Fis Group Q2 2016 Outlook: Equities Elude The Four Horsemen . . . Again

by | Apr 19, 2016 | FIS Press Releases, Xponance® Press Release Previous

PHILADELPHIA, PA, April 19, 2016 – FIS Group, a manager of U.S. and global developed, emerging and frontier markets equity portfolio strategies, today issued its Q2 2016 Market Outlook. This new report recaps the resurgence in risk assets post February 12th and updates FIS Group’s 2016 themes including the emerging markets (EM) rally, a disappointing quarter for Japan, China’s shift from reform to stimulus, and the USD/Federal Reserve policy “negative feedback loop.”

Q1 2016 – Equities Elude The Four Horsemen…Again!

by | Apr 1, 2016 | Market Outlooks

The upsurge in equity prices that started on March 10, 2009 has been among the most despised and distrusted bullmarkets of all time. For each of its seven years, newfound horror stories materialized to interrupt the bull trend with corrections roughly as large and as scary as the one which began this year. In 2009 the S&P 500, still reeling from the aftermath of the GFC, declined by 25% through March 9, 2009. In 2010, fear over the U.S. deficit set off a -15 % correction. In 2011, panic over a U.S. Treasury default sent the S&P down
-19.5%. In 2012, the euro crisis caused two corrections, -10% in the spring and then -8% in the autumn. In 2013, the panic was about Federal Reserve tapering and a U.S. government shutdown, although these only hit the S&P by -6%. In 2014, carnage in the Middle East and Ukraine catalyzed an -8% setback. And last summer, policy blunders in China caused a correction of -12%. Importantly, each of these corrections turned out to be a buying opportunity.

A Short Note On Brazil’S House Of Cards

by | Mar 1, 2016 | Market Insights Alerts

Brazilians are famous (or at least stereotyped) for their supposedly laid back “tropical” attitude towards life. Generations of foreign visitors smitten by the profound beauty and docility of Brazil’s natural landscape have marveled at “the Brazilian way” (o jeitinho brasileiro) of managing what to outsiders appears to be a relaxed, happy-go-lucky life amid structural chaos, bureaucratic ineptitude, and economic disarray. The old and famous Brazilian joke cited above pokes fun at these seeming contradictions.

Outlook For Frontier Markets

by | Feb 5, 2016 | Market Outlooks

Similar to most other major global markets, 2015 was also largely a year to forget on the frontier. The few bright spots of meaningfully positive local returns (Argentina and Romania) were largely overwhelmed by further currency weakness relative to the U.S. Dollar. Looking ahead for 2016, we see a global sense of skittishness and thin growth leadership as extending to the frontier markets as well, though their lesser lack of integration and correlation with global markets will separate some markets more than others. To that end, the asset concentration within the small universe of global frontier markets managers is our top concern across frontier markets for 2016. Thus at the broadest level, we recommend underweighting global frontier markets vis a vis other clearer opportunities in Japanese equities, but see some genuine opportunities in the frontier universe relative to emerging markets. Otherwise our views here largely reflect our recommendations for medium-term allocations within the frontier universe. As in emerging markets, we expect U.S. dollar strength to continue, and indeed may even be exacerbated by local currency weakness in selected markets (e.g. Nigeria). Saudi Arabia and the rest of the GCC are making headlines for their regional confrontations, both hot and cold, fiscal struggles and influence in the oil market, but also for some peculiar reforms to the stock market. Nigeria is both cheap and expensive in different parts, and could be poised for a truly volatile 2016. Indeed much of the big African stocks seem expensive compared to their European, Asian, or Latin American counterparts, and these stocks seem poised at best for stagnation in 2016 and possibly a significant de-rating. But the universe is not without its bright spots and we see very positive macro fundamentals and micro market catalysts in Argentina, Vietnam, and Frontier Europe (ex Kazakhstan).

Fis Group Q1 2016: Moving Beyond A Forgettable Year

by | Jan 15, 2016 | FIS Press Releases, Xponance® Press Release Previous

PHILADELPHIA, PA, January 15, 2016 – FIS Group, a manager of U.S. and global developed, emerging and frontier markets equity portfolio strategies, today issued its Q1 2016 Market Outlook, which suggests caution on U.S. equities, highlights opportunities in Japan, Europe, and India, and assesses possible sources of a tail risk event that could disrupt global equities.

2015 In Review – A Forgettable Year

by | Jan 1, 2016 | Market Outlooks

For the most part, 2015 was a forgettable year as growth anemia and disappointment, enduring characteristics of the post GFC period, continued. At 3.1%, global growth once again underperformed IMF forecasts from October 2014 with most of the disappointment emanating from the Emerging world that is most exposed to the slowdown in China and the end of the commodity super-cycle. With notable exceptions of commodity producers such as Brazil and South Africa, inflation also underperformed the 2014 forecast, underpinned primarily by weak demand and the precipitous decline in commodity prices.

