French manager eyes local market
French financial services giant CDC IXIS is planning to launch a number of international funds in Australia during the next couple of months.
The funds will be global funds, managed by the company’s various international fund managers and though targeted at the wholesale market will also be available to retail investors through master funds.
CDC is already in Australia and offers access to its global funds through Loomis Sayles.
Future products will be marketed in Australia under the CDC IXIS brand, says Loomis associate director Karyn West.
“We are setting-up CDC international funds here and are slotting-in bids from our overseas operations,” she says.
“We will be offering speciality and niche funds that will be aimed at the domestic fund managers.”
Loomis already manages some funds for Macquarie, but West says the company is looking for further co-management opportunities.
CDC is the 18thlargest fund manager globally with 25 international offices. It is the eighth-largest fund manager in Europe and has € 337,6 billion of funds under management globally.
One of CDC’s global funds that will probably be part of the Australian offering will be Chicago-based Harris Associates Global Composite Fund.
Harris is a totally owned subsidiary of CDC and has about $A750 million of funds under management its global fund.
Since its inception in August, 1999, the fund has returned 16.56 per cent, which can be broken down into 6.54 per cent annually.
The reasoning behind the consistent returns is due to the manager sticking to its investment fundamentals, says Harris managing director international equities, David Herro.
“What is unique to us is our definition of value. That involves us looking at how the management is investing cash to get higher returns for the company and the low price of the stock,” he says.
Harris’s global funds have about 50 stocks with currently 55 per cent outside the US and the rest in US equities.
Australian stocks make up between 2-3 per cent of the stocks and Harris is looking at companies such as Pacific Dunlop and Fairfax for future growth.
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