Swiss manager EI Sturdza Investment Funds (EI Sturdza) has launched the EI Sturdza Strategic Beta Flex Fund which invests in a globally diversified portfolio of equity funds.
The daily liquid and Dublin-domiciled fund is compliant with Ucits V regulation. It is managed by Paolo Marongiu (portfolio manager) and Daniele Bevacqua (strategist), supported by analysts Giorgio Mastropietro and Leonardo Sinelli of Sofia SGR.
The portfolio management team selects fund managers who have a proven track record of delivering alpha then actively manage the Fund’s net exposure (in the range of 0-50%) based on their views of prevailing market conditions to reduce the portfolio’s overall volatility.
“When equity markets offer an attractive risk premium the net long exposure will be raised. Each time the team modifies the net long position of the portfolio, a stop loss is put in place in order to control the risk both in terms of the equity and hedge exposure,” EI Sturdza said.
In EI Sturdza’s view, portfolio managers must be flexible in the event of changing market conditions in order to maximise returns and focus on risk premia’s protection by reducing exposure to the market when needed.
Georges Gutmans, executive chairman of EI Sturdzam said: “Investors have been very clear about their concerns around low interest rates and geo-political impact on markets. Our new intelligent, actively managed, smart beta investment fund responds to their concerns and will harness fixed income like returns from equity markets within a liquid investment vehicle.”
Paolo Marongiu, portfolio manager of the EI Sturdza Strategic Beta Flex Fund, added: “Today’s markets continue to challenge investors – volatility is high, and uncertainly has been at the forefront of every investor’s mind. Around every corner there is potentially a new event that has the possibility to wipe value off a market. Our approach looks to retain positive returns, and protect from volatility through rigorous risk management.”