Challenger boutique winds up

An alternatives boutique that Challenger's multi-boutique business Fidante partnered with in February last year has wound up.

London-based FME Asset Management (Financial Markets Engineering) ran a derivatives-based strategy taking positions in futures with an absolute return objective.

Its partnership with Fidante was announced in February last year, with Fidante taking over the distribution and marketing of the firm.

In its half year results released today, Challenger said FME Asset Management closed last year.

As a result, Challenger wrote off $9 million in intangible asset and wind up costs following FME's closure.

Fidante was aiming to distribute FME to its European client base, adding it had no plans to pitch it to Australian clients unless there was specific interest down the line.

The target investor base for FME was non-retail institutions, wholesale investor or sophisticated investors such as through the private banking channel.

Fidante Partners usually takes minority stakes in boutique investment firms and provides them distribution, marketing and back office support. Its partner boutiques managed about $62.7 billion at December end, picking up about $1.9 billion in net flows during the half.

It reported $45.5 million in net income for the six months ending December (1H20), slightly lower than 1H19's $46.3 million. Of this $45.5 million, performance fees accounted for $3.5 million.

Fidante Partners' income margin slipped marginally from 16 bps in 1H19 to 15 bps in 1H20, impacted by lower Europe transaction fees.

Read more: FidanteChallengerFME Asset Management Financial Markets Engineering
Link to something z41hvK4D