Wellington Management has launched a market-neutral, multi-manager global equity UCITS fund.
The Wellington Absolute Return Global Equity fund will aim to achieve above-cash returns across all market conditions, benchmarking itself against the ICE Bank of America 3-Month US Treasury Bill index.
Co-managed by Steve Gorman and Veenu Ramchandani, It will hold other funds managed in-house by the Wellington team, tailoring a hedge to each allocation.
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The fund is based on an already established strategy, having been managed by Wellington since 2022. It currently has $1.4bn (£1bn) in assets under management.
Wellington decided to launch the portfolio due to “heightened volatility, unstable asset class correlations and lower expected returns from traditional beta exposures”.
Scott Geary, vice chair and head of global wealth at Wellington Management, said: “Traditional diversification alone is often no longer enough for today’s investors. That’s why advisers are increasingly partnering with managers who can bring innovative solutions to the market to help deliver more resilient, outcome‑oriented portfolios.”
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Luke Stellini, head of solutions production management at Wellington, explained the launch is in response to clients “seeking solutions to generate returns that are less dependent on market direction and broad asset class relationships”.
“The fund aims to harness global equity alpha as a diversifying return stream that can enhance a traditional multi‑asset portfolio design for a wider set of investors.”
