UBP has introduced a new fund on its alternative Ucits platform, the bank announced in a statement, having partnered with London-based alternative investment manager Cheyne Capital.
The head of event-driven strategies at Cheyne Capital, Pierre di Maria, will manage the U Access (IRL) Cheyne Arbitrage Ucits fund.
In an exclusive interview, Di Maria told Citywire Switzerland about his plans for the new strategy. He said: ‘The fund is implementing an equity arbitrage strategy that aims to generate fixed income-like returns.
‘We will enter into a number of arbitrage strategies. Two-thirds of the portfolio will be in the yield book, which will use a merger arbitrage strategy. We will take advantage of the spread between the market price of securities and the offer.’
According to the Ucits rules, total positions above 5% of the net asset value cannot be more than 40% of the total NAV.
UBP’s senior advisor for alternative investments, John Argi, explained that the alternative Ucits platform was started in 2014. UBP looks for fund managers willing to partner with the bank and helps them to structure, launch and distribute funds through the bank’s infrastructure, selling it to other banks, platforms and family offices, he added.
Argi said: ‘The first step is to agree on the strategy we want to launch. Once we find the right manager, we need to agree on a partnership and then we will launch the strategy. We then continue monitoring the risk.
‘When the fund is launched, the manager has exclusivity for his strategy on the platform.’
Di Maria said: ‘The infrastructure offered by UBP is great, and the flexibility when it comes to structuring and distributing the fund is what convinced us to partner with UBP.’
The platform includes three other funds: a discretionary global macro strategy, the U Access (IRL) Trend Macro fund; a long/short equity offering, the U Access (IRL) Electron Global Utility fund; and a long/short equity strategy focused on the global healthcare sector, the U Access (IRL) Nexthera Ucits fund.