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In the past, investors could only access alternative risk premia, those returns that can be achieved by investing in alternative strategies, through rather illiquid and costly hedge funds or funds of hedge funds.

The Vontobel Fund – Pure Premium Strategy offers state-of-the-art diversification benefits to institutional and private clients in periods of stress in financial markets. The fund complements Harcourt’s newly created "Research-Driven Strategies" product line, which also includes Pure Momentum and Pure Dividend strategies. “Research-Driven Strategies” indicates that alternative risk premia are mostly a reflection of a given trading strategy followed by an investor. This is in contrast to traditional funds, in which performance reflects any fluctuations in asset classes such as equities and bonds.

The fund is actively managed and aims to systematically earn option premium from various asset classes worldwide, (for example by selling options). At the same time it significantly reduces market-price risk, for example through active management using derivatives. The fund mainly invests in liquid call and put options that Harcourt believes, based on an in-house systematic analysis, represent attractive investment opportunities. The funds aim is to achieve a risk-adjusted return exceeding the three-month US-dollar LIBOR by 3% to 5%.

Press release

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