FountainCap’s UK mandate win highlights how globalisation and technology are changing the institutional investment world
Chinese long-only equity manager FountainCap Research and Investment recently won an investment mandate from the UK’s USD60 billion (US) Border to Coast Pensions Partnership, one of the eight UK local government pension pools.
The win for an asset manager from a pension almost 6,000 miles away highlights how globalisation and technology providers are changing how investors and asset managers around the world connect.
Steven Luk, Partner at FountainCap, says the firm began using institutional investment data and technology provider eVestment in May 2019, starting with eVestment’s Omni solution to help FountainCap build its global brand.
“We first started with Omni to input our performance data and company information on eVestment,” Luk says. “We wanted to be seen and searched globally.”
Databases like eVestment are the first step for institutional investors researching and selecting asset managers locally and around the world and are the first impression investors get of asset managers they are considering. eVestment Omni offers an easy and scalable way to quickly and accurately update eVestment and other databases. Together with eVestment online tools and expert Omni consultants, asset managers can quantify their database marketing success, understand the data fields most important to the investors and consultants they are marketing to and develop a database marketing cadence that ensures a manager is uploading data when investors are most interested in seeing it.
FountainCap was made aware of the Border to Coast mandate opportunity through eVestment’s Market Lens solution. This solution tracks public pension documents and announcements such as new mandates becoming available, managers selected or put on watch, upcoming asset allocation plans and more. This information can give asset managers unique and early insights into opportunities to build relationships with and gain AUM from the pensions Market Lens tracks.
From there, eVestment’s data and marketing analysis and comparison solutions became crucial to FountainCap responding to the Border to Coast RFP and preparing for meetings with Border to Coast officials.
“During the preparation of RFP and the pitch process, we extensively used eVestment profile, analytics and comparison functions to benchmark performance and conduct peer comparison to position products in the pitch,” Luk says.
eVestment’s APAC business development leader William Tang noted that FountainCap’s experience with eVestment is becoming more common as investors seek managers around the world offering the best investment strategies whilst in-person meetings continue to be difficult due to the ongoing Covid-19 pandemic.
“It’s very rewarding to see a client use eVestment’s solutions to market themselves, find a mandate opportunity and then win that mandate from an investor on the other side of the world, all while managing the travel and communication challenges of the pandemic,” says Tang. “eVestment brings transparency and efficiency to the global institutional market, equipping managers, investors and consultants with information and tools to make smarter decisions. In this increasingly globalised business, FountainCap’s experience is a perfect example of the value eVestment brings to the process.”