FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

LatAm Hedgefunds: Comprehensive Report and Webinar November 10th

Alternative Latin Investor is proud to present our combined LatAm Hedge Fund Report and Webinar to be hosted by Hedgehogs.net CEO, Ken Yeadon, on November 10th at 1pm EST.  Early-bird price till Nov. 2nd is 175.00USD after which price is 199.00USD.  This price includes digital edition of report with directory as well as attendance to webinar.

REGISTER HERE

We have interviewed several industry professionals; mostly fund managers, to create a comprehensive overview of the LatAm fund market. We also look at the existing LatAm fund indexes and the legal aspects of funds. Included is a profile of 30+ funds with a directory of contacts, email or phone, for over 300+ funds

  • Industry Overview
  • Growth of Industry
  • Legal Aspects
  • LatAm Fund Indexes
  • Changes in Legal Aspects
  • 30+ Fund Profiles
  • 300+ Directory
  • The Economist on Hedge Funds

Webinar

Topics to be discussed
  • LatAm funds versus Global Macrofunds or Emerging Market funds with LatAm exposure
  • New investor demographics, or the same?  And who are they?
  • Institutional Participation?
  • Has there been a change in global opinion of LatAm funds due to crash of US/Euro markets?
  • Has this created a vacuum for LatAm to fill?
  • With the developed world seemingly on the path of competitive devaluation vs. emerging markets, how do the panel see Latin American investments being impacted?
  • Asian countries, in particular China, are increasingly looking to secure commercial rights over global supply chains for resources. (e.g. recent headlines over global supply of Rare Earths, a critical commodity input to green energy technologies and mobile devices). How is this impacting Latin America, and are any Latin American countries following similar strategies (via Sovereign Wealth Funds for example) to exploit their natural resource advantages? Does this represent an investable theme for Latin American funds?

Host

Ken Yeadon – CEO of Hedgehogs.net, a social application platform for the hedge fund and investment industry and those who serve it.

Ken is the former head of trading, sales and e-commerce for HSBC Asia-Pacific. He has a successful track record in angel and venture investing in financial technology, and in high frequency trading, stat-arb and quantitative/arbitrage trading. He has also managed several liquidity management infrastructure and financial CRM projects for banks, brokerages and technology vendors. Ken has an MBA from John Cass Business School and a BA in Economics from Nottingham University.

Expert Panel

Sonia Villalobos Co-portfolio manager of the LV Pacific Opportunities Fund
She was formerly Head of Latin American Equities at Larrain Vial AGF. A Brazilian citizen, she has more than 25 years of experience in the LatAm capital markets. She was Head of Research at Garantia in Sao Paulo from 1989 to 1996 and Vice President at Bassini, Playfair & Associates from 1996 to 2002. She holds a Bachelor and Master’s degree in finance from the Fundación Getulio Vargas in Sao Paulo. In 1994 she obtained her CFA, the first person in Latin America to achieve it.

Andres Azicri President and Founder of Convex Management
Prior to founding Convex, Andres Azicri was a Managing Partner of Cima Investments and the senior portfolio manager of the Cima Aconcagua Fund. Before joining Cima, Mr. Azicri was the head of Asset Management at MBA, prior to which he headed the Proprietary Desk for Latin America at Bankers Trust in New York (1997-1999) and the Emerging Markets Fixed Income Research Department at Oppenheimer & Co., in New York (1995-1997). Mr. Azicri is an economist from the University of Buenos Aires (1988), and is currently a professor of finance at CEMA University and the University of Buenos Aires.

Carlos Rojas Portfolio Manager Compass Perú
Portfolio Manager of the Peru Special Investment Fund. He joined Compass in 2006 after working for 12 years in the financial industry. In his previous role he managed over US$ 300 million for the Rimac Group and was also an investment advisor for the Brescia Group. Previously he performed roles in M&A operations, financial structures, derivatives, and trading. Mr. Rojas has a BA in Business Administration from Universidad del Pacífico in Peru.

Andrew Cummins Founder and Chief Investment Officer of Explorador Capital Management, LLC.
Previously, Andrew worked for Emerging Markets Investors Corporation, focused on investments in Argentina, Chile, Peru and Ecuador. Andrew holds an M.B.A. from Harvard University and a B.S. from the University of California at Berkeley. He has lived and traveled in Latin America over the last 20 years. Andrew serves on the Board of INPAR, a publicly traded Real Estate company in Brazil.

