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.