NEWS SCAN
Global Expansion Keeps CFOs Optimistic
Participants in the 2013 Bank of America Merrill Lynch CFO Outlook Mid-Year Update gave the U.S. economy an average score of 58 out of 100. This figure was up from 49 in the last survey conducted late last year. The global economy received a score of 51, up from 45.
CFOs showed even greater optimism about economic growth, with 55% expecting expansion in 2013, compared with 39% in the previous survey. Those expecting the economy to shrink dropped to 10% from 24%.
Why this surge of confidence? U.S. companies continue to do more business globally, with 76% of CFOs reporting some type of activity in foreign markets. That is up from 73% in the previous survey and 67% one year ago.
"Beyond their brighter view of the economy, CFOs and their companies remain focused on new markets and opportunities for international growth," said Alastair Borthwick, head of Global Commercial Banking at Bank of America Merrill Lynch in a statement. "While expanding into other countries is attractive, doing business globally brings many challenges and often requires a wide range of financial solutions. More than ever, U.S. companies are seeking help with accessing capital, managing risk, maximizing cash and increasing efficiency as they grow their businesses."
The response was also positive when it came to employment. The figure for employee hiring rose from 45% to 48%.
Eaton Vance Equity Head to Retire
Duncan W. Richardson has announced plans to retire from his position as chief equity investment officer for Eaton Vance Corp. in October after 26 years with the firm.
Richardson ran the $684 million Eaton Vance Tax-Managed Growth Fund (CAPEX) since 1990.
The equity group will be headed up by Chairman and CEO Thomas J. Faust Jr. until a successor is hired.
RESEARCH
Money Market Assets Up
The Investment Company Institute reported that total money market mutual fund assets increased by $8.53 billion to $2.632 trillion for the week ended Wednesday, July 17. Taxable government funds increased by $7.92 billion, taxable non-government funds decreased by $130 million, and tax-exempt funds increased by $740 million.
PRODUCTS
Quality Factor ETF Launched by iShares
MSCI USA Quality Factor (QUAL) is the newest member of iShares' recently launched suite of factor-based ETFs. Other funds in the suite focus on momentum, size and value factors.
QUAL tracks an index of U.S. large- and mid-cap stocks that are selected from a market-cap-weighted parent index.
Like the other factor-based ETFs, the new quality ETF tracks an MSCI index and aims at exploiting a factor-quality-that academic and industry research has shown to generate outperformance over the broad market. The presence in a portfolio of quality companies--those with lower financial leverage and minimal earnings variability, for instance--has been shown to influence and enhance return.
ARRIVALS
Legg Mason Names Non-executive Chairman Replacement
Legg Mason announced that it has appointed Dennis M. Kass, an industry veteran, as non-executive Chairman of the Board.
Kass succeeds W. Allen Reed, who was appointed non-executive chairman of the Legg Mason Board in September of 2012. Reed successfully oversaw a strategic review of the company's business model and operations and chaired the Search Committee effort that led to the appointment of the company's CEO in February of this year. Reed will continue as a member of the Board and as Chairman of the Finance Committee. He has served as a director of Legg Mason since 2006.
"I am pleased to pass the chairman's responsibilities to Dennis Kass, a highly regarded executive in the asset management industry who has the insights of both a large scale diversified asset manager and of an affiliate CEO. Dennis brings a unique perspective that will be valuable in the governance of Legg Mason and its affiliates. I look forward to working with Dennis, Joe and the rest of the Board to move the company forward," said Reed in a statement.
CEO Joseph Sullivan added, "In the short time I have worked with Dennis, I have been impressed with the insights he has on our industry and the opportunities he sees for Legg Mason. As we look to execute our key priorities to grow and diversify Legg Mason's revenues, Dennis will be an invaluable partner."
U.S. Bank Hires Three for Wealth Management Positions
U.S. Bank has snagged a senior trust professional from Bank of America to fill the post as personal trust managing director for the bank's Private Client Reserve high-net-worth business in Seattle.
Andrea Kaempf will lead the personal trust team in Washington State, U.S. Bank said in a statement.
Before joining The Private Client Reserve, Kaempf served in numerous leadership roles with Bank of America's philanthropic management practice and most recently served in a senior fiduciary capacity with the bank's U.S. Trust division in the Seattle and Bellevue, Wash., markets.
In addition, the Reserve hired a former executive of Wells Fargo Private Bank as a senior private banking officer in San Francisco. Scott Wiley will help high-net-worth individuals and families with their private banking needs.
Lastly, the Reserve hired a senior portfolio manager in Minneapolis. Steven Hobbs, formerly a senior portfolio manager at U.S. Trust, will develop customized investment portfolios for the firm's high-net-worth clients.
Capital Investment Adds Five Financial Advisors
In the most recent expansion of its planning services, Raleigh, N.C.-based Capital Investment has added five new financial advisors.
"We're proud to see our reps' practices thriving," Richard Bryant, Capital Investment's president, said in a statement. "It shows a dedication to hands-on client support for our registered reps to be hiring others to work with them."
The company said its new advisors include: Tammie Farrell, Franklin, N.C.; David Heath, Columbia, S.C.; Craig McDaniel Jr., Columbia, S.C.; Jeffery Bryson, Greenville, S.C. and Andy Bryant, Hickory, N.C.
INTECH Names Head Of Consultant Relations
INTECH Investment Management LLC announced that it has hired Phillip Leonardi, CFA, as senior managing director. As head of the firm's consultant relations team, Leonardi will work with INTECH's consultant relations professionals to establish and further retain relationships with investment consultants with the goal of increasing their understanding and endorsement of INTECH's products and services. Working from the firm's global headquarters in West Palm Beach, Fl., he will report to John Brown, senior vice president, head of global client development.
"The demand from institutional investors for risk-managed investment strategies that generate alpha continues to grow and consultants are playing a more significant role in the investment decisions process. Phil's long history of working with consultants, and his network of relationships will help to ensure that our products are reaching the appropriate investor base and that we continue to provide the highest level of service to consultants," said Brown in a statment.
Added Leonardi, "I look forward to working with a firm that offers investment products with a specific focus on risk management. If markets remain volatile, pursuing alpha within a risk-managed framework will become even more important to consultants and their clients. That is the real value I believe INTECH brings to institutional investors."
