CGEMY - Capgemini SE

Other OTC - Other OTC Delayed Price. Currency in USD
17.22
-0.23 (-1.32%)
At close: 3:59PM EDT
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Previous Close17.45
Open16.77
Bid0.00 x 0
Ask0.00 x 0
Day's Range16.61 - 17.60
52 Week Range10.98 - 26.30
Volume124,029
Avg. Volume109,461
Market Cap14.1B
Beta (5Y Monthly)0.98
PE Ratio (TTM)16.72
EPS (TTM)1.03
Earnings DateN/A
Forward Dividend & Yield0.38 (2.20%)
Ex-Dividend DateJun 02, 2019
1y Target EstN/A
  • 3 Stocks With Attractive Valuations
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  • Bloomberg

    Activist Investors Throw in Towel as Market Turmoil Rages

    (Bloomberg) -- Activist shareholders are giving up on some of their campaigns amid historic market volatility.Elliott Management Corp. dropped its opposition Wednesday to Altran Technologies SA’s $4 billion takeover by Capgemini SE, citing “current market conditions.” The investment firm led by Paul Singer said it will sell its stake in Altran to Capgemini, after arguing for months that the the deal undervalued the French technology consulting firm.Robert Tchenguiz, who had been challenging FirstGroup Plc’s management for at least four months, announced Wednesday that he no longer holds a material interest in the transport operator. Tchenguiz “regrettably” sold his stake in FirstGroup, which owns the Greyhound bus line, “due to the unprecedented circumstances and the consequential challenges the world is now facing,” he said in a London filing.The U.K.-based investor said he still supports the changes being proposed by fellow activist Coast Capital and is “sorry” he won’t be able to participate in the value creation that the plan will deliver.Shares of FirstGroup were up 24% at 3:54 p.m. Thursday in London, outpacing the 1.5% gain in the benchmark FTSE 100 Index and giving the company a market value of about 426 million pounds ($502 million).They’re not the only ones sounding a note of caution. Billionaire hedge fund manager Bill Ackman said Wednesday that if immediate action isn’t taken, the U.S. could enter a “Depression-era period” and millions of people could die globally until a vaccine becomes available. Boeing Co. won’t survive without a government bailout, and the hotel and restaurant industries could go bankrupt if there’s a prolonged shutdown, Ackman, who runs Pershing Square Capital Management, said in a CNBC interview.To be sure, activist investing remains alive and well.Mason P. Slaine disclosed a stake in Tribune Publishing Co. Wednesday, saying the newspaper chain should consider selling its BestReviews division, according to a regulatory filing.(Updates with FirstGroup afternoon trading in fifth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • A Bunch of Merger Arbs Is Playing the Long Game
    Bloomberg

