Schroders to launch BlueTrend strategy on GAIA platform
Today, Schroders announces that it is launching a trend following strategy on its externally-managed GAIA platform in partnership with Systematica. The fund aims to generate long-term returns of 10- 15% per annum, net of fees for institutional and sophisticated investors.
Today, Schroders announces that it is launching a trend following strategy on its externally-managed GAIA platform1 in partnership with Systematica2. The fund aims to generate long-term returns of 10- 15% per annum, net of fees for institutional and sophisticated investors.
Schroder GAIA BlueTrend3 is a systematic trend following fund with an investment universe of over 150 markets globally across a number of asset classes, such as equities, commodities, fixed income and foreign exchange.
Trend following strategies employ tactical asset allocation that follow market trends within risk controlled limits. When markets show a positive trend, trend followers aim to track this trend by being long this market and, vice versa, when a market shows a down trend they aim to be short. Trend following returns generally have low correlation to traditional markets.
Trend following strategies employ rules-based trading methodologies, based on algorithms, which are generated by exploiting the statistical characteristics of markets. These algorithms are the outcome of in-depth market research and technical analysis of historic price action.
The BlueTrend strategy is managed by Systematica’s investment team led by CEO Leda Braga.The strategy was initially launched in January 2004 and has approximately $8.4bn4 of assets under management. It has established a strong and proven track record delivering an annualised return of 11.1%5, with an annualised volatility of 14.0%4.
Leda Braga, CEO of Systematica Investments, commented:
“We are delighted to be partnering with Schroders to offer investors access to the BlueTrend strategy. The BlueTrend investment team has over a decade’s experience in running a trend following strategy while Schroders has an outstanding reputation in the fund management world for its long-term outlook
and its understanding of clients’ needs.
This strategy has been designed to match the BlueTrend off-shore programme, whilst complying with the UCITS regulatory framework. So the investor gets an experienced trend following manager, operating under the UCITS regulatory regime, with the benefit of the monitoring offered by Schroders.”
Eric Bertrand, Director of Schroder GAIA, added:
“We are constantly on the lookout for high-quality hedge fund strategies to expand our GAIA platform offering. Systematica is a spin-out of the highly rated systematic trading centre in BlueCrest and the BlueTrend strategy has delivered outstanding annualised return since inception. This fund will be of interest to investors seeking above average returns with low correlation to the broad markets.”
The GAIA platform was launched in November 2009 and has $6.3bn in assets under management.6 It combines the strength of Schroders’ renowned asset management expertise and extensive distribution capability with leading hedge fund managers. Schroder GAIA offers access to liquid alternative investment strategies with moderate to low correlations to mainstream market returns within a Luxembourg mutual fund format subject to the UCITS regulations.
Following the launch there will be six externally managed funds on the platform, Schroder GAIA Egerton Equity, Schroder GAIA Sirios US Equity, Schroder GAIA KKR Credit, Schroder GAIA Paulson Merger Arbitrage, Schroder GAIA BSP Credit and Schroder GAIA BlueTrend.
Risk factors: The capital is not guaranteed. Investments in money market instruments and deposits with financial institutions may be subject to price fluctuation or default by the issuer. Some of the amounts deposited may not be returned to the fund. A financial model may provide a technique to identify and manage the risks of the fund. The model's assumptions, calibration and programming may not deliver the expected results. The Fund may hold indirect exposure to commodities. The value of these investment may be affected by changes in overall market movements, commodity index volatility, factors affecting a particular industry, natural events, embargoes, tariffs and international economic, political and regulatory developments. The Fund may be leveraged, which may increase its volatility. The Fund may be leveraged by trading in a high volume of derivatives to achieve a risk target consistent with its risk profile. There is no guarantee that a financial derivative contract will achieve its intended outcome, even if the terms of the contract are completely satisfied. A security issuer may not be able to meet its obligations to make timely payments of interest and principal. This will affect the credit rating of those securities.
For further information, please contact:
Estelle Bibby, Senior PR Manager
Tel: +44 (0)20 7658 3431
Lucy Cotter, PR Executive
Tel: +44 (0)20 7658 6168
Sarah Deutscher, Senior PR Manager
Tel: +44 (0)20 7658 6139
1GAIA (Global Alternative Investor Access) is Schroders’ alternative UCITS platform designed to offer investors access to alternative strategies in the liquid, transparent and regulated UCITS format.
2Systematica Investments Limited will be the appointed investment manager of the fund
3Please note that the fund has not yet been launched/registered in any jurisdiction
4Source: Systematica, as at 31 July 2015
5Source: Systematica, as at 31 July 2015
6Source: Schroders, as at 31 August 2015
Notes to Editors
For trade press only. To view the latest press releases from Schroders visit:
Schroders is a global asset management company with £309.9 billion (EUR 437.4 billion/$487.4 billion) under management as at 30 June 2015. Our clients are major financial institutions including pension funds, banks and insurance companies, local and public authorities, governments, charities, high net worth individuals and retail investors.
With one of the largest networks of offices of any dedicated asset management company, we operate from 37 offices in 27 countries across Europe, the Americas, Asia and the Middle East. Schroders has developed under stable ownership for over 200 years and long-term thinking governs our approach to investing, building client relationships and growing our business.
Further information about Schroders can be found at www.schroders.com.
Issued by Schroder Investment Management Ltd, which is authorised and regulated by the Financial Conduct Authority. For regular updates by e-mail please register online at www.schroders.com for our alerting service.
Systematica Investments launched in January 2015 after a decade of experience within BlueCrest Capital Management. The firm was founded by Leda Braga and manages approximately $9.1bn*. Systematica Investments has a global presence with offices in Jersey, Geneva, London, New York and Singapore.