News round-up: Investcorp-Tages seeds DSC Meridian ESG-focused fund; Challenge investment correlation assumptions, says Penso Advisors’ COO; FundRock unveils new distribution initiative

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Investcorp-Tages seeds DSC Meridian ESG-focused fund

Multi-manager investment giant Investcorp-Tages has backed the launch of DSC Meridian’s Climate Action Fund (CAF), the first distressed and event-driven credit hedge fund investing with environmental, social, and governance (ESG) goals.

The fund launch follows on from corporate credit manager DSC Meridian’s flagship Credit Opportunities Fund, adding an ESG overlay with a focus on decarbonization.

Salvatore Cordaro, Co-CEO of Investcorp-Tages, said: “We are excited to partner with DSC Meridian and its mission to direct capital toward a more sustainable future. DSC Meridian’s size and deep credit expertise provide it with an advantage in flexibility and access, both of which are key to driving not only its ESG focused mission but its mandate to investors as a responsible steward of capital.

“Through the allocation of seed capital, we are able to support a uniquely qualified and highly driven team in bringing an ESG focus to an area where it has long been needed.”

DSC Meridian said that through corporate engagement, it aims to improve overall risk management, unlock ESG value, and align portfolio companies with the science-based climate standards set by the Paris Climate Agreement and UNPRI.

The firm has appointed sustainable finance, corporate engagement, and ESG professional Paula Luff as Director of ESG Research and Engagement.

Luff has developed and integrated sustainability programmes at multi-national corporations in the pharmaceutical and energy industries. She joins DSC Meridian from Inherent Group, where she directed the development of an ESG platform.

 

Challenge investment correlation assumptions, says Penso Advisors’ COO

Assumption of correlations between investment strategies needs to be challenged and rethought consistently, Jaime Schechter, COO at Penso Advisors, told the audience at HFM’s US Symposium.

Speaking on a panel looking at Managing Volatility, New York-based Schechter noted that many investment portfolios were constructed under ‘old’ assumptions which were now questionable, for example the link up between equities and fixed income.

“Correlations are an important topic when you’re considering how to manage market volatility,” he said. “Markets are unpredictable with daily changes – we should be constantly challenging our assumptions around correlations.”

Schechter was speaking at the 22 April virtual event alongside Coremont’s Gilles Marion and David Martin, CIO and Founder at Martin Fund Management.

 

FundRock unveils new distribution initiative

Third-party UCITS management company FundRock has launched a distribution service in Luxembourg for non-EU asset managers.

Asset managers in the UK, US, Asia and other third-country jurisdictions for which FundRock or its affiliates act as ManCo or AIFM, will be able to access FundRock’s fund distribution solutions through the recently established FundRock Distribution S.A.

FundRock said the new initiative, led by managing director Arnaud Gérard, CFA, launches with a “strong” client base from countries including Switzerland, United Kingdom and United States. The company will also build a ‘centre of excellence’, it confirmed, recruiting an institutional and wholesale team throughout 2021.

Following its acquisition by Apex, FundRock also recently announced it had surpassed the milestone of €100bn AUM, as well the launch of its French private equity and real estate AIFM which will assist international and domestic professional investors in accessing French investment vehicles.

Stephanie Taylor

Head of Event Content, HFM

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