PremiaLab, a Fintech platform for Risk Premia Strategies, has launched its European offering with the opening of a new European headquarters in Paris.
The PremiaLab platform allows institutional investors and asset allocators to access data on systematic strategies from across a wide universe of providers in a quick and efficient manner. The platform is focused on reducing cost and improving access to the fast-growing market of risk premia and smart beta products.
The Hong Kong based Fintech company launched its Risk Premia platform in 2016, and its expansion into Europe follows its significant success in the Asian market. The platform has established strong partnerships with many leading investment banks including Barclays, Credit Suisse, Société Générale Corporate & Investment Banking, as well as global asset managers active in this sector, such as Nikko Asset Management.
Investment banks are using their financial engineering capabilities to design a large panel of quantitative strategies and algorithms which can be invested in by institutional investors globally. These liquid, transparent and cost-efficient strategies are now available on all asset classes and classified according to risk factors i.e. their main source of return. They are selected and combined by portfolio managers in different investment products, including Funds, ETFs or derivatives. Nikko AM, a leading Japanese Asset Management company has for instance recently launched a UCITS Funds offering access to these Risk Premia strategies.
The Platform is already providing information on an estimated USD250 billion of assets under management, providing a unique source of data on factor investment and risk premia. Used by asset managers, insurance companies, pensions funds and sovereign wealth funds, the platform should reach 500 institutional investors by the end of 2018. Leveraging its recent success, the firm is also planning to launch its offering into the US in 2018 to expand its global presence further.
Pierre Trecourt (pictured), Co-Founder of PremiaLab, says: “We have experienced significant success in developing strong partnerships with many of the leading global investment banks and asset managers. Our new office in Europe is a key milestone in our ambitious growth strategy and will strengthen our presence in the region allowing us to provide more effective support to our global client base. We continue to see very strong demand from institutional investors for our data, risk analytics and the efficient access to systematic investment strategies that our solution provides.”
Nicolas Aractingi, Director at Barclays, says: “We see a growing demand for systematic indices from asset owners globally. Institutional investors are turning towards quantitative strategies to provide a diversified performance engine to their portfolio. Barclays has a long-term expertise in designing Quantitative Investment Strategies across multiple asset classes. We are delighted to work with PremiaLab to continue serving our clients with latest available technology addressing the need for data and analytics on systematic indices.”
Walter Cegarra, Global Head of QIS Structuring at Credit Suisse, says: “We have a long history in providing asset allocators with innovative alternative investment solutions, dating back to our market leading Hedge Fund indices in the late 90s. Over time, we have developed a substantial track record in providing investors with Alternative Risk Premia and Smart Beta solutions. Our platform combines long established strategies with unique content (such as HOLT), cross asset portfolio capabilities and best in class execution outsourcing through the CS Index Plus platform. We are delighted to work closely with the PremiaLab team to make our offering even more easily accessible to institutional investors around the world.”
Foued Jaziri, Global Head of SG Index (SGI) platform at Societe Generale Corporate & Investment Banking, says: “Systematic strategies are now widely used amongst asset allocators and asset managers. At Societe Generale, we have developed a truly cross-asset index offering leveraging on both our quantitative expertise and our extensive execution capabilities. Using digital platforms such as PremiaLab enables us to offer investors a broader and facilitated access to our range of indices in this fast-growing market segment.”