Author Archives: Oscar Garcia

Weekly market opportunities in T-Advisor: the best on June, 19th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • DS Smith (London). A leading British-based international packaging business.

DS Smith main figures in T-Advisor

DS Smith chart in T-Advisor

AMERICAS

  • Alliance Data Systems (NYSE). A provider of loyalty and marketing services, such as private label credit cards, coalition loyalty programs, and direct marketing, derived from the capture and analysis of transaction-rich data.

Alliance Data Systems main figures in T-Advisor

Alliance Data Systems chart in T-Advisor

ASIA-PACIFIC

  • Bluescope Steel (Australia). A flat product steel producer with operations in Australia, New Zealand, Pacific Islands, North America, and Asia. It was demerged from BHP Billiton.

Bluescope Steel main figures in T-Advisor

Bluescope chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Blockchain: the next revolution in finances

This is the buzzword right now in technologies and finances: blockchain. The most disruptive technology, something like personal computers in 1975 or internet in 1993, or, as the Harvard Business Review published: the first native digital medium for value, just as the internet was the first native digital medium for information.

But what is it? This article explains it very simply: think about a book where each page is a block with a statement of any transaction. Every time a block is filled and added to the chain (a new page), a new block is generated. Blocks are linked to each other in a chronological order, as pages in a book.

Initially, blockchain was created as the technology that sustained the cryptocurrency bitcoin. Now, banks are investing a huge amount of money here, because they perceive the disruption of this technology.

Blockchain is a huge ledger running on million of devices and it is capable of recording anything of value, as money, equities, funds, bonds, contracts…It is a safe and private peer-to-peer system because trust does not depend on central institutions, but on network consensus, cryptography, collaboration and clever code. What does it mean immediately? It is a risk for intermediaries, essentially in finances. People can sign contracts or exchange assets without knowing each other but being confident that they will not be cheated. Without intermediaries, there will be increasing savings (between $16 and $20 bn a year, from different sources).

Following a report from the international consultancy Deloitte, blockchain has several advantages:

  • Disintermediation. Counterpart risk disappears.
  • Empowering of users, because they control their information and transactions.
  • High quality data, widely available.
  • Durability, reliability and longevity, hacker-proof.
  • Immutability of transactions: nobody can erase an operation
  • Transparency, because block changes are viewable by all parties.
  • Simplification: there is an only ledger, not several.
  • Faster clearing and settlement transactions, in minutes.
  • Lower cost transactions, due to the elimination of intermediaries.

However, this technology has still some challenges. Deloitte mentions that it is a very new technology without any regulation that consumes a great deal of energy from computers. Although it helps save money, it also has huge initial costs. Finally, as it is a new technology, there are still concerns about security, privacy, integration with other systems and the leaning to accept it by the users.

Financial experts say that blockchain will change some processes as know-your-customer, due diligence and anti-money laundering. This banking compliancy costs will disappear. Once a bank did it with a customer, other financial entities will then be able to use it, because this data are under customer control. Several time-consuming processes will disappear (and the attached costs) and the role of the adviser will deeply change. It value will be linked to their knowledge, not to their ability to make transactions. This is only the beginning of the next future and its name is blockchain.

Weekly market opportunities in T-Advisor: the best on June, 12th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  •  Jyske Bank (Copenhague). The third largest Danish bank in terms of market share.

Jyske Bank main figures in T-Advisor

Jyske Bank chart in T-Advisor

AMERICAS

  • Lundin Mining (Toronto). A multinational copper and nickel mining company with operations in Europe, Russia and Africa.

Lundin Mining main figures in T-Advisor

Lundin Mining chart in T-Advisor

ASIA-PACIFIC

  • Amcor (Australia). A multinational packaging company producing flexible and rigid plastics packaging.

Amcor main figures in T-Advisor

Amcor chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Weekly market opportunities in T-Advisor: the best on June, 5th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Bachem (Switzerland). A manufacturer of pharmaceutical ingredients and biochemicals.

Bachem main figures in T-Advisor

Bachem chart in T-Advisor

AMERICAS

  • Colbún (Chile). One of the main hydropower utilities in Chile.

