Lyxor Asset Management and Nordic financial services group, SEB are to launch a multi-manager strategy in the form of a dedicated Multi-Manager UCITS vehicle, offering daily liquidity.
The product aims to provide a transparent and efficient structure to investors, and is designed to navigate the current uncertain market context. SEB will act as investment advisor, while Lyxor will manage the investment strategy that will be available to
SEB’s institutional and private investor base.
The firms write that the strategy’s innovative format is a simple and cost-efficient solution for investors looking to alternative strategies for diversification and enhanced performance with limited market correlation.
The Multi-Manager structure offers a dedicated selection of global alternative strategies via a single investment, with the security benefits of a UCITS strategy. Set-up as a Lyxor managed account, the initial portfolio is made up of five complementary, daily liquid strategies – long/short equity, global macro, equity market neutral, event driven, and CTA – each customised exclusively for this program and operating as an individually managed sub-account (or “sleeve”) of the main portfolio.
The firms write that this means a very cost-efficient vehicle, with investors able to access a diversified range of hedge fund strategies with one single fee. The line-up of managers will be extended as the Strategy grows over time to a target portfolio of ten to 12 strategies.
Eric Hoh, Head of Liquid Alternative Solutions at SEB, says: “Structural market changes,
namely low fixed income yields, equity volatility and rising correlation between equities and bonds are pushing investors towards greater use of alternative strategies for diversification and uncorrelated returns. Lyxor and SEB’s combined expertise in hedge fund manager selection, fund structuring, operational due diligence as well as counterparty risk has enabled us to offer a liquid solution in a transparent way”.
Jean-Marc Stenger, Head of Investment Partners at Lyxor says: “We’re very excited to launch this innovative investment solution with SEB. Its unique format is a game-changer for the hedge fund industry. Its liquid and regulated set-up suits not only institutional investors, but it is also particularly attractive to private banking investors and retail clients to get an efficient exposure to alternative investments”.
