Barclays has teamed up with Illinois-based investment firm Elkhorn Capital in a strategic partnership designed to extend the UK bank's product availability. The partnership suits both parties, said Fabrice Hugon, senior managing director of structured products at Elkhorn Securities. "For us, it's a good fit because Barclays has already an established footprint in the US market, and has very strong product capabilities," said Hugon. "For Barclays, it is also a good opportunity, as it can benefit from our investment management capabilities and the range of products we offer, including exchange-traded funds (ETFs), UITs, ETF-linked and market-linked solutions."
The partnership will allow Barclays and Elkhorn to collaborate in offering clients access to additional products based on Barclays' strategies, stated both firms in a joint statement.
Barclays has a track record of producing novel investment strategies, and in the past three years has announced partnerships with Roubini Global Economics and with Cape originator Professor Robert Shiller, and, in July 2014, launched its first socially responsible investing strategy, the Women in Leadership Index.
The latest partnership will bring efficiency to the way Barclays brings products to market and develop new investment concepts, said Richard Couzens (pictured), co-head of product origination, equity and funds structured (EFS) investment strategies at Barclays. "This is very complementary to our business model and suits the needs of our clients," he said. "Barclays has a proven track record in developing a series of interesting investment concepts that resonate across a variety of distribution channels."
The structured products market in the US, like the global market is moving towards simplicity in terms of products and innovation is now seen around the content, said Couzens.
"The complementary aspects here are Elkhorn's multi-product dimension, providing a comprehensive platform to deliver investment strategies agnostic to structure," said Couzens. "Elkhorn has a growing distribution footprint in the US, and we are looking forward to working with them across a number of distribution channels."
"This partnership allows us to offer our clients an expanded range of investment opportunities," said Fabien Labouret (pictured), global head of Equity and Funds Structured (EFS) Investment Strategies at Barclays in a statement. "We're enhancing efficiency in product delivery, and matching that with innovation in investment content," said Labouret. "Elkhorn's multi-dimensional setup is very complementary to Barclays' business, and very aligned to investors' needs."
Elkhorn is pioneering a new chapter in investment management in the US by developing a wide array of investment structures based on research. The strategic partnership, will allow both firms to respond to increasing demand for more custom investment products across a variety of market segments, said Ben Fulton, Elkhorn's founder and chief executive. "By partnering with Barclays, we are able to offer clients a range of innovative investment opportunities," said Fulton. "We are excited to bring Barclays' expertise as a complement to our existing partners, including Dorsey Wright & Associates, to provide a unique and leading combination that meets the needs of today's advisors."
Related stories:
Barclays readies smart beta-linked range
Barclays offloads US wealth franchise
Elkhorn completes product set in US, gears up to launch vol control notes
Hugon: We want Elkhorn at the forefront of innovation in the US