New global Equity Premia fund launched

Thursday, 02/22/2018

SYZ Asset Management (“SYZ AM”), the institutional asset management arm of the SYZ Group, has expanded its offering of quantitative solutions through the launch of OYSTER Equity Premia Global. This new offering builds on the strong success of the OYSTER Market Neutral Europe fund and will similarly seek to deliver alpha-rich returns while aiming to maintain a near zero equity beta over time. In order to support initial asset growth and reward early investors, a one-year discount of 50% on the management fees will be offered*.

February 22, 2018
Press release

SYZ AM risk premia delivers returns and strong risk control

While investing in equity premia is nothing new, the approach taken by SYZ AM to ‘harvest’ inefficiencies in equity markets by adopting a highly liquid, long/short approach while aiming to maintain a near-zero equity market beta is a key differentiator. The Quantitative Investment Solutions team have drawn on their years of investment and academic experience to create robust equity premia, which are the key building blocks of any risk premia strategy.

Commenting on the strategy, Guido Bolliger, Portfolio Manager and Co-Head of Quantitative Investment Solutions, said: “Our solution focuses on premia present in equity markets and seeks to offer the prospect of stable, alpha-rich returns disconnected from broader market behaviour.

Benoît Vaucher, Portfolio Manager added “The fund aims to offer an alternative source of returns in an environment of low-rates and stretched valuations”.

The three-member strong team, which includes Mr. Bolliger, Mr. Vaucher and Co-Head of Quantitative Investment Solutions, Mr. Claude Cornioley, achieved a net return of +5.24% for the OYSTER Market Neutral Europe, placing it among the top quartile of its peer group**.

Consistent performance over market cycles

By actively and dynamically allocating among a pre-defined universe of equity premia, the SYZ AM’s in-house developed strategy is designed to provide stable, alpha-rich returns over market cycles. With risk management at the core of the investment process, the fund’s systematic approach supports the strategy’s heavy reliance on data analysis that is used to aim to generate both performance and control risk.

Stable returns in uncertain markets

In a world where finding stable, diversified sources of returns is challenging, the SYZ AM risk premia strategy can represent a very compelling proposition. The flexibility offered by equity premia can provide investors diversification, a lower correlation to broader equity markets and the potential to generate attractive alpha, all of which can serve an important role in a portfolio, in particular during periods when equity drawdowns are significant.

Katia Coudray, CEO of SYZ Asset Management remarked, “The result of our investment in this new investment strategy, which represents an added expertise among our product range, has been quite satisfying.” She added, “Our dedicated quantitative investment team is delivering performance consistent with our DNA of alpha-generation - but in this case, through a long/short, beta-neutral approach rather than long-only”.

The OYSTER Equity Premia Global fund is registered in 8 European countries: Luxembourg, United Kingdom, Germany, Italy, Spain, Belgium, France, Austria, and will be later available in other European countries. In order to support initial asset growth and reward early investors, a one-year discount of 50%* on the management fees will be offered.

* One-year discount of 50% on the management fees available from the date of fund launch on 15.12.2017.
** OYSTER Market Neutral Europe R EUR PF since manager change, from 16.01.2017 to 31.01.2018.

Lipper Peer Group:  Lipper Global Alternative Equity Market Neutral

Disclaimer

This marketing document has been issued by Bank Syz Ltd. It is not intended for distribution to, publication, provision or use by individuals or legal entities that are citizens of or reside in a state, country or jurisdiction in which applicable laws and regulations prohibit its distribution, publication, provision or use. It is not directed to any person or entity to whom it would be illegal to send such marketing material. This document is intended for informational purposes only and should not be construed as an offer, solicitation or recommendation for the subscription, purchase, sale or safekeeping of any security or financial instrument or for the engagement in any other transaction, as the provision of any investment advice or service, or as a contractual document. Nothing in this document constitutes an investment, legal, tax or accounting advice or a representation that any investment or strategy is suitable or appropriate for an investor's particular and individual circumstances, nor does it constitute a personalized investment advice for any investor. This document reflects the information, opinions and comments of Bank Syz Ltd. as of the date of its publication, which are subject to change without notice. The opinions and comments of the authors in this document reflect their current views and may not coincide with those of other Syz Group entities or third parties, which may have reached different conclusions. The market valuations, terms and calculations contained herein are estimates only. The information provided comes from sources deemed reliable, but Bank Syz Ltd. does not guarantee its completeness, accuracy, reliability and actuality. Past performance gives no indication of nor guarantees current or future results. Bank Syz Ltd. accepts no liability for any loss arising from the use of this document. (6)