Colbún main figures in T-Advisor

Colbún chart in T-Advisor

ASIA-PACIFIC

  • IndusInd Bank (Bombay). A retail bank in the areas of Mumbai, Chennai and New Delhi.

IndusInd Bank main figures in T-Advisor

IndusInd Bank chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

Ranking T-Advisor: The best stocks and funds in May

What stocks and funds were the best in April? T-Advisor publishes its ranking taking into account the score. T-Advisor patented score provides an asset rating (bullish, neutral or bearish) based on key performance indicators and technical analysis.

The best shares in May were as it follows:

Company Score Perf. YTD Volatility Weekly VaR Market

EUROPE

Masmovil

10

118.05%

28.61%

-3.66%

Mercado Alternativo
Biesse

10

79.78%

27.79%

-4.63%

Mercato italiano
Orbis

10

76.92%

31.16%

-6.83%

Deutsche Boerse
Viscom

10

68.45%

28.11%

-6.81%

Deutsche Boerse
Evotec OAI

10

68.30%

33.45%

-4.50%

Xetra

USA-CANADA

Ultra Clean Holding

10

140.93%

42.45%

-7.77%

Nasdaq
Extreme Networks

10

89.86%

36.72%

-6.98%

Nasdaq
IRobot

10

70.78%

29.71%

-3.12%

Nasdaq
IAC-Interactivecorp

10

64.38%

27.14%

-3.55%

Nasdaq
Brooks Aut.

10

61.69%

32.21%

-4.04%

Nasdaq

ASIA-PACIFIC

Melco Internat.

10

86.72%

37.91%

-6.26%

Hong Kong
Tokyo Electron

10

41.69%

30.45%

5.34%

Tokyo
Qantas Airlines

9.99

49.55%

26.32%

-6.90%

Australia
Minebea

9.74

63.23%

43.93%

-8.31%

Tokyo
Konami

9.64

13.98%

28.08%

-6.97%

Tokyo

The best funds in May were as it follows:

