FiINLAND - A major player is set to hit the Nordic hedge fund market following a new merger deal.
3C Fund Management is set to combine its hedge fund operations with those of investment manager Mandatum - part of Finnish insurer, Sampo - to form a new company, 3C Asset Management (3C).
According to Juhani Elomaa, managing director of 3C, hedge fund investment among pension funds in the region is set to become a become a “big issue” in the near future as investors look to non-correlated assets in light of stock market volatility.
Elomaa added that Finnish pension fund portfolios, for example, could expect to see allocations to alternative strategies rise to 5% in the next few years, from the current average of around 1%. The majority of this money is likely to flow into hedge funds, he said.
The deal will result in a combined portfolio of EUR300mmaking the Helsinki-based firm the second largest Nordic hedge fund manager by assets under management. Swedish firm Brummer & Partners currently holds the top spot with approximately EUR2.1bn (SKr20bn) in asset under management.
Details of the transaction were not disclosed. But Sampo is set cut its 56% stake in the new company to 51% in order to recruit new executive partners; 3C holds on to a 44% share.
By Madhu Kalia
Tim Sharp warns the DWP's plans for collective DC risk establishing an inhospitable environment for the lay trustee
This week's edition of Professional Pensions is out now.
The government is in talks with the UK and Irish pensions regulators over how to protect members of cross-border schemes in the event of a no-deal Brexit.
The equalisation of guaranteed minimum pensions (GMPs) is at least two years away from being completed, and could take longer than four years for some schemes, a poll has found.