Julius Baer has launched the Swiss-domiciled Multi-Strategy Fund, an absolute return product aimed at private and institutional investors.
This is the first single manager hedge fund out of Julius Baer Asset Management in Zurich. Target return is LIBOR + 5-8% over any 12 month period and the fund manager is Kostas Iordanidis.
The fund will be marketed in Switzerland, Germany, Italy and the UK.
The novel aspect of this fund under Swiss law is its unique combination of features that opens up a wide range of investment opportunities while also offering the advantages of a traditional fund product:
* Active, opportunistic and global approach with broad diversification opportunities in all asset classes (incl. commodities and hedge funds)
* Low correlation to stock and bond market performance
* Systematic and controlled use of derivative investment instruments (hedging and trading)
* Ability to sell short and use leverage to maximize investment opportunities and manage risk
* Daily valuation and liquidity
* Transparent and attractive pricing with an all-in fee and a performance fee
* Access to a wide range of investors due to authorization for public distribution in Switzerland and low minimum investment amount.
Following the Absolute Return Bond Fund and the ABS Fund, this attractive new product represents a further addition to Julius Baer's Absolute Return range of funds. Another new fund, focusing primarily on alternative investments, is also scheduled for launch before the end of the year.
The aim of the Julius Baer Multi-Strategy Fund is to generate positive absolute returns regardless of the market direction, while at the same time seeking the lowest possible correlation to the stock and bond markets. The fund can invest in all asset classes within defined ranges. The portfolio focuses on equities, investment-grade bonds and currencies, tactically supplemented with high-yield bonds, real estate, hedge funds, commodities and money market investments. The flexible global orientation of the fund enables it to profit from various market developments while also diversifying the portfolio with uncorrelated risks.
In order to achieve the targeted absolute return, the fund can also employ short-selling, derivative instruments and leverage. The systematic investment process, which brings together Julius Baer's extensive inhouse asset management expertise, is accompanied by a rigorous risk management approach.
All relevant risks are measured and controlled by modern systems and instruments that enable the targeted risk level (5-10% per year, as measured by Value-at-Risk) to be monitored and compliance with investment restrictions guaranteed, both before (ex ante risks) and after (ex post risks) the investment decision is made.
The custodian is Dexia Privatbank (Switzerland) and the reference currency is CHF.