Schroders has launched a new offshore externally-managed fund, the Schroder GAIA Two Sigma Diversified, via its UCITS platform.
The fund, the German asset management giant’s ninth in its GAIA range, will be sub-advised by Two Sigma Advisers. The fund will be managed using a strategy, created by Two Sigma Advisers in collaboration with Schroders that will combine US equity market-neutral and global macro strategies, the firm said in a statement.
The fund aims to offer investors portfolio diversification through a liquid alternative strategy that intends to be uncorrelated to traditional equity and bond markets. The strategy will apply a “scientific and algorithmic approach” to investing across thousands of individual equities and hundreds of macro markets, allocating the majority of the fund to the equity market-neutral strategy.
Two Sigma Advisers was launched in 2009, employing more than 1000 people and together with its affiliates Two Sigma has built a platform that combines computing power, vast amounts of information and advanced data science to produce what it calls “data breakthroughs” in investment management and related fields.
Eric Bertrand, head of Schroders GAIA, said: “We continue to see very strong demand for liquid alternative investment strategies. Two Sigma has a strong reputation in the field due to its technology expertise and creative, research-driven approach, which allows the firm to design and evolve intelligent systematic strategies.”
The Schroder GAIA Two Sigma Diversified fund will launch on the Schroder GAIA UCITS platform which now has nine funds on the two GAIA platforms, eight managed by external hedge fund managers. These are: Schroder GAIA Two Sigma Diversified, Schroder GAIA Egerton Equity, Schroder GAIA Sirios US Equity, Schroder GAIA Paulson Merger Arbitrage, Schroder GAIA BSP Credit, Schroder GAIA BlueTrend, Schroder GAIA Indus PacifiChoice and Schroder GAIA II NGA Turnaround and one managed internally Schroder GAIA Cat Bond.