Syz Asset Management has expanded its range of equity market neutral funds with the launch of a global vehicle, Citywire can reveal.
The Ucits-compliant fund uses a highly liquid long/short approach while aiming to maintain a near zero equity beta over time.
Fund manager Vaucher said the fund looks for alternative sources of return in the current environment of low-rates and stretched valuations.
The decision to launch the fund was made in response to client demand, Katia Coudray, Syz AM CEO, said.
‘In the market you have low yields and bonds that are more and more correlated with equities and there is increasing demand from investors for really liquid decorrelated strategies.'
The quant team started by developing a European model, then a US model and eventually a ‘rest of the world' model, she said.
When asked about plans to launch a US version of the equity premia fund, Coudray said nothing is currently underway but didn’t rule it out.
'On top of the existing European model launched a year and a half ago, we have developed a model for the US, Japan and the rest of the world. Therefore, we are now ready to launch a global risk premia version of this strategy, and several other products could be developed in the future on this model.'
Speaking about launching the new fund during a period of growing volatility, she said: ‘We are in a good environment to test the strategy because we can effectively show the decorrelation.’
The new global fund was officially launched in December 2017 and combines a multitude of factors, which includes value, momentum, quality, safety, size and management.
As an initiative to spur asset growth, the group is halving the management fee for a one-year discount.