Perth-based NWQ Capital Management is offering local investors access to more options after partnering with US hedge fund group Titan Advisors.
They plan to launch an investment fund that will incorporate environmental, social and governance (ESG) criteria into the way its portfolio is managed.
The NWQ Titan Eclipse Fund will integrate a portfolio of ESG-centric hedge fund managers from around the world.
The fund will build on a recently established alliance between US-based Titan, which researches and analyses hedge funds globally, and Flat World Partners, which seeks to ensure investment funds have a genuine ESG impact.
NWQ managing partner Jonathan Horton said the Titan and Flat World alliance was unique.
“This initial collaboration will provide investors with the opportunity to generate returns matched to enterprises that not only reflect their values, but that have a real-world social impact in what they do,” he said.
“Importantly, for investors here in Australia who desire both financial and social returns by supporting companies that do good, our ESG fund will be the only one of its type supported locally.”
Mr Horton said Eclipse would initially invest in about 10 different hedge funds.
NWQ and Titan planned to follow their initial offering with a suite of global options for local investors.
Titan founder and president George Fox said “Jon Horton and NWQ were the obvious choice as our Australian partner when we were evaluating the move downunder”.
“Over the years they have been award winners nationally, and we are delighted to join with them to offer Australian investors appropriate and timely investment solutions that can provide meaningful diversity in the current challenged market environment,” Mr Fox said.
Headquartered in Stamford Connecticut, Titan manages about $US4 billion for pension funds, insurance companies, endowments, financial institutions, family offices and high net worth individuals.
Mr Horton said NWQ’s flagship Fiduciary fund, launched in 2013, has allocated its funds across 10 different equity hedge fund managers.