James Williams, Hedgeweek

EEA Fund Management widens fund range by hiring Oriel Asset Management duo… ML Capital adds Future Value Capital fund to MontLake UCITS platform…

ML Capital this week announced the launch of the FVC Alternative Risk Premia UCITS fund on its MontLake platform. London-based Future Value Capital is a quantitative macro specialist.

The fund has launched with USD20million in seed capital and becomes the first macro fund on MontLake. The fund aims to exploit alternative risk premias and market inefficiencies which are an attractive alternative to alpha, offering an innovative way of extracting systematic sources of return which are uncorrelated to traditional asset classes.  
 
Cyril Delamare, CEO of ML Capital said that systematic macro strategies had been in high demand from investors since the firm launched its ML Alternative UCITS Barometer (a quarterly investor survey) over three years ago.
 
“Future Value Capital have the right blend of academia and market experience to successfully run this fund and generate uncorrelated returns using a risk premia approach. We believe that this fund will further enhance the offering of alternative investments in UCITS format and help investors diversify away from pure equity and fixed income funds,” said Delamare.
 
Roman Lutz, Managing Partner at FVC added: "We are pleased to provide the European investment community access to the FVC Alternative Risk Premia Strategy, and we are delighted to launch the fund on the MontLake UCITS platform.”
 
Edinburgh-based Kennox Asset Management has adopted a UCITS structure for its flagship Strategic Value Fund after the decision was unanimously approved at last week’s EGM. The decision will allow Kennox to distribute the fund on a cross-border basis to mainland Europe in a bid to satisfy growing demand for the fund from investors. The fund is managed by Charles Heenan and Geoff Legg and as its name suggests, it takes a value approach to investing and has a low volatility profile. Managing Director Peter Boyle was quoted as saying: “We believe that the adoption of UCITS, with its more rigorous compliance regime, will be beneficial to the fund and all investors – the change will have no impact on the manner in which the portfolio is managed (the portfolio has always met all UCITS requirements) or running costs, yet should give a further layer of client comfort and open the Fund to the growing number of investors who require UCITS accreditation.”
 
EEA Fund Management has hired Oriel Asset Management duo David Urch and Tim Hall, bringing their long/short directional UK equity market fund with them and broadening out EEA Fund Management’s range of alternative focused funds. The fund has been renamed the EEA Absolute Return Fund and will sit alongside the long-only TB EEA UK Equity Market Fund, both of which are high-conviction, multi-cap UK funds. 
 
The EEA Absolute Return Fund is a Cayman-domiciled long/short directional equity fund, launched in August 2009. It has a bottom-up investment approach, underpinning an active momentum strategy focused on identifying and harnessing positive change in UK-listed companies. The EEA Absolute Return Fund returned 8.9 per cent in its US$ share class in 2012 and year to date is up an estimated 8.22 per cent to the end of September 2013. The TB EEA UK Equity Market Fund is a UK-domiciled UCITS fund. The fund has an impressive track record: since inception in May 2012 it has returned 41.33 per cent, outperforming the IMA UK All Companies Sector average by almost 8 per cent.
 
Urch commented: “We are looking forward to working with EEA, whose strong distribution track record and significant infrastructure will further assist us in building greater market traction for both of our funds.” Added Hall: “The transition to EEA has been seamless and our investors will continue to benefit from the same disciplined investment process, philosophy and management team that has delivered such attractive performance.”

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