The fund is based on manager Darran Goodwin’s Diversified Program, which EEA says has returned 55% since inception in 2006, versus 28% from the Newedge CTA Index.
The portfolio will typically include long and short positions in equity indices, bonds, currencies and commodities, all accessed via futures contracts. Goodwin and his team typically have a bias towards commodity markets, in contrast to other CTA trading strategies that are often weighted towards financials.
“One of the many benefits of CTA/managed futures is their ability to act as a diversifier within a portfolio due to their non-correlation to traditional types of investments,” said Goodwin.
“This allows the investment adviser to lower portfolio volatility and therefore enhance risk adjusted returns over the long-term.”
The launch comes a year after EEA suspended trading on its Life Settlements Fund, following the FSA’s attack on unregulated (Ucis) funds. The firm has launched Ucits funds before – UK Equity Fund and UK Financials Fund – though these were closed in 2009.
EEA has already been talking to IFAs about its new fund – the RDR-compliant retail A share class has a £5,000 minimum investment.
Peter Winders, EEA sales and marketing director, said: “As a result of the evolution of the Ucits fund regime and regulations, CTA funds have over the past few years begun to become available to retail investors.
"We believe a well-managed CTA fund has great appeal to many investors owing to the diversification it can bring to a portfolio as well as the ability to generate returns across the market cycle.”