    A Bunch of Merger Arbs Is Playing the Long Game

    (Bloomberg Opinion) -- Capgemini SE picked up some fellow travelers with its 3.7 billion euros ($4 billion) bid for Altran Technologies SA: a large cohort of minority shareholders who refused to accept the French IT group’s offer, including activist-in-chief Elliott Management Corp. Tuesday’s decent results from Altran diminished the prospect of these holdouts selling when the tender process reopens briefly next month.(1) That leaves Capgemini with the most basic form of control over Altran and a big thorn in its side.Having guided that it wouldn’t raise the 14 euros-a-share offer made in June last year, Capgemini flip-flopped at the last minute and added a paltry half euro in January. That helped it secure acceptances of 54%, just above the threshold set for a takeover. Exclude the 11% holding Capgemini had already purchased from private equity firm Apax Partners SAS, and the other shares proffered amount to less than half of the remaining register. That indicates widespread unhappiness with the terms.Elliott has a 15% holding. The precise composition of the remaining one-third of the register is unclear. Many long-term Altran shareholders sold in the seven-month battle, so it’s likely that the “remainers” include merger arb funds. Such investors would be hoping for the chance to get a higher price for their shares in the future than Capgemini was offering. If so, that would make Altran a special case: Arbs don’t normally hang around after extracting a sweetener.A lucrative buyout is some way off. Capgemini said it wouldn’t make an offer to minorities above 14.50 euros a share price for 18 months. A sudden dip in Altran’s performance would make that price more attractive. But there were no shocks in its latest numbers; Altran shares currently trade at just over that level.Capgemini still has good reason to seek 100% ownership. As things stand, it cannot fully integrate Altran but must run it as a separate entity. It will be under pressure to show that it’s not managing operations for its benefit at the expense of other shareholders. It may be able to reap some revenue synergies, but the benefits from the transaction will fall short of their full potential.What has Capgemini achieved? Its shares jumped 8% on the day the deal was announced last year, reflecting the strong financial and industrial logic of combining the firms. Those gains have since evaporated. Capgemini’s stock is now only slightly outperforming the French index.Declarations of victory in this battle, from either side, will have to wait. Elliott and the minorities have a strong negotiating position if Capgemini moves to take full control in 2021. Capgemini has bought a controlling stake in Altran cheaply. As a parting gift from outgoing Chief Executive Officer Paul Hermelin to his successor Aiman Ezzat, it’s better than nothing. But Ezzat has his work cut out to prove he can extract value from this deal with scarcely more than half the shares.(1) Approval for the deal is subject to a court challenge; Capgemini has indicated it will either refile its offer or reopen it to acceptances depending on the outcome.To contact the author of this story: Chris Hughes at chughes89@bloomberg.netTo contact the editor responsible for this story: James Boxell at jboxell@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • How Good Is Capgemini SE (EPA:CAP) At Creating Shareholder Value?
    Simply Wall St.

    How Good Is Capgemini SE (EPA:CAP) At Creating Shareholder Value?

    Today we'll evaluate Capgemini SE (EPA:CAP) to determine whether it could have potential as an investment idea. To be...

  • Reuters

    PRESS DIGEST- Financial Times - Jan. 28

    Britain's Financial Conduct Authority was fined by The Pensions Regulator for failing to provide complete details to the members of its pension plan, the regulators said on Monday. French consulting and IT services provider Capgemini succeeded in securing 53.6% of Altran Technologies' shares following a tender offer that closed on Jan. 22, the French markets regulator said on Monday. UK government is poised to renationalise the failed Northern rail franchise and remove it from the control of Arriva, part of German state-owned railway company Deutsche Bahn.

  • Capgemini passes first hurdle in Altran bid despite Elliott resistance
    Reuters

    Capgemini passes first hurdle in Altran bid despite Elliott resistance

    French consulting and IT services provider Capgemini <CAPP.PA> succeeded in securing more than half of the capital of smaller rival Altran Technologies, the French market regulator AMF said on Monday, marking a win against U.S. activist fund Elliott. The AMF said Capgemini holds 53.6% of Altran's share capital and at least 53.4% of the voting rights. The group - which faced a tussle with Altran shareholder Elliott over its offer price - had aimed to get the backing from just over half of Altran's investors to pursue its bid.

  • France's Capgemini slightly raises bid on Altran after Elliott battle
    Reuters

    France's Capgemini slightly raises bid on Altran after Elliott battle

    The firm, which had thus far said its 3.6-billion-euro (3.1 billion pounds) bid for all of Altran reflected a fair value for the target, is now offering Altran shareholders 14.5 euros per each share they hold, compared to 14 euros previously. This represents an addition of 128 million euros to the initial bid, which Capgemini said would be final. Capgemini decided to raise its offer because Altran's shares are already trading above 14 euros on market rumours that the group might be ready to increase its offer, Hermelin said.

  • Is Capgemini SE (EPA:CAP) A Smart Pick For Income Investors?
    Simply Wall St.

    Is Capgemini SE (EPA:CAP) A Smart Pick For Income Investors?

    Is Capgemini SE (EPA:CAP) a good dividend stock? How can we tell? Dividend paying companies with growing earnings can...

