Empire Financial Group is enlisting the services of UBS Global Asset Management as investment manager for the international component of Empire’s segregated funds. The partnership was announced Tuesday and will come into effect June 2, subject to regulatory approval.
UBS Global Asset Management (Canada) Co. will provide active management of Empire’s global balanced and international equity mandates. UBS Global will be responsible for all investment decisions and the day-to-day management of these two asset classes, which are utilized in several of Empire’s segregated funds. This means a number of changes to current segregated funds and the introduction of two new funds, to be introduced in June, to be managed by UBS Global.
“We chose UBS Global to manage our international assets because their fundamental research driven investment style closely matches the investment style and philosophy we use when selecting Canadian and U.S. equities,” said Deborah Frame, Empire’s chief investment officer. “Their world-wide team of analysts and portfolio managers allow UBS Global to gather an in-depth understanding of the corporations in which they invest.”
The current management of the international component of Empire’s segregated funds uses index futures. Indexing is a passive investment style of participating in the international markets and makes it more difficult to manage portfolio risk compared to a more active investment style. “We think our unitholders and distribution partners will be very pleased with the results of this partnership in terms of enhanced returns and an increased fund offering” says Frame.
Within Canada, US Global manages in excess of $25 billion of assets on behalf of pension plans, corporations, governments, charities and wholesale intermediaries.