Press Releases

Unigestion launches new risk-managed US equity fund   22/02/2008

The asset manager Unigestion has launched a US Equity Fund, managed under its Minimum Variance quantitative model. The Minimum Variance technique, developed by Unigestion over the past 12 years, is designed to deliver outperformance against market indices by constructing the optimally diversified portfolio on the efficient frontier, with the lowest level of expected risk.

The Minimum Variance philosophy is based on the principle that markets tend to reward the investor in the long-term for the risk avoided more than for the surplus of the risk taken. It is applied through a quantitative, structured and disciplined management process.

Unigestion’s equity investment team began research on the US investment market four years ago recognizing an opportunity in its broad, liquid and diverse universe to build successful Minimum Variance portfolios.

Managed by Fiona Frick, head of equity at Unigestion, and her team, the Uni-Global Minimum Variance US Fund is a new addition to the Unigestion Minimum Variance fund range which currently includes European, Japanese, Global and European socially responsible investments.

Fiona Frick, who has led since day one the development of the Minimum Variance model, says: “The US equity market is an ideal candidate for the Minimum Variance strategy as its volatility level allows our investment technique to optimize risk-adjusted returns. The size of the investment universe, its liquidity and market characteristics enable us to deliver to our clients an optimally diversified portfolio.

Our strategy presents very stable risk characteristics and creates longer term value added by participating in rising markets whilst minimizing losses in falling markets.”

Unigestion’s Chairman Bernard Sabrier says: “We have successfully applied this innovative, risk-managed investment approach across a broadening equity investment universe over the last 12 years. During this time, we have refined our approach to ensure that we remain at the forefront of strategic thinking, quant methodology, technology and execution. The addition of a Minimum Variance US equity portfolio will provide Unigestion’s clients with exposure to US equities at a lower level of volatility than the one recently experienced in the markets.”