Wells Fargo AM unveils global equity absolute return fund

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Wells Fargo AM unveils global equity absolute return fund

Wells Fargo Asset Management (WFAM) has launched the Global Equity Absolute Return fund, a sub-fund of the Wells Fargo (Lux) Worldwide fund, on 26 April 2018.

The Ucits-compliant fund is available to both institutional and retail investors and sub-advised by Analytic Investors.

Harindra de Silva, Dennis Bein and David Krider act as portfolio managers of Wells Fargo AM’s new strategy. de Silva is president and portfolio manager for the Analytic Investors team at Wells Capital Management (WellsCap) while Bein is CIO and portfolio manager and Krider serves as portfolio manager responsible for the ongoing research and development of global equity-based investment strategies as well as the day-to-day trading of global portfolios.

Analytic Investors applies an equity long and short exposure strategy across developed markets issuers.

The fund will gain long exposure to equity securities that the sub-adviser believes will outperform the equity market on a risk-adjusted basis and will have short exposure to equity securities that the sub-adviser believes will underperform the equity market on a risk-adjusted basis.

Long equity exposure may go up to 100% of its net assets while the short equity exposure is capped to 80%.

The fund is currently available in Austria, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden and the United Kingdom. It is to be further registered in Hong Kong, Portugal, Singapore, South Korea and Switzerland.

“We continue to build out our international product lineup using the expertise and time-tested investment process of Analytic Investors. The team is widely recognised for a commitment to innovative investment research, disciplined quantitative methods and an ability to implement sophisticated trading and portfolio management strategies, which are increasingly important in a complex global market.

“Analytic Investors now sub-advises three WFAM international funds, which we think allows our clients to have access to greater investment capabilities as well as competitive solutions to help them reach their financial goals around the world”, said Ludger Peters, managing director of International Business Development.

As of end March 2018, Wells Fargo AM had $497bn (€423.38bn) of assets under management.