Our History in Liquid Alternatives
Our Liquid Alternatives Capabilities
Unigestion was an early adopter of hedge funds for its own account, focusing on strategies delivering diversification in volatile and challenging markets. While we are still invested in external capabilities in some mandates, we have also launched a range of direct liquid alternative strategies over the years, leveraging our capabilities in equities and cross-asset solutions. Common to all our liquid alternative strategies is a disciplined, risk-managed investment process that allocates dynamically to risk premia. Our strategies are also designed to deliver long-term outperformance while keeping moderate to low correlation to equities. Finally, with the bulk of our liquid alternative investments managed through segregated mandates, we have a proven ability to understand clients’ objectives and to design strategies tailored to their needs in terms of return and risk targets, liquidity profile or costs constraints.
Our Liquid Alternatives Solutions
Alternative Risk Premia
Alternative Risk Premia (ARP) strategies reproduce approaches developed by hedge funds in a systematic way, such as long/short and leveraged portfolio construction, to deliver return streams that can vary significantly from those of traditional investment strategies. Our global ARP programs invest across the main families of strategies (equity factors, macro directional, alternative income, systematic defensive strategies). For dedicated funds or mandates, we select the most convenient range of strategies and combine them to achieve specific objectives.
Systematic Defensive Strategies
A range of systematic strategies seeking to protect during equity drawdowns, while aiming to be as cost-efficient as possible. This includes pure option strategies (explicit protection, “tail-hedging”), strategies replicating similar profiles (such as delta-replication strategies) or macro defensive strategies.
The strategy combines a set of three systematic and discretionary macro styles (systematic macro allocation, discretionary macro allocation, systematic trading allocation) applied to a large universe of liquid derivatives contracts across all asset classes (equities, rates, credit, commodities, foreign exchange, volatility), in order to deliver absolute returns across different market cycles. The strategy notably uses our dynamic allocation process based on systematic tools around macro cycle (nowcaster/newscaster), sentiment and valuation.
Global Hedge Funds
Our external strategies team leverage on Unigestion’s long-standing experience and relationships to select the best liquid alternative managers, according to specific client needs.
We combine our expertise in running risk-managed equity portfolios with a hedge overlay using a combination of index futures, in order to further reduce absolute risk. Our proprietary hedging algorithm ensures an efficient mitigation of the basis risk whilst ensuring a high correlation between the underlying equity portfolio and futures.
Past performance is no guide to the future, the value of investments can fall as well as rise, there is no guarantee that your initial investment will be returned. The content of this page constitutes neither investment advice nor recommendation. It represents no offer, solicitation or suggestion of suitability to subscribe in the investment vehicles it refers to. Please contact your professional adviser or consultant before making an investment decision. Please refer to the KIIDs, the Fund offering documents, and the latest Annual and Semi Annual Reports before investing. Before investing, investors should obtain and read a copy of the prospectus and the KIIDs. Where possible we aim to disclose the material risks pertinent to this document, and as such these should be noted on the individual document pages. A complete list of all the applicable risks can be found in the Fund prospectus. There is no guarantee that the investment objective of the Fund will be achieved. The NAV is not guaranteed and may fall as well as rise, depending on investment performance, and exchange rate fluctuations. Some of the investment strategies described or alluded to herein may be construed as high risk and not readily realisable investments, which may experience substantial and sudden losses including total loss of investment. These are not suitable for all types of investors. Data and graphical information herein are for information only and may have been derived from third party sources. Unigestion takes reasonable steps to verify, but does not guarantee, the accuracy and completeness of this information. As a result, no representation or warranty, expressed or implied, is or will be made by Unigestion in this respect and no responsibility or liability is or will be accepted. All information provided here is subject to change without notice. It should only be considered current as of the date of publication without regard to the date on which you may access the information. Rates of exchange may cause the value of investments to go up or down. An investment with Unigestion, like all investments, contains risks, including total loss for the investor.