Paris-based quantitative asset manager Tobam has launched a new global equity fund as investors seek safer and less volatile ways to access the asset class.
The Tobam Maximum Diversification World Equity Protected fund combines the firm’s maximum diversification methodology with an option-based overlay to hedge equity market risk.
Tobam’s systematic methodology adapts its option overlay to market conditions, allowing it to optimize the trade-off between hedging costs and hedging effectiveness.
The company said the launch of the fund reflects continued investor demand for equity market exposure, while taking into account the continued uncertainty, volatility and low interest rate environment.
Christophe Roehri, Deputy Managing Director of Tobam, said: “Tobam has been speaking out for some time on the risks associated with the extreme concentration of global stock markets, combined with the longest bull stock market ever.
“This protected equity investment solution is very timely in this environment, and the initial allocation of over $100 million confirms that.”
The new fund is part of the company’s strategic initiative to create a toolkit of optimized hedging techniques adaptable to different client risk budgets and regulatory capital requirements.