Fund Score Perf. YTD Volatility Weekly VaR Managing company

EQUITY

ALLIANZ INST. INV. SERIES – EUROPEAN MICRO CAP/A/EUR

9.76

23.92%

13.53%

-1.82%

Allianz
INVESCO FUNDS SERIES 4 – CONTINENTAL EUROPEAN SMALL…

9.56

20.74%

13.66%

-2.91%

Invesco
BLACKROCK BSF – EUROPEAN OPPORTUNITIES EXTENSION/A/EUR

9.50

15.79%

11.57%

-3.40%

BlackRock
JPMORGAN FUNDS – EUROPE SMALL CAP FUND/A/EUR

9.44

16.49%

10.63%

-2.83%

JP Morgan
MORGAN STANLEY IF – US ADVANTAGE/A/EUR

9.43

16.18%

8.40%

-1.58%

Morgan Stanley
FF – IBERIA FUND/A/EUR

9.43

18.14%

12.54%

-3.22%

Fidelity
JPMORGAN FUNDS – EUROPE TECHNOLOGY FUND/D/EUR

9.41

18.76%

12.35%

-2.69%

JP Morgan
BLACKROCK BGF – SWISS SMALL , MIDCAP OPPORTUNITIES/…

9.40

23.30%

9.08%

-2.04%

BlackRock
FF – FRANCE FUND/A/EUR

9.38

11.68%

12.92%

-2.95%

Fidelity
DWS AKTIEN STRATEGIE DEUTSCHLAND/A/EUR

9.36

15.90%

14.90%

-3.00%

Deutsche Asset and Wealth

FIXED INCOME

AVIVA INVESTORS – EMERGING MARKETS BOND FUND/A/EUR

9.12

11.54%

8.06%

-1.43%

Aviva
AVIVA INVESTORS – GLOBAL HIGH YIELD BOND FUND/A/EUR

8.94

9.58%

7.17%

-1.09%

Aviva
BKRK MNYD PA QT – SHS OF BENEF INTEREST/-/USD

8.55

1.71%

7.87%

-1.74%

BlackRock
AVIVA INVESTORS – EMERGING MARKETS CORPORATE BOND F…

8.53

9.65%

6.25%

-0.99%

Aviva
AVIVA INVESTORS – GLOBAL CONVERTIBLES FUND/A/EUR

8.50

10.98%

8.09%

-1.34%

Aviva
ALLIANZ GIF – US HIGH YIELD/A/PLN

8.18

3.82%

4.08%

-0.96%

Allianz
ALLIANZ GIF – EURO HIGH YIELD BOND/A/PLN

7.98

3.56%

3.45%

-0.94%

Allianz
AURUM RENTA VARIABLE FI/-/EUR

7.91

6.49%

9.08%

-1.92%

Popular Gestión
CIE BENR OPP IN — SHS -A-(USD)

7.90

3.11%

2.05%

-0.54%

Benjamin de Rothschild
SCHRODER ISF – GLOBAL HIGH YIELD/A/EUR

7.80

4.12%

4.37%

-1.23%

Schroder

 

The future is now: artificial intelligence and wealth management

Think about this situation. Imagine that you are client of any wealth manager and the staff sends you a report about the best chances for your investments, with recommendations and comments to obtain the best performance. Then, you talk to a friend, who is also client of the same wealth manager and you both comment about the report. You discover that both reports are personalised and are not the traditional recommendations’ standardised reports that these entities publish regularly. Each one have personalised information and you both discover that the entity has used your full data to design the best report to meet your needs. Then, you explain your friend several changes in your investments. Both have the same risk profile, but your portfolios (and the historic operations) have nothing to do to another.

The example could be larger, but it is enough to introduce the changes that we will live soon in the wealth management branch. The expression behind these changes is artificial intelligence. Shortened as AI, it is not a Steven Spielberg film. It is far from fiction, because it is reality. The learning capability of machines increased exponentially in the last years and the soar will keep on. There is a combination of big data analysis, natural language and machine learning. Big data analysis provides the capability of learning better not only about the customer, but also about any trend that goes around him. Natural language allows machines to interpret and generate spoken and written language. Machine learning uses algorithms that can learn and make predictions on data.

This will be the mix that we will see growing in the next years. The transformation will be deep in the whole financial sector. Currently, a 26% of assets and wealth manager firms already use AI to inform the next big decisions, according to PricewaterhouseCoopers. Money is flowing increasingly there, because all agree that this will be the next step for fintech business.

For instance, natural language processes will help comply better with regulations, as machines will learn immediately the changes and adaptations will be easier in platforms. This will also has a very relevant collateral effect managing risks more efficiently. The client will obtain a high-improved user experience with new interfaces. The advisor tasks will focus in asset gathering and portfolio monitoring. They will also become more responsive to client needs and increase the added value of their services.

Robo-advisor in the first deep step in this change. There will be further changes with a greater automation. Robo-advisors and human advisors will experience several transformations in their tasks and roles against clients. They, the clients, will be winners and the only losers will be entities (not only human, also fintech) that will not adapt to the new wave.

Weekly market opportunities in T-Advisor: the best on May, 22nd

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Morphosys (Xetra). A German biotechnology company. It is involved in the development and research of antibodies.

Morphosys main figures in T-Advisor

Morphosys chart in T-Advisor

AMERICAS

  • Amdocs (Nasdaq). A company specialized in software and services for communications, media and financial services providers and digital enterprises.

Amdocs main figures in T-Advisor

Amdocs chart in T-Advisor

ASIA-PACIFIC

  • Brilliance China Automative (Hong Kong). A Chinese automobile manufacturer.

Brilliance China Automative main figures in T-Advisor

Brilliance China Automative chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

MiFID II and my roboadvisor

Next year in January, the European regulation MiFID II becomes effective. MiFID are the initials of Markets in Financial Instruments Directive. There was already a first version, but the evolution of the market and the interest of the European institutions to protect individual investors promoted this second chapter.

What does it mean? Actually, the regulation improves transparency in the markets and prices, promotes lower costs and strengthens investment protection. For instance, what investors’ protection refers, it makes heavy emphasis in communication, disclosure and transparency. The supervision is also reinforced and put the focus in management and governance in financial entities and markets.

