EI Sturdza Investment Funds (“EI Sturdza”) announces the launch of the EI Sturdza Strategic Beta Flex Fund (“the Fund”) which invests in a globally diversified portfolio of equity funds and reduces volatility by partially or fully hedging the underlying market exposure.
Portfolio managers need to be able to adapt tactically to changing conditions, maximising returns while focusing on protecting the risk premium by reducing exposure to the market when needed. The current “lower for longer” rates environment and geo-political uncertainty are among the factors that limit the traditional role of fixed income to create consistent returns.
The Fund’s investment process emulates the risk-return profile of quality fixed income, aiming to deliver these returns to investors. A unique attribute of the Fund is the use of proprietary sentiment indicators which inform the investment team of market sentiment and risk exposure.
The daily dealing, Dublin domiciled, UCITS V investment portfolio is managed by Paolo Marongiu (portfolio manager) and Daniele Bevacqua (strategist), supported by analysts Giorgio Mastropietro and Leonardo Sinelli of Sofia.
The portfolio team selects fund managers who have a proven track record of delivering alpha then actively manage the Fund’s net exposure (in the range of 0-50%) based on their views of prevailing market conditions to reduce the portfolio’s overall volatility. When equity markets offer an attractive risk premium the net long exposure will be raised. Each time the team modifies the net long position of the portfolio, a stop loss is put in place in order to control the risk both in terms of the equity and hedge exposure.
L Georges Gutmans, Executive Chairman, EI Sturdza Investment Funds, says: “Investors have been very clear about their concerns around low interest rates and geo-political impact on markets. Our new intelligent, actively managed, smart beta investment fund responds to their concerns and will harness fixed income like returns from equity markets within a liquid investment vehicle.”
Paolo Marongiu, Portfolio Manager, EI Sturdza Strategic Beta Flex Fund, said: “Today’s markets continue to challenge investors – volatility is high, and uncertainty has been at the forefront of every investor’s mind. Around every corner there is potentially a new event that has the possibility to wipe value off a market. Our approach looks to retain positive returns, and protect from volatility through rigorous risk management.”
ABOUT EI STURDZA INVESTMENT FUNDS
EI Sturdza is a fast growing, independent investment fund company with a proven track record of offering high conviction, award winning strategies to institutional and private clients globally.
A key part of their business philosophy is to select the most talented and successful investment professionals and allow them to focus on investment opportunities in which they have a high level of expertise and experience. Their fund offering includes single country or regional long-only UCITS strategies that have a successful track record of investing in markets across the developed and emerging world.
DISCLAIMER – This communication is issued in Guernsey by E.I. Sturdza Strategic Management Limited which is regulated by the Guernsey Financial Services Commission. Any investments or investment services mentioned on this communication are not intended for retail customers. Consequently, this communication is only made available to professional investors and eligible counterparties and should not be relied upon by any person that does not possess professional experience in relation to investments. If you are in any doubt as to whether you possess suitable experience in relation to investments please consult your financial adviser. Under no circumstances should this document be forwarded to anyone in the United Kingdom who is not a professional client or eligible counterparty as defined by the FCA. Further the information contained in this communication does not represent a research report. E.I. Sturdza Strategic Management Limited has not considered the suitability of investment against your individual needs and risk tolerance. Shares in the Fund should only be purchased by persons with professional experience and investors should refer to the Fund Prospectus and/or KIID for detailed information about potential risks involved in investing in financial instruments as well as the latest half-yearly report and unaudited accounts and/or annual report and audited accounts. The information contained herein is estimated, unaudited, may be subject to change and reflects the performance of the relevant fund offered by E.I. Sturdza Strategic Management Limited during the period indicated. Any opinions or estimates expressed herein are at the date of preparation and are subject to change without notice; however no such opinions or estimates constitute legal, investment, tax, or other advice. Individual performance of the Fund may vary and historical data is not an indication of future results. The value of the Fund and the income which may be generated from it can go down as well as up and therefore investors must be able to bear the risk of a substantial impairment or loss of their entire investment. The Swiss Representative and Swiss Paying Agent is Banque Eric Sturdza SA, Rue du Rhône 112, P.O. Box 3024, CH-1211 Geneva 3. Copies of the Prospectus, KIID, articles of association, annual and semi-annual reports may be obtained free of charge at the seat of the Swiss representative or at www.eisturdza.com. This document is intended for information purposes only and is not intended as an offer or recommendation to buy, sell or otherwise apply for shares in the Fund. E.I. Sturdza Strategic Management Limited, 3rd Floor, Frances House, Sir William Place, St Peter Port, Guernsey GY1 1GX. Part of the Eric Sturdza Banking Group. Company Registration Number: 35985.