Webinar:

Date: November  10th
Time: 1pm EST
Price: USD 175.00 early bird till Nov. 2nd
USD 199.00

REGISTER HERE

Filed under: Argentina, Banking, Brazil, Central America, Chile, Colombia, FiNETIK Events, Latin America, Mexico, News, Peru, Risk Management, Services, Trading Technology, Wealth Management, , , , , , , , , , , , , ,

Mexican IPC Index ETF “iSHARES NAFTRAC” listed on Spain’s LATIBEX

BGI IShares listed it’s Mexican ETF (TRAC) NAFTRAC on the Spanish LATIBEX exchange on November 19th, 2009.

This is the first time a Mexican traded TRAC is listed abroad. It marks a significant recognition of the Mexican financial markets and in particular for BMV – Bolsa Mexicana de Valores (BMV) the Mexican Stock Exchange in it’s international expansion.

The NAFTRAC tracks the top 35 traded Mexican stocks according to the BMV IPC index. The TRAC was listed on April 16th, 2002 and was the first such instrument to be listed in Mexico and Latin America, and has become one of the most traded instruments in Mexico’s Stock Exchange.

Barclays Global Investors (BGI) Mexico, is underwriting and listing the TRAC on LATIBEX in Madrid, Spain.

Note: TRAC (Títulos Referenciados a Acciones) are the Mexican equivalent for ETF’s traded on the stock exchange and issued by BGI IShare Mexico

Note: BMV IPC tracks companies of global influence like WalMex, FEMSA (CocaCola), Telmex, Modelo, CEMEX, Bimbo, AMX, Bolsa and others with global operations and revenues. See latest performance of IPC here.

Source: BMV, 19.11.2009
Summarized translation by FiNETIK from BMV press release 19.11.2009

Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, News, Services, , , , , , , , , , , , , , , ,

BM&FBOVESPA and NASDAQ-OMX on Connectivity Talks

BM&FBOVESPA S.A., subject to the provisions of paragraph 4 of article 157 of Law number
6404/1976 and of CVM Instruction 358/2002, hereby inform that:

(i) BM&FBOVESPA and NASDAQ OMX Group will initiate discussions, on an exclusive basis, with the
purpose of establishing a possible strategic, commercial and technological partnership.
(ii) The exclusivity shall be in effect through the next sixty (60) day period, during which BM&FBOVESPA
shall not enter into similar negotiations with any other stock exchange located in the US, and NASDAQ
OMX shall not enter into similar negotiations with any other exchange located in South or Central
America.
(iii) The possible partnership may comprise the following services/products:
a. The development of an order routing system between the exchanges in order to allow
international investors connected to NASDAQ OMX trading platform to send buy and sell orders
for stocks traded in the BM&FBOVESPA system (MegaBolsa), and Brazilian investors connected to
BM&FBOVESPA trading platform to send buy and sell orders for stocks traded in NASDAQ OMX
system in US;
b. The development of a commercial agreement providing for BM&FBOVESPA to offer, to publicly
traded Brazilian companies, products and services developed by NASDAQ OMX, which are
designed to support and facilitate the activities of publicly traded companies, such as those
related to investors relations (IR), structuring and management of board of directors, issuance of
press-releases and communications to the market and analysts, among others;
c. The development of a commercial agreement providing for NASDAQ OMX to distribute
internationally, on a non exclusive basis, the prices of the securities (market data) traded in
BM&FBOVESPA, and for BM&FBOVESPA to distribute, on a non exclusive basis, the prices of the
securities traded in NASDAQ OMX; and
d. The evaluation of technology cooperation opportunities for the two exchanges.
(iv) There is no guarantee that any agreement shall be reached from these discussions. Furthermore,
neither the confi guration of any joint initiative, nor the regulatory and economic and fi nancial base
of the possible partnership have yet been established;
(v) Given the preliminary stage of the discussions, the two companies have decided to present any further
information about the negotiation only after the end of the sixty (60) day period counting from
the date of this notice, except for the occurrence of any facts or resolutions that could constitute a
material fact.

