EUROPE - Stockholm-based investment manager IPM (Informed Portfolio Management) has embarked on a joint venture with California-based quantitative specialist First Quadrant to offer European pension funds tactical asset allocation services and currency management.
The tie up, which is also open to other institutional investors such as life insurance companies, endowments, foundations and mutual fund distributors, builds on an existing relationship in the Nordics between the two firms since 2001.
First Quadrant will provide investment management technology and support to IPM, who will distribute and manage First Quadrant’s TAA and currency management products for clients across Continental Europe.
The move takes advantage of institutional demand for targeted absolute return and portable alpha strategies at a time of prolonged market uncertainty.
“This is an ideal time for us to expand our reach in Europe, and TAA is a product that is currently well-positioned for the European marketplace,” said Max Darnell, chief investment officer at First Quadrant.
“This product thrives in the kind of volatile environments that we are faced with today, and it is one of the few products that offer real diversification of active risk at the fund level. At the same time, institutional investors throughout the world are increasingly turning to active currency management as a new source of outperformance.”
Nearly 50% of First Quadrant’s US$14bn assets under management are held outside of the US, where the firm also has joint ventures with Yield Management Group in Toronto, Nomura Asset Management in Tokyo in Fuji Investment Management also in Tokyo.
Jonas Rinné, managing partner of IPM which also offers portfolio protection and rebalancing, said: First Quadrant not only shares our investment philosophy, but was prepared to strongly align their interests with our own.
“The venture is an important milestone in our objective to become a leading quantitative investment manager focused on providing alpha to institutional investors across Europe.”
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