Opalesque Industry Update - Harcourt, the alternative business of Vontobel Asset Management, expands its offering with the launch of two UCITS funds, the Vontobel Fund – Pure Momentum Strategy and the Vontobel Fund – Pure Dividend Strategy. They reflect the company’s commitment to provide investors with more transparent, liquid and cost-efficient alternative strategies.|
The two funds, which present an alternative to traditional hedge-fund investments, are part of the product line called “Research-Driven Strategies”. This name indicates that alternative risk premiums are mostly a reflection of a given trading strategy followed by an investor.
Both funds are actively managed, with investments made strictly according to rule-based methodologies that aim to capture clearly defined alternative risk premiums. Harcourt believes these funds can offer state-of-the-art diversification benefits to institutional and private clients in periods of stress in financial markets. The funds aim to achieve a risk-adjusted return exceeding the 3-months LIBOR by 300 to 500 bps.
The Vontobel Fund – Pure Momentum Strategy aims to benefit from trends in the global financial markets. The fund invests primarily in various liquid asset classes such as futures, equity swaps and collateral debt securities. The goal is to achieve consistent returns by combining various momentum strategies to capture and exploit the observable trends in the market.
The Vontobel Fund – Pure Dividend Strategy strives to systematically participate in the dividend stream of high-payout companies whilst at the same time reducing equity market risk significantly. The fund invests in companies with higher-than-expected average dividend yields with the aim to provide stable returns during times of low interest rates.
“The improved macroeconomic climate has created significant new opportunities for investors to benefit from market upswings”, said Jan Viebig, CEO of Harcourt and portfolio manager of the Vontobel Fund – Pure Momentum Strategy; “we believe these two funds are ideally placed to support traditional portfolio allocations, while delivering the enhanced diversification investors require in the post financial crisis world.”