Rejuvenation continues at Forum Finance
Rejuvenation continues at Forum Finance
Geneva, 5th April 2023 – Geneva-based independent asset manager The Forum Finance Group SA has appointed two new independent Board members – Biba Homsy and Alain Couttolenc – and a new Partner, Tanja von Ahnen. By strengthening its Board of Directors and regularly giving access to capital to new partners, Forum Finance reinforces its attractiveness for talented individuals and sets the foundations for its ambitious plans for the future.
Biba Homsy is Founder and Partner of Homsy Legal, a law firm based in Switzerland and Luxembourg specialising in financial markets, compliance, and crypto assets. Prior to that, she led teams at the Swiss regulator FINMA for 5 years, and was also Chief Compliance Officer at Credit Suisse, in charge of Luxembourg and its European branches (France, Portugal, Ireland, Austria, Netherlands). She was appointed as one of the 30 global experts in crypto currency by the World Economic Forum (WEF). A lecturer at several universities on compliance, anti-money laundering and Fintech, she holds two master’s degrees in law (French and Swiss universities) and a certification from Harvard Law School on financial regulation.
Alain Couttolenc is Head of Development and External Relations at IPSOS, a global leader in market research. After starting his career in 1995 at Nielsen Mexico, he joined the Renault Nissan Group in 1999 to launch Renault in Mexico as Marketing Manager. After 8 years, he returned to Nielsen as Vice President for Latin America, before moving to Paris then to Geneva, as Managing Director of Nielsen Media and Marketing Effectiveness. Alain Couttolenc holds a master’s degree in marketing from the Kellogg School of Management and a degree in economics from the Universidad Iberoamericana de Mexico. He has been teaching marketing at La Sorbonne since 2011, is a member of the EFFIE Global Awards, a member of the Executive Committee of the Geneva Investor Circle, an invited member of the World Economic Forum’s community of experts, and a member of Trust Valley’s advisory board.
Tanja von Ahnen joined Forum Finance in 2022 after a 16-year long career in private banking at Banque Syz and RBC, primarily servicing wealthy families based in Latin America. Prior to becoming a private banker, she worked as an independent consultant and as a controller with Allianz Insurance. She holds a master’s degree in Economics from Zurich University and Bachelor degree in Economics from Göttingen University.
A solid structure and governance
With nearly 30 years of steady growth, Forum Finance has proven its durability. Its robust and transparent governance guarantees the integrity of its leadership and allows it to welcome new partners to ensure its continuity. With CHF 2 billion under management, it has sufficient resources to finance its future growth. This solidity is further underlined by its FINMA CISA licence. Finally, registered with the SEC, Forum Finance can also look after American clients.
Offering a compelling alternative to wealth managers wishing to ‘future proof’ their activities
In view of the recent regulatory changes in the Swiss independent asset management industry, Forum Finance offers a solid framework with an equitable and collaborative culture for wealth managers who have an entrepreneurial spirit.
Hippolyte de Weck, CEO, said: “adding high quality talent is the greatest challenge for any company. We are therefore particularly pleased with the calibre of our new board members and our new partner. They will provide us with valuable guidance and support to grow our business further and prepare ourselves for the decades to come“.
For additional information, please contact:
Egon Vorfeld
The Forum Finance Group SA
T: +41 (0)22 552 83 00
E: vorfeld@ffgg.com
ffgg.com
Ricardo Payro
Payro Communication Sàrl
T: +41 (0)22 322 13 17
E: :rp@payro.ch
payro.ch
About Forum Finance
Founded in 1994 in Geneva, Forum Finance offers private banking and asset management services to a high-end global clientele. It has 25 employees who manage and supervise CHF 2 billion in assets. The company is regulated and supervised by the FINMA under the CISA licence and is registered with the SEC as investment adviser.
Forum Finance wins four awards at the WealthBriefing Swiss EAM Awards 2023
Forum Finance wins four awards at the WealthBriefing Swiss EAM Awards 2023
Forum Finance crowned best independent Swiss asset manager with assets over CHF 1 billion for the third year running.
Forum Finance crowned best independent Swiss asset manager with assets over CHF 1 billion for the third year running.
Forum Finance wins three additional awards for the best Next-Gen program, Wealth Planning team and Servicing North American clients.
Forum Finance wins three additional awards for the best Next-Gen program, Wealth Planning team and Servicing North American clients.
Geneva, 10th March 2023 – Geneva-based independent asset manager The Forum Finance Group SA has won the award for the best independent Swiss asset manager for the third year running at the WealthBriefing Swiss EAM Awards 2023, in the premier category of companies with assets under management of over CHF 1 billion. It won an additional 3 awards for the best Next-Gen program, Wealth Planning team and Servicing North American clients.
Announced during the prize-giving ceremony held last night in Zurich, the awards recognise the best independent Swiss asset management companies, selected through a rigorous process for their “innovation and excellence in 2022” by a panel of experts. The independent jury comprises specialist consultants, representatives of custodian banks and technology solution providers, as well as other industry experts.
