US boutique launches first Ucits systematic equity fund

US boutique launches first Ucits systematic equity fund

New York-based manager ABR Dynamic Funds has launched its first Ucits V fund domiciled in Dublin.

The ABR Dynamic Blend Equity and Volatility Fund relies on a systematic, non-discretionary investment approach to determine an allocation among US equities (via futures the underlying of which is the S&P 500 Total Return Index), equity volatility (via futures the underlying of which is the S&P 500 VIX ShortTerm Futures Total Return Index) and cash instruments.

The strategy seeks to achieve returns from favourable volatility movements in the US equity markets while maintaining US equity exposure to preserve positive performance during extended periods of rising markets.

The fund will seek returns similar to ABR’s first index, the ABR Dynamic Blend Equity and Volatility Index.

It will be distributed in Switzerland, Greater Europe and the Middle East by Zurich-based OpenFunds Investment Services AG.

ABR’s founder and CEO Taylor Lukof said:”We see tremendous growth in index-tracking Ucits in Europe. What was less than 2% of AUM in European Ucits in 2013 became over 10% by 2015. European assets in Ucits continue to shift from traditional actively-managed funds to passively-managed funds, and ABR is pleased to be a part of this changing dynamic.”

Lukof has unveiled plans to roll-out a family of liquid alternative Ucits funds to track these indexes over the next few years.

“Investor appetite for the tightly-regulated, highly-liquid Ucits V structure increases every day. With stocks and bonds perhaps nearing the end of an historic cycle, we believe we are well-positioned for the future,” he said.

OpenFunds’ CEO Siro Zanovello explained that the Swiss firm’s goal with ABR Dynamic Funds is to have the first billion-dollar fund in the category of liquid alternative that OpenFunds represents.

“We are excited for the Ucits fund family that ABR plans to offer to our clients in the future,” Zanovello added.

ABR Dynamic Funds is a global investment management and R&D firm founded in 2010 with a focus on liquid alternative index creation and product development.