Wary Investors Crowd Money Market and U.S. Bond Funds
The beginning of Q4 saw spooked investors directing over $45 billion into EPFR global-tracked money market funds and a record $15.78 billion into bond funds, according to the data provider. Among the trend highlights, for the sixth week in a row net outflows from Europe Equity Funds exceeded $1 billion, while cash outflows from Japan Equity Funds and redemptions from Emerging Markets Equity Funds reached new records. In the U.S., flows into Mortgage Backed Bond Funds marked the third highest ever recorded, partly due to the Federal Reserve's intent towards maintaining mortgage-backed securities.
Blackstone Merges Advisory Units to Create New Firm
Blackstone signed off on a plan to combine its financial and strategic advisory practice and its Park Hill fund placement business with PJT Partners, a financial advisory firm run by former Morgan Stanley president Paul J. Taubman. The units were at the core of its original business, but the company decided to spin them off to avoid conflicts of interest, according to a statement by Stephen A. Schwarzman, Blackstone's chairman, CEO and co-founder. "The separation of our investing and advisory areas will create new growth opportunities for both businesses," Schwarzman added. The new company will be publicly traded and headed by Taubman, PJT Partners' founder.
Janus Acquires VelocityShares Parent
On the heels of welcoming Bill Gross into its ranks, Janus Capital Group announced it will acquire VS Holdings, the parent company of VelocityShares. Buying the ETP provider includes an upfront cash consideration of $30 million, according to the firm. "This acquisition positions Janus within the rapidly growing rules-based and active ETF universe," said Richard M. Weil, CEO of Janus Capital Group, in a statement.
ARRIVALS
Roubini Research Head Joins Windhaven Investment
Christian Menegatti was named Windhaven Investment Management's new chief investment strategist, after nine years as managing director and global head of research at Roubini Global Economics. He will contribute to investment strategies and providing analysis of global themes at Windhaven, a subsidiary of Charles Schwab. He will serve as co-chief investment strategist with DeFred "Fritz" Folts, who retires from Windhaven at the end of the year.
New CEO at Covariance Capital Management
Covariance Capital Management appointed Kevin Nee as chief executive officer. Covariance is a subsidiary of TIAA-CREF providing endowment management services to educational, healthcare and other nonprofits. In his new role, Nee will lead business development and have oversight of operations and finance.
Calvert Investments Names Incoming CEO
John Steur joins Calvert Investments at the end of October as its new chief executive officer. Steur comes to the sustainability-focused investment manager from Portfolio 21, a boutique investment management firm specializing in global environmental investing, where he serves as president, director and principal.
Calvert's outgoing CEO Barbara Krumsiek will remain on the board.
Horizon Kinetics Selects Head of Institutional Sales
Christopher P. McCarthy is the new head of intuitional sales at Horizon Kinetics, a private investment and research firm with $10 billion under management. McCarthy is a former senior vice president of institutional sales at Delaware Investments. His responsibilities will include building relationships with institutional investors, and overseeing business development and marketing efforts.
Janney Montgomery Scott Beefs Up Capital Markets Division
Several hires were announced in Janney Montgomery Scott's Capital Markets division across the country. Sam Alimam and John Atchison were respectively named directors of institutional fixed income sales in San Francisco and Chicago; Nathan Judge joins as managing director of energy infrastructure and MLPs in Philadelphia; David Lebowitz is now a senior research analyst in biotechnology in New York, while William Malone joins as managing director for taxable fixed income, institutional mortgage trader; Mike McNamara is now managing director for national fixed income institutional sales manager in Philadelphia; and Mitchel Penn is director and research analyst, BDCs, Mortgage REITS, in Towson, Md.
Lord Abbett Names Five New Partners
Five employees at Lord, Abbett were promoted to partner, the firm announced. Andrew M. Khatri, who joined in 2011, is now director of taxable fixed income trading; Gregory S. Parker, CFA, has been with the firm since 2007 and is now director of credit research; Marc Pavese joined in 2008 and was named a research analyst; with the firm since 2003, Vito Fronda, CPA, was named director of taxation, and Bradley Eckstein, who joined in 2005, is now senior regional manager.
