Unigestion and Lyxor Asset Management are joining forces to launch a new series of funds of hedge funds called the Galaxy Funds.
Unigestion and Lyxor also plan to launch, in the first quarter of 2004, a series of single strategy fund of funds to provide investors with a tool to build up and gear their own allocation based on a blend of carefully selected managers.
Patrick Fenal, CEO of the Unigestion group, said: "We use Lyxor's hedge funds platform in order to provide liquidity and greater risk monitoring. Lyxor will also provide us with one of the most complete managed accounts platforms in the world which will allow our funds to be representative and diversified at every strategy."
The new Galaxy product range will provide institutional investors with funds of hedge funds structured as French mutual funds (FCP) and approved by the French regulator, the AMF (Autorité des Marchés Financiers).
The range of Galaxy Funds will, at first, include two funds:
* "Galaxy HF Defensif", which will invest in funds following "non-correlated" strategies (e.g. Arbitrage, Global Macro, CTA, Forex). The goal is to be able to generate a non-correlated return with bond-like volatility.
* "Galaxy HF Actions L/S", which will concentrate on long/short equity and other equity-based strategies, targeting an asymmetric return profile versus equity indices with a significantly lower volatility.
Unigestion will advise Lyxor Asset Management in the selection of hedge fund managers, applying a dynamic top-down allocation. Lyxor Asset Management is also responsible for the administration and the risk monitoring of the funds.
Background Note: Launched in 1998, Lyxor Asset Management manages today nearly Euro 26 billion of assets with more than Euro 10 billion in its alternative management business. Lyxor Asset Management is a wholly owned subsidiary of the Société Générale banking group, Lyxor specialises in 3 businesses:
* Index management: Lyxor Asset Management manages more than 3 billion EUR on its ETFs range including the largest European ETF in assets, the CAC40 Master Unit. Lyxor Asset Management has several exclusive licences in ETF investments, which include the new Italian stock exchange index, the S&P/MIB;
* Structured products: Lyxor manages more than 11 billion Euro assets under management (at the end of September 2003) in structured products and has developed an offer dedicated to institutional investors;
* Alternative management: Lyxor has created a platform of "Managed Accounts" which offers investment in a large diversity of hedge funds by limiting the risks usually encountered and giving access to strong liquidity. MSCI recently launched an investable index of alternative investments which is built on the platform of Lyxor's "Managed Accounts", the MSCI Hedge Invest Index.
Founded in 1971, Unigestion has offices in Geneva, London, Paris and Jersey City (NJ, USA). Dedicated to Institutional asset management and Family Office, Unigestion is recognised as one of the leaders in the alternative investment industry. The group also offers alternative solutions in traditional asset classes such as fixed income, high yield bonds and European equities.
Unigestion has over Euro 100 million in shareholder equity which is invested alongside its clients. Its senior management owns 77% of the company with the balance held by institutions and clients.
Unigestion currently manages more than Euro 3.5 billion for a broad range of clients including pension funds, insurance companies, banks, charitable trusts and families. It started investing in hedge funds in 1987 and has built a successful nine-year track record in funds of hedge funds. Managed assets in hedge funds amount to Euro 2.1 billion.
copyright hedgeweek 2004