Paris based Lyxor Asset Management has entered into an agreement with SEB to launch a multi-manager Ucits strategy with daily liquidity.
SEB will act as investment advisor, while Lyxor will manage the investment strategy that will be available to SEB’s institutional and private investor base.
The multi-manager structure provides a selection of global alternative strategies via a single investment, with the security benefits of a Ucits strategy.
The portfolio, set up as a Lyxor managed account, consists of five complementary, daily liquid strategies – long/short equity, global macro, equity market neutral, event driven, and CTA – each customised for this program and operating as an individually managed sub-account (or “sleeve”) of the main portfolio.
It is understood the number of managers within the portfolio will be extended from five initially to 10-12 strategies.
Eric Hoh, head of Liquid Alternative Solutions at SEB, commented: “Structural market changes, namely low fixed income yields, equity volatility and rising correlation between equities and bonds are pushing investors towards greater use of alternative strategies for diversification and uncorrelated returns.
“Lyxor and SEB’s combined expertise in hedge fund manager selection, fund structuring, operational due diligence as well as counterparty risk has enabled us to offer a liquid solution in a transparent way.”
Jean-Marc Stenger, head of Investment Partners at Lyxor said: “We’re very excited to launch this innovative investment solution with SEB. Its unique format is a game-changer for the hedge fund industry.
“Its liquid and regulated set-up suits not only institutional investors, but it is also particularly attractive to private banking investors and retail clients to get an efficient exposure to alternative investments.”
Lyxor had €115.5bn in assets under management as of end March 2016.