EFG Asset Management launches new UK business in expansion drive
EFG Asset Management (EFGAM), the asset management business of EFG International, has established a new asset management company in the UK to offer its funds and investment services to a wider audience of small and medium sized institutional clients. Similar separate companies will be launched this year in Europe, Asia and the US as the bank moves to grow its business.
The new London-based company, EFG Asset Management UK, will offer its funds and services to targeted investors and financial intermediaries. “We will be offering funds relevant to today’s market place and address some of the gaps in the market with carefully constructed portfolios,” said Moz Afzal, chief Investment officer of EFGAM and CEO of EFGAM UK.
The growing consolidation within the asset management industry in the UK and globally has opened up market opportunities, Afzal said. “Quite a lot of middle size players have been swallowed up or blasted out. There is a lack of products out there.” Consolidation, he said, has been more acute in the UK particularly among middle tier boutiques and this has opened up the market.
EFGAM has operated in the UK as a division of EFG Private Bank for more than 17 years, but the new company will not distract from its private banking operations, Afzal said. High net worth clients will continue to be served through the private banking arm while the new companies will aim at small and medium size institutional clients looking for multi-asset or customised portfolios.
The new companies reflect EFG International’s strategy initiated last year, to enhance growth by structuring its business into five divisions, consisting of four regional private banking divisions and an asset management business.
EFGAM is already established in Geneva, Zurich, Hong Kong, Singapore, Miami and New York, and plans to establish separate asset management entities in each of these locations are already well advanced. “We hope to finalise all of these by the end of the year,” said Afzal.
EFGAM presently has assets under management of $7bn. It is an integral part of the private banking business growing fast with managed account assets increasing by about 20% in the year to end-June 2011.
Products to be marketed by EFGAM UK include the “New Capital” range of funds which seek global investment opportunities across asset classes. These funds include the New Capital Wealthy Nations Bond Fund, New Capital US Growth Fund and New Capital Asia Pacific Equity Income Fund. It also offers a comprehensive range of managed accounts strategies and customised portfolio services designed to meet client goals and risk tolerance.
Afzal said the new company will reach a larger investor audience in the UK. “With a burgeoning international platform, we are ideally placed to support a range of investors in what is a challenging market environment and intend to broaden our offering as we grow and as new investment opportunities arise.”