MIFL makes half-billion cash injection to boutique management trio

Asset management platform Mediolanum International Funds (MIFL) has allocated €500m to three boutique managers, including London-based Mondrian Investment Partners.

The move comes as part of its multi-manager strategy, which aims to invest more than €10bn with specialist smaller managers over the next five years.

The asset management platform of Mediolanum Banking Group made the cash injections to Pzena Investment Management, Mondrian Investment Partners, and ATLAS Infrastructure.

The agreement with Pzena, the €40bn New York-based investment boutique, will see an initial allocation of €220m in the firm’s global value strategy. Pzena, which was established in 1995 by value investor Richard Pzena, is known for its high conviction approach, and a focus on buying companies at considerable discount to market.

MIFL will also be partnering with Mondrian, the €49bn London-based manager starting with an allocation of €220m in the firm’s Global Equity strategy.

“We are delighted to announce our new partnerships with Pzena, Mondrian and ATLAS,” said Furio Pietribiasi, CEO of Mediolanum International Funds. “All are highly specialised players with exceptional track records. They have also provided proof of their resilience generating superior results, thanks to their focus on clients’ outcome, even when in certain cases their strategies were out of favour.”

 

Crypto trend set to stay, predict CFOs

Hedge fund CFOs are predicting that cryptocurrencies will hold more than 7% of assets under management by 2026.

Research from more than 100 hedge fund chief financial officers, commissioned by administrator Intertust, estimated that in five years’ time an average of 7.2% of their assets under management (AUM) – an estimated $312.6bn globally – will be held in cryptocurrencies.

Nearly all (98%) of the CFOs surveyed expect to have at least some investment in cryptocurrencies in five years.  All CFOs in North America, Europe and the UK expect to invest at least 1% of their portfolio in cryptocurrencies, revealed the research. The average anticipated exposure in North America is 10.6%, compared with 6.8% in both the UK and Europe.

Regionally, predicted crypto exposure is highest among North American CFOs at 11%, over twice the level recorded among Asian respondents at 5%. Around a third (32%) of CFOs said their current investment strategies include cryptos.

“Certain crypto currencies, such as Bitcoin and Ethereum, have delivered incredible – albeit volatile – performance in recent year,” said Jonathan White, Global Head of Fund Sales, Intertrust Group. “Inevitably, they have drawn growing interest from hedge fund as well as institutional and retail investors.

“Increasing exposure to crypto currencies will require hedge funds to think about where the assets are custodied and to strengthen their operational controls, making their fund administration processes even more complicated.”

 

People moves

UBS has appointed Jon Slavin as Head of Execution Hub, Americas. Slavin, who most recently served as Global Head of Equity Trading at Morgan Stanley Investment Management, will have overall responsibility for the running of the hub’s US business. Slavin also previously held leadership trading roles at PIMCO, Weiss Multi-Strategy and Sigma Capital. He will report locally into Todd Lopez, Head of Execution Services, Americas.

Prime broker Cowen has grown its global capital introduction team with two senior appointments. Amy Cheung, based in Hong Kong and the first team member in the APAC region, joins Cowen as Vice President after three years working in investor relations and business development at hedge fund Bright Stream Capital Management. Daniel McGlinn joins Cowen’s San Francisco office, also as Vice President, after six years at PNC Asset Management, where he was a member of the alternative strategies team responsible for external manager selection.