Schroders Teams With Two Sigma For New Global Macro UCITS Fund

Aug 24 2016 | 9:19pm ET

Global investment management firm Schroders has launched a new liquid alternative global macro fund in tandem with systematic U.S. money manager Two Sigma Advisors. 

The new fund, named the Schroder GAIA Two Sigma Diversified, will reside on company’s GAIA UCITS-compliant platform and will be sub-advised by Two Sigma, the company said in a statement. The fund launched on August 24.

The fund’s strategy combines U.S. equity market-neutral and global macro strategies, Schroders said, and aims to offer portfolio diversification through a liquid alternative strategy intended to be uncorrelated to traditional equity and bond markets. 

The strategy will apply a scientific and algorithmic approach to investing across thousands of individual equities and hundreds of macro markets, allocating the majority of the fund to the equity market-neutral strategy.

The launch brings to nine the number of funds on its two GAIA platforms. Eight are managed externally, in partnership with such firms as Paulson, Sirios and Bluetrend, while the Schroder GAIA Cat Bond Fund is managed internally. Launched in November 2009, GAIA is Schroders’ liquid alternatives channel, offering professional investors access to a suite of hedge fund strategies within a regulated, transparent and UCITS-compliant liquid framework.

Two Sigma Advisers was launched in 2009 and uses artificial intelligence and other advanced technologies to look for patterns in large global data sets. 

“We continue to see very strong demand for liquid alternative investment strategies, as clients seek to diversify their portfolios,” said Eric Bertrand, Head of Schroders GAIA, in a statement. “We’re delighted to partner with Two Sigma to launch this newly created strategy specifically tailored to meet these needs, with the aim of delivering alpha.”

“We are thrilled to partner with Schroders, which has built a preeminent UCITS platform, to bring investors portfolio diversifiers that seek to deliver controlled volatility, low correlation to markets, and attractive risk-adjusted returns,” added Geoff Duncombe, CIO of Two Sigma Advisers.

London-based Schroders is a global asset management company with more than $459 billion in assets under management for major financial institutions, pension funds, governments, charities, high net worth individuals and retail investors, invested into a broad range of active strategies across equities, fixed income, multi-asset, alternatives and real estate.


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