Swiss asset management boutique, Unigestion, has launched two multi-factor equity funds in collaboration with a client, RPMI Railpen, the investment manager for the UK’s Railways Pension Scheme.
Railpen is providing the seed capital for both funds, although the firms were not able to confirm the amount at time of writing.
One fund is long-only, while the other is long/short, and the use of factors in both funds involves allocating to high quality value stocks, less volatile momentum stocks, more diversified quality stocks and more stable small-cap stocks.
“As equity factors tend to be cyclical, we can significantly improve the risk-return profile of the strategy by allocating between factors at different points of the market cycle,” said Alexei Jourovski, managing director and head of equities at Unigestion.
Unigestion had €15.3 billion in assets under management, as of September 03, 2015.
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