Prolific Financial Management entered into a joint venture with quantitative manager Objective Asset Management to form Prolific Objective. All are based in London. Prolific Objective, which will be 75% owned by Prolific Financial, will offer a variety of risk-control products for institutional and retail investors. The joint venture will absorb Objective's fund management team, which manages 1.3 billion ($2 billion) in quantitative equity strategies. About 90% of its assets are managed on a subcontractual basis for Kleinwort Benson Investment Management.
The joint venture plans to start marketing to U.K. pension and other tax-exempt clients Jan. 1. Objective has been barred from marketing to U.K. pension funds because of its contract with Kleinwort Benson, but that agreement expires Dec. 31. Philip Ainsworth, managing director of Prolific Objective, said he has not yet discussed with Kleinwort officials whether the joint venture will continue managing assets for Kleinwort.