PanAgora to cut link with Union 'because'

GERMANY/US - Union PanAgora, the quantitative investment management boutique jointly owned with Union Investment and PanAgora Asset Management, will have a new name from next year as PanAgora is pulling of the venture.

A statement issued by Union Investment said it is acquiring all remaining shares held by PanAgora in the venture from January 2009 though the specialist quants operation will continue to trade as an independent house under the name “Quoniam Asset Management GmbH”.

Union PanAgora was created 10 years ago by the two houses so the new status of the firm is merely a decision to maintain that arrangement, albeit with a new name and as part of the Union Investment stable, said a spokesman for Union.

Union will become the largest shareholder while the management will increase their stake from 20% to 25%, and all of the existing management are staying with the new Quoniam operation, headed by Dr Andreas Sauer, stressed the spokesman.

“We came to the conclusion we would like to develop Union PanAgora further so it can not only play on a European level in terms of managing European equities and bonds but build the whole model on a global level,” said the spokesman.

Quoniam’s aim is to expand its presence both outside Germany and Europe but tap the wider international market both in investments made and mandates won.

While Union PanAgora does most of its business in Germany at present, approximately 15% of its €9bn in assets are managed on behalf of overseas clients, including the likes of AP3, the Swedish state buffer fund, which appointed Union PanAgora as one of its enhanced index managers. (See earlier IPE story: AP3 signs enhanced managers)

‘Quoniam’ is latin for ‘since’ or ‘because’ and was chosen, according to the spokesman, “to represent a link to a structure or consequent investment process” - the action happens ‘because’ you doing something.

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