A group of former Barclays executives are planning to launch a London-based asset management firm that combines socially responsible and Islamic investment principles, seeking to build crossover appeal among both investor segments, according to Reuters.
The firm, named Arabesque, is due to open to investors in the first quarter of 2014 with a team led by Omar Selim, Barclays former head of global markets for institutional clients in Europe, the Middle East, Africa and Eastern Europe.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The firm will focus on value-based investment strategies, which buy shares, deemed to be trading at a discount to their fundamental worth and its methodology will use environmental, social and corporate governance (ESG) criteria.
The firm is seeking for authorisation and regulation by Britain’s Financial Conduct Authority.
The firm is also establishing funds in Luxembourg and the Cayman Islands and plans to offer managed accounts as well.
The firm’s office in Frankfurt will handle research, advisory activities and distribution while the firm also plans to open an office in the Gulf for additional research and client coverage.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"Implementing ESG is not meant to patronise anyone, quite the contrary – it is for performance, and extensive academic research supports this," said Selim.
"Our objective is to make sustainable investment attractive and available to all investors regardless of the economic and cultural background," he added.
"We will start with three globally diversified equity funds and later expand to other asset classes such as fixed income and real estate," said Andreas Feiner, former head of distribution for Barclays Saudi Arabia.
The executive’s team includes Dominic Selwood, former global head of Islamic products at Barclays, as well as Alexander Kuppler, former head of trading at DWS Investments, Deutsche Bank’s retail fund management arm, and Tarek Selim, who headed the structured solutions team in Germany and Austria for UBS. The firm aims to add a head of quantitative research.
Selim added that Arabesque will abide to rules developed by the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions as well as United Nations principles for responsible investment.
