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Wealth Management
World View
Florida wealth managers are betting on oversea markets.
Joseph A. Fernandez
Vice president and senior director
BNY Mellon Wealth Management, Miami
Assets under management: $3.2 billion (Florida)
Minimum investment: $1.5 million
Recommended international allocation: 25% to 30% (15% to 20% in developed countries and 5% to 10% in emerging markets)
Markets he likes: » Brazil — Materials and minerals have been strong, and now consumers are making themselves known. “Our view is that Brazil is going to continue to be a fairly strong performer,” says Fernandez. » China — China continues to be something of a juggernaut in terms of its economic growth, but it is something like a frontier, says Fernandez, adding that markets will develop more over time. » India — It has underperformed in the past, but Fernandez says the pluses are more developed financial markets, metals and mining, materials and industrials. » South Africa — “It’s something of an opportunity in the area of natural resources.” » Europe — Germany is in the second year of a three-year restructuring, and in the United Kingdom, the housing market as well as consumer products continue to be strong. » Japan — Its relatively high savings rate means a potential for increased consumer spending. Fernandez warns, though, that Japan is a large net importer of energy.
Markets he doesn’t like: » Russia — A lack of stability and events such as the government’s acquisition of energy giant Gazprom in 2006 have made Fernandez wary of investing here.
Charles A. Rodgers
Senior vice president and director of investments,
Miami-Dade region
Lydian, Miami
Assets under advisement: $17 billion
Minimum investment: Varies
Recommended international allocation: Varies with client, but typically international equities make up 25%.
International strategy: Typically two-thirds in developed nations and one-third in emerging markets.
Investing style: Global fundamental, bottoms-up focus. Rodgers says Lydian’s
managers “are less concerned with country and sector allocation” and look for the best companies in all sectors around the world. Using a variety of investments, including mutual funds and separately managed accounts, they take a strategic long-term approach rather than short-term moves.
Pat Antonetti
Senior vice president and financial consultant
Fort Pitt Capital, Naples
Assets under management: $1.2 billion (nationwide)
Minimum investment: $100,000 for a mutual fund portfolio, $500,000 for an individual securities account
Recommended international allocation: 29% for equity portfolios (22% in developed countries and 7% in emerging markets)
International strategy: Diverse international funds; no country-specific funds or exchange traded funds
Markets he likes: » Developed markets — Fort Pitt plays them through UMB Scout International (UMBWX), a growth and income fund, and Artisan International Value (ARTKX). » Emerging markets — The Forward Global Emerging Markets Fund (PGERX) invests in at least eight and up to 15 emerging markets. The Harding Loevner Emerging Markets Fund (HLEMX) typically holds 50 to 80 investments, including short-term or other debt, in at least 15 countries.
