GLOBAL - Asset managers must rethink the way they present global equity products, according to Pioneer Investments' global head of institutional business, Paul Price: "The age of the product push is over," he said today.
Investment management firms must also have the self discipline to close global equity products to new business when they reach capacity. Furthermore, they must create products that are less benchmark orientated in order to meet demand from investors.
"Investors are seeking a wider opportunity set to generate alpha…Science and sophistication are coming into global equities," Price added.
As part of its strategy to re-think global equities, Pioneer is launching three global equities products, which is says were developed in close co-operation with investors, including in the area of 130/30.
These products, which are slated for launch in September, are a concentrated global equity 130/30 strategy using fundamental and quant techniques, a diversified quant driven global equity 130/30 strategy and a global equity growth strategy using fundamental bottom up stock selection.
Price noted that managers offering growth strategies in global equities have either been closed for capacity reasons in recent years or have underperformed due to the value bias in the markets. "We believe that we have the ability to through our research approach to do well and that is why we are entering into this space," he added.
Price also said that although four or five major clients have already signed up to these strategies, consultants would be key to asset growth. "I am confident that we will be driving assets into this in September and going into 2008." he added.
Pioneer is also planning to launch a global fixed income bottom up strategy, a multi asset return fund utilising return sources from within the group that will include hedge funds, commodities, private equities and real estate.
The firm is also looking at launching an active commodities product that is likely to be limited in capacity.
Separately, Nomura has also appointed Pioneer to sub advise a €1.4bn concentrated European equities mandate for its Nomura Euro Top Company Mother fund.