CFI.co Meets Jennifer Martinel, Founder of Fidusmart, Switzerland: Seeking Out an Independent Path in Financial Management and Tax Advisory

[caption id="attachment_20146" align="alignright" width="300"] Switzerland: Zurich[/caption]

Born in 1985, Jennifer Martinel is a Swiss entrepreneur based in the canton of Zug. Her degree in business administration (with a thesis on KPI balance scorecard) and successful career path led her to start-up financial development – in the evaluation of alternative investments, the analysis of emerging markets and more generally in the financial management of a plethora of different companies.

After graduation, Jennifer started out in a prestigious Swiss family office where she acquired the necessary skills for superior asset management. She learned to manage the dynamics of delicate family decision-making.

Jennifer's aim has always been to acquire a comprehensive understanding of financial and tax management. Accordingly, she joined the Interfida Group through the Ceresio Sa Fiduciary, where she had the opportunity to follow companies of various types. In this career phase she developed her accounting experience, and for many years has been working closely with various entities, developing flexibility, and acquiring the fundamental notions for proper financial management.

"Discretion, trust, competence, knowledge, quality and innovation, are the drivers of the company."

Jennifer's skills expanded over the years, allowing her to become the principal financial manager of SEAS Sa Group, a high-tech water production company. Thanks to its globally patented technology, Jennifer's experience became way more international. The group controls companies in Latin America and the United Arab Emirates, and Jennifer managed the joint venture with Abu Dhabi based SEAS Falcon.

This experience helped her to acquire skills in alternative investments, as well as in fund-raising with international investors. Moreover, it allowed her to learn about the dynamics of emerging markets.

After more than ten years as a financial manager and tax advisor, Jennifer decided to pursue an independent path, founding a company, Fidusmart Gmbh in Zug. Her brilliant career trajectory led the Italian Chamber of Commerce in Zurich to invite her to give a talk on Female Leadership, a subject particularly close to Jennifer’s heart.

Finance, Accounting, Tax Advisory, and Other Services at FindusMart: A Young Company That’s Already a Winner

Fidusmart Treuhand & Steuerberatung Gmbh was established in 2018 in Zurich, allowing the founder, Jennifer Martinel, to start out on an independent path, after a stellar career as financial manager and tax advisor in Switzerland. Succeeding well in the first phase in Zurich, Jennifer chose to move the company to Zug, finding this to be a particularly stimulating environment: more international and fast growing.

[caption id="attachment_20147" align="aligncenter" width="300"] Fidusmart Founder: Jennifer-Martinel[/caption]

The company operates across a wide range of sectors, with the main activities including tax management, patrimony planning for individuals and companies (both nationally and internationally), company management and succession management, fiduciary services and tax optimisation, company constitution, foreign branch establishment, relocation of individuals and families, family foundations management, and tax planning for family offices. Fidusmart develops feasibility studies on the requirements and practices to establish new commercial activities. The company elaborates strategic plans of liquidity and corporate financial tools. It analyses the accounting, economic and equity situation. It prepares specific financial studies for consortia and public entities as well.

In addition, the company led by this young entrepreneur, works with innovative start-ups, manages digital entrepreneurship and also engages with fintech companies, supporting the processes required by FINMA. Swiss Fintech is a particularly thriving market, second only to Singapore.

For this reason, Fidusmart is particularly active in the development of investment solutions in the technological, innovative and medical fields. These are sectors for which Switzerland ranks fourth in Europe by invested values.

Fidusmart is an environmentally friendly company too. It’s proud to have among its customers, an important technological firm that works for the optimisation of industrial processes to lighten company inventories while reducing environmental impact.

Customer success is the basis of the Fidusmart corporate mission. Discretion, trust, competence, knowledge, quality and innovation, are the drivers of the company. The aim is to guarantee to private and corporate customers reliable solutions that are constantly updated to relect the evolving regulatory context, both in the territory and abroad.

The company's customers are located in the USA, UK, Switzerland, Italy and Russia, so a flexible approach to international dynamics is of fundamental importance. Today, the main sectors of activity are renewable energies, Fintech, Digital Entrepreneurship and Innovative Technologies.

Fidusmart is proud to announce that it received the award for Best Auditing and Tax Consultancy Company, conferred by Global Finance in 2020.


The National Bank of Bahrain (NBB): Taking it Smooth and Easy in Kingdom’s Digitalisation Drive

Established in 1957 as the Kingdom’s first locally-owned bank, the National Bank of Bahrain has stood proud as the pillar of Bahrain’s banking industry for over 60 years. Over the last six decades, NBB has strived to be an influencer on a broader plane, to be value-adding partners to the Kingdom, contributing in a meaningful manner to industry development and to sustainable growth and prosperity.

core driver of NBB’s strategy has been commitment to the economy, alignment to the 2030 vision and continued leadership in Team Bahrain. Through the years, NBB has played a vital role in maintaining the country’s solid standing as a regional financial hub, by elevating the industry standards to facilitate progress and enabling the Government’s plan to spread financial literacy, build a robust FinTech ecosystem and drive a digital economy.

More recently, NBB has spearheaded the industry’s digital evolution, setting new standards in digital banking services and delivering immediate value to customers under its slogan ‘Closer to You’. Equipped with new technologies, the Bank has taken significant strides to upgrade its conventional offerings, enabling customers access to seamless and efficient products and services.

The Bank has launched its new and improved mobile app “NBB Digital Banking” for iOS /android and a new web-based portal designed to transform and elevate the customers’ digital banking experience and make remote banking faster, simpler, and seamless.

The new app, developed by NBB’s team of internal professionals in collaboration with leading technology partners (including a local Fintech company), represents a breakthrough in digital banking. The developers created a smooth migration journey from the existing app into the new one, consolidating all digitally available services offered via NBB’s branches into a one-stop-digital-shop with dynamic features and options designed to simplify the customer banking journey.

The new platform was rolled out whereby the customers benefitted from an improved registration journey, with fewer clicks and speedier results. This enabled digital onboarding within minutes (anywhere, anytime) which constitutes the fastest onboarding journey. They were provided a biometric login option as well as a password request for added security for returning users. They were also offered diverse product opening options including instant issue of debit cards with the option of pick up or direct delivery, and easy money transfers; Al Watani rewards and increased chances of winning, and the full management of debit, credit, prepaid cards. NBB is also constantly looking towards the future of financial services and the sector’s rapid digital migration, and as such, they are continously adding further features to their digital app and are making every effort to incorporate the latest technological upgrades to their products and services, offering their customers a cutting-edge alternative to conventional banking and enriching their lives.

NBB's Digital First Strategy has resulted in the following outcomes:

The successful launch of NBB Digital Banking App, with the main key differentiator to digitally onboard customers anywhere anytime.

Digitising their current retail banking products and services in the most convenient way.

Development of digital-only products.

Launching a new digital reward platform.

Introducing ‘wow’ factors and reshaping the customer’s banking experience.

Impact on customer/end-user

Unique, seamless customer experience

Fewer clicks

Less documentation required, leveraging on integration with different official data sources to complete and comply with regulations fulfilling overall governance

Fast, empowered channel anywhere, anytime

Position digital to complement overall customer lifestyle.


Governance Champion Al Fozan Leads Private Sector’s Contributions to Saudi Vision 2030 — and a Sustainable Future

[caption id="attachment_20154" align="alignright" width="300"] Saudi Arabia: Riyadh[/caption]

A strong governance system has been the pillar of Al Fozan Holding’s consistent growth over the course of its 60-year history, accelerating its rise as an industry leader.

The Saudi Arabian family firm — with extensive businesses and investments, mainly in retail, manufacturing, real estate, and trading — has continually demonstrated an unwavering commitment to transparency, accountability. Equally unwavering is Al Fozan’s commitment to the kingdom’s vision of a progressive future for the people.

Saudi Arabia has seen significant recent transformation in various fields and sectors. These changes fall within the framework of the Saudi Vision 2030, based on the three pillars: a dynamic society, a thriving economy, and an ambitious nation.

The Saudi Vision 2030 seeks to build a society with strong values and principles, ensuring the happiness and wellbeing of its citizens. It builds on a strong foundation of social development and empowerment and seeks to develop an economy of opportunity and potential that reflects Saudi Arabia’s competitiveness, diversity, and growth.

Building a forward-looking nation with a responsible community of inspiring citizens is another priority of the vision — one embraced and fostered by family-centric Al Fozan.

The active participation of the private sector is crucial to achieving Vision 2030, diversifying the economy and increasing the contribution to GDP. This new business environment facilitated by the transformations in the kingdom’s economy provides opportunities for the private sector.

The private sector has been increasingly acknowledging its role in Vision 2030, and discovering new ways to partner with the government. By aligning activities with the plan’s objectives, companies can contribute as enablers, generating employment opportunities to enhance the quality of life of the people and the economic strength of the nation. The sector has in turn been benefiting from the government’s efforts to boost promising industries.

Private Sector’s Growing Role

Private sector companies realise that aligning with the nation’s strategic vision is the surest path to thriving, excelling, and achieving its aspirations. This relies on rational leadership that places great emphasis on establishing a strong governance system.

The involvement of family businesses is central to the sector’s drive to reorientate, innovate, and evolve sustainably in line with the Vision 2030 objectives. These enterprises have made significant contributions to the kingdom’s development and prosperity — and they will have a bigger role to play in supporting its new aspirations by adapting to, and embracing, change.

