Neptune Investment Management is to launch a Ucits fund with the ability to short sectors where the in-house view is bearish and add additional gearing where the view is bullish.
Its range of long-only equity funds has traditionally reflected in-house sector calls by being overweight sectors expected to outperform and underweight, or even zero weight, sectors with a poor outlook.
The Global Long/Short Sector fund, on the other hand, will be able to leverage this sector research to its full potential. Using its Ucits powers, it can short or gear sectors.
Neptune says each of the global industry classification standard sectors will be represented by a basket of 20 to 50 large and liquid stocks that are correlated with global sector indices.
“The exposure of the new fund to each sector basket will be determined by the positions of Neptune’s in-house global sector matrix and its long-only global equity fund sector weightings,” Neptune says. “The aim is to have an average exposure of 15% to emerging markets in each sector to reflect the global GDP balance.”
Robin Geffen and Ted Alexander will manage the fund. It is scheduled for launch in November.
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