Deutsche Bank and Millburn Ridgefield Corporation (“Millburn”) have launched a UCITS III compliant version of Millburn’s Multi-Markets trading program. The UCITS fund, called the DB Platinum IV dbX Millburn Multi-Markets Index Fund (“the fund”), will offer weekly liquidity and be available in multiple share classes.
Millburn’s Multi-Markets trading program, upon which the UCITS fund’s strategy is based, trades a diversified set of more than 120 markets and utilises strategies with holding periods ranging from short-term (intra-day) to long term (several weeks or months). The Multi-Markets trading program has a track record of more than six years, has experienced an average compound annual net return of +12.4% and has demonstrated low correlation to stock, bond and hedge fund indices.***
Deutsche Bank’s European Head of Fund Derivatives, Tarun Nagpal, said: “There continues to be a strong shift in investor sentiment in Europe towards alternative UCITS and we are delighted to be at the forefront of the market by bringing leading hedge fund managers onto our platform. Millburn’s expertise and long-standing success will make this product attractive to investors wanting to access the returns of a leading managed futures fund in a UCITS III format.”
Executive Vice President of Millburn, Barry A. Goodman, commented: “We believe that our track record, which is one of the longest in the industry, combined with our demonstrated ability to innovate and evolve, can give our investors an edge and position our funds to take advantage of market dislocations across a wide range of time-frames. As one of the first major U.S.-based CTA managers to launch a UCITS product, we’re excited at the opportunity to give a new segment of investors a strong complement or alternative to their existing portfolio holdings.”
Millburn’s choice of Deutsche Bank as a partner reflects a continuation of a long and successful working relationship between the two organisations. The fund will be linked to the performance of the dbX Millburn Multi-Markets Index, whose components are selected by Millburn on the basis of a rule-based systematic strategy. This index reflects exposure to exchange-traded futures, forwards and/or swap and options contracts on a diverse range of more than 120 global markets (including energies, base and precious metals, crops, stock indices, bonds, interest rates and currencies). Investors in the 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 with respect to the GBP share class.
Millburn’s decision to support this UCITS III product reflects a continuing demand among investors for new ways to invest in hedge fund strategies, including through regulated and liquid UCITS III funds and managed accounts. Deutsche Bank’s Platinum platform has EUR 12.26bn under management and the bank’s managed account platforms, the X-markets hedge fund platform and dbSelect, have grown strongly.
