Asset managers enter strategic partnership
Channel Capital and Arnott Capital have formed a strategic partnership to drive business growth.
The partnership between asset management firm Channel Capital and boutique absolute return manager Arnott Capital aims to optimise operational efficiencies and support future expansion.
Channel Capital offers tailored investment solutions and provides services to 14 global partners, including CBRE Investment Management, JANA, Goldman Sachs Asset Management, and Bell Asset Management.
Its latest partner, Arnott Capital, is an Australian-based boutique absolute return manager specialising in thematic investment opportunities with an equity focus. The firm operates with an “asymmetric investing” philosophy, enabling it to identify early-stage thematic opportunities that are not yet priced by the market to deliver above-average returns.
Through the strategic partnership, Channel Capital will provide its full suite of non-investment services and infrastructure to Arnott Capital. This includes trustee responsibilities, operations and client services, risk management and compliance, and distribution and marketing.
Commenting on the announcement, Kenny Arnott, Arnott Capital founder and co-chief investment officer, said: “Channel Capital’s comprehensive service offering will ensure that our investors continue to receive the highest level of service. Their expertise in fund operations, risk management and compliance, along with strong relationship management, will bring added value to our clients and business.”
Arnott added that the partnership will enable the business to dedicate more of its resources to researching and analysing investment opportunities, enhancing its ability to provide strong risk-adjusted returns for investors.
Luke Mandekic, Channel Capital co-head of distribution, explained: “We spend a great deal of time searching for high-quality and differentiated investment teams, and we are pleased to have partnered with Arnott Capital.
“The Arnott Opportunities Trust offers our clients a genuine source of alpha with low correlation to traditional asset classes, a focus on downside protection, and the flexibility to capture opportunities across a variety of market environments. Absolute return funds like the Arnott Opportunities Trust dynamically allocate capital across strategies based on market conditions to manage downside risk, complementing traditional portfolio exposures.”
The trust is available to Australian wholesale investors via major platforms. Since its inception in May 2013, it has delivered an annualised return of 19.8 per cent after fees and expenses.
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Jasmine Siljic
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