Citywire Americas rounds-up the biggest news in the funds and Ucits investment universe as reported by Citywire’s global publications this week.
JP Morgan Asset Management merged its global and European equity departments to create an over-arching international equity group with $120 billion in assets.
The merger is designed to offer clients greater choice across a host of international investment strategies and unites teams covering three distinct investment process.
The existing head of JPM AM’s European equity group, Malcolm Smith, will sit as head of the newly-united department. Smith will help coordinate the efforts of 96 investment professionals.
London-based boutique CZ Capital launched a Ucits version of its flagship absolute alpha product on Morgan Stanley's FundLogic Alternatives platform.
The CZ Absolute Alpha Ucits fund aims to achieve positive risk-adjusted, uncorrelated returns through investments primarily in UK equities.
It mirrors the existing CZ Equilibria fund, which is a market neutral hedge fund invested in UK equities.
Neuberger Berman has launched a fund of uncorrelated absolute return strategies to capitalize on investor appetite for alternative investment ideas in the low growth world.
The Neuberger Berman Uncorrelated Strategies fund, was launched as a Ucits product with $71 million in seed capital.
Portfolio manager Fred Ingham will identify differentiated strategies such as global macro, market neutral, short-term trading and trend following to blend them in the fund.
Pimco closed Citywire AA-rated Michael Althof’s Euro Real Return fund after the inflation-linked strategy failed to accrue sufficient investor interest.
The Pimco GIS Euro Real Return fund was closed at the end of May despite posting strong absolute and risk-adjusted return figures over the past three years.
It is understood that, despite the performance, investors were drawn to the $2.35 billion Pimco GIS Global Real Return fund, overseen by Citywire + rated Mihir Worah instead.
Vontobel launches new income fund
Vontobel Asset Management launched a ‘quality’-focused equity income fund to target consistently outperforming stocks.
The Vontobel Fund Global Equity Income fund was soft-launched in December 2016 to accrue assets and will be overseen by Ramiz Chelat, who runs a US-domiciled Global Opportunities fund, and Igor Krutov, who is director of research at the boutique.
The duo will target high quality growth companies and franchises which have high and stable returns on equity, strong balance sheets and strong free cash flow generation.
UK manager moves $6.9bn worth of funds to Lux
As Brexit talks start to take shape, London-based M&G Investments is planning to avoid any fallout by switching assets in four UK-domiciled funds to new Luxembourg-domiciled equivalents.
The asset manager announced plans to beef up its Luxembourg operations in the immediate aftermath of the UK’s vote to leave the European Union in June of last year.
In the latest move, M&G would transfer the €4.8 billion ($5.5 billion) Dynamic Allocation, €1.12 billion ($1.28 billion) Prudent Allocation, €942 million ($1 billion) Income Allocation and €78 million ($89 million) European Inflation Linked Corporate Bond funds to its Luxembourg-domiciled SICAV.