14 Dec 2010
Deutsche Bank and Paulson & Co have announced the launch of a UCITS compliant version of Paulson’s flagship Advantage fund.
The UCITS fund, called the DB Platinum IV Paulson Global Fund, has been launched on Deutsche Bank’s Platinum platform. The Fund is linked to the performance of a Synthetic Managed Basket, the components of which are selected by Paulson in accordance with an adapted version of their established Advantage strategy, modified to comply with UCITS regulations. The Basket follows the core strategy of Event Arbitrage including event situations such as mergers, distressed and special situations on the long and/or short sides and through both debt and equity and aims to deliver returns that are uncorrelated to broad financial markets.
Investors in the UCITS Fund will benefit from the provision of weekly liquidity with fund NAVs published on Reuters, Bloomberg and online. The Fund will be available in EUR, GBP, USD and JPY and intends to apply for Reporting Fund status in respect of the GBP share class.
Paulson’s decision to support this UCITS product reflects a growing demand among investors for new ways to invest in hedge funds, including regulated and liquid UCITS funds and managed accounts. Deutsche Bank’s Platinum platform has EUR 12.7 bn assets under management. The bank’s managed account platform, the X-markets hedge fund platform, has grown strongly with more than $5bn under management.
The UCITS fund, called the DB Platinum IV Paulson Global Fund, has been launched on Deutsche Bank’s Platinum platform. The Fund is linked to the performance of a Synthetic Managed Basket, the components of which are selected by Paulson in accordance with an adapted version of their established Advantage strategy, modified to comply with UCITS regulations. The Basket follows the core strategy of Event Arbitrage including event situations such as mergers, distressed and special situations on the long and/or short sides and through both debt and equity and aims to deliver returns that are uncorrelated to broad financial markets.
Investors in the UCITS Fund will benefit from the provision of weekly liquidity with fund NAVs published on Reuters, Bloomberg and online. The Fund will be available in EUR, GBP, USD and JPY and intends to apply for Reporting Fund status in respect of the GBP share class.
Commenting on the new fund, Stephane Farouze, Deutsche Bank’s Global Head of Fund Derivatives, said: “There is very significant investor demand for hedge fund UCITS evidenced by the net new flows into this segment which are up 70% this year. We are delighted to collaborate with Paulson on their entry into UCITS and to add them to our platform, which provides investors access to some of world's leading hedge fund managers in UCITS. Paulson’s expertise and long standing success will make this particular product attractive to investors.”
John Paulson, founder of Paulson & Co Inc., said: “Implementing our existing event arbitrage strategy via a UCITS vehicle allows us to provide a liquid, regulated, onshore European fund that helps to further diversify our investor base. We have chosen to work with Deutsche Bank because of its extensive operational and risk management experience as well as the broad distribution network the bank provides for its platform.”
Paulson’s decision to support this UCITS product reflects a growing demand among investors for new ways to invest in hedge funds, including regulated and liquid UCITS funds and managed accounts. Deutsche Bank’s Platinum platform has EUR 12.7 bn assets under management. The bank’s managed account platform, the X-markets hedge fund platform, has grown strongly with more than $5bn under management.
