Dutch ABN Amro has announced today that as of mid-April portfolios for retail and private banking clients will predominantly be managed via its own fund of mandates, according to a letter sent to the banks private banking clients.
ABN Amro pledged to maintain its open architecture whilst aiming to boost its own asset management activities. The Fund of Mandates structure aims to combine expertise from external managers which is not always readily available through investment funds.
For example, the structure allows ABN Amro to select funds which are not registered for distribution among Dutch retail investors.
A Fund of Mandates typically delegates part of its portfolio management among 3 to 6 external managers aiming to deliver a broadly diversified portfolio in terms of styles, managers and underlying securities.
According to ABN Amro, the transition to Fund of Mandates is set to improve transparency whilst reducing costs.