By combining the assets of American Express Bank and American Express Financial Corp., the two entities’ parent company, American Express, announced the creation of a new global fund-of-hedge funds business.

Led by Sam Perruchoud, who will hold the title of senior director and be based in Geneva, Switzerland, the integrated business will possess more than $1 billion in assets under management.

The fund-of-hedge funds, which already operates out of Geneva, Minneapolis and New York, will stay in those locations and continue to be managed by veteran portfolio manager Peter Slattery.

The company cited better research coverage, lower risk and more uniform product development and management departments as chief reasons for the integration of the two platforms.

Said American Express Financial Corp. CIO Ted Truscott: "American Express will be in a more powerful position to significantly grow our business both in the U.S. and internationally. It will provide greater integration of our fund-of-hedge funds leadership, management and research talent."

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