Hola NAA Familia,
Freedom is often key to much of what we celebrate in the June – July time period. We celebrate freedom from slavery and freedom from the colonial bondage of the British empire, thus declaring the thirteen constituent states to be “free and independent.” As citizens of this nation, we celebrate a series of principles and ideas, including liberty, freedom, and opportunity, that created the United States of America.
One of those principles and ideas is the sanctity of the human being – free to be you and me. June is Pride Month across the country, celebrated loudly with parades in New York, San Francisco, Chicago, and other places (Say it Loud, Gay is Proud). But also observed quietly in the minds of many men and women who now feel comfortable and safe being their true authentic selves.
In June, we also celebrate Juneteenth, the federal holiday that commemorates the ending of slavery in the United States. On June 19, 1865, Major General Gordon Granger and his Union soldiers landed at Galveston, Texas, with the news that the war had ended and that the enslaved were now free. The news did not reach Texas until two and a half years after President Lincoln’s Emancipation Proclamation of January 1, 1863.
No, there was no LinkedIn, no Twitter, and no 24-hour news channel . . . News moved slowly at best. Theories for this delay have been debated including the story of a messenger who was murdered on his way to Texas with the news of freedom. Another was that news was deliberately withheld by the enslavers to maintain the labor force on the plantations -and a refusal to recognize President Lincoln’s authority over Texas. And yet another is that federal troops waited for the slave owners to reap the benefits of one last cotton harvest before going to Texas to enforce the Emancipation Proclamation.
And we also celebrate our nation’s birthday, the Fourth of July, a federal holiday since 1870. Most of us grew up celebrating this Holiday with picnics, parades, and the display of fireworks – enjoyed by the entire family.
To me, the Fourth of July is the essence of summer very much in line with vacations, family, and friends. Thus, my best wishes for a pleasant time to relax and enjoy!
Un abrazo,
Solange F. Brooks
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It is very appropriate that we celebrate Juneteenth, a new holiday for many of us, so close to Independence Day. Will this new holiday, this symbol of freedom, induce us to forge a more perfect union, or will it be just another holiday?
Every year around the Fourth of July, I pull out a copy of Frederick Douglass’speech entitled, “What, To the slave, is the Fourth of July?” Mr. Douglass gave this speech on July 5th, 1852, when he was 34 years old and 14 years escaped from slavery.
Douglass said in his famous speech, “The blessings in which you, this day, rejoice, are not enjoyed in common. The rich inheritance of justice, liberty, prosperity, and independence, bequeathed by your fathers, is shared by you, not by me. This 4th of July is yours, not mine. You may rejoice, I must mourn.”
Where does America find itself these many years later? Does the 4th of July belong to the black man as much as to the white man? Does it belong to the Native Americans as much as to the white man? To our Hispanic brothers and sisters? To our Asian brothers and sisters?
In America’s evolution, I believe the glass is half full. If anyone says that we have not made significant progress in the time that this union has been together, even in my own lifetime, they would be sorely mistaken. There is more to be done, and we must be diligent about making sure that happens. We have an immigration challenge in America because this is the greatest place in the world. It is one of the few places where you can truly start on the bottom rung and move up many rungs.
America is a beautiful dream still being forged in the fire of humanity. It is an imperfect dream struggling to find its footing but moving forward to a better place. It will not get there by itself. It will require all of us to come together to make this dream into reality for everyone.
Twenty years ago, a very close friend named Myrna asked, “Why shouldn’t I as a white person feel that America has done enough for African Americans in this country?” I do recall asking her, “Well, how much good must America do to make up for the bad that white people did to my people for 250 years of slavery and another 100 years of Jim Crow?” The conversation that followed was a respectful discussion. Today, very few would dare ask such questions for fear of being cancelled. In any relationship, if you cannot have an open and candid conversation for fear of offending, you cannot have a real relationship.
Let us hope and pray that America—all of us—will recommit itself to the ideal that “all men [and women] are created equal, and that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness.”
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Market Outlook and Opportunities
By Claudio Phillips - Managing Principal, MB Global Partners
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“Action without study is fatal. Study without action is futile” Mary Beard
Where many investors may be concerned about their return profiles under pressure from the combined headwinds of a global economic slowdown and real inflation data, we see a wide range of potential investment opportunities.
A major consideration when analyzing the current risk environment is the expiration of the “Fed Put”, or more formally, the transition from Quantitative Easing to Quantitative Tightening. As central banks raise rates to temper inflationary factors, there is less of a reach for yield in the capital markets since current investments may be losing value and borrowers are faced with rising costs. So where does one take risk in an inflationary environment? Academics, studying historical inflationary patterns for the past 100 years will observe that:
- Equities during times of inflationary stress will have a -7% return on an annualized basis
- Bonds will also be punished with a -5% return
- Combining the above within the 60/40 equity/bond portfolio generates a -6% return
- Commodities generate positive returns in an inflationary environment but there has to be very specific and precise allotments to generate the 14% return
- Real estate has a relatively tight range of -2% in times of inflation versus +2% in non-inflationary periods
- The real winners are collectibles, with art at +7%, wine at +5% and stamps a whopping +9%
(Data courtesy of the Man Group)
So per this academic exercise, technically driven investors should warehouse their art, not drink their wine and dig deep for their stamp and baseball card collections! We are being facetious of course, but there are vehicles which are constructed to take that type of risk. We believe those vehicles tend to be illiquid, market timing reliant and prone to hype and price manipulation. [Continue Reading...]
