Parametric Portfolio Associates will explore new opportunities in Australia off the completion of an acquisition due at the end of the year, according to its chief executive.
Parametric was scheduled to acquire Minneapolis-based firm The Clifton Group Investment, which specialises in providing futures and options-based overlay services, as well as custom risk management solutions to help institutional investors enhance risk-adjusted returns.
“Parametric has just recently signed an acquisition for Clifton, which we intend to close on 31 December 2012, and that will add an additional $33 billion to our funds under management,” Parametric chief executive Brian Langstraat told InvestorDaily.
“In 2013, I expect we’ll do considerable exploratory work about Australian funds and their particular appetite for Clifton-type products [but] we’ve got to get the acquisition closed and get the teams talking.”
The additional services from The Clifton Group were closely tied to Parametric’s philosophy of improving outcomes through the efficient implementation of after-tax strategies, Mr Langstraat said.
“Clifton’s implementation services focus on rebalancing at the large fund level, securitisation of cash, futures and derivatives-based overlay programs, so we’re very keen to understand if there’s an application for Clifton’s skills in Australia,” he said.
In addition, Mr Langstraat said the Australian market remained very high on Parametric’s priority list for 2013.
“We have a goal and we intend to continue building our client list and our staff in Australia and of course, supporting the work that we’re currently doing for our clients from our Seattle headquarters,” he said.
“The momentum is building for the need to focus on after-tax outcomes, specifically the three after-tax products that Parametric presents to the marketplace.”
