Strategic Investments Group hired Permal Group as subadviser of its Active Trading Fund, launched last month with $250 million from European institutional investors, said Soha Galawy, spokeswoman for SIG.
Deutsche Bank collaborated in fund design and is conducting ongoing risk monitoring; State Street Corp. is the fund’s custodian and fund services provider.
Permal is managing the ATF fund in a UCITS-compliant format with a dedicated separate account for investment in each of the hedge funds managers’ underlying the fund, said Alastair Crabbe, a Permal spokesman.
The target annual return for the ATF fund is between 8% and 10% with target volatility between 5% and 7% per year. The fund offers weekly redemptions to its institutional clientele.
“Combining separately managed accounts with UCITS makes a great deal of sense, given the enhanced control, transparency and flexibility that such accounts provide, and — in this case — enabling each account to be UCITS-compliant. By opening the manager field beyond the current UCITS alternatives offerings, we have been able to be more discerning and selective, and more in tune with our wider multimanager thinking,” Omar Kodmani, senior executive officer at Permal, said in a news release.
Permal manages about $20 billion in hedge funds of funds, according to the release.