QMA, the quantitative equity and global multi-asset solutions manager of PGIM, has agreed to acquire London-based quantitative macro-focused investment management firm Wadhwani Asset Management (WAM).
QMA has acquired the WAM through PGIM, which is the $1 trillion global investment management business of Prudential Financial.
Subject to all regulatory approvals, the deal is expected to complete in the first quarter of 2019.
Once the deal concludes, the existing WAM investment platform will operate independently of QMA’s investment platform and WAM founder Dr Sushil Wadhwani will continue to serve in the role of chief investment officer.
QMA CEO and chairman Andrew Dyson said: “I am pleased to announce the acquisition of Wadhwani Asset Management and look forward to working with Sushil and his team.
“Wadhwani Asset Management has significant experience and pedigree in systematic and quantitative macro investing, alongside Sushil’s sterling reputation as an economist, investor, and academic.”
Established in 2002, WAM uses a multi-asset research discipline with a macro overlay and manages various absolute return strategies that offer returns with traditional asset classes.
With quantitative macro hedge funds and risk premia strategies, WAM serves an institutional client base in the UK, continental Europe, the US, Australia and Japan.
Investment decisions are implemented through a series of global asset allocation strategies through using technologically advanced trading and risk management systems.
The use of macroeconomic information to help time factor exposures is the WAM’s crucial competitive differentiator.
PGIM CEO David Hunt said: “This acquisition underscores our commitment to expanding PGIM’s global footprint and investment capabilities to serve the evolving needs of our clients with a broad range of investment strategies and solutions.
“We will continue to explore both organic and non-organic opportunities to add unique and complementary capabilities to our core businesses worldwide, and the WAM transaction exemplifies this approach.”
Established in 1975, QMA manages portfolios for global institutional client base, including corporate and public pension plans, endowments and foundations, multi-employer pension plans, and sub-advisory accounts for other financial services companies.
QMA had around $128.1bn in assets under management, as of 30 September this year.