  • Reuters

    Elliott may sell Altran shares if Capgemini sweetens bid-source

    Activist hedge fund Elliott would sell its shares in French Altran if software consultancy Capgemini increased its bid for Altran to 18 euros from 14 euros per share, a source familiar with the situation told Reuters on Thursday. The source added that if Capgemini were to increase its bid to that level, French minority shareholders defence group Adam may drop its legal challenge to Capgemini's bid.

  • Has Capgemini SE (EPA:CAP) Improved Earnings Growth In Recent Times?
    Simply Wall St.

    Has Capgemini SE (EPA:CAP) Improved Earnings Growth In Recent Times?

    When Capgemini SE (ENXTPA:CAP) released its most recent earnings update (30 June 2019), I compared it against two...

  • Bloomberg

    Elliott Calls Capgemini’s $4 Billion Altran Bid Too Low

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Activist investor Elliott Management Corp. said that Capgemini SE’s offer for Altran Technologies SA is inadequate and called the sales process flawed.Elliott, which has built up a position of more than 10% in Altran, believes that a fair value for the company is more than 20 euros a share, based on analysts’ estimates for the company’s future earnings, it said in a statement on Wednesday. The firm had said in an earlier filing that Capgemini’s current offer of 14-euros-a-share, or 3.6 billion euros ($4 billion) excluding debt, undervalues the company.“Altran shareholders are offered an inadequate premium to forgo the company’s promising standalone prospects, despite the huge value-creation potential of the combination,’’ Elliott said in the statement.Altran shares rose 0.2% to 14.07 euros at 10:25 a.m. in Paris. The stock’s gained about 23% since Capgemini’s offer in June.Capgemini’s incoming CEO Aiman Ezzat said at the Morgan Stanley European Technology, Media & Telecom Conference in Barcelona this month that the company’s bid for Altran isn’t going up. The deal was supposed to close this year, but has likely been delayed until 2020 after a shareholder lobby raised objections in a French court.A spokesman for Capgemini said the company doesn’t have any further comment. A spokeswoman for Altran said that they’ve been in touch with Elliott and is aware of its concerns, and that the company believes that the sales process has followed regulations.Read more about the shareholder lawsuit here.The Altran deal will help address an engineering shortage in Europe and the U.S. that’s left tech companies short on employees, Ezzat said. When combined Capgemini and Altran -- also based in Paris -- will be able to help clients in areas such as cloud computing, the internet of things, 5G, and artificial intelligence software, Capgemini’s current CEO Paul Hermelin said in a statement in June when the deal was announced.“There’s much more demand for engineers than there is capacity in the western world,” Ezzat said in Barcelona. “There’s no alternative unless we find a way to automate all the engineering work.”The deal announced in June requires that 50.1% of Altran shares be tendered for the transaction to proceed. Under French law, Capgemini would need 90% of shares to squeeze out the minority holders, making Elliott raising its stake to more than 10% a pivotal consideration.(Updates with Elliott quote in third paragraph. A previous version corrected the timing of an earlier Elliott statement.)To contact the reporter on this story: Amy Thomson in London at athomson6@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Amy ThomsonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Hedge fund Elliott keeps up pressure on Capgemini for higher Altran offer
    Reuters

    Hedge fund Elliott keeps up pressure on Capgemini for higher Altran offer

    Activist hedge fund Elliott tried again to squeeze a higher offer from France's Capgemini for rival Altran, saying why it thought the offer undervalued the company in which the fund manager holds a stake. Elliott has built up a stake of just over 10% in Altran through equity derivatives. It has already said it thought software consultancy Capgemini's 14 euro per share, or 3.6 billion-euro ($4 billion) bid for rival Altran, was too low.

  • Capgemini will not be pressured into higher Altran bid, CEO says
    Reuters

    Capgemini will not be pressured into higher Altran bid, CEO says

    Software company Capgemini will stick to its bid of 14 euros ($15.43) per share for smaller rival Altran, its chief executive told Reuters, as it tries to fend off pressure from activist hedge fund Elliott for a higher offer. Elliott, which made waves in France last year when it revealed a stake in drinks maker Pernod Ricard, has since built a holding of more than 10% in Altran, regulatory filings show. It has also said Capgemini's 3.6 billion-euro bid from June this year undervalued Altran.