Source: BM&FBOVESPA São Paulo, August 26, 2009

Filed under: BM&FBOVESPA, Brazil, Exchanges, News, Trading Technology, , , , , , , ,

BANORTE buys IXE’s Afore (Pension Fund) business and lists ADR’s as part of it’s Global Expansion startegy

BANORTE (the only remaining 100% Mexican owned bank) is continuing with it’s global expansion strategy. After listing it’s shares on the Spanish / Latin American stock exchange LATIBEX on June 9th and ADR listing in the US Pinksheet OTC market, it acquired the pension fund (Afores) portfolio of IXE bank extending it’s Afore portfolio to 3.5 million accounts. In February 2009 it signed an cooperation agreement with China Development Bank,giving both banks access to bank payment and transfer service in México, China and the USA. (Note by FiNETIK, 11.06.2009)

MEXICO CITY, June 10 (Reuters) – Banorte, one of Mexico’s top banks, said on Wednesday it has agreed to buy a pension fund business from a smaller rival and that it listed its stock on the U.S. over-the-counter market.

Banorte’s (GFNORTEO.MX: Quote, Profile, Research) Generali unit will absorb Ixe’s (IXEGFO.MX: Quote, Profile, Research) 312,489 pension clients, whose combined accounts are worth 5.45 billion pesos ($399 million).The transaction is subject to approval from Mexico’s competition agency. In Mexico, workers in the private sector save for their retirements in pension funds known as Afores.

With this acquisition Banorte will be ranked 4th in Mexico’s Afores account holding, managing a total 3.2 million pension account. (El Universal, 11.06.2009)

In a separate announcement, Banorte said it had listed its stock through pink sheets (GBOOY.PK: Quote, Profile, Research) in the U.S. over-the-counter market. Companies sometimes tap this less-regulated market before leaping into a larger exchange.

Banorte sees the over-the-counter market as a possible prelude to listing its ADRS on the New York Stock Exchange, a bank source told Reuters.

Only a handful of Mexican companies, like tycoon Carlos Slim’s telecom giants America Movil (AMX.N: Quote, Profile, Research) or Telefonos de Mexico (TMX.N: Quote, Profile, Research), trade their American Depositary Receipts on big U.S. markets with healthy liquidity.

Some Mexican corporations have withdrawn their shares from U.S. markets in recent years to avoid tighter scrutiny from U.S. securities regulators.

Source: Reuters, 10.06.2009, Banking News (ADR Depository), 11.06.2009

Filed under: Banking, Latin America, Mexico, News, Services, , , , , , , , , , , , , , ,

CQG Teams with Tullett Prebon Information to Provide Latin American Fixed Income, Foreign Exchange, Money Markets, and Derivatives Market Coverage

CQG, the leading analytics and order routing platform for global electronically-traded futures markets, has announced that it is adding the distribution of data for Latin American products (LatAmMarker) offered by Tullett Prebon Information, Ltd, the leading global provider of financial market data.

CQG is adding LatAmMarker to its existing coverage of debt markets, foreign exchange, money markets, and derivatives from Tullett Prebon Information. LatAmMarker includes accurate and timely prices for the region’s government debt, foreign exchange, derivatives, and local benchmarks. It also includes information from global fixed income, commodities, and money markets that correlate with the Latin American markets.

Customers utilizing CQG market data will be able to access Tullett Prebon Information’s Brazil Key Market Rates, Zero Coupon Notes, NTN-Fs, and Globals; Colombia Key Market Rates, UVRs Inflation Linked Bonds, TES, and Globals; and Mexico Key Market Rates, Cetes, UDI, M Bonds, Globals, and Swaps Composite Page in the Latin American Marker.

Mike Kirby, Head of the Americas at Tullett Prebon Information, said, “We are delighted that CQG has chosen to extend its range of data from Tullett Prebon Information to include Latin American products. We have a long-standing and successful relationship with CQG and will continue to enhance our high quality and independent financial data offering to CQG’s customer base and other clients globally.” “We are really pleased to add the Tullett Prebon Latin American coverage,” said Rod Giffen, Global Head of Sales and Support. “It’s a great complement to our multi-asset class market data offering.”

