Bolton contrata equipo de $550 millones de Morgan Stanley en Nueva York

La corredora de bolsa independiente Bolton Global Capital continuó su expansión en Nueva York con la incorporación de los asesores internacionales de Morgan Stanley, Ruben Lerner y Manuel Uranga.

Después de nueve años como directores ejecutivos de Morgan Stanley, donde asesoraron en una nómina de clientes internacionales por un total de $550 millones, Lerner y Uranga lanzaron A Plus Capital, que tendrá su sede en Manhattan en 515 Madison Avenue, anunció Bolton.

La socia junior Ariel Materin, la asociada de clientes Jennifer Ramos y la gerente de oficina Olga Lopez también se unen de Morgan Stanley. Materin administrará la adquisición de clientes y la estrategia de inversión para el equipo, mientras que Ramos se basará en la ubicación de A Plus Capital en Miami y López administrará la oficina en Nueva York.

Lerner, originaria de Venezuela, y Uranga, de España, prestan servicios a clientes de toda Europa, América Latina y Estados Unidos.

El dúo se unió a Morgan Stanley desde Smith Barney, que seguía siendo parte de Citi, en 2008 con los asistentes de ventas Dolores Alcaide-Mendez y Jennifer Ramos. Alcaide-Ménde sigue en Morgan Stanley.

La custodia de los activos de clientes se llevará a cabo a través de BNY Mellon Pershing. Bolton proporcionará soporte de cumplimiento, back office y mercadeo, así como las tecnologías de administración y trading de patrimonios para el equipo de A Plus Capital.

Morgan Stanley confirmó la salida del equipo, pero se negó a comentar más.

Los planes de Bolton

El negocio con sede en Bolton, Massachusetts, busca continuar adquiriendo más de $850 millones en activos de clientes en el mercado de Nueva York antes de finales de 2017.

Entró en la región en mayo, cuando el ex banquero privado de HSBC Ethan Assouline se unió a la corredora.

Durante los dos últimos años, Bolton había estado buscando asesores en Miami, agregando a los equipos internacionales que habían dejado las grandes firmas y bancos privados debido a cambios de política interna durante ese período. Ahora tiene más de $4.000 millones en activos bajo administración de clientes no residentes en los Estados Unidos.

BNY Capital Market Perspectives

Draghi Reflation Trade + Debt Ceiling Reminder

While overall we felt that the path for monetary policy was little changed after a series of speeches and chats from the world’s central bankers, the market took notice from a likely overly sanguine view that created heavy positioning across various asset classes. ECB President Draghi’s presentation at the ECB forum has been viewed as an indication that the ECB was turning more hawkish and preparing to withdraw market stimulus. This however has been the base case for many that expected the ECB to start reducing its asset purchases in 2018. Yellen’s speech was essentially a rehash of the FOMC presser, although we did note that she does not like negative rates, and still feels the Phillips curve is relevant. We also got hawkish rhetoric from the BOE and BOC which certainly has undertones of a global effort to push yields higher and possibly take the froth off of risk assets. Therefore, while we don’t view the policy path for the Fed or ECB changing much, a coordinated push is a new development that may remain theme for the remainder of the summer.

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BNY Capital Market Perspectives

Inflation’s Market Impact

Concerns over Inflation (or the lack thereof) have become a dominant theme in the markets. Weak price data started to emerge in early spring with negative monthly results that have caused both headline and core measurements of CPI and PCE to move away from the Fed’s 2% target. These measurements have yet to reverse in April and May data, with cheaper cell phone plans and slowing prescription drug costs as the most cited explanation for the declines. These broad cost categories have caused weakening inflation to be reported in both headline and core measures. Oil falling into bear market territory will undoubtedly complicate matters; with weaker headline reports likely to emerge before the end of summer. Balancing these concerns is the thought that changes to cell phone plan pricing is a one-time event, while overall drug pricing trends remain upward sloping. Additionally, the decline in oil prices is widely acknowledged as a supply side imbalance rather than a collapse in demand. Lastly, consumer survey measurements of inflation expectations, such as the University of Michigan indicate stable 2+% inflation expectations in both the short and intermediate term.

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BNY Capital Market Perspectives