Fis Group Market Insights Alert Probes “What Is Really Happening In China?”

by | Oct 29, 2015 | FIS Press Releases, Xponance® Press Release Previous

PHILADELPHIA, PA, October 29, 2015 – FIS Group, a manager of U.S. and global developed, emerging and frontier market equity portfolio strategies, today issued its newest Market Insights Alert on the rapidly evolving economic and investment picture in China. Following the summer’s volatility and the ongoing Chinese economic deterioration and sliding profit data which has unnerved global investors, FIS Group looks at the risks and opportunities across asset classes: equities, currency, and fixed income.

What Is Really Happening In China? — A Late-Year Revisit And Local Insights From Our China Trip

by | Oct 1, 2015 | Market Insights Alerts

Since mid-June this year, the wild ride in the Chinese A-share stock market along with deteriorating economic and profit data have unnerved many global investors. Against this backdrop, the Chinese government’s remarkably stable GDP growth reports of 7% for Q2 and 6.9% for Q3 have engendered increasing concern over the credibility of official figures. In an attempt to counter this slowdown, the government has rolled out a series of measures designed to stimulate demand. It has cut interest rates and reduced bank reserve requirements seven times this year, released funds for infrastructure investment, cut taxes on automobile sales and lowered the required down-payment for home mortgages. Historical precedent suggest that as China transitions to a “middle income” economy, the path of least resistance is downward. Based in part on observations from our recent visit to China, in this report, we posit that the key to understanding opportunities and risks in China is to:

China Slowdown A “New Normal” As Transformation Of Economy Advances

by | Jul 27, 2015 | FIS Press Releases, Xponance® Press Release Previous

PHILADELPHIA, PA, July 27, 2015 – FIS Group, a manager of U.S. and global developed, emerging and frontier markets equity portfolio strategies, today issued its newest Market Insights Alert which looks at the transformation of the Chinese economy from export-led to being driven by domestic consumption. In the alert, “Transition to a Chinese-Style ‘New Normal’: Less is More” FIS Group also provides a detailed evaluation of the government’s progress implementing its reform agenda and concludes that while there is still more upside for Chinese A share equities, the next period will be characterized by extreme volatility.

Transition To A Chinese-Style “New Normal”: Less Is More

by | Jul 1, 2015 | Market Insights Alerts

In China, economic results of late have largely been disappointing, with traditional headline indicators highlighting sluggish growth and mounting deflation risk. Our view is that China is experiencing the economic transition to a so-called “New Normal”, and the prevailing growth slowdown, gauged by traditional industrial-focused indicators, is both necessary and essential for the ongoing economic transformation. In this paper, we will discuss the key priorities of the reform agenda, along with the Chinese government’s progress in implementing these reforms to date. In the last section, we will discuss the nascence of this round of the bull stock market and the recent massive correction, along with our short-term and long-term expectations. The bottom line is that we are positive on China’s economic reform and the government’s efforts in supporting capital market reform. We also believe that there will be more upside in Chinese A-shares, but that the next leg will be characterized by extreme volatility.

Big Is Bad (Really Bad) In Frontier Market Equities

by | Jul 1, 2015 | Market Insights Alerts

For 19 years FIS Group has successfully invested with entrepreneurial managers in global equities markets based on the considerable body of research suggesting that talented, high-active share, entrepreneurial managers are best positioned to outperform market benchmarks, net of fees. We believe that there are generally two reasons, both timeless and universal, why this inefficiency will continue. First, entrepreneurs with “skin in the game” are motivated to work harder, as entrepreneurs generally are in every other business across the time and space of human history. Second, in the modern markets of listed equities, size and scale are the enemies of alpha. While we have long known both of these simple (but nonetheless surprisingly ignored) truths to be self-evident in asset management, the significant opportunity of investing with entrepreneurial managers continues unabated. However in our firm’s 19 years of investing and decades more of experience of our principals, we have rarely (if ever) seen so clear a demonstration of both of these sources of alpha in one simple chart.

Observations On The Greek Debt Crisis From Across The Pond

by | Jun 1, 2015 | Market Insights Alerts

As Greece’s negotiations with its creditors devolved over the weekend fostering a global rout in risk assets on Monday, through my attendance at a global investor forum in Europe, I solicited the thoughts of institutional investors that live and work closer to the epicenter of the crisis. Not surprisingly, I found a wide divergence of risk appetites and aversion. However, my overwhelming impression is that, while many recognize a high risk of short term volatility, investors here are quite sanguine about the medium and long-term risks of a Greek default or even a so called “Grexit”. This document reflects my observations from the various presentations and conversations over the last few days. This commentary borrows heavily in particular from a presentation and paper by Marko Papic, from BCA Research.

