The Panama Files - What changes for Family Offices

Transparency, Corporate Governance and CSR are ever more important

Sascha Klamp recently contributed to the Panama Files controvery. In an interview with Campden FB entitled “Panama Papers: Family Offices likely to remain unfazed, reputation biggest threat” (see the full copy here), Sascha suggests that he can only see an impact for multi-family offices or those that oversee third party capital. In a world where transparency, corporate governance and CSR are ever more important, CITE believes that cleaning up the act is now a must for many.


Press Release - CITE signs LR Global ex Rockefeller Family Office Asset Manager

LR Managers chooses CITE Investments and its wholly owned subsidiary iGen Capital as their Investor Relations, PR and Corporate Governance partner

Click here for the PDF Press Release: LR Managers (New York) and CITE Investments (London) have agreed to the terms of a Master Distribution Agreement that will see both entities collaborating on investor relations, PR and corporate governance.

LR Managers is one of the oldest independent Frontier Markets asset management companies. It was incubated out of the Rockefeller Family Office and launched in 1997. The firm quickly demonstrated performance success in the early years despite launching just ahead of the Asian crisis. At peak, prior to 2008, the firm managed $900m in assets. The firm is now seeking to rebuild the business to take full advantage of their core expertise. The team continues to employ 12 research staff in their ‘field’-office in Vietnam whilst the management team is based in New York bringing total headcount to 20.

“We have had a lot to digest over the past few years, not least the passing of four of our key principals during the 2006-2007 period. Despite the various headwinds over the years, we continued to develop the business and we are positive that our continued investment in our business infrastructure as well as the continuity of our team will sit well with institutional allocators. Collaborating with CITE on conveying our refreshed story with renewed focus on Frontier Markets comes at a time when we both believe that these markets will see a strong rebound,” says Don LaGuardia, Founder and CEO LR Managers. “The timing for our engagement could not be better.”

“For CITE, teaming up with LR Managers was an obvious choice”, Anjelika Klamp, Global Head of Portfolio Management, CITE Investments confirms. “The team has significant history, strong legacy relationships in most, if not all, Frontier Markets and a portfolio management history that has demonstrated that they can manage significant assets in small but very nimble markets. We were impressed by their ability to select companies that one would not ordinarily find when allocating to mainstream groups.”

see: http://www.lrglobal.com/


CIO FORECITE - India Asset Management Companies

Most recently, Goldman Sachs announced the sale of its unit to Reliance MF for about $37.5m following Deutsche Bank’s unit sale to Pramerica. In contrast, KKR announced the acquisition of a 70% stake in Avendus, valuing the firm at $175m.

What is driving the exodus of foreign AMCs and does it present an opportunity for foreign investors to buy into the Indian equity market in general or indeed look at acquiring a smaller asset manager? Or, more dramatically, should one shun away completely? What is the opportunity cost of omitting such a large market and economy?

Investment Thesis In Brief

 

We suggest that India does present an interesting opportunity for asset managers, both on the mutual fund and alternative investment side. Despite the regulatory and fiscal challenges, the “I” in BRIC is still moving, although at a slower pace, for now. Exposing one’s portfolio allocation to the vast opportunity India offers, provides investors with a great excess return opportunity with some degree of volatility in the medium term. Those wanting to stand tall in the crowd may want to take a look.

To read the full PDF file including our sector inCITE, Data Analysis and Conclusion, click here.


Allocator Quarterly - Q4 2015

"This is a call to those CIOs who wish to discuss our view in more detail, but who would also like to discuss concrete steps that could be taken."

We have always suggested that investors need to take a medium-term, if not long-term, view on their asset allocation. If they don’t, they may run the risk of becoming traders, always arguing with the markets over the next up and down swings. Nothing could suit this view more than the Insurance Linked Securities asset class. A quasi fixed income type product with the added bonus of non-correlation to other major asset classes. At least in theory.

For the full pdf publication, click here.