Eight boutique asset managers from across Europe, Latin America and Asia have joined forces to launch Group of Boutique Asset Managers - an association aimed at helping members compete more effectively internationally and increase their competitiveness.

Eight boutique asset managers from across Europe, Latin America and Asia have joined forces to launch Group of Boutique Asset Managers - an association aimed at helping members compete more effectively internationally and increase their competitiveness.

The inaugural meeting of GBAM was held in Spain last week and led by March Gestión de Fondos, the asset management arm of the Spanish private bank Banca March.

The other seven founding members of GBAM are: Bestinver (Spain); Banif (Portugal); Lampe (Germany); Banca Sella (Italy); Mutuactivos (Spain); Corpbanca (Chile); and GBM (Mexico).

“The formation of GBAM is in response to the increasing polarisation of the asset management world between big asset managers with a broad range of capabilities and small specialist boutiques with a limited range of investment strategies,” GBAM said in a statement.

The group highlighted that one aspect of this so-called “barbell effect” is the “ability of those managers caught in the ‘middle ground’ to survive”. Meanwhile, there are also boutique asset managers whose voices are less well-heard in world markets, given the dominance of powerful global players, it added. 

“During the last year and a half I have had the opportunity to talk with many boutiques managers around the world and realised that we are facing the same opportunities and threats,” said José Luis Jimenez, chief executive of March Gestión de Fondos.

GBAM believes that, by sharing information, its members will be in a better position than they otherwise might have been to expand their businesses internationally. As an information exchange, the group said it seeks to:

• Hold discussions about important business issues faced by boutique managers;
• Share experiences and best practices in all areas of asset management;
• Develop a better understanding of members' respective markets regions to enhance distribution; and
• Promote the role of the specialist manager globally via social media, media relationships and forums.

“Excellent world class boutique mangers can grow, even in a sector dominated by big players, providing they can offer greater added value than them,” Jimenez said. “Performance plays a critical part, but equally being the first to discover new and interesting investment propositions or the strong alignment of interest that boutique managers have with their clients, is an attractive proposition.”

GBAM is seeking like-minded boutiques to join its network, although there is currently no upper target for membership, it said.