Quadriga Strengthens Partnership With Raiffeisen Bank
Quadriga Asset Management, a leading London asset management service, is set to expand its strategic alliance with Raiffeisen Bank to provide strategic asset management services and structured investment products to the bank’s portfolio of clients, which includes its corporate and institutional client portfolio.
Quadriga – A Top-Tier London Asset Manager
This broadening partnership will further strengthen Quadriga’s credibility as a top-tier London asset manager, providing superior and transparent advice. Quadriga Asset Management’s head of portfolio management Mr. Alastair Irvine was quoted saying “this broadening partnership will allow Quadriga to become one of the most sought-after Pan-European asset managers, catering to Raiffeisen’s established corporate & institutional portfolio”.
The extended relationship will also allow the London asset management firm to provide Raiffeisen’s clients with advice on how to best diversify their portfolio. In an email to clients Quadriga’s CEO Jacob Bauer wrote, “The type of advice and recommendations we provide our clients is tailored to their specific needs and the requirements set by the Raiffeisen IRA custodian.”
Increased Expenses Without Increasing Fees
The funding structure for the arrangement is not yet clear. “We are in discussions with the Raiffeisen Group and are in the process of determining the details of the transaction and the terms of the arrangement,” said Arnold Hay, Senior Analyst at Quadriga Asset Management. In a statement, a spokesman for the London asset management firm said it anticipates the partnership to generate annual expenses of €200 million. Nevertheless, Quadriga also confirmed that the increased expenses would not be paid for by increasing fees.
Quadriga said that it intends to become “a partner of choice” for Raiffeisen and other large banks operating pension funds in Europe. “We are in the process of building additional relationships with other banks located within Europe and even the UAE. While the negotiations with other proposed partners are in the very early stages, we are committed to working closely with them on a long-term basis to strengthen our relationship and to drive growth within the asset management and European structured investment market,” said Lars Keller, chief operating officer of Quadriga Asset Management.
Providing Structured Investment Products Now, And In The Future
Quadriga is in the process of becoming a member of the European Network of Pension Funds, which is the second-largest association of domestic and international pension funds in the EU. The partnership is expected to allow the London asset management service to continue to provide structured investment products in the future, the company said.
This partnership is just the latest example of the increasing complexity of structured investment products. Some of the leading names in the field, including Morgan Stanley, Dover Street Capital, and Citibank, have been forming small subsidiaries just to manage their structured investment portfolios whereas Quadriga and Raiffeisen have joined forces to consolidate their market share within Austria, Germany, and Switzerland.