Fis Group Announces The Launch Of The Paragon Discovery Fund, A Hedge Fund Of Funds Strategy Focused On Making Investment In Smaller, Undiscovered Funds With Reduced Correlation To The Broader Equity And Credit Markets.

by | May 25, 2015 | FIS Press Releases, Xponance® Press Release Previous

PHILADELPHIA, PA, February 25, 2015 – FIS Group, an innovative leader in sourcing and building long-only manager of managers portfolios, together with Talson Capital Management, launch the Paragon Discovery Fund, a new hedge fund of funds strategy. The Fund is a joint venture between FIS Group and Talson Capital Management, the Darien, Connecticut-based, investment firm that manages and customizes portfolios of hedge fund investments. FIS Group is hosting a webcast today to signify the official launch of the Fund.

The Big Structural Upside In Japanese Equities

by | Feb 1, 2015 | Market Insights Alerts

Since late 2012, coinciding with the election of reformist Prime Minister Shinzo Abe, Japanese equity markets have surged nearly 70% (in local currency) in the past two years. Yet ‘Abenomics’, as the set of ambitious and bold fiscal and monetary policies pursued by the Abe Administration have been dubbed, have thus far failed to move the appetites of Japanese household savings. But there is reason to believe that Japan is on the precipice of reordering its domestic savings structure as soon as this year, with potentially significant implications for its equity markets.

Fis Group Employee Wins Prominent Philadelphia-Based Award

by | Nov 12, 2014 | FIS Press Releases, Xponance® Press Release Previous

PHILADELPHIA, PA, December 11, 2014 – We are proud to announce that FIS Group’s Senior Vice President, General Counsel and Chief Compliance Officer, Shelley Simms, is among the Philadelphia Business Journal’s 2014 Corporate Counsel Award winners. Ms. Simms received her award today at a well-attended event held at the Union League of Philadelphia.

Will Emerging Markets Continue To Dance When The Fed Stops Playing?

by | Oct 1, 2014 | Market Insights Alerts

There is no shortage of prognostication on which assets/ strategies will be most/least impacted as the Fed and the BOE become less accommodative, and how they will be affected. How we answer both questions will be critical to performance over the next year or so. This paper evaluates the likely path and impact of Fed tightening with specific focus on the counterbalancing effects of asynchronous monetary policies globally and the likely impact of Fed tightening on EM risk assets.

View Q4, 2014 Webinar

by | Sep 26, 2014 | Webinars

Tina Byles Williams, CEO/CIO of FIS Group leads a wide-ranging discussion on FIS Group’s view of geopolitical, demographic and macroeconomic trends shaping risk and investable opportunities for institutional investors.
The panel moderator Sam Austin, III, SVP Director of Marketing and Client Service (FIS Group) and Ms. Byles Williams conducted this discussion as a part of FIS Group’s third annual Investment Symposium. The event was held on September 26, 2014 in Philadelphia.
FIS Group, Inc. is an 20-year old Philadelphia based institutional asset management firm that focuses on investing in long-only global and international equity strategies.

Arabian Nights: Mysteries On The Frontier

by | Sep 1, 2014 | Market Insights Alerts

In the first half of 2014, the MSCI Frontier Markets Index substantially outperformed its actively managed peer group. The degree of this outperformance is deeply ahistorical for major equities classes and poses several implications for manager selection and evaluation. This paper examines the unique structure of this market rally in an effort to better understand the frontier markets environment, assess the complicated interplay between index structure and performance measurement, and discusses how allocators should evaluate and respond to these special circumstances.

Liquid Holdings Joins Fis Group Ecosystem Of Service Providers Dedicated To Helping Emerging Investment Managers

by | Apr 17, 2014 | FIS Press Releases, Xponance® Press Release Previous

Liquid Holdings Group, Inc. LIQD a provider of a single platform that integrates order, execution, and risk management as well as reporting and shadow NAV in the cloud for the financial services community, today announced it will be among the first group of approved service providers included in the FIS Group Ecosystem. FIS Group, an innovative leader in sourcing and building emerging manager portfolios, created the Ecosystem to assist talented entrepreneurial portfolio managers in the formation and strengthening of new asset management firms.

Ecosystem Webinar Presentation

by | Mar 1, 2014 | Webinars

Facilitating opportunity
• Grow and diversify the pool of talented entrepreneurial managers to the benefit
of the asset management industry
• Support entrepreneurial efforts of talented investment managers
• Increase FIS Group’s first mover track record from 25% to 50%
of all funded firms
• Funded entirely by revenue generated from
FIS Group’s core business
• Services provided at no cost to the managers