Mon, May 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

3A launches UCITS III fund of hedge funds

Thursday, October 01, 2009
Opalesque Industry Updates - 3A SA, the alternative investment division of the SYZ & CO Group, announces today the launch of a new UCITS III fund of hedge funds. This type of product preserves the benefits of a hedge fund whilst offering the additional advantages of a well-regulated environment, especially with regard to transparency and liquidity. This new fund, 3A Dynamic UCITS III, is aimed at professional clients only and will not be marketed to the retail market.

A new generation of alternative funds
Whilst the advantages of alternative strategies, in terms of decorrelation or absolute returns, are well known, their limitations, namely low liquidity, lack of regulation and limited transparency, have often meant institutional investors were reluctant to invest in them. The severe financial crisis in 2008 and the problems that ensued for many hedge funds have increased this distrust.

Fortunately, a new generation of alternative products, the UCITS III alternative funds, provides an effective answer to this problem by being fully compliant with the latest regulations on European investment funds. Apart from a rigorous legal framework, these products have the advantage of being recognised by regulators and are therefore eligible for investment from insurance and pension funds. They also benefit from a favourable fiscal treatment in most European countries.

The universe of such hedge funds is increasing rapidly and at present there are approximately 200 such hedge funds. Encouraged by investors and driven by the growth opportunities in this sector, most of the larger alternative managers are positive about offering this type of product.

3A Dynamic UCITS III: a UCITS III fund of hedge funds
In order to fully benefit from these new investment vehicles, 3A has created the 3A Dynamic UCITS III, an alternative fund which invests in UCITS III hedge funds, and which is itself also compliant with the requirements of the UCITS III directive. In addition to the classical advantages of hedge funds, this new product offers the following benefits:

- Strongly-regulated framework. The underlying funds comply with strict constraints in terms of diversification and risk control. The key functions, such as custodian or administrator, must be segregated and are performed by independent companies.

- Transparency. The underlying funds must meet high standards of disclosure, particularly in terms of investment policy.

- Liquidity. 3A Dynamic UCITS III offers bi-monthly liquidity (every fortnight), in line with the liquidity of its underlying funds.

Fund features
3A Dynamic UCITS III is a sub-fund of the umbrella Luxembourg SICAV Oceano. To meet the needs of institutional investors, which are the target clients for this product, the Fund seeks to achieve a low volatility of 2-4% with a return objective of 6-8% p.a. The Fund is well-diversified and comprises between 18 and 25 positions. It will be available in three different reference currencies (USD, EUR and CHF) and will include several share classes.


About 3A SA
3A SA – Alternative Asset Advisors is the alternative division of the SYZ & CO Group and one of Europe’s leading specialists in the field. 3A is the investment manager for a number of funds of hedge funds, including London and Zurich-listed ALTIN and 3A Alternative Funds, a multi-compartment Luxembourg SICAV comprising a number of single-strategy and multi-strategy funds of hedge funds. Following a highly disciplined analysis and due diligence process, 3A selects the best hedge funds worldwide to build tailor-made multi-manager portfolios, funds of hedge funds or structured products. 3A manages a number of high performing alternative products available to institutional investors.

3A manages USD 2.1bn in hedge fund investments. In addition, 3A provides analysis and due diligence on an additional USD 4bn for SYZ & CO. www.3-a.ch


Be

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit

  3. Investing - Billionaire Wilbur Ross likes the look of Chinese bad loans, Hedge funds are still relevant in a diversified portfolio: 4 fundamental criteria for superior manager selection[more]

    Billionaire Wilbur Ross likes the look of Chinese bad loans From Bloomberg.com: U.S. billionaire Wilbur Ross said he’s considering investing in nonperforming loans in China, as Moody’s Investors Service said that the nation has the tools to prevent a financial crisis in the near term. I’

  4. Investing - Blackstone gives pricey Canadian energy and property thumbs down, One of the most concentrated hedge fund bets is getting crushed, Facebook is hedge funds' new tech darling,[more]

    Blackstone gives pricey Canadian energy and property thumbs down From Bloomberg.com: Canada’s energy assets are uneconomic and real-estate markets overvalued, making them less attractive for investment than in the U.S. and elsewhere, according to Tony James, president of Blackstone Group

  5. Study - Only 30% of institutional hedge fund portfolios beat the benchmark[more]

    Bailey McCann, Opalesque New York: A new study from CEM Benchmarking, an independent provider of cost and performance analysis for pension funds, shows that only 30 percent of institutional investors hedge fund portfolios beat the benchmark after fees. The study provides in depth analysis of real