In the case of Forum Finance, the panel of judges highlighted: “that the successful onboarding of the next generation of managers and client-facing people have allowed the implementation of excellent strategies which have enabled the company to grow its assets under management and become a leading EAM”. The judges also mentioned that they were “impressed by Forum Finance’s ability to provide specific wealth planning services to families and their Next Generation. Furthermore, the firm has put a lot of effort into hiring the right people to deliver on wealth planning and structuring issues”. With regard to the Servicing North American Clients award, they said: “the winner combines traditional asset management with specific US client services. With their qualifications to manage life assurance policies, together with providing an inhouse international wealth planner makes them a strong partner for US clients. A worthy winner”.
Indeed, having anticipated the changes in the asset management industry, Forum Finance has strengthened its structure and organisation over the last few years, as evidenced by the CISA licence granted by FINMA in 2015 and its registration as investment adviser with the US SEC in 2016. In addition, Forum Finance continues to invest in its research, investment management and wealth advisory resources, as well as in technology, enabling it to respond effectively to the changing needs of its clients.
Hippolyte de Weck, Managing Partner and CEO of Forum Finance, stated: “We are truly honoured to have been awarded these highly regarded industry accolades. Winning all these awards is most rewarding! It is a real testament of our collaborative and equitable corporate culture and our ability to attract great new talent. New talent also brings new ideas and new skills. Two of the awards this year clearly demonstrate that: best Wealth Planning team and Next-Gen program. These were a direct result of us hiring a dedicated wealth planner who is inherently also focussed on the next generation.”
For additional information, please contact:
Egon Vorfeld
The Forum Finance Group SA
T: +41 (0)22 552 83 00
E: vorfeld@ffgg.com
ffgg.com
Ricardo Payro
Payro Communication Sàrl
T: +41 (0)22 322 13 17
E: :rp@payro.ch
payro.ch
About Forum Finance
Founded in 1994 in Geneva, Forum Finance offers private banking and asset management services to a high-end global clientele. It has 25 employees who manage and supervise around CHF 2 billion. The company is authorised under the CISA licence by FINMA and is registered with the SEC as investment adviser.
Newsletter | March 2023
MARKETS WERE IMPACTED BY A REPRICING OF POLICY RATES IN FEBRUARY
4% THE EXPECTED PEAK LEVEL OF THE ECB’S KEY RATE
Investment perspective
The early-year optimism in financial markets gave way to renewed concerns over inflation and even tighter monetary policies, triggering a significant drop of bond markets. As often observed in 2022, the volatility in bond markets rose noticeably and impacted the momentum of other asset classes. The yields of 10-year Treasuries ended the month 41bps higher at 3.92% with those of Bunds with a similar maturity climbing by 37bps to 2.65%. While European equity markets proved to be resilient, as the Euro Stoxx 50 Index edged 1.8% higher, emerging market and US ones gave back a large portion of their January gains; the MSCI EM Index fell by 6.5% and the S&P 500 Index lost 2.6%. In this context, the US dollar benefited from the widening of the interest rate differential between Treasuries and Bunds, and from its safe haven status, to record a solid performance against other major currencies. A strong dollar and higher real interest rates meant that gold saw its early-year gains being erased, while other commodity prices also dropped.
Early-year market confidence over the decline of inflation appears to have been replaced by concerns that it will be more sticky and remain higher for longer than previously anticipated. This change of outlook was triggered by the publication of inflation data which was above forecasts, on both sides of the Atlantic, and was reflected by the steep rise of inflation expectations. The correction of bond markets in February means that they are more closely aligned now with the outlooks of the Federal Reserve and the ECB, with an implicit admission that policy rates will end up at much higher peak levels than previously expected. Markets are now pricing in peak policy rates of 5.5% in the US and 4% in the Eurozone, compared to January 2023 lows for peak rates of 4.7% and 3.05% respectively.
Investment strategy
We maintained our defensive asset allocation in February. Thanks to an underweight allocation towards equities and a low duration of the fixed income exposure, the drawdown of portfolios was not too deep. In last month’s newsletter, we had reiterated our scepticism about the markets’ optimistic outlook over a pivot by the Fed in the second half of 2023 and were therefore not surprised by the retreat of equity markets in view of rising bond yields. We believe that equity risk premiums are not attractive at this stage, leading us to remain cautious, especially in view of concerns over profit margins and the path of earnings.
We are closely observing the level of European bond yields as we are approaching a point where we would likely increase the duration of the portfolios. The latest developments in bond markets also mean that the recent appreciation of the US dollar has stalled. As we did not reach our first target on the EUR/USD parity, we have not yet reduced our dollar exposure for non-USD denominated portfolios.
