Rothschild & Cie Gestion and Koris International have signed a marketing and distribution deal to provide investment solutions based on risk-budgeting techniques - conceived and developed by Koris - to private banking and institutional clients.

As part of the agreement, Rothschild acquires the financial management of a fund incubator enabling the two companies to employ risk management techniques via methods tailored to investors’ requirements. The firms have also joined forces to make the service available to private banking and institutional clients in France. 

“This agreement reflects investors’ growing concern with effective control of losses, beyond that achieved by the customary techniques of diversification, volatility constraints and tracking error,” said Jean-René Giraud, chief executive of Koris.

Giraud added that asset managers must be able to discuss the risk of loss openly with clients in order to “control all aspects of it”.

Rothschild & Cie Gestion has some €19.5 billion (about $25.9 billion) in assets and is the asset management division of Rothschild Group.

Koris International is an investment advisory firm serving asset management firms, private banks and family offices in Europe.