Jacques Tebeka is head of diversified multi-management at the newly formed Edmond de Rothschild Investment Managers. He talks to InvestmentEurope about manager selection and client needs in a troubling investment climate.
Today long-only funds of funds represent 15% of EdRim’s total business, which currently runs an estimated €9.5bn of assets under management. Most of this
investment is sourced from private clients, family owned companies, family offices, life insurance companies and institutions in France and worldwide.
In Tebeka’s role as head of diversified multi-management, he is responsible for selecting two types of products: diversified funds and thematic funds.
The thematic funds run by EdRim’s diversified multimanagement division include EdR Multigest Selection Credit (invested 0% to 100% in bonds), EdR Multigest Europe (invested 60% to 100% in equities), EdR Multigest Amérique (invested 60% to 100% in US equities), EdR Multigest Emergents (invested 60% to 100% in emerging market equities) and EdR Geo-Energies (invested 60% to 100% in natural resources and energy equities).
Tebeka’s team also manages three diversified funds: EdR Allocation Rendement, EdR Allocation Patrimoine and EdR Allocation Dynamique. All three funds were launched in 2000. They aim to limit losses to a maximum of 5% to 10% per year while outperforming an index composed of either 20%, 50% or 80% MSCI World Local GTR and 80%, 50% or 20% Euro MTS over three to five years.
As the main criteria for diversified fund selection is to allocate to managers who will not lose more than 5% to 10% in any year, the potential pool of managers is large, providing Tebeka with greater portfolio reactivity and flexibility.