The new fund is the first onshore European Ucits vehicle to be launched by Quality Capital Management (QCM), and it will sit on Deutsche Bank’s db funds platform.
The new DB Platinum IV QCM GDP Index Fund will offer investors daily liquidity, QCM said in a statement, as well as a choice of dollar or euro share classes. Management fees will be 1% per annum, with a 20% performance fee.
Although it is initially targeting institutional investors with the new fund, QCM said it is looking to market it to retail investors “in the near future”.
The ‘flagship’ GDP Fund
QCM’s so-called Global Diversified Programme, the existing fund on which the new Ucits entity is based, began trading in December 1995 and is a long/short vehicle that trades 115 instruments in recognised futures exchanges worldwide, across such major asset classes as currencies, commodities, fixed income and equities.
This programme “bears negative correlation to equities and low correlation to other major asset classes, including bonds”, QCM said.
The company says it has provided investors annualising returns of 15% from inception, and in the 14-year period has delivered a total return of 606%.
Over the five years to April 2010 it generated 21% per annum.
In its statement today announcing the new fund, QCM notes that the new QCM GDP UCITS Fund will be one of the few UCITS offerings currently available to give investors access to a diversified portfolio of financial and commodity futures.
Manfred Schraepler, head of db funds at Deutsche Bank, said a feature of the global futures and forwards markets – which the new QCM fund will seek to exploit – is that they allow investors “the potential to generate returns uncorrelated to traditional asset classes”.
QCM founded 1995
QCM was founded in 1995 by Aref Karim, who remains its chief executive and chief investment officer. Its assets under management total $670m (£446.8m, €514.6m), with two-thirds of this coming from institutional investors. These currently include sovereign wealth funds, pension funds and banks as well as fund of funds and family-offices, QCM says.
More information may be found at www.qualitycapital.com and www.funds.db.com.
FUND FACTS:
Name: DB Platinum IV QCM GDP Index Fund
Domicile: Luxembourg
Minimum investment: $100, €100
Management fee: 1%
Launch date: 10 May 2010
Share classes: dollar, euro
Manager: QCM
