ABR Dynamic Funds Debuts First UCITS V Fund

Mar 15 2017 | 10:21pm ET

Liquid alternative fund manager ABR Dynamic Funds has launched a new UCITS-compliant equity-based systematic absolute return fund in conjunction with Swiss distributor OpenFunds. 

The new fund will seek returns similar to ABR's first index, the ABR Dynamic Blend Equity and Volatility Index, the company said in a statement.

ABR’s first Irish-domiciled fund, the new vehicle will U.S. equities participation in a bull market and significant, positive absolute returns in a crisis. Distribution is being handled by OpenFunds, which is also acting as Swiss legal representative for the fund.

ABR's founder and CEO, Taylor Lukof, plans to grow AUM in an expanding segment of the European markets in the UCITS fund wrapper. "We see tremendous growth in index-tracking UCITS in Europe,” he said in the statement. “What was less than 2% of AUM in European UCITS in 2013 became over 10% by 2015. European assets in UCITS continue to shift from traditional actively-managed funds to passively-managed funds, and ABR is pleased to be a part of this changing dynamic."

ABR's index is the first under the "Powered by Wilshire" custom index suite, launched by Wilshire Associates in 2015. Wilshire, which provides services to clients with assets totaling over $7 trillion, independently calculates and publishes the index values for ABR. 

"We just launched our fifth ‘Powered by Wilshire’ index last week, and we plan to roll-out a family of liquid alternative UCITS funds to track these indexes over the next few years,” Lukof added. “Investor appetite for the tightly-regulated, highly-liquid UCITS V structure increases every day. With stocks and bonds perhaps nearing the end of an historic cycle, we believe we are well-positioned for the future."

OpenFunds' CEO, Siro Zanovello, thinks that the simple structure of a UCITS V fund could be key for clients looking for a liquid alternative fund that performs well in a crisis. "Most of the products we distribute at OpenFunds are a little bit different than what an investor would typically see,” he said. “We are a pioneer in what today people call private debt, but given the limited allocation to this space, we were always on the look-out for truly scalable liquid alternative solutions. With ABR's suite of funds, we believe we are providing what clients have been asking for the last few years." 

New York-based ABR Management was founded by Lukoff in 2010 initially as a research-focused trading group managing internal proprietary capital. In March 2015, ABR Dynamic Funds was formed to create indices and liquid alternative solutions for investors.

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