Wells Fargo AM launches UCITS funds

18 Dec, 2017

Wells Fargo Asset Management (WFAM) has announced the launch of the Global Low Volatility Equity Fund and the Global Long/Short Equity Fund, each a sub-fund of the Wells Fargo (Lux) Worldwide Fund. The Global Low Volatility Equity Fund was launched on 19 June 2017, and the Global Long/Short Equity Fund was launched on 31 July 2017. Both funds are UCITS compliant and are available to institutional and retail investors.

The Global Low Volatility Equity Fund and the Global Long/Short Equity Fund are both subadvised by Analytic Investors, LLC, and led by Portfolio Managers Harindra de Silva, Dennis Bein and David Krider. A pioneer in low-volatility investing, Analytic Investors has researched and managed low-volatility investment strategies since 2004.

De Silva is an industry veteran with 30 years of investment experience, as is Bein with 26 years. Krider has 14 years of investment experience.

The Global Low Volatility Equity Fund seeks to produce returns that are similar to those of the MSCI World Index. The fund invests in a diversified portfolio of equity securities across all capitalisation sizes, sectors and industries but with low forecasted volatility.

The Global Long/Short Equity Fund seeks long-term capital appreciation whilst preserving capital in down markets. The fund invests at least two-thirds of its total assets in equity securities of companies located in no fewer than three countries, which may include the United States.

Ludger Peters, Managing Director, International Business Development, WFAM: “We are pleased to include Analytic Investors’ expertise in factor-based, risk-controlled solutions to our international product lineup. We believe the addition of these low-volatility funds provides clients with enhanced strategies to help meet their investment objectives.”

Both funds are available in Austria, Finland, France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Singapore, Spain, Sweden, Switzerland and the United Kingdom. The funds anticipate registration in Hong Kong and South Korea in the future.

Investment strategies

Global Low Volatility Fund
The subadviser employs a quantitatively based investment process that evaluates multiple fundamental, statistical and technical characteristics covering share valuation, growth, return history, risk, liquidity and economic sensitivity.

Global Long/Short Equity
The subadviser employs a strategy of gaining long and short exposure in equity securities of issuers in developed markets. The fund considers developed markets to include countries included in the MSCI World Index. The fund will gain long exposure to equity securities that the subadviser believes will outperform the equity market on a risk-adjusted basis and will gain short exposure to equity securities that the subadviser believes will underperform the equity market on a risk-adjusted basis. The subadviser uses a quantitatively based investment process that evaluates multiple fundamental, statistical and technical characteristics covering share valuation, growth, return history, risk, liquidity and economic sensitivity.