Mediolanum International Funds Ltd. hired three managers as subadvisers, allocating a total €510 million ($617 million), a spokesman confirmed.
The manager will invest an initial €220 million in boutique Pzena Investment Management's global value equity strategy. The firm takes a high-conviction approach to investing, with a typical portfolio of 60 stocks. Pzena has €40 billion in assets under management.
Mediolanum will also allocate €220 million to Mondrian Investment Partners' global equity strategy. The value-oriented strategy invests in public global equities in developed markets, and its portfolio typically holds between 35 and 50 stocks. Mondrian has €49 billion in assets under management.
The firm will also partner with public infrastructure manager Atlas Infrastructure Partners and will seed the Atlas Global Infrastructure Fund with a €70 million commitment. The fund integrates ESG within its investment and portfolio construction processes and has a strong focus on climate change. Atlas has €62 billion in assets under management.
As a result of the subadviser agreements, Pzena, Mondrian and Atlas will also benefit from Mediolanum's distribution networks across Italy, Spain and Germany.
"Boutique managers have outperformed both non-boutique peers and comparative indices for the best part of 20 years, and we believe partnering with these firms will further bolster our ability to provide our clients with better and better solutions, sometimes available for the first time ever for retails clients," said Furio Pietribiasi, CEO of Mediolanum International Funds, in a news release.
Mediolanum aims to allocate at least one-third of its externally managed equity and fixed-income assets to boutique managers. The firm has more than €50 billion in AUM.