HSBC Securities Services (HSBC) has secured an outsourcing mandate from a long-only fund manager that bears a closer resemblance to a hedge fund management outsourcing. Like most hedge funds, Origin Asset Managment is not only a start-up, but has outsourced as much of its requirements as it can.
HSBC will provide investment administration and custody services in a deal worth up to half a million pounds a year. HSBC won the contract after a four-way auction that focused, as HSBC puts it, on “such deliverables as a tailored approach, can-do attitude and ability to work within clearly defined financial objectives.”
“Our strategy at Origin is to use high quality outsource providers to enable us to focus on our core skills – investment performance, client service and reporting,” explains Lindsay Johnston, Partner and Origin’s Chief Operating Officer. “We aim to take full advantage of the best external solutions in a competitive market; on this basis we have chosen HSBC Securities Services. Our clients will benefit from HSBC’s global world-class strength and expertise in administration and custody outsourcing. We were particularly impressed by the quality and flexibility of HSBC’s offering, and their strong client focus.”
Launched in April this year, Origin was founded by five former Investec fund managers with backing from Michael Spencer, founder of inter-dealer broker ICAP. The investment strategy pursued by the company aims to identify undervalued companies in the UK and abroad. Origin will manage UK and global equities for institutional clients, using a systematic investment process which combines valuation and momentum measures.
“We’re delighted to be appointed by Origin Asset Management and are excited at the prospect of supporting them from inception with a cost effective and innovative outsourcing solution,” says Paul Stillabower, Head of Business Development, HSBC Securities Services, Europe. “We are looking forward to a successful, long-term relationship.”
The five founding investment managers of Origin – Nick Mottram, Jeremy Rigg, Michael Rimmer, Nigel Dutson and Chris Carter – previously worked together at Investec Asset Management for four and a half years. Prior to joining Investec, four of the five had worked together at Schroders for over five years.
Origin’s investment managers are joined by a sixth founding partner, Lindsay Johnston, as Chief Operating Officer. Johnston was previously Chief Operating Officer at Swiss private bank Lombard Odier Darier Hentsch in London, Group Finance Director and Administrative Director at Hill Samuel Asset Management and Head of Administration at Invesco in London.
Origin has financial backing from IPGL Limited, a private investment vehicle in which Michael Spencer, founder of ICAP, is the largest shareholder.
HSBC Securities Services claimed assets under custody of US$2.8 trillion at the end of 2004.