16/02/2011 Author: Gwyn Roberts

Signet looks to tap Japan with distribution partner

The Signet Group, a $1.7bn fund of hedge funds (FoHF) business, is searching for a Japanese distribution partner, as it attempts to take advantage of a renewed interest in hedge fund investment from the country’s institutions.

The firm, which already has an office in Hong Kong, is currently using the services of an introducing agent in Japan, as it tries to foster a relationship with a bank or securities firm to help it to access investors, particularly pension funds and insurance companies.

“After our first experience, where we marketed without local help,” said Timothy Gardner, Signet’s global head of sales and marketing, “it was overwhelmingly decided that we needed some kind of local presence, an introducer that would help us find a fully licensed distributor.”

With the new Japanese financial year due to start in April, some observers are predicting an uptick in interest in the hedge fund space, particularly from institutional investors, following a period of retrenchment. According to research from Albourne Partners, undertaken in December, 25% of Japanese investors surveyed planned to increase hedge fund allocations in 2011.

Prime brokers in the region are also seeing an increase in interest. “We are seeing a lot more enquiries,” said Martin Visairas, head of capital introduction for Asia Pacific, at Citi, “but nothing much will happen until the new Japanese fiscal year. But it does feel like the clean-up of portfolios that took place after 2008 is finished, and investors are getting ready to allocate new money into the asset class.”

Signet operates a number of FoHFs. The firm’s flagship product, the $700m Signet Global Fixed Income Fund, was up 7.18% in 2010.