Quantitative and systematic-focused investment manager Systematica Investments has extended its portfolio offering to a broader investor base through the launch of a new UCITS fund based on the Systematica Alternative Risk Premia (SARP) strategy.
Since its launch on 1 March 2017, SARP has seen strong investor interest, growing assets under management to USD120 million. A UCITs version of the SARP strategy has been made available to UK and European investors and their advisers from 8 November 2017, with a commitment to invest from a significant seed investor of USD122 million. The fund will have daily liquidity and will be Systematica’s second strategy on its Dublin based UCITS Fund ICAV platform.
The SARP approach was developed as part of Systematica’s strategy to further diversify its product range and to meet investor demand for higher capacity, lower fee products that provide differentiated returns with greater transparency, liquidity and cost focus than traditional hedge fund products.
SARP utilises “alternative risk premia” such as value, momentum, carry and defensive characteristics, which have been shown to demonstrate well established sources of return. Using stocks and futures, SARP allocates investments across a broad range of strategies and asset classes to maximise fund diversification whilst taking account of trading costs and liquidity. The strategy targets an annualised volatility of 8-10% and net returns of 6-8 per cent over a market cycle.
Leda Braga (pictured), Chief Executive Officer, Systematica Investments, says: “I am pleased that a broader segment of investors will now be able to access our innovative SARP strategy. This systematic trading programme provides investors with high quality implementation of well documented alternative risk premia strategies across global markets.”
“Within the class of hedge fund strategies, it is well known that systematic strategies (especially systematic macro strategies) provide attractive diversification benefits to global equity markets. SARP demonstrates strong diversification benefits, and is largely uncorrelated to a composite hedge fund portfolio as well.”
Managed through Systematica’s team based approach, the fund will be overseen by Product Manager Matthias Hagmann, who has been at Systematica since its formation.
From 8 November, the shares in the fund will be available in US dollars, euros, Swiss francs, sterling, Australian dollars, Hong Kong dollars, Yen and Singapore dollars. It will be registered for marketing in various EU jurisdictions, including the UK, Netherlands, Italy, Luxembourg, Spain and Greece. Following the launch, an application for passporting will also be made in Switzerland, Australia and Singapore, with more expected to follow. The fund will be regulated as a UCITS product by the Central Bank of Ireland.
