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Lyxor/Bridgewater debut alts fund in Singapore

The long/short fund co-launched with heavyweight Bridgewater will invest globally across asset classes.

Lyxor Asset Management, a wholly-owned subsidiary of Societe Generale, has launched the Lyxor/Bridgewater Core Global Macro Fund, according to a statement from the French firm.

Domiciled in Ireland, the fund will be managed by Lyxor AM, with New York-based hedge fund Bridgewater Associates acting as a sub-adviser responsible for implementing the investment strategy.

The fund has been launched in Singapore as well as Europe. It is only available to institutional and high-net-worth investors, according to a Hong Kong-based Lyxor spokesman.

The fund uses a long/short strategy to invest across asset classes globally, generating returns “while minimizing volatility caused by shifts in economic conditions”, according to the fund prospectus.

The investment strategy is “grounded on the belief that the return of asset classes is driven primarily by changing macroeconomic factors and their influence on markets”.

The fund will use derivatives “extensively” for direct market exposures and for hedging purposes. The manager expects the fund’s long-term volatility (measured as annualized standard deviation of monthly returns) to be about 9%, the prospectus said.

The product has $600m in assets raised from early investors, including private banks, with the majority coming from Europe and some from Latin America, the spokesman said.

The two firms have had a partnership for 15 years and plans to debut the alternative product were first announced in June, according to the statement.

“Collaborating on a Ucits project represents a natural expansion of our partnership with Lyxor and we look forward to bringing our investment management expertise to a diversifying investor base through Lyxor’s platform and global distribution network,” Kyle Delaney, Bridgewater’s co-head of client service and marketing, said in an earlier statement.

Bridgewater manages $160bn in assets on behalf of institutional investors globally. It is also active in China, where it obtained a private fund management licence in June last year and launched an onshore version of its all-weather risk-parity strategy for domestic professional investors.

Other partnerships

The product sits on Lyxor’s alternative Ucits platform, which has around $4.7bn in assets across 13 alternative funds, according to the statement.

The firm’s other partnerships for alternative Ucits products include New York-based TIG Advisors, which rolled out the Lyxor/Tiedemann Arbitrage Strategy Fund in 2013, according to data from FE Analytics.

Other Lyxor partnerships include Corsaire Capital Management, Kingdon Capital and Academy Investment Management, which are based in New York.

Lyxor AM runs 53 funds, mainly ETFs, in Singapore, according to FE data. The firm pulled out of Hong Kong’s retail fund market in 2016.

Part of the Mark Allen Group.