Geneva-based Systematica Investments has launched the Systematica Alternative Risk Premia (SARP) Ucits fund aimed at retail investors based in the UK and Europe.
The new fund, backed by $120m (€103m) from Old Mutual Global Investors, is the Ucits version of the SARP strategy – a Caymans Island-based hedge fund that the company launched in March. The fund – which can be traded daily – will be Systematica’s second strategy on its Dublin-based Ucits Icav platform.
With a commitment to invest from a significant seed investor of $122m (€104.78m), the new fund will be overseen by product manager Matthias Hagmann, who has been working at the company since its formation.
The fund follows an alternative risk premia strategy, which seeks to replicate hedge fund returns generated by market movements (known as beta) rather than manager skills (known as alpha). It allocates its investments across a wide range of strategies and asset classes, targeting an annualised volatility of 8-10% and net returns of 6-8% over a market cycle.
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 and lower fee products providing returns with greater transparency, liquidity and cost focus than traditional hedge fund products.
Systematica Investments’s CEO Leda Braga (pictured) said: “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.”