Columbia Threadneedle Investments has launched an absolute return, mixed asset fund within its alternatives range, the asset management firm has announced.
The Threadneedle (Lux) Diversified Alternative Risk Premia fund is designed to gain from returns through exposure to market anomalies across all major asset classes, including credit and commodities, as well as investment factors such as value, style and short volatility.
The Ucits-compliant fund will be managed by Marc Khalamayzer, Joshua Kutin and William Landes, who is head of alternative investments at the firm. The managers have almost 50 years of asset management experience between them and are based in Boston.
Liquid risk premia exposures will be tactically adjusted where macro events are believed to influence the holdings. The fund will have a volatility target of 7.5% and aim for outperformance of 7% to 10% per year gross, over rolling three-year periods.
Commenting on the launch, Landes said: ‘In the search to maximise and diversify their portfolio returns, institutional investors have often turned to multi-strategy or fund of hedge funds. 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.’