Union Bancaire Privee, the fourth-largest Swiss private bank, is introducing high net worth individuals and institutional investors across E...

Union Bancaire Privee, the fourth-largest Swiss private bank, is introducing high net worth individuals and institutional investors across Europe to its latest tie-up agreement with Calamos Investments, the US money manager.

The European road show features the Union Bancaire Asset Management Calamos US Equity Growth Fund, which was launched in April last year, and has grown quickly with about $530 million in assets currently under management.

During a breakfast briefing at UBP’s headquarters in London yesterday, Andre Gigon, managing director, UBP in London, told WealthBriefing that he expects the new fund to have crossed the $1 billion mark by the end of 2006.

UBP relies on a tried and tested selection process when it comes to choosing fund managers. The bank has been selecting hedge funds managers for example, for the last 25 years. “We never manage, we select managers and incorporate these choices into a fund of funds,” Mr Gigon added.

Calamos also adheres to a set of rigorous processes, mostly developed in-house by the firm. John Calamos, chairman and chief executive officer, Calamos Investments, detailed some of these processes during the morning meeting.

The equity growth fund follows a structure that Callamos has employed since 1991 and which did well to preserve capital through the down phase of the markets around 1999-2000, according to Mr Calamos. A quantitative analysis is the first part of this strategy.

Mr Calamos said: “Next we turn to qualitative research, all our research is done in-house. Our analysts look at companies and recast statements into cash flow statements. The valuations we end up with are in the form of a range – a high band and low band - set of valuations.

“The final step is macro, top-down analysis, where we look at what’s happening in the world today, where are we in the business cycle. The aim is to select the best growth companies in the US when these are at the best price in the growth cycle.”

“If we don’t sell a company it doesn’t mean it’s not a great company, just that it’s not a great price.”

The US economy is in the mid-phase of its cycle, said Mr Calamos, making this an exciting time for growth that could last a couple of years.

Mr Calamos described the US economy as knowledge-based rather than measurable in manufacturing units; he has faith in the strong growth prospects of intangibles. Calamos had the fortunate insight to go heavy in Apple, for example, prior to the release of the now ubiquitous iPod.

The Calamos equity fund is the latest addition to UBP’s existing “club” of investment vehicles, which includes the UBAM Neuberger Berman US Equity Growth fund, German and Japanese equity funds, and corporate Euro bond and convertibles Europe products.