Launch of thematic funds with a focus on millennials and on ESG, with the objective of generating alpha in the long term
Loris Vallone joins Kairos as Chief Operating Officer and Riccardo Quagliotti joins the Investment Team as senior equity analyst
Kairos announces the first actions to strengthen the development of both the asset and the wealth management business, with a renewed strategic alignment with the shareholder, Julius Baer: the launch of new funds with the target of long-term returns and the strengthening of the team with the appointment of Loris Vallone as Chief Operating Officer (COO).
The widening of the offer of investment strategies managed by Kairos includes the launch, as of today, of two thematic funds, KIS Millennials and KIS ActivESG, and from January 2020 of the fund KAIS Renaissance ELTIF.
KIS Millennials (Kairos International Sicav Millennials) selects the leading companies able to benefit from the new trends driven by millennials (born between 1980 and 2000) and to align their business development to the new behaviour patterns of that generation. Grown up in an age of strong technological development, the preferences, the spending and consumption patterns of millennials (just to mention a few: co-sharing, a strong price sensitive predisposition and online purchases) led to a strong transformation of lifestyle attitude, mainly in the United States and in the Emerging Countries, and are the driver of a social and economic change that only some companies are able to catch. Managed by Pio Benettiand and by Riccardo Baldissera, KIS Millennials is a dollar-denominated thematic equity fund of Kairos International Sicav (Sicav under Luxembourg law) which invests at least 70% of the portfolio in US-listed companies.
KIS ActivESG (Kairos International Sicav ActivESG) is dedicated to sustainability according to the ESG principles of socially responsible investments (Environmental, Social and Governance issues). It is one of the first ESG products in Italy based on a long-short strategy and it aims to pursue capital appreciation over the medium-long term with an asset allocation in European stocks of medium and large capitalization with a sustainable and socially responsible investment orientation. The fund managers are Riccardo Valeri, portfolio manager specialized in the European stock market, Massimiliano Comità, Portfolio Manager with many years of experience in customized portfolios and risk management, and Sabino Delfino, co-portfolio manager with a good experience gained in quantitative analysis and risk management. The benchmark is the STOXX EUROPE 600 ESG-X and Kairos is the first company in Italy to use it; furthermore Kairos refers in the investment process to ESG research of Sustainalytics, an independent European agency and a global leader in ESG research and engagement services. Kairos commitment to a more sustainable global financial system is demonstrated by signing the UN principles “Principles for Responsible Investment” (UN PRI) last July, integrating ESG criteria into investment processes, as the company is convinced that their application can help to better align the objectives of investors with those of a more sustainable economy from an environmental and social point of view.
In support of Kairos’ commitment in this regard, the current KIS Europe product will become, by the end of the year, KIS Europe ESG, orienting its investment policy according to ESG criteria.
From the beginning of next year, the Renaissance ELTIF (Kairos Alternative Investment Sicav Renaissance ELTIF) will be available to clients, a closed-ended ELTIF fund that supports the real economy targeting medium-small European companies.
“Kairos is at the forefront of value creation through the best investment strategies and these new products that aim to generate alpha in the long term with active management, which has always been a Kairos distinctive feature, are a concrete example,” Guido Maria Brera, Chief Investment Officer of Kairos said. “We have identified the key trends of a social and economic change with a medium-long term growth perspective to best seize new investment opportunities with a greater risk control even in financial markets high volatility times”.
The appointment of Loris Vallone as Chief Operating Officer (COO) of Kairos is a very tangible demonstration of a renewed alliance and strategic alignment with the shareholder Julius Baer. Vallone comes from Julius Baer, where he has worked since 2011: he was Head of Portfolio Management International in the Investment Management division and Head of Product and services in London. He had several strategic roles in Zurich, Lugano, Milan and London over the years. In particular, from 2012 to 2016 he was a member of the Board of Directors of Kairos Julius Baer SIM, which marks the first important milestone of the strategic partnership between the two companies. Previously, he gained a long experience at Credit Suisse in asset management and advisory services. In addition to his new role as COO of Kairos, Loris Vallone will coordinate a task force dedicated to complete the business plan with the aim of accelerating Kairos’ growth and activating business synergies in the Italian market of asset management.
Vallone reports to Fabrizio Rindi, appointed as CEO of Kairos in early September, who comments on his arrival: “Loris will strengthen the team: we are working for a great joint project that will leverage on the strong synergy between the asset management know–how of Kairos and the Wealth management experience of Julius Baer, in order to offer to the Italian market a higher quality service and an even more diversified product offer. I worked several times with Loris in the past and I really esteem him a lot”.
Riccardo Quagliotti recently joined the investment team of Kairos. After a ten-year experience in Barclays as Head of Cash Equity Desk, previously with a long career in Lehman Brothers International as Head of Cash Sales US and Europe and in Paine Webber, in Geneva, in the advisory Equities US, Riccardo Quagliotti has been appointed Senior Equity Analyst to cover new market trends with a focus on technology, media and Internet.