A new asset manager based in Guernsey is promising a fresh approach to investing.
Generation Asset Management (G2AM), led by Managing Partners Manual Carrelet and Sixten Eriksson, describes itself as a new generation of asset management houses with an emphasis on growth strategies and emerging markets.
“The fund management industry has tried to do things differently - hedge funds and absolute return funds for example - but these products now share tarnished reputations. We have built Generation Asset Management from scratch because we do not wish to replicate these failures by fitting a new approach in to an old existing structure.
This is why we are delivering an old idea – actively managed funds that generate cash beating returns for long term investors – in a new way,” explains Eriksson, who believes that investors should get what they pay for – namely, a truly active investment management strategy that outperforms the benchmark.
“The asset management industry has been under attack for being too self-interested and delivering too little to clients. Certainly when you look at the returns delivered to investors over the last decade it is not an unreasonable supposition that fees are too high and results too intermittent.
We see a definite disconnect between asset management and their clients. Benchmarks are too often meaningless for clients, index hugging is far too prevalent and transparency is lacking. No-one should expect a professional service for free, but there is a difference between paying for a professional service and not receiving value for money,” says Eriksson. G2AM will employ a multi-manager approach.
The firm is a joint venture between Generation Group, a Geneva-based merchant banking firm and Arrow Capital Management, a leading Canadian asset management group. The new firm will have a head office in Guernsey and operations in London and Geneva.
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