London-basedStenham Asset Management, the $2 billion-plus fund of funds and wealth management firm, is making its first move into structured investments. The firm plans to offer leveraged exposure to “a very aggressive portfolio,” incorporating Stenham’s Asian long/short equity, global macro and gold funds of funds, said Harry Wulfsohn, director in London. The firm will begin marketing the strategy in about two months.
Stenham does not currently have any U.S. clients but will consider targeting this market with structured products, said Wulfsohn. He observed that capital-guaranteed notes are likely to be easier to market to U.S. wealth managers than the underlying funds of funds, as the notes can be sold via banks’ distribution channels.
A large proportion of Stenham’s investors are risk-averse private clients. But the firm has seen growing interest from sophisticated family offices and institutions in Europe and Latin America, and they are seeking more volatile investments. Structured investments will enable the firm to offer more dynamic portfolios by investing across several existing funds of funds, Wulfsohn explained.