Arrowstreet Capital wins ipac sole mandate

Ipac Securities has appointed US-based equity manager Arrowstreet Capital to manage the international small companies component of its diversified funds, replacing Capital International as its sole manager in the asset class.

The switch follows a “detailed review” by Axa-owned ipac of its international small companies strategy, according to Mark Peterie, investment, marketing and communications manager.

Peterie said the review resulted in a “modification of our strategy, with a preference for a leading edge quantitative approach complemented by low funds under management”.

Arrowstreet’s appointment, which Peterie said will be managing its first global small companies portfolio, highlights that ipac’s “research effort goes beyond simply assessing the universe of current managers in an asset class”.

He emphasised that Arrowstreet “does have experience in managing international large capitalisation equity (both long and long/short), and global emerging markets portfolios.

“The same process is applied for international small companies as for international equities, and our research suggests that Arrowstreet can exploit the same pricing inefficiencies in international small companies.”