FOMC Preview

When the Fed meets next week, the market generally expects that policy makers will raise rates for the 3rd time in 6 months, moving the median Funds rate to 1.125%. Despite rising anxiety on inflation after a below trend 1Q:17 GDP print, the Fed’s desire to continue the normalization policy is viewed as outweighing these concerns at the moment. The minutes to the May meeting affirmed this view with most on the committee finding it appropriate to continue removing monetary accommodation, a message that has been mostly affirmed by recent Fed speakers. While weak data was generally viewed as transitory the last time the Committee met, recent Fed speak has moved to a more cautious tone, with several members recently raising inflation concerns. Ultimately, we do not think that these concerns will play into their June decision, especially with June odds above 90%, which may be the most important data point at this moment. Therefore, presuming they raise rates next week, investors will then turn their attention to the Fed’s view on rate hikes for the remainder of 2017 and its plans for 2018. Encapsulated in this discussion will be an update to the economic projections, which was last revised during their March meeting. As the table below indicates, GDP, unemployment and inflation are all running below the Fed’s full year projections, likely requiring that they bring this data closer to actual results. The weak 1Q:17 GDP results have been characterized as transitory by the Fed, a view supported by the 3.4% and 2.2% current quarter estimate provided by NOWCAST and GDPNOW tracking tools. Therefore, we don’t think that the Fed needs to update its GDP forecast during next week’s meeting, thereby sending the message that things are progressing as expected. In contrast, unemployment is already below its year end forecast which will likely require and adjustment to at least matching the last 4.3% reading. With weekly claims remaining near lows last seen in the 1970s and recent JOLTs data at record highs, there are no indications that the UER cannot be pushed down further. The trickiest change will be in its inflation expectations, particularly given that the FOMC will be forced to move its full employment goalpost, with the old target yet to generate wage inflation. As both the headline and core PCE readings have weakened recently, the changes adopted by the Fed will present an outlook on the permanence of the recent downturn in pricing pressure. The ECB provided a glimpse on the longer term inflation challenges as it lowered its targets through 2019, despite upgrading its growth outlook.

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Euclides Moreno se une a Bolton Global

Bolton Global Capital ha sumado al equipo de su oficina de Miami a Euclides Moreno, quien mantendrá la denominación “The Moreno Wealth Management Group” con la que ya operaba anteriormente. Moreno ejercía de managing director en Merrill Lynch liderando una práctica con 650 millones en activos de clientes internacionales, que suponía 6,4 millones en ingresos para la firma, y un equipo de siete profesionales.

En esta nueva etapa, los activos de los clientes serán custodiados por BNY Mellon Pershing, plataforma a través de la cual tendrán acceso a mercados de 65 países, mientras que Bolton proveerá el back office, compliance y apoyo técnico al equipo de Moreno.

“Estamos muy orgullosos de que otro de los mejores profesionales se una a nuestra firma y estamos deseando apoyar el continuo crecimiento de su negocio”, declaró Ray Grenier, CEO de Bolton. La oferta de Bolton ya atrajo el año pasado a nueve grandes equipo de los principales bancos y broker dealers, lo que resultó en la transferencia a la plataforma de un total 1.500 millones en activos.

Antes de unirse a Merrill Lynch, firma a la que ha estado ligado durante 17 años, Moreno trabajó en el negocio bancario de su familia en Venezuela.

Bolton hires $650m ex-Merrill advisor

Senior international financial advisor Euclides Moreno, head of one of Merrill Lynch Wealth Management’s top Miami teams, has left after 17 years with the firm, Citywire Americas can reveal.

According to sources familiar with the situation, Moreno is in talks to join an independent broker-dealer.

Moreno’s group at Merrill Lynch manages over $800 million and has produced around $8 million annually, according to a source. It is understood that the remaining members of the seven-strong Moreno Wealth Management Group team have not resigned and continue with Merrill.

Merrill Lynch declined to comment on the departure.

Moreno joined Merrill Lynch in 2000 and advised both US and non-US clients, with a focus on Venezuela. Moreno’s exit follows that of a number of teams who’ve left Merrill Lynch since July 2015 after it refocused its non-resident client business and added a number of restrictions and requirements to its client onboarding process.

While Venezuela falls within the range of 29 countries Merrill Lynch still services, prospective clients in this country must invest a minimum of $5 million to meet new requirements. They would also have to visit their international advisors at least once a year in the US.

Merrill’s revamp has allowed for international broker-dealers and RIAs such as Bolton Global Capital, Investment Placement Group, Global Investor Services to earn a bigger slice of the international advisory pie since these change were announced. They’ve also benefited from large private banks like Credit Suisse and RBC moving out of this space.

However, just last week Merrill recruited Leon Friedlander, who also specializes in advising Venezuelan clients, from Morgan Stanley.

While the wirehouse saw a number of exits in the 18 months after its initial changes, the firm has been selectively recruiting and has announced two hires in the last two months.

BNY Capital Market Perspectives

Resistance is Futile – Volatility at lows Across Multiple Asset Classes

Global risk concerns continue to wane, with elections pushing back on populous revolts, while geopolitical risk have calmed recently, although we have seen nary a blip of concern over geopolitical issues over the past several years. The French elections were almost a textbook example of polling accuracy, as the 2 candidates that were expected to advance to the 2nd round did just that. The ultimate victory for Macron was also as predicted, by some measures many months ago. We have therefore seen anti-Euro candidates falter in Austria, Holland and France over the past 6-months, alleviating much of the concern that another Brexit was lurking on the horizon. As for US politics, we sense that activity from Washington is mostly discounted for the current fiscal year, but not yet abandoned as many still expect some form of tax reform, fiscal stimulus and/or deregulation to emerge in the coming year.

