Certitude Global Investment will look to add an Australian equity fund to its distribution portfolio after bedding down its partnership with United Kingdom-based asset manager Threadneedle Investments.
Certitude would distribute the Threadneedle Global Equity Fund to retail investors in Australia under a five-year agreement, the two companies said in a joint statement.
The partnership marks Threadneedle’s first step into Australia’s retail funds market, and Certitude chief executive Craig Mowll said the company started with 4000 possible fund managers before narrowing the list down to Threadneedle.
“It’s been a long detailed process to find the perfect partner for us,” Mowll said, adding the company would market the fund to high net worth and other affluent investors.
“We’re targeting the high net worth market, the family offices [ultra high net worth individuals] and the multi-manager market.
“That’s around about 71 per cent of the market in Australia.”
He said many people in Certitude’s target group managed their own investments.
“We’ll be approaching them first as we also build out the research ratings and get ourselves onto platforms and approved by dealer groups,” he said.
The process normally takes several years, but Mowll said Certitude had travelled the path before when distributing funds for its associate company, United Sates-based Lighthouse Partners, and Asia-focused funds for Hong Kong-based joint venture MW GaveKal.
Mowll said Certitude would next look at adding an Australian equity fund to its suite of products.
“We continue to review the best method of looking at that,” he said.
He said Certitude also wanted to develop more products for the retail market with its existing partners.
Asked whether Certitude was in talks on that front, he said no.
“Threadneedle is a $110 billion player,” he said of Threadneede’s funds under management.
“We really want to bed this down and get this right.”
