In brief

September 9, 2021

Raymond James has selected financial data and software company FactSet as its market data provider for financial advisors in Canada.

As agreed, the two organisations will work to implement FactSet’s web-based Wealth Workstation. The move will provide more than 900 wealth management professionals with personalised access to comprehensive multi-asset class market data and analytics.

The platform will also integrate Raymond James’ internal model portfolios and approved lists to boost collaboration between financial advisors and home office research and strategy teams.

FactSet Research and Wealth Management Solutions executive vice-president Goran Skoko said: “Our work with Raymond James highlights our ability to provide enterprise solutions that streamline wealth management workflows with an intuitive platform that helps advisors be better informed, connected, and productive.

“We are excited to collaborate with Raymond James’ Canadian team, who are committed to enhancing the advisor experience with better technology, driving stronger results for them and their clients.”

September 9, 2021

Wealth Partners Capital Group (WPCG) has made a minority investment in Connecticut-based registered investment adviser (RIA) Apella Capital.

The financial details of the transaction were not divulged.

The investment will enable Apella to accelerate its M&A strategy as the RIA seeks to expand its presence in the country. To date, Apella has completed 12 acquisitions.

In the next stage of growth, Apella will focus on partnering with advisory firms that have similar investment philosophy.

WPCG managing partner John Copeland said: “We continue to see significant consolidation in the RIA industry ultimately benefiting advisors and clients.

“With a strong client-centric offering and a deep management bench, we believe Apella can become a leading strategic RIA acquirer. We look forward to aligning with Apella and supporting their growth objectives with the goal of sharing their exceptional client service and deep planning expertise with advisors who focus on factor-based investing.”

Apella offers wealth and investment management services to individuals, families, businesses and foundations.

September 9, 2021

Global e-commerce giant Amazon has entered into a partnership to offer wealth management services in India.

Amazon Pay India, a wholly-owned subsidiary of the company, has tied up with local investment platform Kuvera.in to offer the services to its customers in the country.

Initially, the collaboration will enable investments into mutual funds and fixed deposits with more to follow.

Notably, this is the first wealth management tie-up for Amazon.

September 8, 2021

BBVA Corporate and Investment Banking (BBVA CIB) has established new trading and sales hubs in Hong Kong and in New York as part of its strategy to build a global investment product franchise.

The new hubs are part of the company’s plan to expand its equities business for institutional and corporate clients.

BBVA global head of equity Roberto Vila said: “The addition of two regional hubs, fully aligned and integrated with our operations in Madrid and Mexico City, is a key milestone for BBVA in achieving a high-quality local delivery of global investment products.”

The firm’s trading desk for US equity will transfer from Mexico City to the new hub in New York and will serve its current and future clients both in the US and Latin America.

September 8, 2021

Allianz is reportedly facing an investigation by German financial watchdog BaFin over its US-based hedge fund business.

The regulator launched its own investigation into Allianz’s Structured Alpha Funds, which is at the centre of legal trouble in the US after falling into massive losses during the Covid-19 pandemic.

The investigation by BaFin will examine to what extent the Allianz officials outside the Florida-based funds were aware of the events that caused losses, Reuters reported citing people with knowledge of the development.

The report says that the regulator will look into several departments of the institution to inspect the involvement of Allianz executives outside the fund division in the matter.

An Allianz spokesperson told the news agency that the company was in regular contact with BaFin on all matters, including Structured Alpha.

In the US, the US Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are investigating Allianz after a slew of lawsuits has been filed by investors with regard to the funds.

September 8, 2021

BlackRock has reportedly raised about $1bn (CNY6.8bn) from more than 111,000 investors for the launch of its maiden mutual fund in China.

Launched at the end of August 2021, the BlackRock China New Horizon Mixed Securities Investment Fund ceased accepting new subscription a week prior to its planned closing date.

The fund will administer 60% to 95% of assets in stocks and depositary receipts in sectors including consumption, digital economy, new energy, education, healthcare, and advanced manufacturing.

September 7, 2021

State Street has entered into a definitive agreement to buy investor services business of Brown Brothers Harriman & Co. (BBH) in a cash deal valued at $3.5bn.

Following the transaction, BBH will continue to independently own and operate its separate private banking and investment management businesses.

BBH’s investor services business encompasses custody, accounting, fund administration, global markets and technology services.

The unit specialises in cross-border, alternatives, and ETFs among other high-growth asset classes.

It had $5.4trn in assets under custody (AUC) as of 30 June 2021.

State Street expects the deal to strengthen its competitive positioning as an enterprise outsource solutions provider and expand its geographic coverage.

September 7, 2021

Goldman Sachs is planning to float the assets of its Petershill Partners unit on the London Stock Exchange (LSE) to take advantage of the ongoing private equity boom.

The firm is targeting a valuation of more than $5bn in the initial public offering (IPO), which will consist of a sale of around $750m of new shares as well as existing ones.

The London-based business invests in private equity and hedge fund firms. It collectively manages $187bn in assets.

Following the listing, Petershill’s vehicle will operate as a stand-alone company under Goldman Sachs Asset Management.

September 6, 2021

India’s UCO Bank has joined forces with wealth-tech start-up Fisdom to roll out wealth management products and services for its customers.

The Indian public sector lender will leverage the collaboration with Fisdom to facilitate large-scale facilitation and distribution of all mutual fund schemes through its network of over 3,000 branches and all digital platforms.

With this partnership, the bank aims to increase its customer value proposition by making wealth management services accessible.

Initially, the bank will offer mutual funds through its mBanking Plus App.

The customers can use the app to access and invest in funds, view relevant details, track fund performance in real-time and redeem their investments when required.

UCO Bank executive director Ishraq Khan remarked that the partnership is in line with the bank’s mission to offer all financial products and services in an affordable manner while maintaining transparency.

September 6, 2021

The US government has decided to drop criminal charges against Swiss bank Zuercher Kantonalbank (ZKB) for helping wealthy US clients dodge tax obligations through undeclared bank accounts.

The government decided not to proceed with the prosecution of the Swiss lender after it paid $98.5m and complied with a three-year deferred prosecution agreement, Reuters reported.

ZKB agreed to pay $98.5m to the US Department of Justice (DOJ) in August 2018, settling a seven-year long investigation with regard to the charges.

DOJ found that the bank managed around 2,000 undeclared accounts between 2002 and 2013 for its US customers who evaded taxes amounting to more than $39m.

ZKB and two of its bankers have admitted to the charges.

In a filing with the US District Court in Manhattan, a federal prosecutor said that the US government is dropping the case against the bank because of its ‘full compliance with the August 2018 agreement’.