Columbia Threadneedle Investments has rolled out a new liquid alternatives UCITS fund. The fund is intended for distribution aimed at institutional investors, high net worth individuals and sophisticated wholesale investors such as private banks and family offices.
The new Threadneedle (Lux) Diversified Alternative Risk Premia fund will invest across all major asset classes as well as investment factors.
It will aim to be lowly correlated to major asset classes including equities and bonds, targeting outperformance of 7%-10% per annum over a three-year cycle and a volatility target of 7.5%.
The fund will be managed by William Landes, Marc Khalamayzer and Joshua Kutin, out of Boston, US.
Commenting on the new offering, Columbia Threadneedle Investments head of alternative investments and deputy head of investment solutions William Landes said: “This strategy offers many of the risk premia attributes present in multi-strategy hedge funds at a much lower cost. Now that tools have been developed which allow financial market anomalies to be cost-effectively packaged, alternative risk premia strategies present an attractive investment solution for institutional investors.”
The fund is initially registered in Luxembourg. The company eventually plans to distribute the offering in other markets as well such as the UK, Austria, Belgium, Finland, France, Germany, Italy, the Netherlands, Singapore, Spain, Sweden and Switzerland.
Columbia Threadneedle Investments head of institutional distribution in EMEA and Latin America Dominik Kremer said: “In our minds, our strategy is an innovative solution for institutional investors seeking to both enhance portfolio returns and provide true diversification at a time when economic and financial conditions make investing increasingly challenging.”