Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013
Dice and numbers

13856

DeAWM launches fund to provide investors with a diversified smart beta portfolio

RELATED TOPICS​

Deutsche Asset & Wealth Management (DeAWM) has launched an equity fund that provides investors with a diversified – smart beta – portfolio of risk factors.

The DB Platinum IV Equity Risk Premia fund provides exposure to five equity risk premia – specific performance risk factors such as value, quality, and momentum.
 
Each risk factor is accessed via a systematic and transparent strategy that combines long and short positions in order to single out the specific risk premia from other factors that drive market performance. This market-neutral approach differs from other smart beta approaches that involve taking long-only positions to provide a tilt towards a specific risk factor.
 
The factors chosen to form the portfolio have been selected on the basis of their low or negative correlation with each other and are weighted based on a risk parity allocation methodology, thereby seeking to avoid risk shifts in favour of certain premia in the portfolio. To further improve the long-term expected risk-adjusted returns of the fund, the portfolio makes use of a volatility control mechanism that currently targets volatility of six per cent.
 
Alex McKenna, head of systematic funds at DeAWM, says: “Our analysis suggests that a well put together, broadly diversified portfolio of risk premia offers an attractive risk return profile over the long-term compared to the broader equity market risk and reward. We feel this is one of the most complete smart beta offerings currently on the market as it combines the pure risk premia in a portfolio with additional systematic parameters designed to control portfolio risks.”
 
The launch of the UCITS-compliant fund comes on the back of a number of bespoke risk premia-based solutions that Deutsche Bank has put in place for institutional investors. Deutsche Bank’s in-house research and execution teams have successfully developed methods of tracking, and taking efficient exposure to, a series of equity risk factors.
 
Share classes are available for both retail and institutional investors. 

Latest News

Bequant has announced that it has launched a new capital introduction platform designed specifically for..
ndosuez Wealth Management has announced the launch of Indosuez Funds - Chronos Green Bonds 2028,..
New global research from industry association Global Digital Finance (GDF) shows most major financial institutions..

Related Articles

graph
The exodus from hedge funds continues with investors questioning unswayed by relatively strong performance from the alternative asset class...
The exodus from hedge funds continues with investors questioning unswayed by relatively strong performance from the alternative asset class...
Waves
A joint statement from BNP Paribas Asset Management, Federated Hermes Limited, Mirova, Robeco and Storebrand Asset Management has been published, entitled The urgent need for better ocean-related data to make informed investment decisions...
A joint statement from BNP Paribas Asset Management, Federated Hermes Limited, Mirova, Robeco and Storebrand Asset Management has been published,..
Frozen soap bubble
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct Authority says has a simple aim: “Financial products that are marketed as sustainable should do as they claim and have the evidence to back it up.”..
From the end of this month, the UK’s Sustainability Disclosure Requirements (SDR) regime comes into force which the Financial Conduct..
Global ESG Investing
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of climate change and ESG factors in state policymaking...
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by