, but no representation or warranty, express or implied, is made as to its accuracy, completeness or correctness. This document does not constitute or form part of, and should not be construed as, advice. Sheffield Haworth accepts no liability whatsoever from any consequential loss or damage arising from any use of this document or its contents. This document may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose, without the prior written consent of Sheffield Haworth.

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