Bramdean Asset Management LLP, an institutional multi-manager and fund management consultancy business, has been established in London today. Bramdean’s chief executive is Nicola Horlick, the former chief executive and co-founder of SG Asset Management UK, and its Chairman is Sir Derek Higgs.
Bramdean, which is being backed by private investors, will open for business in January 2005, subject to regulatory approval. It will have two complementary divisions. One will provide a multi-manager product for institutional and private clients and the other will provide advice to institutional clients. Both divisions will be founded upon a comprehensive, multi-stage investment process focusing on manager research, manager monitoring and selection and portfolio construction. The multi-manager division will employ all aspects of the process whilst the consulting division will focus on the research and monitoring elements.
Chief executive Nicola Horlick said: “The multi-manager structure is the ideal response to a market which is polarising into either niche or very large businesses.
“We will be able to offer access to the best fund managers in the market, supported by an efficient structure and process and presented through a clear and simple reporting system. Smaller institutional clients have not had access to this type of service through the old, traditional, industry model.
“In the US, multi-manager businesses in the institutional and retail markets are an important part of the industry, running around $700bn of assets. Although there are multi-managers operating in the UK, their share of the institutional market is relatively small and we believe that there is room for a new, dynamic entrant.”
Initially, Bramdean will offer five funds within a unit trust structure, covering asset classes including UK and global equities as well as UK gilts and international bonds. In 2005, Bramdean intends to launch an absolute return fund and a private equity fund of funds.
Bramdean’s screening process will focus on past performance, recent management changes, risk management and the quality of the investment team. Of the 2,000 managers eligible for selection for its chosen asset classes, Bramdean will identify 200 through its initial selection and place them on a focus list for further investigation by its research team. It will then select two fund managers and four alternate managers for each asset class.
Bramdean’s business model has been designed in response to current market conditions. It believes that a multi-manager structure offers access to the best quality fund managers, while also controlling risk within a competitive charging structure.
Bramdean will offer its clients asset allocation advice alongside portfolio construction and it will also recommend scheme specific benchmarking. The company will provide its clients with clear, consolidated fund management reports. There will also be an innovative, performance-based fee structure.
Sir Derek Higgs said: “Bramdean will take the strain for its clients by giving them access to the best performing managers on a cost and time effective basis. I’m delighted to be able to help Nicola Horlick and her team in building what I am sure will be a highly successful business.”
Sir Derek Higgs will be Non-Executive Chairman. Michael Kinney is Head of Manager Research, Laura Jones is Head of Client Administration and Paul Osborne is Head of Institutional Sales.