Pacific Asset Management has launched a Ucits strategy giving investors access to alternative risk premia through a liquid vehicle.
The fund, the Pacific Efficient Diversification Fund, aims to generate returns independent of traditional equity and bond markets by investing in proprietary alternative risk premia across global interest rate and foreign exchange markets.
The fund combines five risk premia approaches across interest rate and foreign exchange markets. It provides exposure to three investment factors: value, momentum and carry, implemented through a rules-based investment process.
The fund targets returns above overnight cash rates and operates within an 8% volatility target, a maximum leverage limit of two times and multiple layers of systematic risk oversight.
The fund is managed by Pacific’s Diversifying Assets and Quantitative Investment teams, led by Louis Cucciniello and Ross Wright.
Matthew Lamb, CEO, Pacific Asset Management, said: “Investors are looking for diversification that is genuine, transparent and cost-effective. Too often, alternative strategies come with higher fees, limited transparency and complex implementation. We believe there is no premium for complexity.”
Louis Cucciniello, head of diversifying assets at Pacific Asset Management, added: “By focusing exclusively on highly liquid Rates and FX markets, we can provide investors with access to alternative sources of return that are designed to complement traditional portfolios.”
Wright said: “While the investment process is deliberately straightforward, it is supported by proprietary technology that enables us to monitor and manage risk and execute trades systematically at scale. That combination of simplicity in philosophy and sophistication in implementation is a key differentiator for the fund.”
