IPM re-focuses on its macro offering
IPM, the Stockholm-based systematic asset manager, has decided to focus on its flagship Systematic Macro strategy and wind down its long-only equity business area. Following the strong growth of its macro strategy, the long-only equity business area has become a marginal contribution to the overall business.
“We have seen tremendous growth in our flagship Systematic Macro strategy, while the environment for our Systematic Equity strategy has been challenging for some time,” says Lars Ericsson, Acting CEO for IPM. “This is why the board has taken the strategic decision to close down the long-only equity area.”
The IPM Systematic Equity strategy was launched 13 years ago, providing institutional investors with a fundamentally based systematic equity solution. The strategy has been primarily value based, an area that has struggled, during a period when inflows into passive management strategies have boosted already expensive stocks. The fee pressure in the long-only area has also led to the product now only representing a very marginal part of the firm’s revenues.
“The long-only equity business has been tying up resources, without really contributing much to the diversification of fixed revenues. Because we don’t see demand picking up any time soon, we believe that it’s in the best interest of our clients and our business that we focus on our more successful and profitable core macro area.” IPM has experienced very strong growth in its core macro area over the past few years and is now managing $5.7 bn in this strategy for clients worldwide. The firm has also opened offices in London and New York and launched its own UCITS umbrella.
“We are doing this from a position of strength. Our overall fixed revenues are up on the year, even after excluding the long-only equity business. Closing down this area should be seen as a natural development, providing more flexibility for the future,” says Lars Ericsson.
IPM is closely liaising with the investors in the equity strategy, to determine the optimal timeline for winding down the various products.
IPM is a systematic asset manager, headquartered in Stockholm, Sweden, and recognized for its innovative fundamentally-driven investment strategies. The flagship strategy, IPM Systematic Macro, currently has $5.7 bn under management with investors globally. IPM has 65 employees and offices in Stockholm, London, and New York.
For more information, please contact:
Lars Ericsson, Acting CEO
+46 (0)8 506 859 05