Skandia Investment Group is offering UK retail investors the ability to complement their investments in bonds and equities – by launching the Skandia Global Futures Fund.
The new fund invests in the USD290bn managed futures industry – an industry which has its roots in the mid nineteenth century US farming industry but which has grown rapidly since the 1970’s with the introduction of new futures contracts covering a broad range of commodity and financial assets.
The new Skandia fund is UCITS compliant and is designed to offer investors an alternative investment strategy which is generally uncorrelated to traditional equity and bond portfolios. As such investors may benefit from the fund’s ability to make money in both rising and falling markets while at the same time diversifying risk within their overall portfolio.
By building the fund to work within the UCITS framework SIG, is hoping to meet the aspirations of those investors who like the idea of investing in an established and diversifying alternative asset class but who also want the comfort of investing in a fund which is highly transparent, tightly regulated, and offers daily liquidity.
In order to exclusively market and distribute the investment strategy to retail investors, SIG has chosen to partner with London based Aspect Capital – an established systematic managed futures manager who currently run around USD6bn of assets (as at 1 October 2011).
In selecting Aspect Capital, SIG is seeking the sort of returns generated by Aspect’s Diversified Programme – the Company’s flagship investment strategy which caters primarily to large sophisticated institutional investors and has a 12 year plus track record.
SIG’s Chief Sales and Marketing officer, Rob Williams (pictured), says: “We believe the investment characteristics of a managed futures strategy are compelling as they can help investors manage risk through further diversification while offering the prospect of good returns.
“From our discussions with fund buyers around the world, we believe that the Skandia Global Futures Fund will meet the requirements of those investors who are keen to put their money into alternative investment strategies but via a fund that sits within the UCITS framework and with performance that is delivered by a provider they can trust’.
“That trust is based on SIG’s ability to select managers who we regard as exceptionally talented. Having put them through stringent tests to ensure they meet our standards for excellence, we are confident that Aspect Capital is a business with tried and tested strategies who have met those criteria. We are delighted to be able to offer them to our investors worldwide”, said Rob Williams.
Aspect Capital’s Chief Executive, Anthony Todd, says he is delighted to enter into a partnership with such a respected brand and to gain access to Skandia’s exceptional retail distribution capability.
“Skandia has a strong distribution network and an enviable reputation for high service levels coupled with vast experience introducing innovative funds to advisers and investors,” he says. “We believe it is important for Aspect’s growth to have an association with such a strong organisation, and Aspect’s research-driven processes ideally complement Skandia’s position in the retail funds management and advice industry.”