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Bringing you news, views and analysis since 2013
James Williams, Hedgeweek

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Heitman LLC launches real estate opportunities fund… BIL Manage Invest receives CSSF approval as a UCITS Management Company

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This week the Management Board of Directors of the Palaedino Fund announced that London-based Sabre Fund Management Limited had launched the Sabre Dynamic Equity Fund.

This is the seventh fund to join the Palaedino UCITS Platform, a Luxembourg SICAV established in November 2009. The Management Company of the Platform is FundPartner Solutions (Europe) S.A., a 100 per cent affiliate of the Pictet Group based in Luxembourg.
 
Sabre Dynamic Equity is a quantitative long/short equity fund that invests across a broad universe of 800 large/midcap European stocks and 500 large-cap US stocks. The strategy achieves its performance from exploiting systematic inefficiencies in equity returns driven by typical investor behaviour. The new UCITS fund is a mirror of the Cayman fund that Sabre has been managing since early 2013.
 
The Fund provides investors with a defensive equity product, with a flexible range of -30/+80% net exposure. Since the inception of this strategy, the average net adjusted beta exposure has been around +10 per cent. Dan Jelicic, who heads up Sabre’s multiple awards winning investment team, will be managing the fund.
 
Alessandro Mauceri, Chairman of the Palaedino Fund Board said: “We are excited to on-board Sabre as a new fund on our UCITS umbrella. The investment manager is well recognized as one of the leading names in European quant investing and is one of the longest standing hedge fund management companies in Europe. We are thrilled about this new collaboration, which marks a new milestone as this is the first single hedge fund strategy plugging into our UCITS umbrella.”
 
Melissa Hill, CEO of Sabre Fund Management Limited, said that they were delighted to launch the Dynamic Equity strategy in UCITS format in response to investor demand.
 
“We believe that our low beta strategy offers investors exposure to equity upside when markets are rising but also, with the Fund’s ability to go net short, will be able to generate alpha from downside opportunities too,” commented Hill.
 
BIL Manage Invest (BMI), the third party management company of the Banque Internationale à Luxembourg (BIL) Group, has been approved by the CSSF as a UCITS Management Company.
 
BMI was established in 2013 to provide specialised management and fund governance services to both third party investment funds as well as to funds of the BIL Group. BMI received its license as an Alternative Investment Fund Manager (AIFM) from the CSSF in May 2014 and now qualifies as a “Supermanco”.
 
BMI offers a wide range of services through its open architecture third party management company model. It includes the structuring and set up of suitable fund vehicles to suit the client’s strategy, portfolio and risk management, as well as due diligence and oversight of the delegated service providers. It is a wholly owned subsidiary of the BIL Group. Founded in 1856, Banque Internationale à Luxembourg is the oldest private bank in the Grand Duchy.
 
Alexandre Dumont, CEO of BIL Manage Invest commented: “We see the authorisation of BIL Manage Invest as a UCITS Management Company as a natural progression of our highly successful AIFM operating model. Our unique approach to fund governance solutions from an investment manager’s perspective allows us to act as the single point of contact in Luxembourg for our clients who are free to concentrate on their core business of managing and growing their assets.”
 
The UCITS license comes shortly after the appointment of Stephen Roberts as Head of Business Development at BMI. Roberts brings over 25 years of experience in the management and distribution of UCITS funds and added: “With the backing of the BIL Group and its international banking network, BIL Manage Invest is ideally positioned to provide the required substance in Luxembourg to UCITS and alternative fund managers located around the globe, acting as their local regulatory hub.”
 
Heitman LLC, a global real estate investment management firm, this week announced the launch of a new absolute return UCITS IV compliant fund: the Heitman European Real Estate Opportunities Fund (“HERO”).
 
The fund, a Luxembourg SICAV, invests in listed securities, mainly equities that provide exposure to the European real estate sector. The fund does not invest in physical property of any kind. 
 
The open-end fund’s strategy is designed to capture the attractive long-term investment fundamentals of European real estate, with tight risk controls and daily liquidity. HERO seeks to produce a stable annual net return in the range of 8-10 per cent, a large component of which comes from income. The UCITS fund is actively managed and invests based on proprietary fundamental securities and market research, following a long/short-style investment strategy, selectively using derivatives to protect the fund’s NAV and to reduce volatility.
 
HERO is Heitman’s first AR investment product focused exclusively on the European real estate sector. It is being launched with EUR25mn of seed capital from Heitman’s financial partner, Old Mutual plc.
 
Mark Abramson, Managing Director and Head of Heitman's European Public Real Estate Securities group, oversees the investment management of the fund from Munich. He and his team in London (which includes portfolio managers’ Andreas Welter and Jacques Perdrix and trader Liam Stone) bring a combined 50 years of equities investment management experience to HERO, and are supported by the broader research and operational support of the Heitman global investment platform.
 
“This Fund’s strategy incorporates nearly a decade of lessons learned by Heitman in respect to the particularities, unique characteristics and attractive fundamentals of the European real estate sector,” commented Abramson on the launch of the fund, adding:
 
“We are thrilled to be the first to bring this solution to investors, delivering real estate returns in a regulated, onshore, hedged, and daily liquidity format. We believe the timing for this launch couldn’t be better, given the available investment opportunities in the market.”

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