INVESTORS HAVE BACKTRACKED FROM THEIR OPTIMISTIC STANCE OVER TERMINAL RATES
Portfolio Activity/ News
February was a negative month for the portfolios as both the equity and fixed income asset classes were detractors, while hedge funds produced only a marginal positive contribution. For non-USD denominated portfolios, the appreciation of the dollar provided a welcome positive contribution. Some of January’s best performing funds fared the worst during the month under review; the metal mining fund and Chinese equities were the largest equity detractors, whereas emerging market corporate bonds and the long duration investment-grade fund were the biggest fixed income ones. European Value and cyclical equities provided the best contributions within the equity asset class and the short duration European high yield fund generated the only positive fixed income contribution.
In February two new funds were approved by our investment committee. The first one runs a systematic Global Macro strategy based on fundamental and price-based indicators. The fund combines carry, fundamental, trend-following and value/reversion strategies, and displays a remarkable track-record over an extended number of years. The second fund is a concentrated US Value fund, which seeks to invest into great businesses trading at a “bargain”. Since its inception in 2008, the strategy has outperformed both its Value bench-mark and the broader S&P 500 Index.
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Newsletter | February 2023
MARKETS MAKE A STRONG START TO THE NEW YEAR
+ 10.7% THE JANUARY RISE OF THE NASDAQ COMPOSITE INDEX
Investment perspective
Financial markets got off to a very positive start in 2023 as investors took the view that the likelihood of a soft landing was rising despite the hawkish tone from the Federal Reserve and the European Central Bank. In this risk-on environment, the vast majority of equity markets posted above-average monthly gains, long-term bond yields decreased, credit spreads tightened, and the US dollar continued to depreciate. The MSCI World index in local currencies climbed by 6.4%, with the Euro Stoxx 50 index rising by 9.7% and the Hang Seng index by 10.4%. The yield on the 10-year Treasury note dropped by 36bps to 3.51%, with US and European high yield credit spreads contracting by 49bps and 68bps respectively. Other strong gains were also observed on industrial metals, as a result of the anticipation of renewed demand from China, and on the price of gold. Maybe a little surprisingly, oil prices ended the month lower, despite the boost from the reopening of China, while gas prices continued to slide at a fast pace.
At the time of writing, the Federal Reserve has just hiked its Fed fund rate by 0.25%, as fully anticipated. The more relevant outcome of the FOMC meeting were the comments by the Fed’s chair, Jerome Powell, on the future path of the Fed’s policy. Powell repeated that more rate increases were needed and that rate cuts in the second half of the year were unlikely. This goes against markets’ expectations for two rate cuts by the end of 2023. What was more surprising was that Powell did not push back more against the recent easing of financial conditions, leading markets to extend their early-year rally, with equities ending the trading session higher and bond yields declining. The ECB and the Bank of England also matched market expectations by hiking interest rates by 0.5%. The ECB signaled its intention to raise interest rates by another 0.5% in March and will then evaluate its policy depending on data. As was the case after the Fed’s decision, markets are continuing to rally, with bond yields dropping quite noticeably.
Investment strategy
At the onset of 2023, our asset allocation is composed of an underweight equity exposure, an allocation to fixed income which is close to neutral and an overweight exposure to hedge funds. Taking account of the strong performance of equities in January, we are sticking to this asset mix for the time being. We fear that markets could be overconfident in their dovish outlook relative to monetary policies and to the path of earnings. With bonds offering positive yields once again, we believe that it makes sense to hold more balanced portfolios and no longer to rely just on the equity asset class to generate portfolio performance. It is also reassuring that the current valuations of some of the traditional assets offer a better starting point for future portfolio returns than a year ago, when only a few of them could be considered cheap. Global value stocks, emerging and European equities, as well as investment grade credit are some of the assets that offer attractive valuations.
For non-USD denominated portfolios, our allocation to the US dollar remains underweight but we prefer to wait before reducing it further. From a medium to long-term perspective we would expect the dollar to depreciate but it continues to offer defensive qualities were markets to turn.
MARKETS INCREASINGLY POSITIONING FOR A SOFT LANDING SCENARIO
Portfolio Activity/ News
January was a strong month for the portfolios. With both bond and equity markets rising simultaneously, the majority of funds contributed to the performance, as to be expected. European Value equities, the metal mining fund, the global technology fund, Chinese equities, and the US Value fund provided the best contributions within the equity asset class. The only equity detractor was the healthcare fund, as the more defensive sectors such as healthcare, consumer staples and utilities ended the month lower. The best performers in the fixed income asset class were emerging market corporate bonds and the long duration investment-grade fund. In the alternative space, the Global Macro fund provided the best contribution, whereas one of the long/short equity funds, with a barely positive net exposure currently, ended the month with a small loss. The other hedge funds provided only marginal contributions.
Following a tough year for many strategies, we are confident that active managers will be able to generate more alpha in 2023. We would expect market dispersion to be high and to represent a favourable environment for good stock pickers. This extensive dispersion should also be helpful for hedge fund managers, and we are comfortable with our overweight exposure to these alternative strategies.
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