QCM launches UCITS compliant managed futures fund
10. May 2010
London, 10 May 2010 – Quality Capital Management ('QCM'), the UK-based systematic macro hedge fund manager, today announces the launch of the DB Platinum IV QCM GDP Index Fund (“QCM GDP UCITS Fund”). This UCITS III compliant fund, which offers daily liquidity, is registered in Luxembourg and is part of Deutsche Bank’s db funds platform (“DB”). It replicates the investment profile and performance of QCM’s flagship managed futures product, Global Diversified Programme (“GDP”).
The GDP is a long/short product that trades 115 financial and commodity futures, annualising returns of 15% over the 14 years from inception and 21% for the five years to April 2010. The programme bears negative correlation to equities and low correlation to other major asset classes, including bonds. The QCM GDP UCITS Fund is one of the few current UCITS offerings providing access to a diversified portfolio of financial and commodity futures.
Commenting on the launch of the QCM GDP UCITS Fund, Aref Karim, Chief Executive Officer and Chief Investment Officer of QCM, said:
“QCM is delighted to work with Deutsche Bank in launching its first onshore European UCITS fund. The fact that our flagship QCM GDP with a 14-year history, carrying an attractive five year return of 21% p.a, can now be offered to a wide community of onshore investors in Europe, is a significant accomplishment of this partnership. QCM is proud to be working with Deutsche Bank on this offering.
"Our singular focus on achieving the strong performance profile of the QCM GDP through a UCITS solution, has led us to work alongside Deutsche Bank to develop this fund structure that operates with minimal tracking error and offers attractive portfolio diversification benefits.
"It is testimony to QCM’s ongoing pursuit of finding solutions within the boundaries of changing regulations and rising to the needs of both our existing and new investors globally.”
Manfred Schraepler, Head of db funds at Deutsche Bank, commented:
“The global futures and forwards markets allow investors the potential to generate returns uncorrelated to traditional asset classes. We have enjoyed a longstanding relationship with QCM and leveraging the company's strong historical track record, this is an excellent time to launch this new fund giving investors access to QCM’s flagship Global Diversified Programme strategy in a regulated UCITS III format."
The fund will target institutional investors with a view to market to retail investors in the near future. It will offer Dollar and Euro Share classes. The headline QCM fees for this fund will be management fees of 1% per annum and 20% performance fees. In return, investors enjoy a product with daily liquidity (one business day notice) and a low minimum investment requirement.
-ENDS-
For more information, please contact:
Sally Todd / Clare Milton
Penrose Financial
020 7786 4815 / 4874
Global Diversified Programme
The Global Diversified Programme (‘GDP’), QCM’s flagship product, commenced trading in December 1995 and trades 115 instruments in recognised futures exchanges worldwide, across all major asset classes including currencies, commodities, fixed income and equities. Offering to its investors a high degree of liquidity and transparency through futures, the product is a robust alpha generator annualising returns of 15% from inception and delivering in the 14-year period a total return of 606%. Over the last five years to April 2010 the product generated 21% per annum.
Going long or short, and varying its exposure through signals generated by QCM’s proprietary systematic models, the GDP profits by participating opportunistically in changing market environments. The programme bears negative correlation to equities and low correlation to other major asset classes including bonds, currencies and commodities. The GDP has a proven track record of providing strong returns in equity bear markets as well as periods when these markets witness sharp-sell-offs. It uses a proprietary risk/asset allocation tool to move risk around trending and non-trending markets creating trades that are not held for any fixed time frame. The trades can be for short periods lasting a few days, months, or possibly years depending on market conditions.
The QCM GDP was voted No. 5 amongst all hedge fund strategies in Barron’s Top 100 Hedge Funds worldwide in 2009 (based on three year performance to 2008) and it was the top futures based manager in the same ranking.
QCM
QCM was founded in 1995 by Aref Karim, Chief Executive Officer and Chief Investment Officer.
QCM is a systematic macro hedge fund manager and actively manages investments for its clients by applying its proprietary strategies on a diverse set of liquid and transparent financial and commodity futures markets. QCM offers three products, its Global Diversified Programme, now also UCITS compliant, Global Natural Resources Programme and Enhanced Commodity Beta Programme. The latter two are commodity-exclusive offerings. Through an integrated and seamless investment process, QCM aims to deliver to investors a non-correlated source of absolute return (‘alpha’). It applies leverage to all its investments, and runs the process, including its risk management, in a quantitative and systematic manner. QCM is authorised and regulated in the UK by the Financial Services Authority (‘FSA’). In the US it is registered with the US Commodity Futures Trading Commission (‘CFTC’) as a Commodity Trading Advisor (‘CTA’) and a Commodity Pool Operator (‘CPO’).
QCM's manages total assets of $670 million with two-thirds of this from institutional investors. It manages monies from sovereign wealth funds, pension funds and banks as well as fund of funds and family-offices.
db funds – Funds at Deutsche Bank
db funds began operations in May 2002 and offer a full range of funds which employ both alpha and enhanced beta strategies to access all of the different asset classes. Since launched, 60 funds have been issued with net assets of over EUR 13 billion. db funds is amongst the leading systematic fund providers, comprising a comprehensive range of UCITS fund platforms.