By Bernardo Vizcaino
Sept 12 (Reuters) - A group of former Barclays executives are launching a London-based asset management firmthat combines socially responsible and Islamic investmentprinciples, seeking to build crossover appeal among bothinvestor segments.
The firm, named Arabesque, is due to open to investors inthe first quarter of 2014 with a team led by 20-year veteranOmar Selim, Barclays' former head of global markets forinstitutional clients in Europe, the Middle East, Africa andeastern Europe.
It will focus on value-based investment strategies, whichbuy shares deemed to be trading at a discount to theirfundamental worth. Its methodology will use environmental,social and corporate governance (ESG) criteria.
"Implementing ESG is not meant to patronise anyone, quitethe contrary - it is for performance, and extensive academicresearch supports this," said the Egyptian-born Selim.
"Our objective is to make sustainable investment attractiveand available to all investors regardless of the economic andcultural background."
The firm is applying for authorisation and regulation byBritain's Financial Conduct Authority; it is establishing fundsin Luxembourg and the Cayman Islands and plans to offer managedaccounts as well.
"We will start with three globally diversified equity fundsand later expand to other asset classes such as fixed income andreal estate," said Andreas Feiner, former head of distributionfor Barclays Saudi Arabia.
An office in Frankfurt will handle research, advisoryactivities and distribution while the firm plans to open anoffice in the Gulf for additional research and client coverage.
The team includes Dominic Selwood, previously global head ofIslamic products at Barclays, as well as Alexander Kuppler,former head of trading at DWS Investments, Deutsche Bank's retail fund management arm, and Tarek Selim, whoheaded the structured solutions team in Germany and Austria forUBS. The firm aims to add a head of quantitativeresearch.
Arabesque will follow rules set by the Bahrain-basedAccounting and Auditing Organisation for Islamic FinancialInstitutions as well as United Nations principles forresponsible investment, Selim said.