Eaton Vance considers expansion in Germany

Eaton Vance Management (International), a branch of US investment firm Eaton Vance Management, is currently looking at expanding its business in Germany, InvestmentEurope can reveal.

Speaking to InvestmentEurope, Tjalling Halbertsma, managing director at EVMI, says that the firm has received “a number of reverse enquiries for our loans, municipal bonds and emerging market debt strategies and we are in the process of hiring someone to lead our German business.”

Halbertsma pinpoints that in the current low yield environment, he stresses a lot of demand in Europe for strategies that enhance yield: high yield, emerging market debt and senior loans.

“A number of clients have expressed concerns on where we are in the credit cycle but this is where our focus on downside protection clearly adds value. On the equity side we come across similar concerns; the market, in particular the US, has had a strong run and it is difficult to find value. Hence we see strong interest for a new strategy which provides investors with equity index returns but with a 40-50% volatility reduction.

“Our Defensive Equity strategy replaces part of the Equity Risk Premium with a more persistent and stable source of return in the form of the Volatility Risk Premium,” he explains.

EVMI has recently launched a global high yield fund within its Dublin-domiciled Ucits fund range, available to investors based in the United Kingdom, Ireland, Spain, Netherlands, Sweden and Finland, with forthcoming registrations in Germany, and Switzerland.

Among other strategies already registered by the manager in Europe remain the Eaton Vance International emerging market local income, defensive equity and multi asset credit funds.

Regarding Brexit, Halbertsma says the firm monitors the issue closely and that it is hoping for a positive outcome that will satisfy all parties involved.

“Having said that, Brexit is unlikely to alter our course. We are looking to grow our business, from London and have already doubled our headcount here from 20 to 40 over the last 2 years. We are adding more headcount at the moment to support the strong growth of our business in the UK, Europe and beyond,” EVMI’s managing director adds.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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