Rothschild & Cie Gestion has signed a deal with investment advisory firm Koris International to distribute investment products based on risk-budgeting techniques developed by Koris to private bank and institutional clients in France.
The deal will also see Rothschild & Cie Gestion take on financial management of a fund incubator that will develop these techniques.
Jean-René Giraud, chief executive of Koris International, said: “This agreement reflects investors’ growing concern with effective control of losses, beyond that achieved by the customary techniques of diversification, volatility constraints, and tracking error. The risk of loss is a subject the asset manager must be able to discuss openly with his or her clients so as then to control all aspects of it, without for all that conflicting with the investment strategy.”
Rothschild & Cie Gestion is an asset management firm owned by the Rothschild Group with €19.5 billion under management. Koris International is a spin-off from the Edhec-Risk Institute set up to make commercial use of academic research on finance.
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