Jonathan Thomas: We want to form strategic partnerships or invest in asset managers with capabilities that are complementary to our own. Given current and anticipated preferences of our global clients, our targets include specialized fixed income and quantitative asset managers.
Victor Zhang: We have a well-established $40 billion fixed-income franchise with strengths in core and core-plus strategies. Through acquisitions or strategic partnerships with managers, we hope to further our expertise in credit and securitized segments of the market, e.g., high yield, distressed, bank loans, ABS, CMBS, CLOs, private debt, etc.
In the area of quantitative equities, we are looking for more capabilities and strategies in non-U.S. (e.g., global, global ex-U.S., emerging markets equity), alternatives and intelligent beta. Our interest also extends to firms that have leverageable technology like big data, natural language processing and artificial intelligence (machine learning). All of these capabilities will help us better serve our clients and deliver investment solutions to meet their evolving needs now and in the future.