iM Global Partner has launched a version of its US future markets funds for European investors to access.
Working with Dynamic Beta investments, the sub-manager of the new product, the company has put out the iMGP DBi Managed Futures fund.
This strategy has already been available to US investors for more than three years and increasing its assets under management by more than 1,000% in the past 12 months, according to iM Global Partner, now at $1bn in assets under management.
The new fund will replicate the pre-fee/pre-trading cost returns of 20 leading managed futures hedge funds in a UCITS wrapper.
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iM Global Partner said by targeting the performance of a portfolio of hedge funds, which is then split between different sub-strategies, this will minimise the risks of investing in a single manager, creating broader diversification.
The iMGP DBi Managed Futures fund does not invest directly in hedge funds. Instead, Dynamic Beta investments uses quantitative models to estimate the current factor weights of the targeted hedge funds and invests in index futures to seek to obtain similar exposures, rebalancing the portfolio weekly.
Philippe Uzan, iM Global Partner deputy CEO, CIO global asset management, said: "With equity and bond markets seeing significant volatility and simultaneous negative returns, many investors have been desperately looking for diversification and positive performance," something the DBi team think this fund can deliver.
Andrew Beer of Dynamic Beta investments said: "Managed futures, as a strategy, has the potential for great diversification, especially in an inflationary environment.
"In 2015, we set out to solve the twin hurdles of investing in the space: high fees and expenses as well as single-manager risk. Our managed futures vehicle is the culmination of that effort."
