The fund is designed to offer investors portfolio diversification by using liquid alternative assets that are largely uncorrelated to traditional equity and bond markets.
Its managers 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 strategy was created by Two Sigma Advisers in collaboration with Schroders and the fund will also be sub-advised by Two Sigma Advisers, which is part of New-York based investment firm Two Sigma.
Two Sigma Advisers, which was launched in 2009, together with its affiliates within the Two Sigma group has a platform that leverages data and technology to produce breakthroughs in investment management. Two Sigma currently employs more than 1,000 people, including more than 150 PhDs.
Geoff Duncombe, chief investment officer of Two Sigma Advisers said: “We are thrilled to partner with Schroders, […] to bring investors portfolio diversifiers that seek to deliver controlled volatility, low correlation to markets, and attractive risk-adjusted returns.”
Eric Bertrand, head of Schroders GAIA, said: “We continue to see very strong demand for liquid alternative investment strategies, as clients seek to diversify their portfolios."
Schroder GAIA and Schroder GAIA II combine Schroders’ asset management expertise and distribution capability with leading hedge fund managers.
The Schroder GAIA Two Sigma Diversified fund will launch on the Schroder GAIA Ucits platform, giving the asset manager nine funds on the two GAIA platforms, eight managed by external hedge fund managers.