Alternative funds

Alternative management is a very efficient wealth diversification tool thanks to its absolute performance target and to its low correlation to traditional markets.

What is alternative management?

Alternative management uses innovative management techniques and a wide range of financial instruments. These management techniques offer a weak correlation to equity and bond markets, with the objective of:

conserving capital in declining markets,
capturing significant upside performance in rising markets.

Investing in alternative funds in a secure environment

A selective access: Fund Solutions analysts select the most renowned alternative funds through an extremely rigorous due diligence process.

A secure access: the fund and fund manager selection must meet the demanding criteria of Fund Solutions’ team in terms of risk control, transparency and monitoring of asset liquidity.

A privileged access: beyond selecting funds, Fund Solutions experts offer detailed and continuous information about the whole offering.

What is the investment universe?

The alternative investment universe is composed of a number of investment strategies which can be broken down as follows:

Long/Short Equity

Improving performance

Taking advantage of an equity portfolio including both buying (long) and selling (short) positions

Manager’s objective: benefiting from most of the increase in equity markets while limiting downside risk

Correlation to equity markets: strong

Relative Value

Strong risk aversion

Taking advantage of market inefficiencies by benefiting from valuation discrepancies between asset classes…

….while offering a neutral market exposure

Correlation to financial markets: low

Directional Trading

Diversifying a global portfolio

Taking advantage of macro economic changes by investing in all types of markets and financial instruments (equity, bonds, currencies, commodities)

2 main approaches: Global Macro (discretionary or systematic) or CTA (systematic trading models)

Correlation to financial markets: low

Event Driven

Improving performance

Taking advantage of major events in the life of a company: mergers, acquisitions, restructurings, share buy backs, disposal of assets…

Manager’s goal: in case of a takeover the manager tries to take advantage of the price discrepancy between the buyer’s price and the market price.

Correlation to equity markets: strong

Societe Generale Private Banking’s alternative funds offering

Investing in manageds accounts :

Managed accounts enable investors to access renowned hedge funds through a secure vehicle (segregated assets, transparency, continuous risk control, weekly liquidity, low minimum investment amount)

Altenative Funds - UCITS III :

The UCITS III regulation makes it possible to access the alternative management universe in a liquid and transparent format that is regulated by European law.

Funds of Hedge Funds :

Such funds offer a dynamic allocation between several strategies and several hedge fund managers.

Oct

2018

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