  • Capgemini extends its strategic initiative with Amazon Web Services to North America
    PR Newswire

    Capgemini extends its strategic initiative with Amazon Web Services to North America

    Capgemini has expanded its strategic initiative with Amazon Web Services (AWS) to North America to further meet the needs of customers by focusing on mass application migrations, cloud native development, cloud application modernization, artificial intelligence (AI), machine learning (ML) and managed services. First launched in Europe last year, Capgemini and AWS are further collaborating with a focus on extra personnel and broader technical training to help North American clients drive improvements in their business performance and make digital business a reality.

  • Under 35s set to lead festive spending spree with a focus on new technologies, delivery methods and environmentally friendly products
    PR Newswire

    Under 35s set to lead festive spending spree with a focus on new technologies, delivery methods and environmentally friendly products

    New research from Capgemini shows that 40% of those aged 18-34 are set to spend more on their holiday shopping in 2019 than last year, compared to an overall average of 28% for all age groups. While quality, cost and convenience continue to drive the majority of purchasing decisions, retailers are under increased pressure to adopt new strategies to appeal to younger shoppers.

  • Capgemini appoints Elfije Lemaitre as North American energy practice lead
    PR Newswire

    Capgemini appoints Elfije Lemaitre as North American energy practice lead

    NEW YORK, Nov. 21, 2019 /PRNewswire/ -- Capgemini has named Elfije Lemaitre as Head of its North American energy practice. Lemaitre has deep experience leading transformation programs for energy and petrochemical companies.

  • A Look At The Fair Value Of Capgemini SE (EPA:CAP)
    Simply Wall St.

    A Look At The Fair Value Of Capgemini SE (EPA:CAP)

    Does the November share price for Capgemini SE (EPA:CAP) reflect what it's really worth? Today, we will estimate the...

  • 14 West selects Capgemini for cloud transformation with NetSuite to help increase efficiency and financial visibility
    PR Newswire

    14 West selects Capgemini for cloud transformation with NetSuite to help increase efficiency and financial visibility

    NEW YORK, Nov. 4, 2019 /PRNewswire/ -- Capgemini (CAP.PA) today announced a major implementation with 14 West, the U.S. business services arm of The Agora Companies, a consortium of more than 40 privately owned media companies around the world. Over the next five months, Capgemini will help 14 West migrate its on-premise enterprise resource planning (ERP) system to the cloud. With NetSuite, 14 West will leverage an integrated suite of cloud applications to support its U.S. clients within one financial management system.

  • If You Had Bought Capgemini (EPA:CAP) Shares Five Years Ago You'd Have Made 93%
    Simply Wall St.

    If You Had Bought Capgemini (EPA:CAP) Shares Five Years Ago You'd Have Made 93%

    When we invest, we're generally looking for stocks that outperform the market average. And the truth is, you can make...

  • Asian Tech Icon Flirts With Crisis After Whistle-Blowers Attack CEO
    Bloomberg

