Pacific Asset Management has launched the Pacific Efficient Diversification fund, a UCITS strategy to provide investors access to ‘alternative risk premia’.
It seeks to deliver returns independent of traditional equity and bond performance, through investing in proprietary alternative risk premia in global interest rates and foreign exchange markets.
The fund combines five risk premia strategies to provide exposure to value, momentum and carry in fixed interest markets. The new strategy will target a return above overnight cash rates and aim to minimise risk with an 8% volatility target.
Matthew Lamb, CEO of Pacific Asset Management, said: “Too often, alternative strategies come with higher fees, limited transparency and complex implementation.
“We believe there is no premium for complexity.”
He added this was not a new strategy for the team, with the investment approach having been used in Pacific’s multi-asset range since 2018.
Lamb said: “The launch allows a much wider group of investors to access a capability that has already been proven internally.”
It will be managed by Pacific’s diversifying assets and quantitative investment teams, led by Louis Cucciniello and Ross Wright respectively.
Cucciniello said: “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.”
See also: Pacific AM makes double hire amid US equity expansion plans
