Prime Capital’s Target Beta UCITS Fund tops EUR 100 million AuM

Frankfurt, August 7, 2017

Just before its second anniversary, the systematic “Gateway Target Beta UCITS Fund” has exceeded 100 million Euro in assets under management, a crucial hurdle for many institutional investors.

This milestone event can largely be attributed to the attractive performance of the fund since its launch in September 2015. With an annualized performance of +5.83% since launch (Volatility: 5.17% / Sharpe Ratio: 1.17), the daily tradable fund has achieved its target to generate stock-like returns with significantly lower risk.

The fund’s Absolute Return strategy consists of two components: The first is based on an allocation to classic risk premia (long equities and credit) with a particular focus on avoiding extreme losses generated by tail-events. This approach is combined with a tactical multi-asset long / short allocation, providing uncorrelated returns, via allocating risk across a wide range of asset classes and markets. The fund aims to achieve a return of money market +5%, with a target average volatility of 6%. The fund’s average equity beta is expected to be 0.2-0.4, while we expect the fund to generate a Sharpe ratio between 0.7 and 1.0.

“The consistent performance of the fund, especially in the difficult year 2016, has convinced a wide range of European investors to make initial allocations at an early stage. In addition to family offices, asset managers, private banks and fund of funds, we have been able to attract the first regulated institutions to the fund’s investor base”, says Markus Koch, Managing Director Client Solutions at Prime Capital AG.

“The success of the fund confirms our strategic decision to offer solutions in the liquid Absolute Return segment. We intend to continue to drive this development through the launch of further products in the coming months”, adds Dr. Werner Goricki, CIO and board member of Prime Capital AG.

Name Gateway Target Beta UCITS Fund, a Sub-Fund of Gateway UCITS Fund PLC, Ireland
Fund Manager Société Générale Securities Services GmbH
Sub-Investment-Advisor Prime Capital AG
Management-Fee 0,5% per annum
Performance-fee 10% (with high-watermark)
Minimum Investment 50,000 50,000 50,000 5,000 5,000
About Prime Capital
Prime Capital AG is an independent financial services provider and asset management firm, focusing on institutional clients. The company specializes in Alternative Investments, in particular in Absolute Return, Infrastructure Investments and Private Debt. Furthermore, the company offers asset management outsourcing services. Prime Capital was founded in 2006 and currently employs 65 people in Frankfurt, London and Luxembourg. The company’s regulators are BaFin in Germany, CSSF in Luxembourg and FCA in the UK. As per end of July, Prime Capital has approximately EUR 10.1 billion Assets under Management, managed on various platforms.
For further information, quotes or interview requests please contact:
Prime Capital AG
Andreas Kalusche, Vorstand
Tel: 0049 69 9686 984 36