Many of the family businesses in Saudi Arabia are holding companies worth billions of dollars, with a growing regional and global presence. They form the backbone of the kingdom’s economy, the engines of growth and employment generation. But they need to review existing structures to be able to fully utilise the new opportunities of Vision 2030 — which requires a serious commitment to developing governance, something Al Fozan Holding understands.

Family businesses need to build on the foundations of a strong governance structure to transform the private sector into the main driver of the Saudi economy.

Excellence in Governance

Al Fozan Holding Company has risen to the forefront of family businesses and holding companies in Saudi Arabia and the surrounding region, thanks to its several decades of unwavering values and its own inspiring vision for the future.

As a responsible family business and a leading private sector conglomerate, the group has aligned its business strategies and social development programmes, setting an example for family businesses in the private sector and inspiring them to take communal ownership of Vision 2030.

Al Fozan Holding’s robust governance system has enabled the company to serve its partners, positively impact shareholders and employees, and preserve the rights of all players while upholding the company’s commitment to the kingdom’s laws, principles, and aspirations. The firm has established itself as a major presence in a multitude of industries, including retail, manufacturing, real estate, and trading. It has accumulated some 20 subsidiaries, affiliates, and joint ventures as a result of that commitment.

Al Fozan has also built a reputation as a trusted business partner, winning the confidence of business partners with its governance strategies, sharing insights and investment expertise. The company has built many successful collaborations that have achieved financial and strategic stability and enabled the pooling and transfer of industry knowledge. This has benefited the company and its partners by siezing opportunities and accelerating individual and shared growth.

Al Fozan also believes in giving back to the community. The company’s deep-rooted commitment to Corporate Social Responsibility is embodied in the establishment of the Al Fozan Social Foundation which conducts social responsibility programmes and charity work. These efforts are conducted in a sustainable manner, creating a lasting, positive impact on people, society, and planet.

The social foundation manages a large portfolio of non-profit organisations, CSR initiatives and other social investments.

Al Fozan Holding has consistently reaffirmed its commitment to a transparent governance system based on solid values and a long-standing family legacy. By applying standard criteria based on leading practices in the field, the company has won recognition and awards.

“The effectiveness of Al Fozan’s transparent governance system regulates intergenerational transmission, the distribution of shares, family participation in work,” says chief operating officer Abdullatif Ali Al Fozan, “and exemplifies the company’s commitment.

“The CFI.co award underlines the company’s belief in the importance of corporate governance as a tool for the development of its business as well as to ensure the nation’s prosperity.”


Banco Hipotecario: Betting the Bank on Inclusion and Women

[caption id="attachment_20158" align="alignright" width="300"] Celina Padilla Meardi, president of Banco Hipotecario de El Salvador[/caption]

To speak about financial inclusion in El Salvador is to reference no more than a decade of work which has failed to give the country much of a boost.

But two years after the arrival of Nayib Bukele as president of the republic, El Salvador is improving the national approach to education and financial inclusion.

In 2019, Executive Decree No. 28 determined the creation, composition and responsibilities of the National Council for Inclusion and Financial Education (NCIFE), the governing body which will drive improvements.

The definition of financial inclusion by the NCIFE is “the access and use of a wide and diverse range of responsible, sustainable and quality financial products and services, both by individuals and companies. Mainly focused on solving problems of access and use for micro and small businesses, the population with lower incomes, women or traditionally excluded sectors”.

As a member of the NCIFE, Banco Hipotecario (BH) has been working to adapt services and products to improve the day-to-day lives of those Salvadorans excluded from the financial system. The first step was the creation of a credit policy to promote access to credit and to bring informal sectors of the economy into the banking system.

BH president Celina Padilla Meardi has taken important steps towards the transformation of the institution, establishing a new corporate culture based on values such as commitment, innovation, trust — and inclusion.

The aim is to ensure that all citizens can be banked, and to provide support for previously excluded sectors of society — with special emphasis on gender balance. Salvadoran women form a key part of economic and social development. At a national level, their roles and duties become more complex due to changes that are being implemented, and the economic independence that they are achieving.

The bank has designed a special credit line, Inclusión Mujer, with loans from $100 to $10,000 bearing soft requirements that allow easy access to funds, opening the doors to the true financial inclusion. It is designed for the needs of Salvadoran women, to start (or strengthen) a business via specialised advice from BH. Among the benefits is the possibility of providing the bank with simpler documentation as a credit reference, such as commercial invoices paid on-time. Various institutions issue suitable documents, including commercial houses, input suppliers, co-operatives, pawn shops and other established companies.

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Some 10.1 percent of the total loan portfolio of Banco Hipotecario represents female sector finance. From April 2020 to May 2021, BH has provided around 900 credits (equivalent to $8.1m) in financing directed exclusively at financial inclusion through credit lines, ecological credit and special credit to companies in the tourism sector.

The Inclusión Mujer (Woman Inclusion) credit is a strategic bet by Banco Hipotecario to promote inter-institutional work with other government agencies that share this vision. These include the Ministry of Local Development and its Ciudad Mujer (City Woman) programme. Strategic communities in El Salvador have been visited — Ciudad Mujer in Santa Ana, San Miguel, San Martín in San Salvador and Citalá in Chalatenango — adding to the existing network of agencies with information about the credit line and how to apply for it.

This comes under under a framework of Mujer en Acción (Woman in Action), with other lines of specialised financing for women, such as the credit Vivienda Mujer (House for Women), Estudio Mujer (Study for Women) and complementary products such as exclusive insurance or training programmes for entrepreneurs.

Banco Hipotecario is actively working to contribute to the development of the economy by providing services and products in-line with societal needs.

It’s a good bet, and one likely to change the way of doing business in El Salvador.


Investing for the Long-term: Gold as a Pillar of NBP’s Reserve Management Strategy

[caption id="attachment_20168" align="alignright" width="300"] Author: Professor Adam Glapiński[/caption]

Central banking is typically associated with conducting monetary policy. But central banks have also other important roles, one of which is holding and managing foreign exchange reserves. Indeed, as stipulated in the Act on Narodowy Bank Polski – Poland’s central bank charter – the central bank holds and manages FX reserves as well as takes measures to ensure the safety of foreign exchange operations and Poland’s external payment liquidity. At the end of May 2021 official reserve assets of Narodowy Bank Polski (NBP) accounted for USD 162.7 billion, increasing in USD terms roughly six-fold from USD 27.5 billion in 2000 and almost doubling over the past decade.

In a monetary policy strategy based on a floating exchange rate regime – such as in Poland – the role of FX reserves is primarily to enhance the country’s financial credibility, thereby reducing the cost of financing in the global markets and the volatility of the złoty exchange rate, as well as to mitigate the risk of sudden capital outflows. Incidentally, FX reserves may also be used to support the stability of financial markets or the banking sector in the event of significant disturbances in their functioning.

Thus, as a public investor, NBP differs from a typical asset manager in that it holds a large investment portfolio, placing primary weight not on maximizing returns but on preserving liquidity and security of its endowment. The underlying idea is simple: if the FX reserves are not deployed to combat some financial stability or balance-of-payments emergency, they are to be preserved, preferably increased and passed on to another generation.
With such a strict investment mandate, it is perhaps no wonder that NBP considers gold as a special component of its official reserve assets. After all, the characteristics of gold are very well aligned with the precautionary role of maintaining foreign reserves and preserving capital in the long term, weathering periods of stress and varied market conditions.

Gold offers some unique investment features – it is devoid of credit risk, it is not easily “debased” by monetary or fiscal mismanagement of any country, and while its overall supply is scarce its physical features ensure durability and almost indestructibility. For all these reasons gold is considered as an ultimate strategic hedge.

The practical side of it all is that gold acts like a safe haven asset, in that its value usually grows in circumstances of increased risk of financial or political crises or turbulences. In other words, the price of gold tends to be high precisely at times when the central bank might need its ammunition most.

The recent COVID-19 crisis provides an excellent case in point. During the beginning of the pandemic when the high level of uncertainty and the ultra-low interest rate environment supported strong flight-to-quality flows – in the first half of 2020 gold price climbed by almost 17% in US-dollar terms, significantly outperforming all other major asset classes, especially US equities which had yet to recover after the more-than 30% decline.

This episode underscores a more fundamental desirable feature of gold which is its low correlation with major asset classes and reserve currencies. Such low correlation reinforces the benefits of diversification of the reserve portfolio by improving its risk-return profile. This is particularly relevant in the case of NBP since – in line with the global tendencies – the US dollar continues to play a dominant role in our foreign reserves portfolio (51%). And since the correlation between gold and USD – both expressed in PLN terms – is low and in fact decreasing, gold can be seen as a natural hedge for our “long USD” position.

[caption id="attachment_20169" align="aligncenter" width="900"] Warsaw, Poland: NBP Headquarters[/caption]

Taking into account the successive growth of official reserve assets and the features of gold as a reserve asset, in 2018 Narodowy Bank Polski made a strategic decision to significantly expand its gold reserves. The decision was supported by the fact that NBP’s gold holdings were lower than implied by the overall size of its reserves portfolio when benchmarked against other countries.

As a result of purchases of 125.7 tons of gold conducted in 2018-2019, the gold stock of the NBP has increased to 228.7 tons. In the ranking of the size of the gold stock, Poland has moved from 34th to 22nd position among central banks in the world and from 15th to 11th in Europe, ahead of all countries in the region.

