Australian funds manager Pengana Capital has signed a distribution agreement with US quantitative manager PanAgora Asset Management to stregthen its investment solutions with a suite of quantitative offerings.
Through this deal, PanAgora will expand its institutional funds management capabilities to the Australian retail market.
Under the agreement, Pengana will offer the PanAgora Absolute Return Global Equities Fund before the end of 2015.
The Equities Fund is a global long/short strategy with daily liquidity that aims to generate attractive returns regardless of the direction of the underlying market.
Pengana CEO Russel Pillemer said the move reinforced the manager’s commitment to deliver returns not relative to an index.
The new fund offering will join Pengana’s other equity strategies spanning Australian shares, Australian small caps, global resources, global small caps, and Asian event driven. Pengana manages around $1.5BN in assets across these five equity strategies.
PanAgora Asset Management now manages about $53bn across a range of strategies for over 125 institutional investors globally as well as about $2bn for Australian institutional investors.
Pillemer said: "We are seeing a strong uptake in interest from both advisers and individual investors who are seeking ways to maintain capital and produce reasonable, risk adjusted returns in the face of a highly uncertain investment environment, increasing volatility and stretched equity market valuations,".
"We are very pleased to be partnering with PanAgora to bring a range of world class quantitative solutions to Australian advisers and investors," he added.