Threadneedle has announced the acquisition of Convivo Capital Management, a specialist emerging market hedge fund business that manages assets of USD476m in two strategies, subject to regulatory approval. Convivo chief executive Julian Adams will join Threadneedle to run its enlarged emerging market debt business.
'This transaction achieves two important goals for Threadneedle,' says chairman Simon Davies. 'It further boosts our hedge fund business and it significantly increases our presence in emerging markets, particularly in the areas of currency and debt. We believe the combined resource of Convivo and Threadneedle represents a major attraction to our client base.'
Adds Adams: 'The enhanced team will allow us to develop a powerful position in the emerging markets area and the extra resource and infrastructure which Threadneedle provides will allow us to focus exclusively on our core competences to the benefit of all parties.'
Threadneedle launched its hedge fund business in 2000 and will now manage about USD3bn across nine different strategies, three of them in the emerging market area, with further strategies set for launch later this year. Overall, Threadneedle will manage more than USD10bn in emerging markets including USD1.5bn in the debt and currency area.
Founded in 1994, Threadneedle has more than 130 London-based investment professionals and managed USD138.2bn in assets at the end of June for pension schemes, insurers, private investors, corporations, mutual funds and affiliate group companies.
The firm, which has investment expertise in equities, bonds, property and hedge funds, has customers in 15 countries and more than 600 staff members in the UK, France, the Netherlands, Germany, Austria, Switzerland, Spain, Sweden and Denmark.
Threadneedle is the international investment platform and subsidiary for Ameriprise Financial, a US financial planning and services company with more than 12,000 financial advisors and registered representatives formerly known as American Express Financial Corporation.
Convivo was founded in May 2003 through the purchase from Aberdeen Asset Management of its Guernsey-based emerging markets fund management business, set up by Adams. The Convivo Absolute Sovereign High Yield Fund was established at Aberdeen in July 1999 and had assets of USD447.8m at the end of July, while the Convivo Emerging Opportunities Fund was established in January 2006 and had assets of USD6.7m as of July 30.