The aim of the fund is to generate positive absolute returns regardless of the market direction, while at the same time seeking the lowest possible correlation to the stock and bond markets, the company said in a Web site statement . The fund can invest in all asset classes within defined ranges.
According to the company statement, the portfolio focuses on equities, investment-grade bonds and currencies, tactically supplemented with high-yield bonds, real estate, hedge funds, commodities and money market investments. The flexible global orientation of the fund enables it to profit from various market developments while also diversifying the portfolio with uncorrelated risks, the company said. In order to achieve the targeted absolute return, the fund can also employ short-selling, derivative instruments and leverage.
The news release said the fund’s characteristics include:
- active, opportunistic and global approach with diversification opportunities in all asset classes (incl. commodities and hedge funds)
- low correlation to stock and bond market performance
- systematic and controlled use of derivative investment instruments (hedging and trading)
- ability to sell short and use leverage to maximize investment opportunities and manage risk
- daily valuation and liquidity
- transparent and attractive pricing with an all-in fee and a performance fee
- access to a wide range of investors due to authorization for public distribution in Switzerland and low minimum investment amount.
The target return for the fund, Multi-Strategy Fund, is LIBOR + 5-8% over any 12-month period and the Julius Baer fund manager is Kostas Iordanidis, according to an IPE report.