Banque Privée Edmond de Rothschild Europe, the Luxembourg based subsidiary of the Geneva-based LCF Rothschild Group, has emerged as one of the collaborators of a new European funds venture hoping to tap into the demand for more liquid, tighter-regulated hedge funds.
Next Generation Absolute Return, an initiative which includes a Ucits Sicav and a Ucits fund of funds, has been set up by Switzerland-based Decision Analytics Advisory Partners and offers investors access to a funds family product range comprised of Ucits managed by carefully selected investment managers.
Decision Analytics brings together several European financial services firms in addition to Rothschild. These are Luxembourg-based Lemanik Asset Management; the Swiss firms Secquaero Advisors and Plexus Investments; and German-based fund manager Acatis Investment.
Fred Sage, managing partner of Decision Analytics, says: "Our combined expertise provides the investor with the benefits of pre-screened, hard to identify managers who bring excellent strategies, skill, track records and the required capacity."
Advising on the venture is Bob Friedman, who built the World Express Funds a similar Sicav business for American Express Bank, the wealth management business, in the early 2000s.
Friedman says: “I am excited to work with Decision Analytics and offer my assistance in executing the Next Generation business plan. This allows me to build upon my experience at American Express in growing the innovative and successful fund model that relied on independent asset managers to deliver absolute return and other unique strategies.”
During the first quarter of this year, a number of Ucits sub-funds advised by pre-selected third party managers will be launched. These include the Next Generation Absolute Return Ucits Fund of Funds as well as insurances linked securities, global macro asset allocation, emerging markets and managed futures.
During 2010, Decision Analytics will continue to conduct due diligence and select new funds and their managers for the Next Generation Sicav allowing the funds family to grow and product range to expand to a minimum of 12 sub-funds by the end of 2010.
“We are highly supportive of the Next Generation Absolute Return Ucits venture in our capacity of custodian and administrator. The Next Generation funds family offers a compelling value proposition for investors, as well as for the third party investment management firms whose strategies will be featured,” says Claude Pech, vice president, Banque Privée Edmond de Rothschild Europe.
