GERMANY - HVB Group has launched Germany's first multi-manager programme for European institutional clients.
The programme has 12 individual funds, each of which has two specific asset managers.
The funds are structured like Irish UCITS umbrella funds and comprise the following asset classes - emerging markets debt; emerging markets equity; European bonds; European equity; global bonds; global equity; global high yield bonds Japan equity; North American equity; North American small cap; Pacific Asia (ex Japan) equity; US bonds funds.
The funds target European banks, insurance companies, pension funds and other institutional investors managing assets between E200m - E4bn.
Stephan Bub, board member responsible for HVB Corporates & Markets, said: “Already the total market for multi-manager products worldwide is around US$500 billion, a figure we expect to increase substantially within the next few years.
The difference between multi-manager funds and fund of fund structures is that fund of funds invest in mutual funds, while multi-manager funds have segregated accounts with different managers. HVB said that the advantage is much tighter risk management and monitoring of the different asset managers.
The following asset managers have been selected for the programme: BlackRock International; The Boston Company Asset Management; Fischer Francis Trees & Watts; F&C Emerging Markets; Goldman Sachs Asset Management; JPMorgan Fleming Asset Management (UK); Lloyd George Management (Europe); Martin Currie Investment Management; Standish Mellon Asset Management; Wellington Management Company; and Unigestion.
HVB Fund Services will act as the overall manager of the programme. Mellon Financial Corporation will provide trustee and administration services. ABN Amro Mellon will act as global custodian.
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