MiFID has a high complexity, but we wonder: what will it happen if we invest through a roboadvisor? Will these platforms avoid the regulation? No, in any case. Automation does not mean at all that roboadvisors will protect less their customers. On the contrary, roboadvisor promote lower costs, standardization and transparency.

We have to consider that there are several kinds of these platforms: form full automatic services to others where there is a platform with human active management. This diversity is not linked with different levels of protection, because all of them must comply with the suitable tests to check the investment ability and knowledge of the customers and they have also forbidden retrocession if they are independent. What does it mean? In short, independent roboadvisors will not be able to sell financial products from other entities (for instance, mutual funds) to obtain a sales commission. Well, let’s explain this a bit more: if you sign up in the roboadvisor XYZ, which reports as independent, it is engaged to sell the best products depending the investors’ profile: the best from any entity. If the roboadvisor is not independent, it has to be very clear that it sells from specific entities and receive a retrocession for any sale.

Roboadvisor are platforms, but there are people behind that create portfolios. These people must have specific studies, following the rule. But the most important effect is the transparency in costs: roboadvisors (as human advisors) will have to report with details about any costs. These costs will have to be listed, not accumulated. In this part, roboadvisors are far away from human advisors. One of the first thing that you find in roboadvisors websites are the amount that you have to pay for the management, because they have very clear their advantages against traditional models.

As you see, MiFID will regulate much more to protect investors. It was developed with several learning from the crisis and from the recent fintech solutions. It tries to order these new systems and they have to accept regulations. If roboadvisors wouldn’t accept MiFID, what credibility would they keep when they say that they are transparent?

Weekly market opportunities in T-Advisor: the best on May, 15th

T-Advisor updates weekly a list of market opportunities from several stock exchanges around the world. We sum up a selection of the best ones:

EUROPE

  • Enagás (Madrid). An energy company and European TSO, which owns and operates the Spanish gas grid. The firm also owns four liquefied natural gas regasification terminals in the country.

Enagás main figures in T-Advisor

Enagás chart in T-Advisor

AMERICAS

  • Banco do Brasil (Sao Paulo). The second largest Brazilian and Latin American bank by assets and one of the oldest in the world.

Banco do Brasil main figures in T-Advisor

Banco do Brasil chart in T-Advisor

ASIA-PACIFIC

  • Ramsay Health Care (Australia). One of the top 5 private hospital operators in the world with facilities across Australia, France, Indonesia, Malaysia and the United Kingdom.

Ramsay Health Care main figures in T-Advisor

Ramsay Health Care chart in T-Advisor

Find more opportunities from the main exchanges in the world on our module “Market opportunities” in T-Advisor.

There are many transactions that you can do with your portfolio in T-Advisor

We have a very long experience providing financial tools for investors. That’s why we publish regularly posts about our solutions, because we have always detected that users do not take advantage of many gadgets, features and details developed for them to a better management of their portfolios.

Do you know what kind of financial transactions you can do in T-Advisor? Let’s say that you have your portfolio and you add some assets: either stocks, ETF or mutual funds. The usual operations are “buy” and “sell”. Those are easy, but there are quite a lot of them. Think about that:

  • If you have funds, you maybe think to transfer from one to another. There are transactions of buy and sell, but transferring the money, not a payment or refund with cash.
  • What about stock dividends or bond coupons? If you receive those payments, you have to register that increase of capital.
  • In the case of bonds, they can be cancelled or they can expire, with the subsequent effects in your portfolio.
  • Again, what refers to shares or ETF, there can also be splits and sold of rights.
  • However, there are also movements linked to cash, because a portfolio has an associated account. Let’s only think about the different charges that you can register. We show you in this list:

Cash operations in portfolios in T-Advisor

Not bad, huh? T-Advisor has several functionalities that deserve to speak with more details. These are some of them. An investor need a tool that has the right features to register all kind of movements related to his or her assets. This is the way to improve your independent wealth management. This is a reason why we say that we make available professional tools for self-directed investors.