Privalto UK, part of BNP Paribas, has announced the launch of the Privalto Millenium Tracker Fund.
Privalto UK, part of BNP Paribas, has announced the launch of the Privalto Millenium Tracker Fund.
The fund, part of Privalto UK’s Ucits III Oeic range, will offer UK investors a cost efficient way to benefit from a quantitative absolute return strategy that combines active and passive index management.
The launch date for the fund is 5 May 2009.
Sisouphan Tran, head of Privalto UK, says: ‘The success of our stabiliser capital protected funds in 2008 has prompted investor demands for a ‘capital at risk’ version, permitting them full access to the underlying absolute return strategy. Investors can take advantage of all the benefits of passive management – low cost, transparency and easy access – whilst retaining exposure to the potential rewards of effective, dynamic, quantitative asset management. The fund has been designed to offer alpha generation and low correlation not only with traditional markets but also with traditional absolute return products and hedge funds."
The fund will be linked to the performance of The BNP Paribas Millenium 10 Europe Series 3 (Sterling Hedged) Total Return Index. The Millenium Index is diversified across a broad range of liquid assets including US, European, Asian and Japanese equities, commodities, real estate and foreign exchange. With the flexibility to short many of these assets and capture market trends, it offers the potential to perform in both rising and falling markets.
The fund will offer daily liquidity with dealing at net asset value and no exit fees or bid-offer spread. The fund is backed by BNP Paribas, one of the six strongest banks in the world according to Standard & Poor’s. Credit risk to BNP Paribas is mitigated by the posting of G7 AAA bonds as collateral.
The fund offers two share classes to suit different business models. It will be available on all major platforms.
