Ashburton Investments, the asset management arm of the FirstRand Group, has entered a strategic partnership with Fidelity International, the $324bn global asset manager, the companies announced today.
The partnership applies to Ashburton Investments’ longstanding international multi asset funds range, which has some $850m of assets under management, the companies said today in a statement.
“Under the partnership, Ashburton Investments will benefit from the expertise of Fidelity International’s highly experienced and research-focused multi asset team in the management of its funds,” Ashburton said.
Under the agreement, Jersey-based Ashburton will maintain responsibility for global macro views, tactical asset allocation and client distribution of the range, while Fidelity’s multi-asset team will provide advisory services on security and fund selection, as well as support the implementation of asset allocation decisions. Strategic asset allocation will be driven jointly by both companies.
Ashburton chief executive Boshoff Grobler, pictured left, said his company believes it can “further enhance the quality of our funds” by partnering with Fidelity International, at a time of “changing global business models in an increasingly complex world”.
“This will allow us to create an even better offering for our investors,” added Ashburton chief strategy officer Jeff McCarthy.
Ashburton Investments is the asset management division of FirstRand International Asset Management, itself a part of South Africa-based, Johannesburg Stock Exchange-listed FirstRand Group. Ashburton currently has more than £5.8bn in assets under management, and has offices in the UK, Channel Islands and South Africa.
Fidelity International was established in 1969 as the international arm of Fidelity Investments, founded in Boston in 1946. It became independent of the US organisation in 1980, and is today owned mainly by management and members of the original founding family, with its head office located in Bermuda. It points to its privately-held status as an advantage for its investors, since it is unencumbered by the needs and demands of shareholders, and notes, in a statement on its website, that its competitive advantage is derived from active, bottom-up research.
It says it is currently investing around $324.5bn globally on behalf of clients in 26 countries across Asia-Pacific, Europe, the Middle East, and South America, with a client base consisting of central banks, sovereign wealth funds, large corporates, financial institutions, insurers and wealth managers in addition to private individuals.
Its investment administration arm, which provides admin services and guidance for employer benefit schemes, advisers and individuals, currently oversees around $106.2bn in assets under administration.