Citiwire.co.uk

In an exclusive interview with Citywire, Professor Robert Haugen - the inventor and co-author with Nardin Baker of various academic papers on the minimum variance concept - explains why minimum variance portfolios will contine to deliver the best returns in the long term.

For the professor, minimum variance portfolios strategies would be perfectly suited for two types of investors nowadays:'The first type is those who want to outperform a market index. A second type is those investors concerned about the amount of public and private debt.'

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StructuredRetailProducts.com

Benedict Peeters, Fortis Investments' former global head of structured business, has founded Finvex Group, an investment consultancy that will advise institutional investors on the design of customised, index-based investment solutions.

Peeters, who left Fortis Investments in October 2009, said the firm is working with a specialist quantitative development house in the development of customised, risk-optimised equity indices, which will be used as underlyings for investment solutions. "Our business has a three-fold strategy," said Peeters. "First, we will work on the creation of index strategies around sources of performance from the client itself. Second, we will create own sources of alpha such as quality and high-level, research-based quantitative strategies; and finally, we are working with another firm in the development of high added-value thematic sources of alpha. All these performance engines can be used as underlyings for transparent and true added-value investment products that combine elements of research/asset management and protection via derivative techniques."

The new boutique has three European partners and two in the US, with new partners expected to join this year. Benedict Peeters and senior structured products specialist Joakim Darras are the founding members and co-managing directors of the new venture. Peeters told SRP Finvex is in talks with index calculation agents over potential partnerships.

Finvex and Standard & Poor's agreed to co-operate, for the calculation, maintenance and dissemination of custom indices developed for and on behalf of Finvexʼs clients. Standard & Poorʼs Custom Indices calculates custom built indices using its knowledge and expertise built over the years. “Standard & Poorʼs” is a trademark of The McGraw-Hill Companies, Inc.

Darras explains: “Our past experience working with Standard & Poorʼs Custom Indices has been excellent. This agreement allows us to provide our clients with independent information from a reputable house.”

Pure Play and Finvex join forces to develop and promote quantitative equity strategies in the European market.

Pure Play is a specialist house in quantitative equity strategies. Founders Nardin Baker and Paul Aaronson combine more than 50 years experience in in the design and management of quantitative equity portfolio strategies. Pure Play’s focus is around risk controlled equity portfolio construction and multi-factor investment models. Finvex is a boutique firm specialized in the distribution and structuring of index based solutions for the European market.

“Pure Play has a rigorous and risk controlled equity investment approach that leads the way for equity investing post-crisis" says Benedict Peeters of Finvex “Our partners combine recognized academic authority with vast field of expertise in risk managed and multi-factor equity investing” adds Joakim Darras, co-founder of Finvex.

Nardin Baker explains: “This partnership allows us to offer our robust equity investment technology to the European market through professionals who thoroughly understand our approach and know how to customize our offer to client needs.”

Finvex and Pure Play will start promoting risk managed equity strategies to a wide range of European investors as of February.