UK - London & Capital (L&C) plans to launch three new quant funds for institutional investors.
L&C, which manages US$2bn in assets, is set to roll out three quant funds in the next 12 months, a MarketGrader250, a MarketGrader Growth and a MarketGrader Value.
The funds will be based on MarketGrader indices which have consistently outperformed S&P’s accumulative performance over the last few years.
MarketGrader is a financial research firm based in the US that analyses the US economy, the products take in 10 economic sectors and 6,000 listed North American companies.
Alan Easter, marketing director at L&C, said: “We like quant products, particularly in US equity, for a number of reasons. Firstly, it works as a mathematical algorithm that does not involve a fund manager at all anywhere in the process.
“But also, if your managing funds on behalf of clients, how do you consistently beat the benchmark. If you cannot beat your index, what’s the point of buying the fund, so we use a quant process to do this.
“That also means we can take the product to market very cheaply.
“Since 1991, L&C has never had a negative year in Sterling terms, and only once in US terms, and that’s a statement that a lot of companies and fund managers can never make.”
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