Investment manager Bridgewater Associates and Lumyna Investments, part of Generali Investments, have launched the Lumyna–Bridgewater Absolute Return Fixed Income Ucits Fund, giving investors daily-dealing access to one of Bridgewater’s fixed income strategies.
The strategy applies Bridgewater’s macro research and real-time data analysis to identify inefficiencies across global interest rate, credit and currency markets. It seeks to generate alpha through relative-value, tactical and thematic positioning rather than relying on structural duration or credit beta.
The Luxembourg-domiciled fund is a Ucits adaptation of Bridgewater’s Absolute Return Fixed Income Strategy, introduced offshore in March and now approaching $1 billion in assets. The Ucits version comes to market with around $115 million.
Designed as a liquid, actively managed fund, the offering aims to offer low correlation to traditional and alternative asset classes and is intended to sit alongside broader institutional portfolios.
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“Lumyna’s expertise and pedigree makes their organization an ideal partner for Bridgewater. The new UCITS fund allows us to bring our capabilities to a new set of investors and helps meet demand for our approach. We believe there are significant opportunities to generate uncorrelated alpha in fixed income and currency markets, and uncorrelated returns are particularly valuable for investors in the current macroeconomic environment,” commented Seth Birnbaum, partner, head of fixed income strategies at Bridgewater.
“We are delighted to be partnering with a manager of the quality and history of Bridgewater. This launch expands our Ucits offering with a strategy that is not only highly differentiated, but also well-suited to the current macro environment. The ARFI strategy is designed to utilise Bridgewater’s global fixed income and currency capabilities to generate attractive cash-plus returns that are lowly correlated to markets and other investment strategies”, commented Philippe Lopategui, CEO of Lumyna.
Paul Holmes, head of distribution at Lumyna, commented: “Investors are increasingly focused on building portfolios that can withstand and benefit from a wider range of market conditions. By tactically positioning long, short, and market-neutral over an economic-market cycle, ARFI’s excess returns are expected to be independent of the level and change in yields and credit spreads. In today’s environment of heightened geopolitical and economic uncertainty, diversifying and liquid sources of reliable fixed income alpha are both valuable and rare.”