Source: Tullett Prebon 08.01.2009

Filed under: Argentina, BM&FBOVESPA, BMV - Mexico, Brazil, Chile, Colombia, Data Management, Data Vendor, FIX Connectivity, Islamic Finance, Market Data, Mexico, News, Reference Data, Trading Technology, , , , , , , , , , , , , , , , , , , , , ,

Global funds industry shifting to Asia

More than ever, fund management companies of all stripes need to build distribution into Asia and the Middle East, says Strategic Insight.

New York-based consultancy Strategic Insight says in a new report that the credit crunch has revealed the essential need for fund management companies to have a distribution into Asia – and predicts many more will build it.

Source: AsianInvestors, 27.10.2008 by Jaime DiBiaso

Funds under management in Asia as well as the Middle East and Latin America will grow much more quickly than those in the United States and Europe over the next five years, says Daniel Enskat, managing director and head of global consulting.

Fund companies that lack an Asian reach have suffered the most in the credit crunch, he suggests – not only because they missed out on last year’s asset-gathering bonanza, but because redemptions in Western countries, particularly Europe, have been most severe.

Such companies with only European clients, even if they have great performance, are nonetheless suffering acute redemption pressure, because investors are panicking and dumping anything to move to cash.

Strategic Insight says mutual funds in Asia have enjoyed net inflows of $60 billion from January to August, versus a net outflow of $360 billion in Europe.

Finally, for fund companies around the world, Asia is the most likely source of business to pull them out of the slump, due to its demographics, its economic growth prospects, the low penetration of investment products and the youth of the domestic fund industries.

Enskat cites China as an example. He compares China’s investors today to European ones in the run-up to the 2000 tech bubble collapse. In both cases, many first-time investors got burned. In Europe, investors generally switched to low-risk savings products and capital guarantees. So far, however, Chinese investors don’t seem to be in full retreat.

“Distributors don’t want to make the same mistake in China,” Enskat says. “They want to educate investors about having a longer-term framework.” He notes that regulators have taken a proactive stance against mis-selling and improving products, which is why the industry hasn’t suffered the kind of mass redemptions that have taken place this year in markets such as Germany and Italy.

Enskat reckons there is also a cultural factor. He says Asian societies, lacking a welfare state, have instilled a sense of self-reliance. First-generation entrepreneurs are relatively young and willing to take risks with their money, while Westerners, already wealthy, are more interested in capital preservation. “Asian investors are proactive, not defensive,” Enskat concludes.

He says the credit crunch, and blow-ups such as the Lehman Minibond fiasco in Hong Kong and Singapore, is an opportunity for the mutual-funds industry to argue its case: that funds are the most transparent, liquid and straightforward investment products that investors will find.

“Distributors want a simple story told with conviction for a transparent product,” he says.

The challenges are how to convey this message to investors (and to distributors’ sales teams). High management fees and front-end loads can be a problem during bear markets, although Enskat believes investors are willing to overlook these when times improve; eventually Asia will need to shift to an American model in which asset managers force their brokers to sell on the basis of advice, rather than commission for pushing products.

Today it seems nearly all the big global names in asset management are already on the ground in Asia. But Enskat observes that there are many small- and mid-sized fund managers in Europe and Asia that have yet to set up a presence in the region. Should this matter?

Consider, Enskat suggests, that two-thirds of today’s top 50 global houses would not have been ranked 10 years ago. Names like AllianceBernstein, BGI, Janus, Pimco, SSgA and T. Rowe Price would not have figured.

Now consider the coming regulation of the hedge fund industry. The biggest hedge funds will find themselves going public and competing for assets from sovereign wealth funds and other institutional investors, rather than rely on family offices and endowments. How many of these will be in the top 50 in another decade’s time? And how many of them have distribution networks in Asia now?

And the traditional funds world will also throw up new winners that are relatively unknown today, Enskat argues. He notes that fund companies can become major players on the back of a single product, citing Kokusai’s income bond fund (sub-advised now by Western Asset), Pimco’s total return bond fund, Pictet’s utilities fund, BlackRock’s global allocation fund and some of Schroders’ global balanced funds for UK pension clients.

There are plenty of mid-sized players in America and Europe with similar products, some of which will become the blockbusters of the future – but these companies have no exposure to the world’s new growth markets. Which means they will be looking to set up distribution arrangements. The pain of the credit crisis is going to accelerate this process.

Filed under: News, , , , , , , , , , , , ,