Generali acquires asset manager from Bank of America

Italian insurer Generali is accelerating its asset management strategy by acquiring 100 percent of CM Investment Solutions (CMISL) from Bank of America Merrill Lynch.

CMISL focuses on the delivery of alternative UCITS (undertakings for the collective investment of transferable securities) strategies and is expected to enhance Generali’s product offering and distribution capabilities for its clients and distribution partners through its international and fast-growing client base.

Over the last ten years, the search for uncorrelated positive absolute sources of returns has fuelled investor appetite for non-traditional asset classes, according to Generali. In line with this trend, assets invested in alternative UCITS strategies have been witnessing a significant increase, from below €100 billion in 2008 to over €582 billion as of August 2018, with a 2.5x growth in the last four years alone, the insurer explained.

Since CMISL was established in 2007 it has become the largest platform in this market segment with over $ 11 billion in assets under management (AuM) as of September 2018, according to Generali.

As part of its asset management strategy, Generali wants to expand into alternative strategies and grow outside of Europe. The insurer aims to build one of the five largest multi-boutique platforms in the world in terms of overall profits in the next 5 years.

“The acquisition of CM Investment Solutions is an important step ahead in shaping our multi-boutique strategy, as their undisputed expertise in the delivery of liquid UCITS funds and other bespoke strategies gives us the opportunity to offer a selection of top quality alternative products to our clients,” said Carlo Trabattoni, CEO of Generali Investments Partners.

Tim Ryan, CEO of Generali Asset Management, added: “This acquisition perfectly complements the global setup of our asset management strategy and offering, in a segment – alternative investments – that we firmly believe in and that is growing in importance in our customer portfolios.”

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