France’s Active Asset Allocation to partner NExt AM
Active Asset Allocation (AAAiC) and NExT AM have signed a strategic partnership agreement to provide risk management and asset allocation support to entrepreneurial companies NExT AM is investing in.
NExT (Nouvelles Expertises et Talents) AM is the entity of La Française AM that takes minority interests in innovative companies in the asset management community.
Active Asset Allocation specialises in financial engineering based on risk management through asset allocation. NExT AM believes the asset managers it has invested in could benefit from the AAAiC approach to reinforce their internal risk management and improve their performance.
The partnership reflects the common will to support growing asset managers in their entrepreneurial projects so that they can focus on the development of their investment strategies.
By actively managing risk, AAAiC aims to help preserve the financial resources managed over the long term. It also provides an additional, unexploited source of alpha.
The combination of academic expertise and investment experience helps investors better define and understand their risks. Last year AAAiC research received a Finance Innovation certification from Paris Europlace, the Paris financial markets organisation.
NExT AM backs entrepreneurial managers in financial services, especially asset managers, from the launch stage to early stages of growth, through capital participation or fees sharing, by seeding their products and providing a range of services.
NExT AM has about 20 holdings, which represent nearly €8bn under management or advisement.