Aperture Investors will charge ETF-like fees until portfolio managers provide outperformance
The active money manager will run on a revenue model that sees it charge exchange-traded fund-like fees, which only increase when portfolio managers top their benchmarks, a release by Gererali said. A deferral mechanism will also see fees clawed back to clients should managers not outperform.
Subject to approval of its board of directors and Aperture Investors, Generali will contribute up to $4 billion in strategic investment capital for individual investment strategies run by the new firm. A spokeswoman for Generali said the new company will invest in active high-conviction strategies.
Mr. Kraus leads the firm as chairman and CEO. He was chairman and CEO at AllianceBernstein until April 2017, and was replaced at the $540 billion money manager by Seth Bernstein, president and CEO.
"Aperture Investors is another important milestone in Generali's multiboutique strategy launched last year," said Tim Ryan, CEO of Generali's money management business, in the release. "We believe that innovation is not only a key lever for our long-term success but also an opportunity for Generali to guide the process of change as a leader in the insurance and financial industry. Aperture Investors offers us the ability to develop a new model that addresses manager incentives while also leveraging invaluable know-how in our sector."
Italian insurance and money management firm Generali has around €500 billion ($581.1 billion) in assets under management.