Federated, GML Capital to develop trade-finance investments

Federated Investors Inc. entered into a partnership with a London-based specialty asset management firm to bring global-trade-finance investments to its clients in the United States. Through the relationship with GML Capital LLP, Pittsburgh-based Federated plans to develop new investment opportunities for wealthy and institutional clients who might benefit from the alternative asset class, according to a statement released by Federated today. The trade-finance industry, which represented $130 billion worth of investments in 2008, involves financing cross-border imports and exports of goods and services. “With GML, we look forward to offering investors seeking non-correlated alpha opportunities access to the trade-finance market,” said Gordon Ceresino, Federated’s vice chairman and executive director of international distribution. According to Federated, the asset class offers investors the potential for attractive returns, and historically low default and high recovery rates with low correlation to market indexes. GML possesses the specialized resources and expertise that sourcing and structuring the investments requires, Federated said.