US-based Wells Fargo Asset Management has launched an equity absolute return fund.
The Global Equity Absolute Return Fund is a Ucits-compliant sub-fund of the Wells Fargo (Lux) Worldwide Fund and is available to both institutional and retail investors.
It is sub-advised by Analytic Investors and managed by Harindra de Silva, Dennis Bein, and David Krider.
Currently, the fund is available in Austria, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Spain, Sweden and the United Kingdom and there are anticipated future registrations in Hong Kong, Portugal, Singapore, South Korea and Switzerland.
A strategy of gaining long and short exposure in equity securities of issuers in developed markets is used by the sub-adviser.
The fund will gain long exposure to equity securities that the sub-adviser believes will outperform the equity market on a risk-adjusted basis and will gain short exposure to equity securities that the sub-adviser believes will underperform the equity market on a risk-adjusted basis.
It can have a long equity exposure of up to 100% of its net assets and a short equity exposure - achieved through the use of swap agreements and other types of derivatives - of up to 80% of its net assets.
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