At the end of December 2020, the share of gold in NBP’s official reserve assets was 9%, compared to the average share of gold in foreign reserves of central banks in the world reaching 13%, and 25% in Europe. However, it is worth pointing out that some of the central banks with the highest share of gold in foreign reserves, like Federal Reserve, are issuers of world reserve currencies which results in the fact that they do not hold large official reserve assets, which somewhat artificially inflates the share of gold in their reserves. Therefore, gold holdings can be also analysed in the context of the total balance sheet of a central bank. In this alternative approach, the NBP’s share of gold is comparable to the shares recorded for Germany and the United States.

Following the decision of increasing gold reserves, in 2019 the Board of Narodowy Bank Polski decided to diversify gold storage locations by relocation of 100 tons of gold from the Bank of England to the domestic vaults. Diversification of gold storage locations is a frequent practice observed among central banks, aimed at reducing geopolitical risk, which could result in the loss of physical access to gold or a significant limitation of its free disposal.

Since the completion of the transport of gold to Poland in November 2019, almost 124 tons of gold have been left in the Bank of England's vaults. Due to the strategic character of gold, it is generally not perceived as a source of income for central banks. However, the storage of gold in London creates for NBP an opportunity to increase the profitability of the official reserves by placing gold deposits on the interbank market.

Although considerable, the recent gold purchases were not NBP’s last word on the matter. In fact, the foreign exchange reserves management strategy adopted by the Board of Narodowy Bank Polski in 2020 assumes a further increase in the size of gold reserves, the scale and pace of which will depend on the official reserve assets dynamics and market conditions.

Perhaps Shakespeare was right and generally in life “all that glitters is not gold… gilded tombs do worms enfold”. But, while managing NBP’s foreign exchange reserves, we have a somewhat narrower philosophical focus and certainly don’t mind some glitter in our portfolio.

About the Author

Professor Adam Glapiński, Professor of Economics, lecturer at Polish and foreign institutions of higher learning. Since the 1990s, he has held numerous important posts in public administration. He chaired supervisory boards of various companies. He has been with NBP for many years, as a member of the Monetary Policy Council and the NBP Management Board. Member of the International Joseph A. Schumpeter Society.


National Finance: Enhancing Digital Capabilities

National Finance, established in 1987, has built a reputation as the market leader, trusted by thousands of customers across the Sultanate of Oman, for their financing needs. The company offers a wide range of products targeting both individual customers and Small and Medium Enterprises (SMEs), through an extensive geographical presence across 20 branches and its e-channel platforms. Headquartered at Muscat, National Finance has won top awards in the Oman market.

National Finance talks about the company’s strategic roadmap, enhancement of its digital capabilities and the future outlook

What have been the major highlights in the last one year?

National Finance aspires to be the preferred provider of personal and business financial services in the Sultanate of Oman, through a customer experience that is Fast, Easy and Flexible. Such ease of accessibility while building long-term relationships is enabled through National Finance’s e-channel services, available through its call center, website, mobile app and WhatsApp.

Despite tough economic conditions and challenges posed by the Covid-19 pandemic, our company remains the largest finance and leasing company in the Sultanate in terms of asset size, branch network, revenues and profit. Our constant investment and development of our e-channels has been a key achievement in the past year.

What steps have you taken to ensure optimum customer experience for retail and corporate customers?

Customer centricity is at the heart of National Finance’s business practices. The company has invested into several initiatives to give customers an experience that is Fast, Easy and Flexible. At National Finance, we understand that today technology plays a big role in influencing customer decisions. This is why we constantly innovate and invest in solutions that focus on ease and convenience, supporting our vision of being ‘Partners in Progress’ of individuals and companies. From easy documentation, quick approvals and most importantly providing loans and financial support to underbanked individuals and SMEs, National Finance is aiming to reach out to the people of Oman and supporting them with their financial needs.

With a network of 20 branches across major cities and governorates, and digital platforms, National Finance provides ease of engagement with their clients. The company has recently opened new state-of-the-art branches with value-added services that cater to enhance the customer experience journey.

The company is also advanced when it comes to E-channels. Individuals can apply for their financing through different channels such as; website, mobile app, call centre, whatsapp and social media. Despite all these multiple channels, the customers at National Finance go through one seamless experience.

We empower our sales team to use mobile technology to process transaction at the dealer or customer office and revert back on the approval decision on the spot.

What role has technology played in ensuring uninterrupted and satisfactory customer services during the pandemic period?

The shift toward digital channels was already on the way. COVID-19 merely accelerated the change. The pandemic posed unprecedented challenges to customers as well as to the organization. With physical interaction coming to a standstill, it was important to innovate and ensure that our services continue to be provided to customers. At National Finance, we strive to bring new experiences and focus on ease of accessibility. With digital platforms continuing to play a pivotal role in reaching out to customers, National Finance enhanced its e-channels to connect   with   the   customers and enhance their engagement.

We had already been investing in enhancing our digital channels through our upgraded website and mobile application. Consequently, we were able to shift our customers to digital channels very quickly. We have a complete servicing capability through mobile application, the fact that we have a full-fledged call center also helps us offer quality remote service to our customers.

Our approach is to offer a seamless customer experience irrespective of what channel our customer chooses to interact with, via mobile, website, call center or physical branch. Our philosophy is to make it easy and comfortable for the customer to reach us whether to take a new loan, to make an inquiry or to make a payment.

What is your outlook for the future?

Our Company has a diversified geographical presence across Oman, coupled with a broad product profile and we are well positioned to meet the financing requirements of both the Retail and SME segments. We anticipate slower credit offtake in the medium term with a need to balance credit risk with market growth. We will continue to strengthen our leadership position in Oman while offering our customers an optimal experience.

We continue to adopt a conservative approach to credit approvals keeping in view the overall macroeconomic scenario and perceived increase in credit risk. Within this policy, our approach has been to target customers who satisfy our credit risk appetite. We anticipate a cautious outlook to our credit offtake in the medium term and overall, our reading is that the economic climate will continue to remain challenging.

In a fast-changing, competitive market place, it is vital that we leverage on technology to empower field sales staff to use mobile technology to process transactions at the dealer/customer office and revert with a decision on the spot. It would also help us better utilize our sales force, thereby letting us use our back-end processing team more effectively. Another area where we intend to utilize technology is to provide the facility for customers to raise service requests through internet/mobile phones that would not only improve the overall customer experience, but would also reduce the reliance and overhead expenditure on customer support functions while promoting self-service and ensuring 24/7 availability.

We strongly believe that commitment to our core values of customer service, flexibility and employee development will enable us to capture a fair share of the market.


Access by Name, Access by Nature: Bank Building Bridges and Solid Relationships

The Access Bank UK Ltd, a wholly-owned subsidiary of Access Bank Plc, a Nigerian Stock Exchange-listed company, provides trade finance, commercial and private banking, and asset management products and services for customers dealing in OECD (The Organisation for Economic Co-operation and Development) markets.

It also supports companies wishing to invest in and trade in Sub-Saharan Africa, MENA, and Asia. The Access Bank UK is authorised by the Prudential Regulation Authority (PRA) and regulated by the Financial Conduct Authority (FCA) and the PRA. The Access Bank UK Ltd Dubai Branch is situated in the iconic Gate Building of Dubai International Financial Centre (DIFC). It is regulated by the Dubai Financial Services Authority (DFSA).

Like its parent company, it is committed to developing a sustainable business model. “This is reflected in our moderate appetite for risk, our passion for customer service and our commitment to build long-term relationships,” says CEO and managing director Jamie Simmonds. “We play a key role in our Group’s vision to be the world’s most respected African bank. As such, we refuse to chase unsustainable yields as a route to growth. Instead, we focus on building our business through the strength of our customer relationships.”

In 2018 the bank became a direct member of the three key UK payment clearing systems: Bacs (Bankers’ Automated Clearing Services), C&CCC (Cheque and Credit Clearing Company’s Image Clearing System) and Faster Payments.

“This is a great landmark for us,” says Simmonds, “enabling us to build a sustainable platform with direct entry into the UK payment clearing system and enhancing customer service. We anticipate and respond quickly to market needs – with the right technology, products and services.”

The Access Bank UK provides a number of services to support business in Sub-Saharan Africa, and across the world. It was awarded Confirming Bank status by the International Finance Corporation as part of its global trade finance programme, strengthening capabilities.

“We were the first Nigerian Bank in the UK to be appointed as correspondent bank to the Central Bank of Nigeria to undertake infrastructure work on behalf of the Nigerian government,” says Simmonds. “We also issue Letters of Credit on behalf of the Nigerian government and Nigerian National Petroleum Corporation (NNPC).”

[caption id="attachment_19940" align="aligncenter" width="900"] Dubai: DIFC Gate Building[/caption]

The commercial banking team offers relationship-based support for corporate and individual customers, with a range of products and services, market-leading systems and top-flight service.

“Our global private bank has been built around our passion for delivering excellent service,” Simmonds notes. “We deliver innovative investment solutions to our clients, who value trust, integrity and accountability as well as investment performance.

“We take a proactive approach to product and service delivery, and offer unique investment solutions tailored to our customers’ needs by the experienced private banking team.”

The Dubai branch also assists customers in the MENA region with trade and investment needs in Nigeria and Sub-Saharan Africa. The DIFC Branch is committed to building a long-lasting regional relationship, in line with the approach that has proven so effective for The Access Bank UK. “The combination of the Dubai branch and our presence in the UK and Nigeria delivers a wealth of expertise to benefit our customers.”

Building long-term relationships takes time, and the bank works closely with customers to understand their goals and create strategies to meet their needs. “We provide constant support and development opportunities for our employees, which reflects in their dedication and professionalism,” says Simmonds. “The bank is led by a team of accomplished individuals determined to deliver superior financial solutions for business and individuals.

“Our staff are highly experienced, and many have spent time working in the Sub-Saharan, West African and international marketplaces. We are firmly committed to the diversity of our workforce. We encourage a sense of individual ownership, while also fostering team spirit.
“Our endeavour is to help employees realise their potential through the provision of continuous learning opportunities and the tools and training to support professional growth.”

Simmonds sees people as fundamental to the bank’s continued development. “They provide the skills that deliver our focus on service and customer relationships. During the past year, we selectively recruited additional members to the team and invested in professional development.

[caption id="attachment_19941" align="alignright" width="300"] CEO and Managing Director: Jamie Simmonds[/caption]

“We were the first Nigerian bank to achieve Investors in People accreditation. We have now advanced our status to Platinum. We believe that our consistently low staff turnover reflects the advances we have made in training and development. The bank is currently working in partnership with the Chartered Institute of Personnel & Development (CIPD) programmes.”

In its recent report and Statutory Accounts for 2019, the bank demonstrated another year of significant all-round growth, achieving and exceeding targets for all the main growth strategies. The report, entitled Expanding our Horizons – Africa’s Gateway to the World, highlights strong operational performance by the main strategic business units – and continued growth and expansion in Sub-Saharan Africa and MENA regions.

The bank’s Operating income increased by 20 percent year-on-year to $85.2m, with all four strategic business units performing well. Pre-tax profits overall grew by 30 percent to $57.2m.

The trade finance operation continues to be the bank’s largest strategic business unit (SBU), and is confirming bank for Access Bank Plc and the Group. Income grew by 28 percent year-on-year to $40.4m, of which $12.4m was accounted for by correspondent banking.

Commercial banking income was higher than anticipated, at $30.6m – representing five percent year-on-year growth – while assets under management income rose by 15 percent to $2.6m.

Dubai, the newest SBU, was also a significant performer, with income reaching $7.5m, an uplift of 168 percent year-on-year. “This success is founded on our strong relationship model and testament to the trust a growing number of important Middle Eastern clients have shown in us as the gateway to Nigeria and the rest of Africa,” the CEO says.

Simmonds said the recently published results meant the bank had a mandate to develop the Group’s international interests, as it progresses towards global status. “Our clearly defined role is a logical outcome of the successful merger with Diamond Bank,” he says, “and we welcome the opportunity it gives us.”

Herbert Wigwe, chairman and non-executive director, said the bank’s 2019 successes were achieved without any significant contribution from Diamond Bank customers, “which we expect will feed through during 2020 and beyond”.


AVL: Embracing Change and Driving Future Mobility Trends

“The work we do isn’t just about the challenges of today and tomorrow,” says AVL chairman and CEO Helmut List. “Together with our customers, we look beyond to drive technologies that shape mobility trends for the future.”

Not surprising, then, that List values AVL’s ability to adapt to change.

With more than 11,000 employees and headquarters in Graz, Austria, AVL is the world’s largest company for development, simulation and testing in the automotive industry, and in other sectors. Drawing on its pioneering spirit, it provides concepts, solutions and methodologies to shape future mobility trends.

The company is a major contributor to e-mobility, and applies a multi-energy strategy for all applications, from hybrid to purely electric including fuel cell technologies. AVL provides innovative and affordable systems to reduce CO2 — as well as time to market. “Our portfolio covers system development, test and validation solutions, simulation tools and expert know-how in these technologies,” says List.

“AVL constantly evolves its ecosystem of high end methodologies and innovative technologies in the area of vehicle development and testing which provides real world solutions to support customers’ future mobility ambitions.”

“We have built comprehensive competencies in the fields of ADAS (advanced driver assistance systems) and AD (autonomous driving), and digitalization to accelerate the vision of smart and connected mobility. We offer a complete portfolio, from system design, testing, calibration and validation services, tailored software and controls development, to tools and methods for scenario-based development and testing.”

“AVL constantly evolves its ecosystem of high end methodologies and innovative technologies in the area of vehicle development and testing which provides real world solutions to support customers’ future mobility ambitions.”

AVL has digitalized the vehicle development process with state-of-the-art and scalable IT, software and technology platforms. It creates customer solutions in Big Data, AI, simulation and embedded systems.

As mobility systems become more complex and interact with one another, it is critical to take a holistic approach to vehicle development. “We touch every step, from ideation phase to serial production, covering future vehicle architectures and platform solutions, new powertrains and energy carriers,” List explains.

Services include solutions for future vehicle architectures and platforms, powertrains, electronics, chassis and integration of thermal, ADAS, and vehicle systems. “We perform functional development, vehicle system development, assisted/automated driving and connectivity development.

“With a unique and detailed understanding that ranges from single components all the way to the complete vehicle, we are able to balance and optimize the overall goals at all levels of the architecture.”

AVL is proud to have more than 1,500 patents in force — more than 300 of them granted in 2020 worldwide. “Our passion is innovation. This is reflected in our dedication to research, our high R&D investment in all business segments, collaborations with universities and constant exchange within national associations and industry partners.”

Working with an international network of experts in 26 countries and with 45 tech and engineering centers worldwide, AVL creates technologies by driving mobility trends that will help to battle climate change.

List puts it in a nutshell: “We are AVL. We are adaptable to change.”


Helmut List, Chairman and CEO of AVL: Combining Art and Science in the Quest for True Sustainable Mobility

A passion for research and development in mobility trends means a cutting-edge company cannot look only at today and tomorrow.

[caption id="attachment_19880" align="aligncenter" width="900"] Chairman and CEO: Helmut List[/caption]

“We have to look beyond and use all our imagination, our energy, our creativity to strive for the ultimate potential,” says AVL chairman and CEO Helmut List. “We owe it to the planet.”

Helmut List was born in Graz, Austria, and completed his mechanical engineering studies in 1967 at the Technical University of Graz. Since 1979, he has held the positions of chairman and CEO of the company that was founded by his father in 1948.

List’s vision and commitment have powered the rapid growth of AVL. Under his leadership it has become a global player in propulsion technology innovation and the wider automotive industry. AVL is the world’s largest independent company for development, simulation and testing concepts, solutions and methodologies in emerging mobility trends.

One of Helmut List’s top priorities is the targeted application of research. This is reflected in the high R&D share in all AVL’s business segments, and in the large number of collaborations with university institutes, locally and globally.

List is also chairman of the R&D, honorary consul of the Republic of Korea, and active in several research associations. During his career he has been an active member of the automotive community as chair and board member in associations, councils and committees, including the European Industrial Research Management Association (EIRMA), International Research and Development Action Committee (IRDAC), the European Automotive Research Partners Association (EARPA) and the Sustainable Surface Transport Advisory Group (SSTAG).

The pioneering spirit is central to the company’s success, and Helmut List embodies that drive in AVL’s cultural journey. With his focus on bringing future technologies to fruition, he understands that expertise alone is not enough. Courage is also required. “Only the courageous look beyond the horizon and make discoveries that lead to outstanding innovations”.

His creativity is not limited to mobility; Helmut List is an avid promoter of arts, culture and creative thinking, and sees the synergy of art and science. In his role as an industry thought-leader, he encourages artists and scientists to engage in diverse projects to bridge the gap between the disciplines, which in turn expand the limits of technology.

As the CEO of an internationally competitive company, he sees it as his duty to contribute to solving social, cultural and environmental challenges — especially regarding environmental protection, sustainability and restricting greenhouse emissions.

Helmut List is dedicated to fighting climate change by applying a multi-energy strategy. With innovative battery and fuel cell concepts, ranging from hybrid to pure electric, e-mobility is a fundamental pillar of AVL’s strategic journey. The chief executive has proven adept at predicting future trends, and has built up broad competencies in the areas such as ADAS/AD and digitalization to accelerate smart and connected mobility.

“Science and technology is in our DNA,” he says, “and we will continue to be open to all innovation and to step forward with confidence to shape the trends of sustainable and climate-neutral mobility.”

This is achieved through AVL's worldwide network that understands market dynamics, legislation, science and driving experience. “As a company, we are committed to effectively reducing CO2 for a greener and cleaner future.”


BBVA Asset Management: Going Global in the Battle to Bring Sustainability to the Wider World of Investment

Spanish bank BBVA is working on a global strategy which will affect all of its investment solutions.

BBVA Asset Management embeds sustainability in the process. It has launched a sustainability plan that applies to all of its mutual and pension funds, based on the four pillars of Engagement, Exclusion, Integration and Impact.

Environmental, social and corporate governance (ESG) criteria, as well as sustainability parameters, are taken into account to analyse the potential of investments – as well as the risks involved. BBVA also considers the impact these investments may have.

"The development of these new capabilities and knowledge will allow us to offer new products with a focus on sustainability,” explains Lara Marín, global head of product at BBVA Asset Management, “or that seek to impact certain sustainable metrics. We are convinced this will be of great interest to our clients in coming years."

"The target for 2021 is to design our own voting policy, aligned with our values and the international best-practice."

BBVA Asset Management’s plan is aligned with the new European regulatory requirements on sustainable investment.

This focus is nothing new to the organisation. BBVA has offered solidarity funds since 1999, and markets a range of sustainable solutions: three mutual funds and a pension fund. In 2008, GPP, the BBVA Group's pension fund manager signed-up to the United Nations Principles for Responsible Investment (UNPRI).

The new sustainability plan is aligned with one of BBVA’s strategic priorities: "Accompanying customers in the transition to a sustainable future."

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Back to those four pillars that drive the bank’s decisions:

Engagement

"When we talk about engagement, we basically refer to the ways we interact with the companies in which we are invested, with international organisations and regulators, with other investors and with other stakeholders,” explains Alberto Gómez-Reino, head of sustainable investments at BBVA Asset Management. In practice, he says, commitment is expressed in two ways: voting at shareholders' meetings, and engagement.

“We have been voting for years at the shareholders' meetings of the European companies in which we invest, but in 2020 it extended this vote to North American companies, using information from external advisors.

“The target for 2021 is to design our own voting policy, aligned with our values and the international best-practice. Engagement consists of proactive actions to influence and involve investment companies and mutual funds to adopt sustainability practices.

"In all of them, directly or indirectly, we express as a manager the most important aspects of our beliefs in this area. For 2021, our main target is to sign UNPRIs, as GPP did.”

Exclusion

BBVA Group believes that the integration of sustainability in its investment process should not be based on exclusivity. However, in line with best-practice and regulations in some jurisdictions, the exclusion of certain entities has been necessary. Those policies are based on criteria common to the entire BBVA Group.

Black-listed investments include controversial armament deals, and companies facing severe controversy or not in compliance with the principles of UN Global Compact.

Integration

The model for integrating ESG factors into the investment process focuses on the development of an internal rating model for the assets in the portfolio. Integration means using extra-financial information in the decision-making process. "The most common way to do this is through a rating,” says Lara Marín, “which is nothing more than a synthesis of information on a narrow scale. This is useful to measure, make transparent and report on our portfolios in sustainability terms.”

To build the rating, BBVA relies on external data sources. Analysis has shown a positive and growing correlation between a high sustainability score (or low controversy) and better market returns. The rating has a very narrow scale: A, B and C, with A being the best and C the worst, reserved for those assets or companies which should be avoided in portfolios, or for which engagement strategies should be established. This rating will be available for funds, equities, corporate bonds and governments, and will apply to a significant percentage of the manager's investment universe.

In addition, the selection team of Quality Funds, BBVA's mutual fund selector, has developed its own methodology for assigning an ESG rating to all third-party funds, based on an evaluation of the integration of sustainability in their investment processes.

Impact Strategy

The UN Global Compact defines impact investing as "the placement of capital in social enterprises and other structures with the intention of creating social and environmental benefits beyond financial return”.

Examples include encouraging green investment through targeted bonds, impact mutual funds, investments in companies aligned with the UN Sustainable Development Goals or indirect impact mutual funds. This is the case for the mutual fund BBVA Futuro Sostenible ISR, FI, which distributes part of its management fee in social and environmental developments. In 2020, this fund distributed more than €1m among 28 solidarity projects. The goal for coming years is to develop a catalogue for implementing impact strategies at various levels, from ideas to specific assets or products.

"In recent years, we have been able to see that the consideration of sustainable criteria in investment management has a positive effect on the profitability of portfolios,” says Alberto Gómez-Reino. “It has also made it possible to reduce portfolio risk and – I believe this is the most important point – it allows us to make more informed and complete decisions.”

BBVA Asset Management is convinced that incorporating sustainability into its business, in addition to reflecting its commitment to society in both the short and long term, also means an improvement in the quality of the investment solutions. "With this plan, we align ourselves with the practices of our most relevant international competitors,” says Lara Marín, “and with the requirements of regulators and the new demands of our clients.”

About BBVA Asset Management

The firm is committed to offering clients solutions capable of meeting their goals. It has a global offer of investment solutions in continuous development thanks to constant innovation. This has enabled BBVA to pioneer suitable products for each “market moment” and each type of client.

Mutual funds are managed by an investment team that follows a solid process with global risk-control and local management centres in Argentina, Colombia, Mexico, Peru, Turkey and Spain. It is a benchmark in Spain for pension funds in the individual and employment segments, meeting the needs of savers. BBVA is also committed to sharing information on retirement via Mi Jubilación (www.jubilaciondefuturo.es), a financial education initiative.

Its products provide a global solution for institutional mandates, Sicav, in Luxembourg, managed portfolios and services for institutional clients.

BBVA Asset Management was a founding member of Spainsif (Spanish Forum for Socially Responsible Investment) and includes socially responsible mutual funds in its range of investment solutions.


Carey: Universal Importance of Governance is Recognised in the Channel Islands

One recent trend across the finance industry is the significant increase in companies implementing environmental, social and governance principles.

[caption id="attachment_19889" align="aligncenter" width="900"] Senior Management Team at Carey (L-R):
Rebecca Booth Client Director, Corporate & Fund Services
Sara Bourne Deputy Managing Director
Mark Vidamour Head of Corporate & Fund Services
Chris Le Page Head of Client Delivery, Corporate & Fund Services[/caption]

In today’s global context, companies and funds interact with investors, regulators, suppliers and clients around the world. Regardless of jurisdiction, the essence of corporate governance matters. Regulations and governance practices may vary by region, but regardless of nuances, stakeholders are increasingly fluent with the core expectations and demands of good governance.

Carey, a regulated administration and governance firm based in Guernsey, Channel Islands, is often appointed for its expertise in this area. The company demonstrates the application of best-practice with its international client base, and has noticed an increasing demand for governance support in company structures. Many are choosing Guernsey – and specifically Carey – to meet their ESG compliance criteria.

Institutional and retail investors are seeking out fund structures – be it Guernsey private equity investment vehicles, sustainability accredited funds, or stock exchange listed investment companies – and each has its own idea of what good governance looks like. Understanding how integral its role is in all aspects of the corporate and fund life-cycles requires a collaborative approach between client and administrator. Targets are defined and practical steps put in place to ensure that governance framework matches intention.

For funds meeting ESG criteria, crucial questions can help to achieve the best results. How will the board oversee investments and understand the impact? What reporting are investors expecting, in the ever-changing business landscape? How can boards demonstrate that they comply with good governance practices?

The Carey team’s breadth of industry experience across geographic territories guides clients to the forefront of governance. The firm’s own values, culture and leadership are vital, offering productive challenge in the context of close working partnerships.

Carey offers bespoke services to a range of corporate structures for philanthropic or charitable investing, vehicles for properties, or for funds of all asset classes. Clients come to Carey for this expertise: family groups hoping to formalise management arrangements for private investment schemes, UK private equity fund managers looking for an administrator and US managers wanting to set up funds in Guernsey to IPO on the LSE. There are also established Asian managers wanting to partner with an administrator for their next Guernsey funds.

The experience and working methods of the Carey team guide clients around the pitfalls of fund and corporate administration and governance. The firm tailors solutions to suit all scenarios, asking the hard questions and challenging perceptions to achieve optimum results.


Farazad Investments: Boutique Investment Bank Believes in a Tried and Tested Formula with Innovation on the Side

Farazad Group consists of four subsidiaries: Farazad Investments, Farazad Advisory, Farazad Ventures and Farazad Facility Services.

Established in 1996, Farazad Investments (FI) is a boutique investment bank with global access to capital and industry expertise. FI is registered in Hong Kong with an experienced team based in London, Seoul, Dubai, New York, and Melbourne.

It provides financial products to the private and corporate sectors in developed and developing countries, and tier-1 emerging markets. The FI investment banking team offers a full range of services, identifying and structuring innovative solutions for corporate clients, real estate projects and family offices.

The group takes pride in providing differentiated and creative advisory and capital markets solutions. It focuses on most industries, with special interest in real estate, energy, retail, and infrastructure.

The examples above provide a snapshot of the scope and scale of structured FI projects worldwide.

Assisted and structured a senior construction loan of $21m for a 41,295 gross-square-foot residential rental development project in East Harlem, New York. The 14-storey property will have 29,390 square feet of net rentable residential area, with some 2,000 rentable square feet of retail space at the base of the building.

Capital structuring on the equity investment to lease the five-star, 31-key hotel located in Copenhagen, close to Kongens Nytorv, Strøget, the city’s famous canals and metro station. The six-storey hotel has been renovated and decorated, while maintaining its historical charm.

Capital structuring and advising on the potential acquisition of trophy hotel assets in Europe, valued from €600m and €1bn.

Sell-side advisory for a leading fashion retail company based in Lugano and Milan, with a valuation of €1bn.

For any one real estate asset acquisition, FI can raise up to 80-90 percent of the capital stack through debt, equity and other forms of financial vehicles to minimise in diluting the clients cash flow for one specific project. FI manages an active international advisory platform which has executed over $2.65bn of equity, debt and investment sale/acquisition advisory business worldwide. The experienced team at FI provides the same services to companies across industry sectors. The executive team has executed significant investments in sales / debt / equity capitalisations in FI’s focus industries. The company complies with strict international anti-money-laundering regulations.