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Career Pathways for Young Professionals
By José M. Guzmán - NAA COO
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In June, we partnered with The Blackstone Group to help educate young and mid-level Latino professionals (21 – 35 years old) about careers in financial services organizations, and help build a pipeline of talent into the buy-side.
There was a panel of insiders across investments, operations, and legal that discussed the different roles and responsibilities in private equity – from finding investments, to how they are reviewed and approved, to creating value in businesses. The session provided a good understanding of the different entry points and paths for young and mid-career professionals.
In addition, many personal stories were shared about the different ways each panelist entered the industry. Overall, it was difficult, but they were able to do it. It was an extremely candid conversation and we hope this event will make it much easier for Latino professionals to join the buy-side. Many of the attendees were inspired by the panelists because they had not met any people who look like them in the industry. A career in private equity usually starts with one connection at a firm and the participants were able to meet multiple people at The Blackstone Group, and the NAA.
This event increased the interest these individuals have in private equity and the NAA has received many questions from them about getting involved with the organization. It also appealed to other large businesses that would like to sponsor similar events with the NAA. This is the beginning of these types of events and the NAA could lead the charge in changing the face of private equity by helping the industry obtain more Latino representation.
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(L to R) James Socas, Managing Director, Blackstone’s Tactical Opportunities, Panel Facilitator; José M Guzmán, NAA’s COO; Sabrina Martins, Vice President, Blackstone’s Hedge Fund Solutions Group; Alejandro Canelas Fernandez, Senior Vice President, Blackstone’s Legal and Compliance Team; Lauren Arribas, Analyst on the Blackstone Growth team; and Gerson R. Guzman, NAA’s Executive Board Member and Co-founder, Ceiba Capital Partners. |
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NAA Members' Recognitions |
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Reverence Capital Partners (“Reverence Capital”) is pleased to announce that Advisor Group, Inc. (“Advisor Group” or the “Company”), a portfolio company of Reverence Capital, has agreed to acquire American Portfolios Financial Services, Inc. ("American Portfolios"). American Portfolios is a New York-based broker-dealer with approximately $40 billion in client assets and supports more than 850 financial professionals in nearly 400 branches across the country. Following completion of the transaction - which is subject to customary regulatory approvals - American Portfolios will become a member firm in the Advisor Group network of firms and continue to do business under its own brand. In addition to the Wealth Management services provided, American Portfolios has a strong commitment to corporate social responsibility (CSR) supported by a broad charitable giving program (both in funding and engagement) that is dedicated to sustainable business practices. Upon completion of the deal, Lon Dolber, American Portfolios Chairman and CEO, will join Advisor Group as Vice Chairman and will become a Special Advisor to Reverence Capital.
The acquisition reinforces Reverence Capital’s thematic view of the increasing importance of scale and distribution across the wealth management industry, and this announcement comes after Advisor Group last month announced that it had entered into a deal to acquire Infinex Financial Holdings Inc. The American Portfolios deal will be the largest M&A transaction or recruiting transition of the year in the independent brokerage channel in terms of the amount of client assets, according to Financial-Planning.com. Advisor Group will bring scale benefits and enhanced technology solutions and capabilities to American Portfolios, which we believe will help its financial professionals better serve their clients and support continued growth.
For your reference, attached is the related press release.
Should you have any questions, please reach out to David Pollack at 212-804-8028.
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New Member Spotlight
Lawrence Bancroft - Founding Partner, Bivium Capital Partners
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Bivium Capital Partners is an asset management firm and premier provider of multi-manager investment solutions. We offer customized Diverse and Boutique Manager Strategies, mission-driven OCIO Solutions, and other Advisory Services to institutional investors seeking differentiated sources of alpha.
Latin for the point where two roads meet (n: a Bivium), we navigate the market’s increasingly complex intersections—risk and reward, performance and purpose, qualitative and quantitative insights—to deliver successful investment outcomes for our clients. SEC-registered, diverse-owned and operated, our team leverages the value of diversity and inclusion to generate alpha with social impact.
The firm is led by founding partner Lawrence Bancroft. In addition to overseeing the growth of Bivium Capital, he is responsible for its overall direction, driving new business development, and developing innovative service offerings. Lawrence brings extensive investment experience and sage counsel to bear, having helped his clients solve their most challenging problems. He aids our clients by applying his expertise in product development, portfolio construction, due diligence, manager search, and portfolio monitoring.
As a new NAA member Bivium is looking to expand the reach and network in sourcing diverse talent across all asset classes to achieve our mission of inclusion and equity while meeting our clients’ needs. Through partnership and collaboration, we strive to create opportunities for those in traditionally underserved communities.
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Upcoming Events
Upcoming Survey for CIO & Asset Class Connections' Meetings
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The 2022 NAA CIO & Asset Class Connections tour was a success. Between April and June, NAA members met with 18 institutional investors with a total AUM of more than $10 trillion ($10,131.7 Billion). We will be conducting a survey on the CIO & Asset Class Connections' meetings. Please help us understand your needs better by responding to this survey. |
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RFPs and Career Opportunities |
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NAA supports matching high-quality professional talent with institutions across the United States. SEE CAREER OPPORTUNITIES HERE. Interested candidates, please reference New America Alliance in your application and notify Jodi Towner at jtowner@naaonline.org once submitted so we may be aware of your candidacy.
Employers, you may submit information on current high-level and high-impact job vacancies to Jodi Towner at jtowner@naaonline.org.
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