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Bolton Global Or Why The Advisors Reinvent Themselves As Independents

This past year, Bolton Global, one of the 50 largest independent broker dealers in the United States, has seen its team of financial advisors grow substantially throughout the country, and especially in Miami, an important place in the international wealth management industry. The firm has announced the appointments, which, in turn, served as a call for other advisers contemplating, or in the process of, a change. From November 2015 to December 2016 the digital version of Funds Society has published such a series of appointments – The Perez Group, Eduardo Robson, Daniel Aymerich, Soraya Batista-Gracía, Eddie Moreno, Alex Astudillo, Ángela Canas, Tanya Duarte and Archivaldo Vásquez, Felipe Ballestas, Oscar Guevara, Samuel Nunez, Ricardo Morean, and Christian Felix – that we wanted to speak with Ray Grenier, CEO of the firm, to discover the keys to this firm’s irresistible model.

Bolton Global is one of the 50 largest independent broker dealers in the US. With 32 years of track history and 45 branch offices, it ranks among the top of independent firms in annual revenue and AUM per producing FA, across the US. This last year, Bolton Global has seen more than 15 advisors with international clients join the firm, many of whom are based in Miami.

What is the key? Why do financial advisors choose to join Bolton Global? How do they arrive at the firm and what does it offer them? “We do not have an FA recruiting team, we have grown fundamentally through word of mouth.” The best tool to attract new teams of financial advisors are the FAs that already work in Bolton, who refer other teams with quality assets and extensive experience. “A happy team that has the full support of the organization to carry out its work is the best ambassador to attract new talent to the firm,” says its CEO.

Ray Grenier, CEO explains: “Our platform allows FAs to establish their own brand name, capture the equity in their book of business and generate a substantially higher net income after expenses. Bolton provides turnkey solutions to incorporate the business, develop a company logo and company promotional materials, develop and establish a professional website, set up office infrastructure and train staff. We also provide all of the back office and compliance support to process the business efficiently and effectively in accordance with industry rules and regulations.

Through Bolton, FAs have access to all of the capabilities, products and services available through the major wirehouses and private banks.”

We are talking about Financial Advisors who had prior successful careers at the major US wirehouses in 90% of cases, with a client book of over $100 million and 15 or more years of industry experience. Most of them are US citizens or visa holders. Bolton also has several affiliated financial advisors operating from offshore locations in a fully registered capacity.

When talking about attracting clients, Grenier says the financial crisis of 2008 highlighted the importance of financial institution safety and security. BNY Mellon is a global financial institution with the highest safety rankings among the largest US banks. This provides clients with the security that their assets are held through a solid financial institution which also supports international business.

He adds: “BNY Mellon is the oldest US bank, founded by Alexander Hamilton in 1784 and is the world’s largest custodian with more the $30 trillion in assets under custody. It’s clearing subsidiary, Pershing is the world’s largest clearing firm servicing over 100,000 financial advisors working at financial institutions in over 60 countries.

In addition to providing clients with superior safety and security, the BNY Mellon companies furnish Bolton with all of the capabilities, products and services of the major wirehouses and private banks for both domestic and international clients.

As an independent firm, Bolton offers clients a pure wealth management play as the firm does not engage in investment banking or underwriting and generally avoids illiquid products.”

Bolton has a wide mix of customers from the United States, Latin America and Europe. Among the international clients, the firm has a strong representation in Argentina, Spain, Uruguay, Mexico and Panama.

The average account size is over $500,000 with the average relationship over $1 million. Portfolios hold a mix of stocks, bonds, ETFs and mutual funds managed either by the FA or by third party asset managers.

In the international business, around 40-50% of the assets are in mutual funds. Bond portfolios also prevail, as is customary in Latin American clients. Ray Grenier also points out that some of its representatives work with portfolios of UCITS ETFs domiciled in Europe, which represent a tax advantage over US-based ETFs.

Although Pershing is able to carry out the full range of services its clients require, Bolton’s financial advisors (FAs) can also work with a number of local banks that offer advantageous conditions for leveraging their asset portfolios, including international mutual funds. Thus, the FAs that join the Bolton platform can carry out the transition of the assets of their clients without losing functionalities over the broker dealers in which they worked previously.

Bolton provides FAs with a complete set of research tools to manage their client portfolios including recommended buy-sell lists, model portfolios, analytics, and performance reporting. Financial advisors have the flexibility to advise clients on the composition of their investment portfolios in accordance with the client’s objectives and risk profile. “In addition, FAs can use our Separately Managed Account (SMA) platform with access to more than 100 major asset management firms with multiple investment styles to construct and rebalance portfolios on a discretionary basis.” The CEO says. Approximately 40 percent of the business is fee based with 60 percent conducted on a commission or transactional basis.

In addition to portfolio management, Bolton offers clients the full range of account services including on-line account access, BNY Mellon VISA card, check-writing, ACH and bill payment, portfolio lending, multicurrency holding and reporting as well as trustee services. Bolton also provides access to execution and clearing on exchanges in 45 countries.