    Asian Tech Icon Flirts With Crisis After Whistle-Blowers Attack CEO

    (Bloomberg) -- The dust had barely settled at Infosys Ltd. when Asia’s No. 2 software services firm once more found itself grappling with a potential leadership crisis.For the second time in about as many years, the Indian icon synonymous with the country’s technological ascendancy is being forced to answer accusations of impropriety. In the most recent of a stream of grievances aired anonymously over past years, whistle-blowers accused Chief Executive Officer Salil Parekh of instigating employees to inflate profits, mis-represent the lucrativeness of deals, even of abusing travel privileges. In a memo reproduced in local newspapers, Parekh’s accusers offered emails and recordings to back up their claims.Little evidence of wrong-doing has emerged publicly so far. Infosys pledged a full investigation Tuesday, while Parekh himself has remained silent. Yet investors blind-sided by the sheer volume of the charges wiped more than $7 billion off the company’s market value in a single day. They may still be smarting from 2017, when internal upheaval eventually sparked an ouster of the popular Vishal Sikka, paving the way for Parekh’s ascension and a board reshuffle.“The allegations appear serious and reputation is such a fragile thing,” said Harish Bijoor, a Bangalore-based brand consultant. “It is very unfortunate but this type of thing besmirches a company’s reputation in the eyes of employees, investors and clients.”The Indian government is closely monitoring the issue but it’s too early to initiate a probe of the company, an official told reporters in New Delhi, asking not to be identified citing rules.Read more: Infosys Dives Most in 6 Years as Whistle-Blowers Target CEOThe events unfolding in Infosys’s home-town of Bangalore, the nation’s tech capital, bear a resemblance to those of 2017 that brought down the tech giant’s leadership. Two summers ago, a similar whistle-blower complaint alleged irregularities in a $200 million acquisition, setting off a chain of events that culminated in a vicious face-off with co-founder Narayana Murthy and Sikka’s removal. The accusations against him were never proven.Sikka and Parekh, a former Capgemini SE executive, were the first outside professionals brought in to run the 38-year-old company, after several decades of co-founders taking turns to occupy the CEO’s office. Infosys’s shares have gained 50% since Parekh took the helm in January 2018, versus roughly 20% over Sikka’s three-year term. And the company’s revenue grew about 25% during both their tenures.Yet the number of whistle-blower complaints spiked during Sikka’s and Parekh’s reigns, covering a plethora of topics. None spooked markets quite as much as the latest missive published in the Deccan Herald on Monday. The company is now taking the right steps, auditing the whistle-blowers’ letters and appointing a third-party investigator, said Sanchit Vir Gogia, chief executive officer of Singapore-based Greyhound Research.“The CEO has a difficult task at hand coming after the sudden exit of his predecessor, managing founder and investor expectations and operating in a difficult business environment,” he said. “The world over, companies take a ton of short cuts to look good in front of investors and analysts.”Infosys May Need Some Private Time to Fix Itself: Andy MukherjeeThe brewing crisis around Infosys is far from the only one to hit corporate India of late. State-run lender Punjab National Bank disclosed fraud, for instance, part of a series of scandals to hit the financial industry.Infosys itself can ill-afford the distraction. It’s grappling with fundamental changes in the software outsourcing industry, where younger rivals are snatching away contracts with newer technologies, and clients are moving away from the paid-by-the-hour outsourcing work that Infosys and rival Tata Consultancy Services Ltd. specialized in.At Infosys, revenue growth slowed to single-digit percentages, while operating margins shrank. That marked the end of an era when its co-founders delivered stellar performances quarter after quarter, endearing the stock to investors. Fresh-out-of-college engineers compared a job offer from Infosys to winning the lottery.This month, Infosys posted a 2% fall in quarterly profit after nervous clients held off on spending and growth in traditional service contracts stalled. That underscored the challenge for Parekh, who has pledged to drive growth.Both he and Sikka have stressed investments in innovation, digital services and re-training employees in latest technologies such as automation and artificial intelligence. “To build the future Infosys, we have to make those investments now,” Parekh, who has a reputation for being calm and understated, told Bloomberg in an interview last year.It could be days or weeks before evidence is gathered and the investigation concludes. Until then, the allegations cast a shadow over Infosys’s management. And it’s likely that the urgent task of addressing broader business challenges will take a backseat to the public drama for now.“There’s a lot of emotion around everything that happens at Infosys,” Greyhound’s Gogia said. “While I would wait for the investigation before passing a verdict on the anonymous charges, this episode does make things tougher for Infosys.”(Updates with government official’s comments from the fifth paragraph.)To contact the reporter on this story: Saritha Rai in Bangalore at srai33@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, ;Arijit Ghosh at aghosh@bloomberg.net, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Infosys Dives Most in Two Years As Whistle-Blowers Target CEO
    Bloomberg