Services include, but are not limited to:

Structured Debt & Equity Solutions

Corporate Advisory & Consultancy

Market/Sector Expertise Services

Asset Management under Trinity Hospitality Group

Farazad Investments’ niche business model is built by seeking out exceptional entrepreneurs and creating long-term joint venture partnerships. The formula has been tried and tested. It maximises the skill sets of both parties, enabling them to deliver optimal value to investors and the newly created JV entity.


Korosh Farazad: Unconventional, Experienced, and Continue in Growing the Brand

The acting CEO of Farazad Investments, Korosh Farazad, assures market integrity with an unconventional approach to capital structured financing.

[caption id="attachment_19876" align="aligncenter" width="900"] Acting CEO: Korosh Farazad[/caption]

He established the subsidiary arm, Farazad Advisory Ltd in the UK in 2015, expanding the brand and providing professional and structured guidance on mixed-use real estate investment opportunities with deep focus in hospitality, consultancy, in-depth market analysis, and feasibility reports.

Farazad Investments (FI) specialises in accessing capital for projects via sophisticated, highly structured debt and equity solutions. It is headquartered in the Hong Kong and domiciled in UK. FI’s portfolio of international investors has helped to establish it as one of the most recognised and proven boutique investment houses, with global access to capital and industry focused expertise.

It operates across five continents, with a presence in Britain, Europe, the Middle East, Asia Pacific, Australia and US, with an expanding portfolio and new global funding ventures. FI’s standing in the lending market has strengthened with access to the competitive blue-chip Private Equity Funds and Private Family Offices.

FI's survival during challenging times hinged on Korosh Farazad and his experienced team’s ability to diversify and establish a secure platform, adapting the mechanics of conventional financing to a volatile market. FI has assisted in advising and structuring projects worth more than $3.7bn.

Korosh Farazad’s unique approach has been crucial to the firm’s success and paved the way for international recognition from regulatory bodies and PE Funds in US, Europe and Asia. A transparent approach to financing and creative thinking led to the introduction of an award-winning, in-house financing formula.

The acting CEO’s unrivalled knowledge of international banking, finance and investments catapulted the business through the late 1990s, facilitating medium- to large-scale structured financing for major projects.

Farazad also is a Vice Chairman (Non-Executive) for a Swiss Fund with AUM $4.6 Billion and the Co-Founding Member of a hospitality Fund focused in acquiring cashflow positive hotels with distressed asset owners due to the pandemic in prime European cities and Central London. He has significant growth plans to create a hotel portfolio of AUM $1 Billion by 2022.


Hemisfério Sul Investimentos (HSI) No Compromise: Nothing but the Best Will Do for Pioneers of Brazil’s Real Estate Sector

Hemisfério Sul Investimentos (HSI) nails its colours to the mast on its website with the motto: “Good enough is not enough.”

That attitude extends all the way to the top, and its leading management figures accept nothing but 100 percent effort and engagement.

HSI CEO and CIO Maximo Lima has 25 years of experience in real estate private equity, M&A, structured credit, and management.

[caption id="attachment_19898" align="aligncenter" width="419"] CEO & CIO: Maximo Lima[/caption]

He studied at the University of Chicago, graduating with a BA in Economics. Lima has been at the helm of HSI since its inception, and is responsible for the company’s strategic planning and real estate investment strategy.

His network of contacts and deep sector experience have created an impressive career path and a proven track record. He has co-ordinated more than 100 transactions, including the creation of a logistics platform, CLB, and its subsequent sale to GLP. At the time, it was the largest Brazilian real estate transaction ever.

Maximo Lima began his career in hedge funds in 1997, then joined investment bank Wassertein Perella & Co. He participated in the management buyout of the emerging markets division in 1999.

He returned to Brazil in 2000, and was given responsibility for structuring the first securitisation operations for Rio Bravo, at the time a new player in Brazilian finance. In 2003, Lima founded the real estate division of GP Investimentos with two partners – the group that became Prosperitas in 2005, and HSI in 2012.

David Ariaz is CFO and COO at HSI. He brought with him 29 years of experience in corporate management, real estate finance, structuring, and execution.

[caption id="attachment_19899" align="aligncenter" width="419"] CFO & COO: David Ariaz[/caption]

His education was at UC Berkeley, where – like CEO Lima – he completed a BA in Economics. He also holds an MBA from The Wharton School of the University of Pennsylvania.

Ariaz joined HSI in 2012, and is responsible for corporate planning, with a focus on finance, fund management, and portfolio companies. He participates on boards of directors and co-ordinates compliance and risk-management for the funds and management company, ultimately signing off on each transaction.

Ariaz manages relationships with leading banks and co-ordinates all financing transactions. In the credit area, he oversees structuring and helps to customise investment opportunities to suit the borrower’s profile.

Prior to joining HSI, he structured and originated real estate finance transactions worth more than $356m, and was responsible for developing the largest logistics platform in Brazil at the time. He contributed to the professionalisation of the Brazilian real estate financing market.

Prior to joining HSI, David Ariaz was a partner and CFO at Bracor Investimentos Imobiliários, and director of structured finance and asset management at Brazilian Capital.


Hemisfério Sul Investimentos - Private Equity Trailblazer: Ahead of the Curve and Still Gunning for Gold

Alternative asset fund manager Hemisfério Sul Investimentos began operations in São Paulo some 15 years ago, when real estate private equity began to mature as an institutional asset class in Brazil.

HSI was one of the first asset managers to attract foreign institutional capital to Brazil via private equity funds. The company launched its first real estate private equity fund in 2006, anchored by pension funds, endowments, foundations and sovereign wealth funds from the US, Europe, Asia and the Middle East. Many of these continued to back HSI over subsequent fund vintages.

[caption id="attachment_19972" align="aligncenter" width="900"] Hemisfério Sul Investimentos: Team[/caption]

“Managing our investors’ capital means excelling, thinking outside the box, and building innovative and profitable solutions,” says Director of Finance and Fund Operations Rafael Mazzini.

HSI has evolved from dealing exclusively in real estate private equity to also explore opportunities in private debt, and also manages publicly listed REIT-style funds focused on domestic investors. HSI has raised $5.1bn in capital and distributed $2.6bn in investor returns. “We go the extra mile,” adds Founder and CEO Maximo Lima. “Our goal is to perfect our operations, create value, and exceed the expectations of our investors and partners.”

HSI is driven by a management team with 300 years’ combined experience. The company invests in nearly all real estate asset classes and formats, with a proven ability to innovate and some creative flair.

When the company recognised the preconditions in Brazil for the development of a self-storage business — which had proven a profitable institutional asset class in the US and Europe — it was quick to act. From 2014 through 2016, Brazil was battling an economic crisis; that didn’t deter HSI from launching its storage company and leading the market within a couple of years.

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It first sought to understand the business dynamics of the industry in the US and Europe. What generates demand for storage? What are the relevant cultural considerations? HSI anticipated the market trend and launched a wildly successful venture, which it has since exited and sold. “HSI’s real estate team has an eye for the best investment opportunities and the diligence to effectively manage risks. We extract more from our investment positions,” says Director of Investments (Real Estate) Bruno Greve.

The company has an impressive history in Brazil’s logistics and industrial sector. At one point, it accumulated a portfolio with about 40 assets and became the largest owner-operator in the country. The assets were all leased to multinationals, and at the time HSI exited it closed the largest real estate transaction in Brazilian history, selling to Global Logistics Properties (GLP). The transaction gave GLP a foothold in the country; it has continued to grow the portfolio.

“We have a track record of identifying opportunities and of successfully executing investment theses,” says Leonardo Ferreira, Director of Investments (Special Opportunities). “We use our capital responsibly to generate value.”

HSI manages one of the largest unlisted shopping centre portfolios in Brazil, comprised of 13 malls. Diogo Bustani, Director of Investor Relations, explains how the shopping centre market in Brazil differs from the US or Europe.

Most space in the centres is leased not to stores, but to services, entertainment businesses and restaurants. “We have community colleges and various public services that draw significant traffic, and the crowds spill over into the shops. It's more of a lifestyle experience. And that's in large part what has protected Brazilian malls from the growth of e-commerce,” says Bustani.

HSI took steps to protect visitors and vendors during the Covid crisis. Public health precautions were implemented, and digital sales channels were launched to support vendors. The firm also offered selective, temporary rent relief to retailers.

“All of these initiatives have proven quite successful, because when the pandemic hit, we were proactive with our tenants. And when our shopping centres opened again after the first wave, we saw how quickly they recovered in terms of sales and maintaining client relationships.”

These initiatives resonate with HSI’s corporate ethos – “good enough is not enough” – and a corporate identity that defines its core values: integrity, restless curiosity, agility and diligence, ownership and teamwork, results and rewards.

“Integrity is a fundamental pillar of our approach to doing business,” says Bustani. “Restless curiosity is how we relate to the world around us, seeking to understand our context and to decide what path to pursue. With agility and diligence, we secure attractive opportunities and manage risks, working in teams while extracting the best from one another. This is how we deliver results and reward those who help achieve them.”

[caption id="attachment_19974" align="aligncenter" width="300"] Faria Lima Plaza[/caption]

Woven through these core values are ongoing and increasing commitments for environmental, social and governance considerations. What began as a small operation has evolved into a company with world-class standards for transparency, digitalisation, and efficiency. Due diligence forms a part of all decision-making processes, and investments in governance structures are paying off in terms of reduced risk and more streamlined operations.

HSI weighs the environmental impacts of each deal and finds opportunities to add value to the investment. It opts for eco-efficient tech in greenfield developments or renovations to conserve water and lower power consumption — investments that deliver results for environment, investors and occupants. Eco-efficient buildings can demand higher rental payments due to savings in operating costs, meaning that the value from the environmental investment can be captured within a single cycle or development project.

HSI has acquired 2.4 million square metres of real estate assets and developed 1.7 million square metres in greenfield projects. All but one HSI office developments boast a LEED certification, including one of the first Neighbourhood certifications in Latin America.

The company has been diversifying its talent base by addressing gender balance in the candidate pool. It partners with local organisations to promote recruitment and professional development.

Hemisfério Sul Investimentos is proud of the progress it has made, but Bustani is quick to admit there’s more work to be done. “We're not afraid of that. We're excited,” he said. “But as far as our market here in Brazil is concerned, we're pretty confident that we're on the cutting edge.”


ICBC Middle East: Resilience in Times of Crisis

Founded in 1984, ICBC has grown into the largest commercial bank with an extensive global network through 426 institutions covering 49 overseas countries and regions, as well as over 18,000 omnipresent outlets inside China. Since the start of ICBC’s journey to serve the MENA region in 2008, the Institution strives to be a grand bridge connecting the Middle East, North Africa and China. As a long-term strategic partner, the Institution works extensively with leading corporates and governments of the MENA region to support development in key areas such as infrastructure, power and water, oil and gas. At the moment, ICBC maintains 5 branches in the GCC region, namely ICBC Dubai (DIFC) Branch, Doha (QFC) Branch, Abu Dhabi Branch, Kuwait Branch and Riyadh Branch, which are collectively known as ICBC Middle East Institution.

[caption id="attachment_19950" align="aligncenter" width="900"] Beijing: Head Office[/caption]

The COVID-19 pandemic has a far-reaching influence over the world by infecting millions and dragging economic activity to a near-standstill. Resilience is of greater importance ever to corporations today under the shadow of the pandemic. ICBC Middle East Institution took coordinated efforts and actions to support the real economy, to provide continuous financial services, and to uphold the spirit of persistence and endurance as a responsible global bank in the fight of COVID-19.

ICBC Middle East Institution consistently supports local pandemic prevention policies and contributes to local COVID-19 containment work. The Institution successively held several sessions of COVID-19 Prevention webinars to provide knowledge and experience to local institutions and corporates by inviting Chinese frontline experts as speakers. More than 200 representatives attended the webinars. To support the local frontliners with their ongoing efforts, the Institution donated varieties of medical equipments to charities and Red Crescent societies.

In support of the real economy, the Institution collaborates with sovereign institutions and leading corporates to align with local long-term strategic goals, to name infrastructure construction, economic diversification and green development as a few. The Institution has always been a keen contributor for major local projects and prioritises its support to the development of sustainable energy and green economy.

To help its clients to go through this difficult period of pandemic, the Institution is committed to continuously support corporates with various financial services. On top of that, the Institution provides fee waivers of certain services and a well-equipped online banking platform with strong IT infrastructure for clients to ensure their smooth operation. To promote the local economic and social recovery, the Institution also provides targeted financial services to struggling corporates in infrastructure, trade and other sectors. It actively participants in the Chunrong Action launched by ICBC group to bolster business of its customers and stabilise the global industry chain.

"Facing so many world-shaking, paradigm-shifting economic and social disruptions in a single year, ICBC Middle East has shown great resilience in dealing with crisis and maintaining its steady growth."

The Institution is an active player in the regional bond market, acting as the lead manager or bookrunner. The Instituion underwrote several major bond issuances. The ever-growing participation in the financial market exhibits its commitment to the region and continuous strengthening of its relationship within the GCC region. Furthermore, ICBC Middle East assists many local institutions to better understand the opportunities in the Chinese Financial Markets. Since 2019, the Institution organised a series of forums on “China’s Capital Market Opportunities” in GCC countries to help local institutional investors to seek new investment opportunities in China Bond Market.

ICBC Middle East insists on creating value for its customers with excellent services and continuous innovation. The Institution formulated a series of online events to help Middle East corporates to expand their business in China. In 2020, the Institution hosted the 3rd China International Import Expo Middle East online roadshow with "non-contact" cloud methods. Over 80 key organisations from the GCC countries participated in the event. Their innovative and tailored products and services provided a momentum to the development of bilateral trade and business cooperation between China and the GCC. This forms a crucial part of the Insititution’s post-pandemic revitalisation plan to seek a win-win growth led by cooperation and innovation.

Emphasised by the Chairman of ICBC Middle East Regional Committee, Zhang Junguo, “we shall remind ourselves that every single step of the bank’s development is attributed to the trust and support from our clients, partners and employees. In this unprecedented time, what we need is to forge ahead together to build a promising new era in joint hands.”

Putting the wellbeing of employees as a priority, the Institution came up with various strategies to safeguard the health and safety of its employees and their families, setting up a special leading COVID-19 response team on pandemic containment, updating its bank-wide prevention measures in accordance with the latest pandemic situation in the region. The Institution cares for not only the physical health but also mental health of its people under work-from-home arrangement. By organising more than 20 sessions of Virtual Reunion events and online lectures, the Institution aimed to convey positive spirits and promote cross-cultural communication among employees of more than 10 nationalities.

The past year of 2020 was a year like no other. Facing so many world-shaking, paradigm-shifting economic and social disruptions in a single year, ICBC Middle East has shown great resilience in dealing with crisis and maintaining its steady growth. Looking forward, the Institution will continue to support high-quality economic development, serve the real economy, and make new contributions to the sustainable development.

For more information, please see www.icbc-ltd.com


Robin Mann: Taking the Path Less Travelled, Relishing Challenge and Change

“I’m looking for people who can think for themselves and bring unique viewpoints,” Robin Mann says, “and they can come from any background.”

[caption id="attachment_19884" align="aligncenter" width="900"] Head Of Investment Banking: Robin Mann[/caption]

Robin Mann loves his career because it involves constant change.

There is no room for stasis in the life of a Cambridge man whose great inspiration is King Lear — and no sign of a typical banker’s profile, either. “My studies taught me to think for myself,” he says. “I’m much more interested in hearing someone’s ideas than rehashing their professional qualifications, which are often overvalued in traditional investment banking.”

Unpredictability is a life spice for Mann, who has been in his role since 2014. “Our business life is full of variety as so many different situations are encountered,” he says. Mann certainly isn’t getting bored. Stifel has seen spectacular growth, and he aims to maintain that momentum.

As an up and coming player, , he knows that industry giants have certain advantages. Their brand scalability is one, but size can be a disadvantage, he believes: the bulge brackets may lack flexibility.

He has previously worked as head of securities, first at Collins Stewart and then Canaccord Genuity. He also spent four years as a consumer analyst with HSBC Securities.

The entrepreneurial attitude at Collins Stewart, quite different from that at HSBC, appealed to Mann, with some reservations: it was sink or swim. “You were left to yourself and there was no support. I learned much at Collins Stewart.” But his management style at Stifel is a supportive one: “The world has moved on.”

The growth at Stifel excites Mann and is increasing year-by-year. Revenues shot up by 20 percent during 2020 and he was impressed that people and systems at Stifel proved to be adaptable and resilient in the face of the pandemic fallout.

Stifel’s investment in people was significant last year and will be again in 2021. “We really had no clue what was coming our way in March, and I had no idea how effectively businesses would adapt. But there are limits. It’s not easy to develop meaningful new relationships over Zoom.”

As far as mid-term prospects are concerned, he expects to see more growth by identifying areas of the market that are less understood. “I’m not looking for vanilla changes,” he says. “In fact, competing only for vanilla business head-to-head with every other investment banker on the planet doesn’t strike me as an effective long-term strategy.”

One new development in investment banking concerns legal services. With a backload of cases to be considered, litigation finance, especially for corporates, is now front and centre. Stifel is well placed to respond to such needs.

Growth is the Mann mantra: “It’s really difficult to get excited every day when you’re going through a turbulent time and the business is not growing. Our general intention is to grow and grow. And you grow in this industry by hiring more and more capable people.

“The reality is that this is a people business. This year we have added excellent people across several promising areas. One of the things that the firm has been good at is bringing in quality people that constantly raise the bar.”

Robin Mann points out that Stifel has been active in the capital markets over the past four or five years and ranks highly. He is pleased that his company contributed, alongside the giants, to the much-needed UK Listing Review.

As for opportunities post-Brexit, he is bullish about the country’s prospects of continuing as a leading global financial centre. “The world has changed, and London will not have the same pre-eminent position as it once did, but we still have important advantages — including our position within the time zones, the legal frameworks in place, and our great location.

“I would expect the UK to again become a more attractive venue for entrepreneurs and companies to realise their ambitions.”

Mann believes that a successful corporate leader — regardless of industry — should be down-to-earth. “They must have a big presence and be available to respond whenever the need arises,” he says. “Everyone must know that you will be there when the going gets tough, and that you are not the sort of person who hides behind a desk. Leaders must appreciate what needs to be done when the going gets rough.

“Anyone can lead a company when all is going well. Leadership is challenged when things are unsure and there are difficulties to be faced.”

As far as leadership skills in his own industry are concerned, Mann has some simple advice: “Never give up. And understand that you are likely to contend with considerable rejection and failure over the course of your career.”

