La Française AM is planning to launch a new investment solutions unit as it aims to improve its absolute return offering, Citywire Global can exclusively reveal.
The French firm runs over €36 billion in assets and is currently awaiting regulatory approval for its new division which is expected to be fully operational by March.
Speaking exclusively to Citywire Global about the new division, the group's CEO Patrick Rivière said it will initially be composed of around 25 people from both the investment banking world and asset management industry.
Part of the new plans will see the launch of Alternative Ucits funds, said Rivière, which will be focused on cross-asset arbitrage strategies and include the launch of Alt Ucits credit funds, among others.
The new division will also offer dedicated absolute return solutions to institutional investors in the form of mandates or specific tailored funds.
The firm will also offer investors what it describes as 'horizon' bond funds where they have the possibility of extending their holding period beyond the fund's maturity date.
Finally, its investment solutions aims to develop new products for investors from the insurance sector looking for euro-denominated bond investments.
The move follows a similar project by fellow French group Groupama AM who announced the restructuring of its absolute return offering in September.
'We are convinced that there is a strong demand for these type of very precise products from both retail and institutional investors where you can anticipate their movements,' Rivière told Citywire Global.
'The new Solvency II regulation will also accentuate this need. We want to provide investors with a clear view of cash flow and predictable behaviour.'