GAM Investments has launched an offshore version of its alternative risk premia strategy, which currently has USD1.8 billion of assets under management, as at 28 September 2018.
The new product will complement GAM’s existing range of strategies available to institutional investors, including existing systematic strategies managed by the GAM Systematic team. GAM Systematic has USD 4.7 billion of assets under management, as at 30 June 2018.
GAM’s alternative risk premia strategy typically targets around 15 risk premia strategies across the style categories of value, momentum and carry. The team uses a disciplined research process to design, systematically implement and cost-effectively trade the various risk premia. In doing so, the team seeks to provide diversified sources of returns for investors. The portfolio has a target return of USD cash rates + 6-7 per cent and expected volatility of 8-10 per cent.
Lars Jaeger, GAM Systematic’s head of alternative risk premia, says: “With 13 years’ experience in alternative risk premia design, implementation and trading, our team has created a portfolio of strategies and styles that shows high stability in very different market environments. We utilise in-house developed expected drawdown-based portfolio optimisation methods to manage risk, in order to reconcile our clients’ return objectives with their desire for capital protection.”
Anthony Lawler, co-head of GAM Systematic, says: “We see continued strong interest across our systematic offering which includes strategies in equities, credit, fixed income and alternatives. Our two largest offerings – alternative risk premia and our Core Macro programme – have both experienced positive net inflows recently. Our alternative risk premia offering is designed to be uncorrelated to the global bond and equity markets over the cycle, a profile which clients continue to seek in today’s environment.”