Lessons learnt by Mann include the realisation that problems aren’t always what they seem. “With hindsight, it’s clear that many things that seemed important at the time really were not.”

He says he is often appalled by the lack of diversity in the industry. “I’m looking for people who can think for themselves and bring unique viewpoints,” he says, “and they can come from any background.”

Robin Mann craves that variety — and he’s looking for more growth.


Now I See: ICICI Bank Builds Bridges Linking India and UK

ICICI Bank is one of the leading Indian multinational banking and financial services institutions, with a presence in 15 countries, a wide range of products and financial services, and consolidated total assets of over INR13.77tn (£134bn).

ICICI has been in the UK since 2003, and over the years it has emerged as a full-service commercial bank serving retail, SME and corporate customers from seven UK branches and one in Germany. In addition to physical presence, it has digital channels for mobile and internet banking.

It is one of the few banks in the UK to provide digital account-opening — it can be done in minutes — and only with ICICI can an individual open and activate a UK account from India. Thanks to digital enhancements, it also provides instant remittances to India at competitive rates.

Some of the key products:

Personal banking: current, savings and deposit accounts are designed for all UK banking needs, with app-based account-opening for Indian and British passport holders in either country.

Remittances: with an instant money-transfer service, clients can enjoy end-to-end solutions with speed, convenience and cost effectiveness— with a Rate Block facility and a 20p preferential rate for the first 180 days.

NRI Banking with in ICICI Bank India: a doorstep account-opening facility for Indian citizens based in the UK, as well as home Loans and property management services in India.

Private banking investment products (Indian Corporate Bonds and India dedicated funds) and services provided on an “execution-only” basis, limited to transmission or execution of investment instructions.

Business banking: a bouquet of services such as business, current and savings accounts, foreign exchange conversion and hedging, local and international payments, and trade finance — LC discounting, bill collection, SBLC, working capital finance, and bank guarantees.

Commercial real estate finance: property Loans secured against income-producing commercial real estate assets, including multi-let offices; retail units (some with residential above); light industrial units; residential investment portfolios, blocks of apartments, HMOs, student accommodation and hotels.

The upward trajectory through the bank’s impactful presence is surely being felt making it the preferred partner for banking services amongst the Indian Diaspora.

For more information, please visit: www.icicibank.co.uk


Linklease: Bridging the Funding Gap with Innovation – and a Good Eye for Unnoticed Opportunities

The estimated financing gap in the Middle East for equipment finance is over $40bn. For Linklease, the answer is leasing.

[caption id="attachment_19954" align="aligncenter" width="900"] CEO: Steve Thomas-Williams[/caption]

Leasing ensures clients can access the equipment they need to develop their businesses, while keeping cash and credit facilities free for other purposes.

Linklease was established in 2015 to provide SMEs across the Middle East with an alternative to traditional sources of finance. The firm has established a sustainable market that has helped it to grow – and has benefitted all involved.

This company is led by CEO Steve Thomas-Williams, who has 30 years of international experience with major financial institutions. He has taken Linklease to the forefront of the leasing sector.

Prior to founding Linklease, he was the group CEO of Gulf Finance, a leading SME financing organisation. His success in repositioning the business to deliver strong growth results and rapid GCC expansion was recognised with industry awards.

Before joining Gulf Finance, between 2004 and 2008, Steve Thomas-Williams was based in Dubai with Lloyds Bank. As chief operating officer, he was also a regional board member and head of commercial and retail banking. During these four years, he grew the business from a single branch to a highly profitable, multi-branch operation across the Middle East.

Linklease has operations in Saudi Arabia, Mauritius, Africa and India. Leading the development of its international businesses is Managing Director Czes Brodalka. Czes is an experienced professional with 20 years’ experience in financial services and business development.

After Czes completed his studies in Johannesburg, he joined Avis Fleet Services (GE Fleet Services), a joint-venture company with Wesbank Corporate specialising in the financing of large government and corporate fleets. He held various senior management positions during his 10-year tenure. Czes then joined HSBC Middle East, where he specialised in corporate equipment finance as a senior manager, developing and implementing operating and finance lease programmes.

He later joined Gulf Finance Corporation as Head of Commercial Finance with a clear focus on revenue growth and client acquisition via the introduction and development of new business streams and finance structures.

Babar Malik is the UAE Portfolio Director, brought in to oversee the business in its core market and to develop new channels for the business to engage with its clients. He brings more than two decades of leasing expertise to the company. Having served with ORIX Corporation Japan’s ventures in Pakistan, Sultanate of Oman and the UAE in positions of increasing responsibility, Babar has developed strong ties with local corporates and a network of key relationships. His focus throughout his career has been to grow the balance sheet with a clear focus on sales, marketing and business development.

Helen Molyneux is the Head of Operations, running the back-office from Linklease’s newly expanded location in Dubai Silicon Oasis, recently announced by Dubai as one of five key areas for development by the government as part of its 2040 plan.

Leasing as an Intermediary

Linklease has highly skilled asset managers that inspect the equipment quarterly, using RFID, GPS and GPRS technology to track and trace equipment.

But as the company name suggests, Linklease derives its ultimate value from the role it plays in linking those wishing to use equipment (the lessee) with those that want to gain the benefits of owning the equipment (the lessor). It crafts those leases together with great skill to ensure that equipment is monitored throughout its life-cycle, that the client has a good risk profile, and that the structure of the leases is attractive to investors.

Linklease Bond Programme

Linklease is funded by a $500m bond programme issued out of the UK and listed via the Frankfurt Bond Exchange.

Creating an investment vehicle that is an attractive fixed-income product, secured by tangible assets in the Middle East, is a real first. It is true foreign direct investment into the Middle East from global investors moving away from equities to products with a more predictable return.

The bond programme is overseen by Hesham Dahman, who before joining Linklease was with MINT Partners (a division of BGC), as part of the capital markets team, working on debt and equity raises. Prior to this he was at State Street Global Advisors for seven years. For four of those years, he was head of client service for the $30bn AuM EMEA cash business – covering institutional clients across registered money market funds and short-duration fixed income strategies.

Distribution is Glenn Scott-Ellis’s speciality; he has 10 years’ experience raising capital globally through the distribution of listed bonds. He also has experience raising for a variety of projects including overseas property developers, mining, oil and gas, and energy.

The Future

Linklease is working with UK Export Finance & other European Export Credit Agencies to set-up leasing programmes in Africa. This is to support the export of UK manufactured equipment into the continent, which will then be made available on leasing schemes. That is an option that was previously not available, and was impacting sales.

This makes the equipment affordable and accessible to the end client, it creates jobs and stimulates the UK economy in a post-Brexit environment and blazes yet another trail for Linklease as a market leader.

Partnering with distributors of well-known brands helps manage the obvious country risks and gives Linklease strong assets with good residual value and a great source of repeat business.

Linklease has a strong future in building leasing solutions in developing markets, bringing professional standards, asset quality and credit control together to help bridge the funding gap for SMEs.


ORBIAN: Supply Chain Finance? This Firm has Made It a Speciality

ORBIAN is the longest-standing provider of supply chain finance (SCF) solutions.

The firm is decidedly “buyer-centric” with its traditional SCF product and its Express SCF (xSCF) and Virtual Card (e-Card) offerings.

For more than 20 years, ORBIAN has been financing global corporates to help them achieve their working capital objectives. The firm supports suppliers everywhere with a collaborative, flexible solution for working capital management that meets the demands of the global supply chain.

ORBIAN launched, in 2010, the first bank-agnostic multi-bank SCF programme in Europe; in 2014, ORBIAN was first to provide SCF to Mainland China.

The company’s universal funding structure, combined with its SCF technology platform, allows it to offer comprehensive solutions and services to global corporate clients. Its programmes have virtually unlimited funding capacity, while mitigating funding and operational risks inherent in other SCF offerings. The streamlined onboarding process ensures best-in-class customer experience.

Thought Leadership

ORBIAN has maintained its industry-leading position with themes that take the industry forward, such as its recent work on sustainable supply chain finance. It has become a key player in the financial sector’s ESG field.

SCF provides suppliers with access to liquidity and funding that enables the autonomy to manage businesses on favourable capital terms. A sustainable SCF programme allows suppliers to meet the investment requirements required to create sustainable initiatives across their operations.

SCF can be engineered to provide incentives for suppliers driving positive change, and feedback for those who under-perform.

This year will undoubtedly see a great deal of attention paid to the development of sustainable SCF, not only with regard to climate change, but also across key aspects of personal and community well-being.

Last November, ORBIAN launched a major data-collection initiative to create a profile of its transactions and those of its suppliers with regard to the broad ESG agenda. These data will be fed into the firm’s collaboration with a major European academic research initiative focusing on supply chain finance.

In the driving seat is Thomas Dunn, chairman of ORBIAN, with 30 years’ experience in financial services: banking, insurance and private equity.

Prior to joining Orbian, he worked at JP Morgan in London, Melbourne, Sydney and Tokyo. His 16 years’ experience was focused on debt capital markets, corporate finance and credit markets. He was ultimately responsible for each of these businesses for JP Morgan in Asia Pacific.

[caption id="attachment_19911" align="aligncenter" width="400"] Chairman: Thomas Dunn[/caption]

Tom Dunn is also the chair of Raglan Capital Ltd, a Bermuda-based private equity firm.