Pareto Investment Management and certain of its affiliated entities are to become part of the Insight Investment Management group.
Pareto is one of the world’s foremost currency risk managers and has more than GBP27bn (USD42bn) in assets under management. Both organisations are part of BNY Mellon.
The transaction is subject to regulatory approval and is expected to complete on 1 January 2013. Terms are not being disclosed.
Pareto’s capabilities include active and passive currency risk management and it has operations in the UK, US, Japan and Australia.
Abdallah Nauphal (pictured), chief executive and chief investment officer of Insight, says: “Insight and Pareto are a natural fit as the businesses have a similar risk management philosophy and client-centric approach. Pareto’s expertise in currency is complementary to our current risk management and investment capabilities and the transaction supports our objective of providing holistic risk management solutions to our clients. In addition, their presence in North America and the Asia Pacific region provides a solid platform for continuing Insight’s international expansion.”
Mike Shilling, chief executive of Pareto, says: “For Pareto’s clients, the outcome will be access to a wider range of solutions and risk management capabilities. By joining forces, this partnership will provide opportunities to create new innovative solutions and help both organisations fulfil their longer term strategic objectives.”
Once the transaction completes, Pareto Investment Management plans to remain a separate regulated entity within the Insight group. Pareto’s investment team will become one of Insight’s specialist investment teams.