    Infosys Dives Most in Two Years As Whistle-Blowers Target CEO

    (Bloomberg) -- Infosys Ltd.’s shares plunged to a 10-month low after whistle-blowers accused Chief Executive Officer Salil Parekh of leading an effort to shore up profits through irregular accounting, turning up the heat on an IT services giant that endured internal turmoil just two years ago.The stock fell as much as 16% Tuesday, wiping out 2019’s gains via its biggest intraday fall since April 2013. The letter, addressed to the board and published by the Deccan Herald, charged Parekh with “unethical practices” to boost revenues and profit in recent quarters, anonymous whistle-blowers wrote in a memo titled “Disturbing unethical practices.” The whistle-blowers also said recent big deal wins may have come with negligible margins. They asked the board to investigate and take action, offering to provide emails and voice recordings to support their allegations.Chairman and co-founder Nandan Nilekani pledged a full investigation, saying the allegations had gone before the company’s Audit Committee. The memo dated Sept. 20 was the latest in a series of whistle-blower complaints that wrought havoc at Asia’s second most valuable IT services firm, triggering the exit of previous CEO Vishal Sikka after a confrontation with co-founder Narayana Murthy. The company, a symbol of India’s technological boom, had gained more than 15% of market value this year as it stabilized the business with a transition toward automation.The allegations “could severely damage the company’s pristine brand if true, especially in the IT services industry,” Bloomberg Intelligence analyst Anurag Rana wrote. “It could also hurt short-term sales, as clients may look for other providers for newer projects.”Infosys May Need Some Private Time to Fix Itself: Andy MukherjeeRead more: Infosys Profit Slides After Companies Skimped on SpendingNilekani had only just proclaimed last year that Infosys had become “boring again.” The allegations come as Infosys and larger rival Tata Consultancy Services Ltd., which build software and provide services to some of the world’s largest banks and retailers, navigate an increasingly difficult business environment. The industry is grappling with a trend toward automation and rapid technology changes.This month, Infosys posted a 2% fall in quarterly profit after nervous clients held off on spending and growth in traditional service contracts stalled. That underscored the challenge for Parekh, who has pledged to drive growth in digital services, re-energize core offerings, re-skill employees and hire locally in a key U.S. market where a tightening H-1B visa regime is making it more difficult to import labor. Tata Consultancy also posted earnings that lagged projections.“The newsflow around this may dominate investor attention in the near term and could continue to support the shift toward TCS,” Emkay analyst Manik Taneja wrote.Read more: Whistle-Blowers Allegations to Shrink Infosys Valuation PremiumThe IT services giant itself has undergone internal upheaval in the recent past. The memo emerged days after the departure of former deputy chief financial officer, Jayesh Sanghrajka.Parekh, a former Capgemini SE executive, was named to the helm in 2017 after a very public battle between his predecessor and the company’s founders, who objected to Sikka’s strategy and compensation. At the time, Sikka quit over what he described as “a continuous drumbeat of allegations” over management and corporate governance. The share price tumbled, wiping out billions of dollars in investor wealth.Read more: ‘Stay Calm, Don’t Panic’ CEO Aims to Steady Troubled InfosysAfter the drama, which Chairman Nilekani had described as reaching “reality TV” like proportions, the more low-key Parekh was regarded as an apt choice to lead the company. He is only the second outsider, after Sikka, to take the top job at the four-decade-old Infosys where its co-founders -- middle-class Indian engineers who started it with 10,000 rupees ($140) -- typically revolved through the CEO’s office.“The whistle-blower complaint has been placed before the Audit Committee as per the company’s practice and will be dealt with in accordance with the company’s whistle-blowers policy,” Infosys said in an emailed statement on Monday.(Updates with shares from the second paragraph)\--With assistance from Debjit Chakraborty, Abhay Singh and Devidutta Tripathy.To contact the reporter on this story: Saritha Rai in Bangalore at srai33@bloomberg.netTo contact the editors responsible for this story: Edwin Chan at echan273@bloomberg.net, ;Arijit Ghosh at aghosh@bloomberg.net, Colum MurphyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Is Capgemini (EPA:CAP) A Risky Investment?
    Simply Wall St.

    Is Capgemini (EPA:CAP) A Risky Investment?

    Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

  • South China Morning Post

    Small investors are turning to private equity amid uncertainty in financial markets, says wealth manager Lu International

    Uncertainty in global financial markets in recent months has pushed investors away from equities into fixed income and, in some cases, cash, according to Kit Wong, the chief executive of Singapore-based Lu International.But it also has heightened interest by smaller investors in a surprising area: private equity products, Wong said."A lot of the money is sitting in yield-based products, [such as] fixed yield and stuff like that," Wong said. "[There's] a lot more interest in private equity. That's also because private equity, being very long-term hold, takes away some of the short-term volatility that people are seeing in the market."That's quite a big shift in profiles. Previously, it was either equities or fixed income. Now as equities has come down, fixed income has picked up. There's a lot of demand for longer term private equity."Lu International operates the digital wealth management app Lu Global, which allows investors to direct their own investments in asset management products, ranging from traditional open-ended and close-ended funds to private equity. It is owned by Ping An Insurance-backed Lufax, one of China's largest financial technology companies."While it is an app-driven, self-directed, investor-driven experience, the area we're trying to move to is get more of the alternative products available at smaller ticket sizes for everyone," Wong said. "It's to give everyone a chance to try something different."High-net-worth individuals with a minimum investment amount of US$1,000 can use the app. It features products from a variety of providers, including BlackRock, Citic, Credit Suisse, JP Morgan Asset Management and PIMCO. 'Embrace the inner contrarian and buy', emerging markets asset manager saysThe app reflects a move by the industry to provide more self-directed investing options to consumers.Its debut also comes as the amount of wealth held by high-net-worth individuals globally declined for the first time in seven years last year amid the backdrop of slowing economic growth and a trade war between the United States and China, according to a report by technology consulting firm Capgemini.Global wealth declined by US$2 trillion to US$68.1 trillion in 2018, driven primarily by drops in the Asia-Pacific region and China, according to Capgemini's annual World Wealth Report."Within an atmosphere of upheaval, near-term global economic recovery remains uncertain," Capgemini said in its July report. "Geopolitical and trade concerns have left the global economy and stock markets on a low note for the year."Capgemini said global asset allocations shifted significantly to "a more conservative position" in the first quarter of this year, with cash and cash equivalents accounting for nearly 28 per cent of high-net-worth individuals' portfolios. Equities fell to second place, at nearly 26 per cent, and alternative investments received higher allocations in high-net-worth individuals' portfolios globally, according to the report. China, Hong Kong rich led US$2 trillion decline in global wealth last yearLu Global began offering services to accredited investors in Singapore and other investors in Asia in September 2018 and is looking to expand to neighbouring markets in Asia through licensed local partners. It has more than 300,000 registered customers from 19 different nationalities, with an average investment of about US$27,000 a person.The company is using a variety of technologies, including some developed by Ping An, to sign up customers and comply with "know your customer" and anti-money-laundering regulations. Facial recognition also is used for security on the account, such as verifying a person's identity if they want to change their address, Wong said."The onboarding itself is a full digital experience," Wong said. "You download the app, you sign up online and submit your documents through the app ... we use facial recognition to prove that the person signing up is a real human being and not a video or a robot. Secondly, the facial recognition helps to match the picture of the face in the passport or other document provided."As part of the sign-up process, Lu Global evaluates a customer's risk level " and restricts their ability to buy products that do not fit their risk profile. The company also uses videos and animation, in addition to traditional documents, to help users better understand their investments, Wong said.The average Lu Global customer is in his or her 30s to early 40s, with people in the financial and tech industries being more active on the platform, Wong said.Wong said he would like to see the company reach US$2 billion to US$3 billion in assets under management in the next five years."We do know that requires a fair bit of hard work," he said.This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2019 South China Morning Post Publishers Ltd. All rights reserved. Copyright (c) 2019. South China Morning Post Publishers Ltd. All rights reserved.

  • Don't Sell Capgemini SE (EPA:CAP) Before You Read This
    Simply Wall St.

    Don't Sell Capgemini SE (EPA:CAP) Before You Read This

    This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios...