Frontier overhauls research function

Frontier Advisors is restructuring its research team in a way that will see Andrew Kemp become head of defensive assets and private markets.

While technically not a promotion, the overhaul widens Kemp's remit and gives him added responsibilities.

Essentially, Frontier has reconfigured the research function so that the debt and currency team changes to defensive assets and private markets, reflecting a shift in focus.

The asset consultant will continue to cover bonds, currency and derivatives and expects to devote more resources to those asset classes.

Iain McMahon will head up this team (as the head of bonds, currency and derivatives), reporting to Kemp.

Frontier has also created a new private markets team to run private debt and private equity under one single construct.

This team will focus on offerings in both debt and equities to help provide clients with insight and options in these increasingly relevant areas.

Real assets (infrastructure and property) will continue to be led by Manish Rastogi with Jennifer Johnstone-Kaiser as head of property.

Michiel Swaak has been appointed head of alternatives.

"These changes will support the evolution our clients are looking to implement in their portfolios and reflect emerging opportunities in investment markets," said Frontier.

"For many years, the investors we have worked with have typically chosen to allocate relatively small amounts of capital to both private debt and private equity.

"While Frontier has researched both areas in the past, we are boosting our focus in response to growing client interest and evolving markets.

"Today it is increasingly a question of where to allocate within private markets (equity with higher returns and higher risk, or debt also offering attractive returns and with more protection albeit higher on the capital stack.

"We see more Australian investors looking to allocate to private debt, and our GIRA partners say the same is true of US and UK investors.

Frontier said alternatives generally have had modest allocations across portfolios and typically in larger funds.

"We have several years of history of providing specialist research and advice in this area, and we feel further allocations here will become increasingly important for all investors, including those below $1 billion in funds under management," the asset consultant said.

"Assessing this wide group of strategies across many markets requires specialist knowledge as their application across client portfolios requires bespoke thinking.

Frontier explained that in response to recent resignations and to bolster and shape the research team more broadly, it is currently recruiting for five roles within research - two in the real assets team, two in the defensive assets and private markets team and one in the alternatives team.

Incidentally, Kemp has about 20 years of experience in the asset management industry domestically and globally, having worked in Australia, Singapore and the UK.

He was the head of fixed income at DBS Asset Management for three years.

Before that, he spent a decade as a fixed-income portfolio manager at AllianceBernstein Australia.

Despite the changes in each of their roles, Kemp remains a principal consultant.

Swaak and McMahon will remain senior consultants.