Investec targets EU institutional investors with alternatives platform

Investec Asset Management has launched an alternatives platform in Luxembourg to cater for EU-based institutional investors.

The platform is designed to offer investors access to a range of strategies under the Alternative Investment Fund Managers Directive (AIFMD), with offerings tailored to specific client groups.

The first product on the platform is an unconstrained multi-asset credit fund, run by Jeff Boswell and Garland Hansmann. The pair already manage roughly $400m (€342m) in the strategy through other vehicles.

Investec also planned to launch a defensive version of the strategy aimed at German institutional investors, a spokeswoman for the asset manager said.

John Green, global head of client group, said: “This move underlines our commitment to providing our European clients with solutions tailored to their specific requirements – an example being investors’ dual requirements for yield enhancement and capital preservation given uncertain markets.

“Our multi-asset credit strategy actively manages exposure across the credit spectrum to build a diversified portfolio which aims to be high-yielding yet comparatively defensive, with low volatility and low sensitivity to interest rates.”

Investec’s existing Luxembourg fund range includes 47 products with more than €31bn in assets.

The spokeswoman said the move was unrelated to its Brexit preparations. Similarly, she said the firm had no specific plans to add staff in its Luxembourg office.

Companies including M&G and Columbia Threadneedle have transferred assets out of UK-based funds to Luxembourg in preparation for the UK leaving the EU in March, while several other asset managers have expanded their resources in offices in Ireland or Luxembourg.

AIFMD is a European directive covering hedge funds, real estate, private equity and other alternative investment categories.

Access IPE’s November 2017 Credit Special Report here.