Frontier Advisors is to gain a global reach in its manager research after forming an alliance with a US firm and with the prospect of further deals with consultants in Europe, South America and Asia.

It has initially teamed up with North American firm Segal Rogerscasey in a deal that will see it gain access to US manager research and greater knowledge of US equity portfolio configurations.

Both are now looking to broaden their scope with similar deals with other independent consulting firms in a way that would replicate the global reach of rival firms Mercer and Towers Watson.

Damian Moloney, chief executive of Frontier Advisors, said the deal meets his clients’ needs for deeper global research.

“Our clients have got bigger and more complex and sophisticated and they are looking for deeper research in some regions, and the US is the obvious first place that we wanted to start.”

He said Frontier would gain from Segal Rogerscasey’s knowledge of how to configure large portfolios of US equities, while Segal Rogerscasey wanted to tap into Frontiers’ knowledge of large unlisted asset portfolios, such as infrastructure and property.

Both firms will gain access to each other’s databases and investment management research and staff from Frontier Advisors will visit Segal Rogerscasey’s office in early June to kick-start the relationship.

Moloney said the link-up, which is being branded as the Global Information Research Alliance, would also help each firm share best practice. “It gives us a sense of how other businesses are addressing clients’ needs. We both have our ways of doing things and it is interesting to transfer ideas between businesses. An obvious one is how you communicate with clients.”

The next step for the alliance is for Segal Rogerscasey to recruit an independent investment consultant from the UK, Europe, the Middle East and South America and for Frontier Advisors to establish contact with like-minded firms in Asia.

In the future, the Global Information Research Alliance plans to offer periodic forums to discuss global investment trends, client issues and capital market directions.

The deal re-establishes the connection the superannuation market had with Segal Rogerscasey, when Intech Investment Consultants formed a similar alliance with the Boston-based firm.

Leave a comment