The Absolute Insight Fund is domiciled in Ireland and has been built to reflect the holdings of the existing UK-domiciled (non-UCITS) Absolute Insight Fund.
“There may be nuanced difference as the fund progresses but it tries to mirror the existing non-UCITS fund as closely as possible,” a spokesperson said.
The new fund aims to achieve positive returns on a rolling 12-month basis and launched with €90m (£72m) client seed money from six countries across Europe.
Working together, BNY Mellon and Insight developed the fund as a global multi-strategy UCITS fund that invests across a range of absolute return strategies and is managed by a specialist equity, fixed income and multi-asset teams. Each of the underlying strategies is actively managed on an absolute return basis targeting a positive return with very low correlation to equity markets.
The team includes portfolio managers Sonja Uys and Andy Cawker.
“There is a clear and present demand for absolute return products particularly as they give investment managers even greater flexibility to deliver positive returns,” Abdallah Nauphal, CEO of Insight Investment, said.
“In an environment where investors are quite rightly seeking quality alternatives to traditional fixed income and equities, a liquid, multi-strategy, absolute return approach could provide an efficient source of returns. The low correlation between the individual strategies makes this an effective portfolio diversifier. It also results in a fund with very low correlation to traditional asset classes or world equities, that has extremely low volatility and hence a much lower risk profile,” Uys commented.
The fund will be offered with retail and institutional share classes denominated in Euro, Dollars, Sterling and Swiss Francs.
