SEB’s Dynamic Manager Alpha fund is now accessible to retail investors via a new Ucits format.
Launched in 2005 as a managed account, the strategy has a seven year track record, returning consistent positive growth every year since inception.
The fund was launched in Luxembourg Part II format in 2008 and received a gold rating from S&P in 2011, with current AUM of USD170m.
Kerstin Cooley (pictured), senior product manager, hedge funds at SEB, says: “As retail investors become more sophisticated and independent in making their investment decisions, they continue to ask for access to institutional products which offer high-quality, security and returns. They are now an increasingly important segment in our overall investor base, and over the last years have shown growing interest in our investment strategies. The Ucits format of DM Alpha is therefore the logical next step in its evolution. It enables retail investors to invest in a proven product which has consistently generated above average returns, and we anticipate that the industry will further extend the availability of sophisticated investment vehicles to a broader audience.”
DM Alpha has generated a return of 24.46 per cent since inception in 2005, offering investors exposure to a diversified portfolio of skilled investment managers by extracting the "alpha" from mutual fund returns through disciplined market risk hedging.
The funds are selected by a structured qualitative and quantitative process to deliver a high risk-adjusted return, while the dynamic hedging strategy aims to ensure market neutrality.
The strategy offers daily liquidity and is available in fund format through swap and certificate.
The new Ucits format is currently available to retail investors in Luxembourg and Sweden and will be passported to investors in further jurisdictions over the coming weeks.