The UK wealth management house has granted a substantial mandate to one of the world's largest asset managers.

St James’s Place, the UK wealth manager, has granted a mandate to European asset manager Amundi to oversee a £2.8 billion ($3.78 billion) global absolute return multi-strategy mandate.

The sterling-denominated mandate will target an absolute return of cash + 5-6 per cent over a market cycle, based on a strategy that seeks to deliver positive returns in all market environments in the medium-term, with a low correlation to broader markets. The strategy will employ both directional and relative value investment ideas in the portfolio with a high level of diversification, focusing on downside protection, using multiple layers of risk management.

Amundi’s global absolute return team, which is based in Milan and headed by Davide Cataldo, has an average of 21 years’ experience; it adopts an investment approach incorporating both directional and relative value investment strategies with high levels of diversification.

Matteo Germano, head of multi-asset and CIO Italy at Amundi, added: “With market challenges ahead such as higher inflation, lower growth, and the end of excessive liquidity, investors need to consider a range of approaches for their portfolio construction.”

St James’s Place has more than £153 billion of client funds under management.