KAIROS: A BILLION NEW COLLECTION IN 9 MONTHS. “WE WILL GROW BY 10-15% ANNUALLY”, THE BANK SOON
“John Maynard Keynes argued that falling rates are the euthanasia of rentiers”. But that wasn't the case for Kairos' customers.” No, luckily for us. But being a manager today is undoubtedly more complicated than 15 years ago”. Paolo Basilico, number one of Kairos, celebrates in his own way, without conceding anything to emphasis or marketing, the 15 years of his creation, one of the few successful independent Italian companies in finance.
No sparkling evenings or concessions to show business: better to support the Oliver Twist Foundation which in ten years has guaranteed schooling for 4.500 minors experiencing situations of hardship. The excellent performance of the subsidiary, with a 20 percent stake, by Juius Baer is also needed for this. In 2014 it has already achieved net inflows of one billion euros in 2014; with a growth rate close to 20 percent, higher than the ambitious goal of increasing assets by 10-15 per year.
Not bad for the financial boutique launched in 99 by Basilico and which today boasts 140 employees, 22 partners, 6,4 billion assets under management, two-thirds coming from private customers, the rest from institutional clients, among which 4- 5 strong names that Basilico does not mention. But which, after so much growth (destined, moreover, to continue) has not lost its main characteristic, namely that of being above all a "product factory" which, among other things, is preparing to apply next January for authorization to via Nazionale to transform the company into a private bank (“to be able to develop lending as some customers ask us” he specifies).
The latest product, already on the launch pad, is the new multi-asset fund “Kairos Real Return” which should help raise funding in 1,2 to at least 2014 billion. “It is a counter-current proposal – explains the general manager Fabio Bariletti – which starts from the premise that in the second half of 2015, at least outside Europe, rates will rise more than what the market expects”. Hence the advice to add, to the existing funds, a product capable of protecting capital from inflation and rising interest rates, capable of making good profits even in the downward phase of bond listings by resorting to inflation-linked bonds, gold , commodities and currencies.
All without neglecting the European Stock Exchanges, with an eye to utilities. Or for Fiat, an Italian gamble for which the "most important catalyst is the spin-off of Ferrari", according to portfolio manager Federico Riggio. The stock is also undervalued relative to US competitors such as GM and Ford, particularly when you focus on the potential to boost margins. Beyond the investment strategies, it is worth emphasizing the philosophy of no. Kairos, Basilico underlines, will not enter the mini-bond market. "It is an illiquid instrument that is not congenial to an asset management that guarantees liquidity to its investors". No to growth through acquisitions. "It's a legitimate choice, but we prefer to invest in individual professionals, 5-7 every year, who guarantee new professionalism". And no to the listing on the Stock Exchange. “I believe that for our profession, listing involves more problems than advantages”.
