GAM Systematic Alternative Risk Premia Plus AU - I Class
About this Fund
|FUND MANAGER||GAM International Management|
|INVESTMENT STYLE||The Fund uses primarily financial derivative instruments to gain exposure to the four basic asset classes in accordance with the Investment Manager's risk premia strategies.|
|INVESTMENT PROFILE||The Fund seeks to achieve a return of 8% net p.a. in excess of the Australian cash rate over a rolling 5-year period, as measured by the Benchmark.|
|CURRENCY MANAGEMENT||Active management|
|BENCHMARK||Australian 3 Month Bank Bill Swap Rate|
|FUND SIZE||Australian 3 Month Bank Bill Swap Rate|
|NO. OF HOLDINGS||10-15 premia strategies|
|FEES||1.38% p.a. of the NAV|
How the investment strategy will produce investment returns
The Investment Manager uses an active, systematic approach to invest in diverse range of alternative risk premia across global markets.
In order to determine the asset allocation, the Investment Manager evaluates publicly available economic information and conducts proprietary research to identify valid risk premia strategies, determine their key market drivers and ultimately the expected risk and return. As part of this research, implementation of the risk premia strategies is considered based on quality, liquidity, cost, operational efficiency and capacity.
The portfolio is expected to reflect a diversified allocation to risk premia strategies over the longer term. The allocation will be determined by consideration of the performance and investment objectives of the Fund, and the Investment Manager's views on the expected risk and return for each strategy.
In determining the weighting to be allocated to each asset class in accordance with each risk premia strategy, the Investment Manager use various portfolio modelling techniques and consider, among other things, the expected return and risks of every asset class and the risk interdependence across the different investment opportunities.
The Investment Manager draws on proprietary portfolio construction and risk management tools to ensure appropriate diversification across and within the asset classes.
The Investment Manager continuously monitors the exposure to the strategies to ensure that it continues to reflect the investment views and outlook of the Investment Manager and therefore the investment objectives of the Fund.
The Fund may be suitable for:
|RISK LEVEL||High to Very High|
The Fund may be suitable for:
About the Fund
The Fund's investment objective is to achieve a return of 8% net p.a. in excess of the Australian cash rate over a rolling 5-year period, as measured by the Australian 3 Month Bank Bill Swap Rate (BBSW3M Index). The fund's annual volatility measured over the same 5-year rolling period is expected to be 10-12% p.a.
The Fund seeks to achieve the investment objective using primarily financial derivative instruments to gain exposure to the four basic asset classes in accordance with the Investment Manager's risk premia strategies, i.e. equities, fixed income, currencies and commodities.
About GAM International Management
GAM International Management Limited is a limited liability company incorporated in England on 26 March 1984. It is part of a group of companies under GAM Group AG with offices in Bermuda, Hong Kong, Ireland, Japan, Singapore, Switzerland, the United Kingdom and the United States of America (the GAM Group'). GAM Group AG is a wholly-owned subsidiary of GAM Holding AG, which is listed on the SIX Swiss Exchange.
As at 31 December 2017, GAM Holding AG managed around CHF 158.7 billion (USD 162.9 billion) in assets with investment strategies across equity, fixed income, absolute return, alternative investments solutions, multi-asset, real estate, discretionary portfolio management, private label funds, commodities and discretionary and advisory portfolios.
How we invest your money
The Investment Manager implements a diversified approach, investing in alternative risk premia across the breadth of asset classes and trading styles globally, with the purpose of fully exploiting the inefficiencies that arise due to relative differences in risk premia.
The Fund invests its assets mainly in:
Derivatives, such as:
The Fund is denominated in AUD and invests its assets globally. The above investments may be denominated in AUD or other currencies. Currency risks may be hedged entirely or partially against the AUD. Losses due to exchange rate fluctuations cannot be ruled out.
For more information, see pages 10-11 of the product PDS.